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Stock Based Compensation
 9 Months Ended
Sep. 30, 2025
Stock Based Compensation  
Stock-Based Compensation

Note 9 – Stock-Based Compensation

 

We maintain a stock-based compensation program intended to attract, retain and provide incentives for talented employees and directors and align stockholder and employee interests. During the nine months ended 2025 and 2024, we granted restricted stock units (“RSUs”) from the 2017 Equity Compensation Plan, as amended (“2017 ECP”), and the 2025 Omnibus Incentive Compensation Plan (“2025 Plan”). RSU vesting periods are generally up to three years and/or based upon achieving certain financial targets.

 

On March 21, 2025, the Board of Directors resolved to adopt the 2025 Plan, subject to the approval of our stockholders at the annual meeting held on May 22, 2025. The stockholders approved the adoption of the 2025 Plan as the successor to the 2017 ECP. All awards granted under the 2017 ECP prior to approval of the 2025 Plan remain outstanding and continue in full force and effect under the terms of the 2017 ECP; however, no new awards may be granted under the 2017 ECP following the effective date of the 2025 Plan. At September 30, 2025, there were 764,733 shares subject to outstanding awards under the 2017 ECP and 1,098,320 shares authorized and available for future grant under the 2025 Plan.

 

 As of September 30, 2025,he total historical authorization under the 2017 ECP was 792,234 shares, and the total authorization under the 2025 Plan is 1,092,385 shares.

 

Compensation Expense

 

For the three and  nine months ended September 30, 2025, we recorded stock-based compensation expense for all equity incentive plans of $246,814 and $842,887, respectively. For the three and nine months ended September 30, 2024, we recorded stock-based compensation expense for all equity incentive plans of $463,189 and $1,178,182, respectively. Total compensation cost not yet recognized at September 30, 2025 was $1,417,421 which will be recognized over the next three years.

The following table summarizes the stock grants outstanding under 2017 ECP and 2025 Plan as of September 30, 2025:

 

 

 

Options Outstanding

 

 

RSUs

Outstanding

 

 

Options and RSUs Exercised

 

 

Available Shares

 

 

Total Awards Authorized

 

Total

 

 

—

 

 

 

792,234

 

 

 

—

 

 

 

1,092,385

 

 

 

1,884,619

 

 

The fair value of RSUs is determined using market value of the common stock on the date of the grant. The fair value of stock options is determined using the Black-Scholes-Merton valuation model. The use of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense and include the expected life of the option, stock price volatility, risk-free interest rate, dividend yield, exercise price, and forfeiture rate. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. The forfeiture rate, which is estimated at a weighted average of 0% of unvested options outstanding, is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate.

 

The following table summarizes the weighted average assumptions for our granted RSUs for the nine months ended September 30, 2025:

 

 

 

RSUs

 

 

 

Number of

Shares

 

 

Weighted Average Grant Date Fair Value

 

Outstanding, beginning of period

 

 

1,321,620

 

 

$3.31

 

Granted

 

 

86,000

 

 

$4.67

 

Vested

 

 

(512,851)

 

$3.48

 

Cancelled

 

 

(102,535)

 

$3.67

 

Outstanding, end of period

 

 

792,234

 

 

$3.31