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Note 11 - Stock-Based Compensation

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Shareholders' Equity and Share-Based Payments [Text Block]

11.

Stock-Based Compensation

Stock-based compensation expense for the three and nine months ended September 30, 2025 and 2024 was allocated as follows:

		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2025				2024				2025				2024
Cost of revenues		$	18			$	(30	)		$	79			$	88
Sales and marketing expenses			122				164				346				453
General and administrative expenses			104				795				703				2,493
Research and development expenses			80				124				268				345
Total stock-based compensation		$	324			$	1,053			$	1,396			$	3,379

As of September 30, 2025, the total compensation costs related to unvested awards not yet recognized was $1.8 million and the weighted average period over which such costs are expected to be recognized is approximately 1.7 years. The Company did not capitalize any stock-based compensation.

Restricted stock unit (“RSU”) activity for the nine months ended September 30, 2025 was as follows:

										Market-								Performance-
		Time-Based								Based								Based
		Restricted				Grant Date				Restricted				Grant Date				Restricted				Grant Date
		Stock Units				Fair Value				Stock Units				Fair Value				Stock Units				Fair Value
Balance at December 31, 2024			1,378,995			$	3.51				558,958			$	2.61				375,895			$	4.19
Granted			1,237,821				0.45				500,000				0.67				-				-
Vested			(536,145	)			3.57				-				-				-				-
Forfeited			(369,499	)			3.56				(192,473	)			2.61				(211,815	)			4.19
Balance at September 30, 2025			1,711,172			$	1.27				866,485			$	1.49				164,080			$	4.19

The aggregate fair value of RSUs that vested during the nine months ended September 30, 2025, and 2024 was $0.3 million and $0.5 million, respectively. Unvested shares related to market-based and performance-based vesting conditions are reflected at 100% of their target vesting amount in the table above. Actual vesting could range from zero to 150% of their target amounts.

Performance-based RSU awards are contingent on the achievement of certain performance metrics. Compensation cost associated with performance-based RSUs are recognized based on the estimated number of shares that the Company ultimately expects will be earned. If the estimated number of shares to be earned is revised in the future, then stock-based compensation expense will be adjusted accordingly.

The weighted average estimated fair value of the market condition restricted stock awards that were granted during the nine months ended September 30, 2025 was $0.67 per unit. The estimate of the fair value was determined using a Monte-Carlo valuation simulation, which included the following assumptions:

Volatility			89.8	%
Risk-free interest rate			3.7	%
Correlation coefficient			36.5	%
Dividend yield			-	%

Stock option activity for the nine months ended September 30, 2025 was as follows:

		Number of Options				Weighted-Average Exercise Price				Weighted-Average Remaining Contractual Term				Aggregate Intrinsic Value (in thousands)
Outstanding and exercisable at December 31, 2024			827,458			$	3.24
Cancelled/Forfeited			(660,755	)			3.20
Outstanding and exercisable at September 30, 2025			166,703			$	3.39				2.4			$	-

There is no aggregate intrinsic value at September 30, 2025 because the Company’s closing stock price of $0.44 is below the exercise price of the outstanding options.