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Stock Options and Restricted Stock Units
 6 Months Ended
Jun. 30, 2025
Stock Options and Restricted Stock Units [Abstract]  
Stock Options and Restricted Stock Units

Note 7. STOCK OPTIONS AND RESTRICTED STOCK UNITS

 

Stock-Based Compensation

 

Stock Options

 

In June 2025, the shareholders of the Company approved the amendment to the 2022 Equity Incentive Plan (“2022 Plan”) to increase the number of shares authorized to be used under the plan by 250,000 shares, from 650,000 shares to 900,000 shares.

 

In September 2024, the shareholders of the Company approved the amendment to the 2022 Equity Incentive Plan (“2022 Plan”) to increase the number of shares authorized to be used under the plan by 300,000 shares, from 350,000 shares to 650,000 shares.

 

The Company recorded stock-based compensation expense for certain employees and members of the Company’s Board of Directors of $4,000 and $12,000 for the three months ended June 30, 2025 and 2024, respectively, and $22,000 and $36,000 for the six months ended June 30, 2025 and 2024, respectively, in its condensed consolidated statements of operations, and such amounts were included as a component of operating expenses.

 

A summary of the status of the Company’s stock options as of June 30, 2025 and December 31, 2024, and changes during the periods then ended are presented below:

 

       Wtd. Avg. 
       Exercise 
   Options   Price 
Balance, January 1, 2024   461,870   $8.34 
Granted during the period   80,000    3.75 
Exercised during the period   (15,229)   3.45 
Terminated/Expired during the period   (109,638)   9.86 
Balance, December 31, 2024   417,003   $7.00 
Granted during the period   
-
    
-
 
Exercised during the period   
-
    
-
 
Terminated/Expired during the period   (42,500)   10.30 
Balance, June 30, 2025   374,503   $6.62 
           
Exercisable at June 30, 2025   374,503   $6.62 

 

The following table summarizes information about outstanding stock options at June 30, 2025:

 

   Number     Wtd. Avg. 
Range of Exercise Price  Outstanding  Wtd.Avg, Life  Exercise Price 
$3.43 - $23.80   374,503  2.6 Years  $6.62 

 

The following table summarizes information about outstanding stock options at December 31, 2024:

 

   Number     Wtd. Avg. 
Range of Exercise Price  Outstanding  Wtd.Avg, Life  Exercise Price 
$3.43 - $23.80   417,003  2.8 Years  $7.00 

  

As of June 30, 2025, there was $0 of unrecognized compensation cost related to non-vested stock option awards.

 

The aggregate intrinsic value at June 30, 2025 based on the Company’s closing stock price of $3.36 was $0. The aggregate intrinsic value at December 31, 2024 based on the Company’s closing stock price of $4.07 was approximately $121,000. The aggregate intrinsic value was calculated based on the positive difference between the closing market price of the Company’s Common Stock and the exercise prices of the underlying options.

Restricted Stock Units (“RSUs”)

 

A summary of the status of the Company’s RSUs as of June 30, 2025 is presented below.

 

       Wtd. Avg. 
       Grant Date Fair 
   Number of
Units		   Value per
Unit		 
Unvested units as of January 1, 2025   285,628   $6.06 
Granted during the period   
-
    
-
 
Vested during the period   (95,210)   6.06 
Forfeited during the period   
-
    
-
 
Unvested Units as of June 30, 2025   190,418   $6.06 
           
Vested as of June 30, 2025   
-
   $
-
 

 

The Company recorded stock-based compensation expense of $153,000 and $0 for the three months ended June 30, 2025 and 2024, respectively, and $570,000 and $0 for the six months ended June 30, 2025 and 2024, respectively, in its condensed consolidated statements of operations, and such amounts were included as a component of operating expenses.

 

The fair value of the RSUs vested during the second quarter ended June 30, 2025 was $318,000. All of the RSUs vested were net settled such that the Company withheld shares with a value equivalent to the employees’ obligation for the applicable income and other employment taxes, and remitted cash to the appropriate taxing authorities. The total shares withheld were 38,018, and were valued on their vesting date as determined by the Company’s closing stock price. Total payments to taxing authorities for tax obligations were $127,000.

 

As of June 30, 2025, there was $681,000 of unrecognized compensation cost related to non-vested RSUs, which is to be recognized over the remaining weighted average vesting period of 1.8 years.