The 2018 Equity Incentive Plan, effective September 12, 2018, as amended and restated on August 19, 2019 (the “2018 Equity Incentive Plan”) authorizes the grant of (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Stock Appreciation Rights, (iv) Restricted Stock Awards, (v) Restricted Stock Unit Awards, (vi) Performance Stock Awards, (vii) Performance Cash Awards, and (viii) Other Stock Awards. Initially, a maximum of 70,000 shares of common stock were reserved for potential issuance pursuant to awards under the 2018 Equity Incentive Plan. When the plan was amended and restated, an additional 2,500 shares were reserved for potential issuance pursuant to awards under the 2018 Equity Incentive Plan. The number of shares of the Company’s common stock available for grant and issuance under the 2018 Equity Incentive Plan is subject to an annual increase on July 1 of each calendar year, by an amount equal to two percent (2%) of the then outstanding shares of the Company’s common stock (the “2018 Plan Evergreen Provision”). As a result of the 2018 Plan Evergreen Provisions, a maximum of 4,632 unissued shares of common stock is reserved for potential issuance pursuant to awards under the 2018 Equity Incentive Plan as of June 30, 2025. On July 1, 2025, the number of shares of the Company’s common stock available for grant and issuance under the 2018 Equity Incentive Plan increased by 15,283 shares. Unless sooner terminated, the 2018 Equity Incentive Plan will continue in effect for a period of 10 years from its effective date. There were no options issues to officers during the six months ended June 30, 2025 and the fiscal year ending December 31, 2024.

The fair value of each option and equity warrant award is estimated on the date of grant using a Black-Scholes-Merton option pricing valuation model. Expected volatility is based on the historical volatility of the price of the Company’s stock. The risk-free interest rate is based on U.S. Treasury issues with a term equal to the expected life of the option and equity warrant. The Company uses historical data to estimate expected dividend yield, expected life and forfeiture rates. During the six months ended June 30, 2024 and 2023, there were no options granted.

Stock options activity during the three months ended June 30, 2025, was as follows:

Stock-based compensation expense was approximately $0 and $80,000 for the three months ended June 30, 2025 and 2024, resulting in a decrease in general and administrative expenses, respectively.

Employee stock option activity during the six months ended June 30, 2025, was as follows:

Stock option activity for employees:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding January 1, 2025		24,076		$	242.17		8.70	$	—
Granted		—			—		—		—
Forfeited		(7	)		2,771.48		—		—
Expired		(6	)		13,200		—		—
Outstanding June 30, 2025		24,063		$	238.33		8.70	$	—
Vested and expected to vest June 30, 2025		24,063		$	238.33		8.70	$	—
Exercisable June 30, 2025		24,063		$	156.62		7.26	$	—

Stock option activity for non-employees:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding January 1, 2025		8,850	$	187.59		9.23	$	—
Granted		—		—		—		—
Forfeited		—		—		—		—
Expired		—		—		—		—
Outstanding June 30, 2025		8,850	$	187.59		9.23	$	—
Vested and expected to vest June 30, 2025		8,850	$	187.59		9.23	$	—
Exercisable June 30, 2025		8,850	$	161.71		9.51	$	—

Stock-based compensation expense was approximately $60,000 and $160,000 for the six months ended June 30, 2025 and 2024, respectively.

On June 30, 2025, and 2024, respectively, there was approximately $0 and $134,000 of unrecognized equity-based compensation cost related to options granted under the Equity Incentive Plan.