| STOCK-BASED COMPENSATION |
NOTE 6 – STOCK-BASED COMPENSATION
STOCK OPTIONS
The following is a summary of stock option activity during the three months ended March 31, 2026:
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Number of
options
outstanding |
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Weighted
average
exercise
price |
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Average
remaining
contractual life
(in years) |
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Aggregate
intrinsic value
(in thousands) |
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Outstanding – December 31, 2025 |
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9,119,589 |
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$ |
2.15 |
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|
7.85 |
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$ |
4,305 |
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Options granted |
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859,863 |
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|
1.45 |
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Options exercised |
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— |
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— |
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Options cancelled |
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— |
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— |
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Outstanding – March 31, 2026 |
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9,979,452 |
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$ |
2.09 |
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|
7.79 |
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$ |
351 |
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Exercisable – March 31, 2026 |
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5,882,959 |
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|
2.21 |
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7.14 |
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|
324 |
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The Company estimates the fair values of stock options using the Black-Scholes option-pricing model on the date of grant. For the three months ended March 31, 2026 and 2025, the assumptions used in the Black-Scholes option pricing model, which was used to estimate the grant date fair value per option, were as follows:
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Three months ended March 31, |
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2026 |
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2025 |
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Weighted-average Black-Scholes option pricing model assumptions: |
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Volatility |
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111.82% - 111.87% |
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111.06% - 116.28% |
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Expected term (in years) |
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5.25 - 6.08 |
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5.00 - 6.08 |
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Risk-free rate |
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3.76% - 3.96% |
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4.34% - 4.41% |
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Expected dividend yield |
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— |
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— |
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Weighted average grant date fair value per share |
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$1.17 - $1.23 |
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$1.85- $1.99 |
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RESTRICTED STOCK UNITS
The following is a summary of RSU’s awards activity during the three months ended March 31, 2026:
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Three months ended March 31, 2026 |
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Numbers of Shares |
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Weighted Average Grant Date Fair value |
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Non-Vested at beginning of period |
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457,522 |
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$ |
1.30 |
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Shares granted |
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|
87,930 |
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$ |
1.43 |
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Shares vested |
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(43,964 |
) |
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$ |
1.43 |
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Non-vested at the end of period |
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501,488 |
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$ |
1.31 |
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STOCK BASED COMPENSATION
The following is a summary of stock-based compensation expense (rounded):
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Three months ended March 31, |
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2026 |
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2025 |
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Selling, general and administrative |
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Stock option expense |
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$ |
569,000 |
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$ |
207,000 |
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RSU expense |
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209,000 |
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146,000 |
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Total Selling, general and administrative expense |
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778,000 |
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|
353,000 |
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Research and development |
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Stock option expense |
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439,000 |
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|
747,000 |
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RSU expense |
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|
— |
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|
|
9,000 |
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Total research and development expense |
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|
439,000 |
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|
756,000 |
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Total Stock Based Compensation Expense |
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$ |
1,217,000 |
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$ |
1,109,000 |
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As of March 31, 2026, total compensation cost not yet recognized related to unvested stock options and unvested RSUs was approximately $6.0 million and $0.2 million, respectively, which is expected to be recognized over a weighted-average period of 2.3 years and 0.27 years, respectively.
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