STOCK TRANSACTIONS

9 Months Ended

Sep. 30, 2025

STOCK TRANSACTIONS

STOCK TRANSACTIONS

NOTE 5 – STOCK TRANSACTIONS

a. During the nine months ended September 30, 2025, the Company issued 908,000 shares of Common Stock in connection with the exercise of warrants issued in 2020 generating proceeds equal to approximately $2.1 million from such exercises. All such exercises were effected during the first quarter of 2025 and all unexercised warrants expired on March 11, 2025. Accordingly, as of March 12, 2025, no warrants remained outstanding.

b. During the nine months ended September 30, 2025, the Company sold, in the aggregate, 2,775,215 shares of Common Stock under the Sales Agreement. The Company generated gross proceeds equal to approximately $7.0 million in connection with such sales (issuance costs were $0.2 million). All such sales were effected during the first and second quarters of 2025.

c. During the nine months ended September 30, 2025, the Company issued, in the aggregate, 248,625 shares of Common Stock in connection with the exercise of options to purchase 248,625 shares of Common Stock by certain current and former employees of the Company. The Company received cash proceeds equal to $0.2 million in connection with such exercises. All such exercises were effected during the third quarter of 2025.

d. During the three months ended September 30, 2025, the Company granted, with the approval of the Company’s compensation committee, 10-year options to purchase 1,448,990 shares of Common Stock, in the aggregate, to certain of the Company’s officers, directors, other employees and a consultant under the Company’s Amended and Restated 2006 Employee Stock Incentive Plan, as amended (the “Plan”). The options generally vest over a three-year period in 12 equal quarterly increments. Vesting of the options granted to executive officers is subject to automatic acceleration in full upon a Corporate Transaction or a Change in Control, as those terms are defined in the Plan, and are subject to certain other terms and conditions. The Company estimated the aggregate fair value of the options on the applicable dates of grant

using the Black-Scholes option-pricing model to be approximately $1.5 million using the following assumptions (weighted average): stock price equal to $1.56, exercise price equal to $1.56, dividend yield of 0%, expected volatility of 73.64%, risk-free interest rate of 3.9% and expected life in years, 5.75.

e. During the three months ended September 30, 2025, the Company granted, with the approval of the Company’s compensation committee, 559,210 shares of restricted Common Stock, in the aggregate, to certain of the Company’s officers, directors, other employees and a consultant under the Plan. The shares of restricted Common Stock generally vest over a three-year period in 12 equal quarterly increments, with 52,910 of such shares of restricted Common Stock fully vested upon grant (September 22, 2025). Vesting of restricted Common Stock granted to executive officers is subject to automatic acceleration in full upon a Corporate Transaction or a Change in Control, as those terms are defined in the Plan, and are subject to certain other terms and conditions. The Company estimated the aggregate fair value of the restricted stock on the applicable dates of grant to be approximately $0.9 million using stock prices equal to $1.64 and $1.89.