Stock Options and Restricted Stock Units

3 Months Ended

Mar. 31, 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 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 $18,000 and $22,000 for the three months ended March 31, 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 March 31, 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		$	11.70
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, March 31, 2025		374,503		$	6.62
Exercisable at March 31, 2025		349,505		$	6.85

The following table summarizes information about outstanding stock options at March 31, 2025:

	Number			Wtd. Avg.
Range of Exercise Price	Outstanding		Wtd.Avg, Life	Exercise Price
$3.43 - $23.80		374,503	2.9 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 March 31, 2025, there was $3,000 of unrecognized compensation cost related to non-vested stock option awards, which is to be recognized over the remaining weighted average vesting period of 0.25 years.

The aggregate intrinsic value at March 31, 2025 was based on the Company’s closing stock price of $3.48 was $4,000. The aggregate intrinsic value at December 31, 2024 was 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 March 31, 2025 is presented below.

			Wtd. Avg.
			Grant Date
	Number of Units		Fair Value per Unit
Unvested units as of January 1, 2025		285,628	$	6.06
Granted during the period		-		-
Vested during the period		-		-
Forfeited During the period		-		-
Unvested Units as of March 31, 2025		285,628	$	6.06
Vested as of March 31, 2025		-	$	-

The Company recorded stock-based compensation expense of $417,000 and $0 for the three months ended March 31, 2025 and 2024, respectively, in its condensed consolidated statements of operations, and such amounts were included as a component of operating expenses.

As of March 31, 2025, there was $834,000 of unrecognized compensation cost related to non-vested RSUs, which is to be recognized over the remaining weighted average vesting period of 2.0 years.