STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

10. STOCK-BASED COMPENSATION

2025 Stock Plan

The 2025 Plan, which was adopted by the Company's Board of Directors in May 2025 and approved by the Company's stockholders in June 2025, became effective upon the consummation of the IPO. Upon the effectiveness of the 2025 Plan, the 2005 Plan was terminated and no further grants may be made under the 2005 Plan. The Company's 2025 Plan provides for the grant of incentive stock options, non-qualified stock options, stock appreciation rights, stock bonuses, restricted stock, stock units and other forms of awards including cash awards to its officers, directors, employees, consultants and advisors of the Company.

A total of 4,204,204 shares of the Company’s common stock were initially authorized for issuance with respect to awards granted under the 2025 Plan. Shares subject to outstanding awards granted under the 2005 Plan that are not paid, delivered or exercised before they expire or are canceled or terminated will be available for award grants under the 2025 Plan. In addition, per the terms of the 2025 Plan, the share limit will automatically increase on the first trading day in January of each year (commencing with 2026) by an amount equal to (1) 4% of the total number of shares of our common stock that are issued and outstanding on the last trading day in December in the prior year, or (2) lesser number as determined by the Company’s Board of Directors. Any shares subject to awards granted under the 2025 Plan that are not paid, delivered or exercised before they expire or are canceled or terminated, fail to vest, as well as shares used to pay the purchase or exercise price of awards or related tax withholding obligations, will become available for new award grants under the 2025 Plan. As of March 31, 2026, a total of 5,427,163 shares is available for award purposes under the 2025 Plan, including automatic increase on January 2, 2026 for 1,874,602 shares.

Amended and Restated 2005 Stock Plan

Pursuant to the 2005 Plan, the Company granted equity-based incentive awards prior to the IPO to the Company’s employees, directors, and consultants. The 2005 Plan permitted the grant of stock options (either Incentive Stock Options (“ISO” – employees only) or Non-Qualified Stock Options (“NQSO”)) and restricted stock awards (“RSA”); only ISOs and NQSOs were outstanding during the periods presented. Upon the effectiveness of the 2025 Plan, the 2005 Plan was terminated and no new awards were granted under the 2005 Plan after the

IPO, and there were no shares of common stock available for new award grants as of March 31, 2026 under the 2005 Plan.

Options granted to employees and non-employees contain only service vesting conditions, with typical grants vesting over a four-years period (vesting 25% on the first anniversary of the award and 1/48th each month thereafter) but may be granted with different vesting profiles, including options that are vested-at-grant (immediate vesting) and that are subject to different vesting schedules. Options granted to employees and non-employees expire no more than 10 years from the date of grant.

Stock Options

Stock option activity for the three months ended March 31, 2026 was as follows.


	Options on Common Stock	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Outstanding (vested and expected to vest) as of December 31, 2025	1,975,648	$	1.74	7.2	$	17,869
Granted	261,500	4.77
Exercised	(106,727)	0.36			739
Forfeited, canceled, or expired	(1,690)	0.57
Outstanding (vested and expected to vest) as of March 31, 2026	2,128,731	$	2.18	7.7	$	11,314
Exercisable as of March 31, 2026	858,836	$	0.53	5.6	$	5,809

The aggregate intrinsic values are calculated as the differences between the exercise prices of the underlying options and the fair value of the Company’s common stock for options that were in the money. The Company had 1,269,895 unvested stock options outstanding as of March 31, 2026.

During the three months ended March 31, 2026 and 2025, 106,727 and 87,549 stock options were exercised and satisfied with newly-issued shares, resulting in cash proceeds of $39 and $34, respectively.

The following table summarizes Black-Scholes option pricing model weighted-average assumptions; for the three months ended March 31, 2025 ("none"), there were no grants.


	Three Months Ended March 31
	2026	2025
Risk-free interest rate	3.73 %	none
Expected term	5.54 years	none
Volatility of common stock	76.9 %	none
Expected dividend rate	— %	none

In estimating the fair value of the underlying common stock prior to IPO, the Company utilized a third party valuation firm whose analyses supported management's concluded estimate. Post IPO the fair value of the underlying common stock is based on the Company’s closing stock price on the date of grant.

Restricted Stock Units

On March 19, 2026 the Company granted a total of 24,270 restricted stock units (RSUs) to its six Non-Employee Directors utilizing a fair market value (FMV) of $6.18 per share of the Company's common stock on the grant date. These RSUs are scheduled to vest as to 50% of the RSUs on June 30, 2026 and as to the remaining 50% of the RSUs on December 31, 2026 subject to the Non-Employee Director's continued service on the Board through such vesting date.


	Restricted Stock Units	Weighted Average Grant Date Fair Value per Share
Outstanding (expected to vest) as of December 31, 2025	—
Granted	24,270	$	6.18
Vested	—

Outstanding (expected to vest) as of March 31, 2026	24,270

For the three months ended March 31, 2026, the Company recorded $37 in stock-based compensation related to RSUs.

Stock-Based Compensation Expense

Stock-based compensation, measured at the grant date, is recognized ratably over the requisite service period, using the straight-line method of expense attribution. Forfeitures are accounted for as a reduction in expense in the period in which they occur; no compensation cost is recorded for awards that do not vest. The Company recognized total stock-based compensation expense for employees and non-employees as components of the statement of operations and comprehensive loss as follows.


	Three Months Ended March 31,
	2026		2025
Costs of revenue	$	11	$	4
Selling and marketing	3		10
Research and development	90		43
General and administrative	230		95
Total stock-based compensation expense	$	334	$	152