Note 5 - Stock Based Compensation

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

5. Stock Based Compensation

The 2015 Stock Plan provides for the grant of stock options, stock awards, stock unit awards, and stock appreciation rights to employees, non-employee directors and consultants. In May 2023 and 2022, the 2015 Stock Plan (the Plan) was amended to authorize an additional 116,667 shares and 133,334 shares, respectively, such that 366,667 total shares may be issued under the Plan. As of September 30, 2024, there were 2,853 shares remaining to be issued under the 2015 Stock Plan. In October 2024, the Company's shareholders approved the 2024 Stock Plan, which authorizes a total of 1,000,000 shares of common stock, which will replace the 2015 Stock Plan. 

Stock-based compensation expense for the three and nine months ended September 30, 2024 and 2023, respectively, is as follows (table in thousands): 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
General and administrative	$	259	$	346	$	980	$	1,094
Research and development		94		147		319		411
Total stock-based compensation expense	$	353	$	493	$	1,299	$	1,505

The Company recorded stock compensation expense for the equity classified warrants relating to non-employee consulting agreements of $26,000 and $50,000 for the three months ended  September 30, 2024 and 2023, respectively, and $94,000 and $142,000 for the nine months ended September 30, 2024 and 2023 , respectively, which are included in the table above. At  September 30, 2024, there was $283,000 of unrecognized stock compensation expense related to the Company's equity classified warrants.

In October and November 2024, the Company granted 545,000 stock options, 267,500 shares of restricted stock units, 73,334 shares of performance based restricted stock units, and 36,000 in warrants to employees and contractors. These stock options have an exercise price ranging from $2.45 to $2.54 and vest over a one-to-four year period from the grant date on a straight-line basis over the requisite service period. The restricted stock units vest annually in four equal installments.