Stock-Based Compensation

3 Months Ended

Mar. 31, 2026

Retirement Benefits [Abstract]

Stock-Based Compensation

Note 9 – Stock-Based Compensation

The Equity Incentive Plan provides for the Company to grant ISOs, and NSOs to employees, advisers, and directors. As of March 31, 2026 there were 15,111,193 equity awards authorized including 208,135 awards that were exercised to common stock.

Stock Options

Stock options represent the right to purchase shares of common stock on the date of exercise at a stated exercise price. The exercise price of a stock option generally must be at least equal to the fair market value of the common stock on the date of grant. Options vest over a period of time not to exceed 10 years from the grant date. For the three months ended March 31, 2026 and 2025, the Company recorded stock-based compensation expense of $203 and $82, respectively.

The terms of the plan permit certain option holders to exercise options before their options are vested, subject to certain limitations. Upon early exercise, the awards become subject to a restricted stock agreement. The shares of restricted stock granted upon early exercise of the options are subject to the same vesting provisions in the original stock option awards. Shares issued as a result of early exercise that have not been vested are subject to repurchase by the Company upon termination of the purchaser’s employment, at the price paid by the purchaser. Such shares are not deemed to be issued for accounting purposes until they vest.

The following table summarizes the Company’s stock option activity and related information:

	Number of Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value (in thousands)		Weighted Average Remaining Life
Outstanding as of December 31, 2025		7,336,803	$	0.76	$	3,716,928		8.71
Granted		7,589,660	$	1.31	$	-		-
Exercised during period		-	$	-		-		-
Forfeited		631	$	0.95	$	-		-
Expired		12,870	$	1.15		-		-
Outstanding as of March 31, 2026		14,912,962	$	1.04	$	3,716,511		9.20

The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s shares of common stock for those options that had exercise prices lower than the fair value of the Company’s shares of common stock.

The weighted-average grant date fair value of options granted was $1.04 and $0.42 for the years ended March 31, 2026 and 2025, respectively.

As of March 31, 2026 and 2025, the total remaining unrecognized compensation expense related to non-vested stock options was $4,672 and $308, respectively, which will be amortized over the weighted-average period of 3.37 years and 0.94 years, respectively.

Total stock-based compensation expense for the three months ended March 31, 2026 and 2025 was as follows (in thousands):

	Three Months Years Ended
	March 31, 2026		March 31, 2025
Cost of sales		15		4
Research and development		33		36
Sales and marketing		7		16
General and administrative		148		26
Total stock-based compensation expense		203		82