Note 5 - Stock-based Compensation

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

5. STOCK-BASED COMPENSATION

At March 31, 2025, we had two stock-based compensation plans in effect. We record compensation cost related to unvested stock awards by recognizing the unamortized grant date fair value on a straight-line basis over the vesting periods of each award. We have estimated forfeiture rates based on our historical experience. We recorded $473,000 and $160,000 of stock-based compensation expense during the quarters ended March 31, 2025 and 2024, respectively.

Stock Options

As of March 31, 2025, there was no unrecognized compensation cost related to stock options. There were no options exercised during the three months ended March 31, 2025 or 2024. No options were granted during the three months ended March 31, 2025 or 2024. The following table summarizes options as of March 31, 2025:

Options Outstanding and Exercisable:
Range of Exercise Price			Number Outstanding		Wgt. Avg. Contractual Life Remaining (in years)		Wgt. Avg. Exercise Price		Aggregate Intrinsic Value
$3.50	-	$3.86		13,000		2.0	$	3.75	$	194,490
$7.80				8,000		3.2	$	7.80	$	87,280
$19.99				30,000		3.8	$	19.99	$	–
$39.11				8,000		4.2	$	39.11	$	–
$3.50	-	$39.11		59,000		3.4	$	17.35	$	281,770

The estimated fair value of options granted is calculated using the Black-Scholes option pricing model with assumptions as previously disclosed in our 2024 Form 10-K.

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the first quarter of 2025 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on March 31, 2025. The amount of aggregate intrinsic value will change based on the market value of the Company’s stock.

Restricted Stock Units

Restricted Stock Units, or RSUs, generally vest at the end of a three-year vesting period. A summary of the Company’s RSU activity was as follows:

	Number of Restricted Stock Units			Weighted-average grant date fair value per share
Balance as of December 31, 2024		479,998		$	12.59
Granted		–			–
Vested		–			–
Canceled and forfeited		(2,693	)		12.81
Balance as of March 31, 2025		477,305		$	12.58

Stock compensation expense was classified as follows for the three months ended March 31, 2025 and 2024:

Three months ended March 31, (in thousands)	2025		2024
General and administrative expense	$	38	$	160
Development expense		435		–
Total	$	473	$	160

As of March 31, 2025, unrecognized compensation costs related to unvested RSUs was $4.0 million, which we expect to recognize over a weighted-average period of 2.1 years.