STOCK BASED AWARDS

9 Months Ended

Sep. 30, 2025

Share-Based Payment Arrangement [Abstract]

STOCK BASED AWARDS

NOTE 6. STOCK BASED AWARDS

Stock-based compensation expense of $134 and $127 for the three months ended September 30, 2025 and 2024, respectively, and $369 and $334 for the nine months ended September 30, 2025 and 2024, respectively, was reported in the condensed consolidated statements of operations within general and administrative expenses.

Stock Options

Under the 2017 Stock Incentive Plan (“2017 Plan”), as amended, there are an aggregate of 775,000 shares authorized for issuance.

We granted no and 43,382 service-based stock options during the three and nine months ended September 30, 2025. We granted 1,000 and 23,000 service-based stock options during the three and nine months ended September 30, 2024, respectively. Weighted average stock option fair value assumptions and the weighted average grant date fair value of stock options granted were as follows:

	2025			2024
Stock option fair value assumptions:
Risk-free interest rate		4.14	%		4.38	%
Expected life (years)		6.4			6.0
Dividend yield		-	%		-	%
Expected volatility		58	%		58	%
Weighted average grant date fair value of stock options granted	$	5.21		$	6.49

Total compensation expense related to stock options was $84 and $206 for the three and nine months ended September 30, 2025, respectively. Total compensation expense related to stock options was $61 and $184 for the three and nine months ended September 30, 2024, respectively. As of September 30, 2025, there was $680 of unrecognized compensation related to stock options which will be recognized over a weighted average period of 2.4 years.

Following is a summary of stock option activity as of and for the nine months ended September 30, 2025 and 2024:

	Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding – December 31, 2023		458,700		$	6.63		6.53	$	1,432
Granted		23,000			11.08
Exercised		(5,500	)		5.42
Forfeited		(12,400	)		10.13
Outstanding – September 30, 2024		463,800		$	6.78		5.94	$	2,301
Outstanding – December 31, 2024		453,400		$	6.79		5.70	$	1,654
Granted		43,382			8.73
Exercised		(1,200	)		3.98
Forfeited		(10,400	)		8.22
Outstanding – September 30, 2025		485,182		$	6.91		5.34	$	1,244
Exercisable on September 30, 2025		310,200		$	5.36		3.9	$	1,223

Restricted Stock Units

Total compensation expense related to restricted stock units (“RSUs”) was $50 and $163 for the three and nine months ended September 30, 2025, respectively. Total compensation expense related to RSUs was $66 and $150 for the three and nine months ended September 30, 2024, respectively. During the nine-month periods ended September 30, 2025 and 2024, we granted 43,664 and 15,141 RSUs, respectively, at an average grant price per share of $8.73 and $11.06, respectively, under our 2017 Stock Incentive Plan to non-employee directors which vest over two years. As of September 30, 2025, total unrecognized compensation expense related to the RSUs was $306, which will vest over a weighted average period of 1.6 years.

Following is a summary of RSU activity as of and for the nine months ended September 30, 2025 and 2024:

	Shares			Weighted- Average Remaining Vesting Term (in years)		Aggregate Intrinsic Value
Outstanding – December 31, 2023		27,000			1.0	$	254
Granted		15,141
Vested		(16,500	)
Forfeited		(1,500	)
Outstanding – September 30, 2024		24,141			0.6	$	283
Outstanding – December 31, 2024		24,141			0.3	$	248
Granted		43,664
Vested		(24,141	)
Forfeited		-
Outstanding – September 30, 2025		43,664			1.6	$	394