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Note 10 - Stockholders' Equity
3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Equity [Text Block]

Note 10 Stockholders Equity

 

Stock-Based Compensation

 

The Company granted options to purchase 429,328 shares of the Company’s stock during the three months ended March 31, 2024. 

 

The Company’s stock-based compensation expense, including options and restricted stock by category is as follows:

 

  

Three Months Ended

 
  

March 31,

 
  

2024

  

2023

 

Cost of revenue

 $1  $1 

Engineering and product development

  56   73 

Marketing and sales

  62   131 

General and administrative

  146   381 
  $265  $586 

 

During the three months ended March 31, 2023, the Company recorded incremental stock-based compensation of approximately $0.2 million as a result of modifications of certain stock option awards.  The modifications related to extending the contractual life of certain stock options by five years for four grantees whose awards were scheduled to expire during 2023.  In addition, the amount of time to exercise vested stock options upon termination for one grantee was extended from 90 days to 24 months.   

 

As of March 31, 2024, there was approximately $1.2 million of total unrecognized compensation cost related to unvested options. That cost is expected to be recognized over a weighted average period of 2.14 years.  

 

Options granted under the Company’s stock incentive plans were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values:

 

  

Three Months Ended

 
  

March 31,

 
  

2024

  

2023

 

Average risk-free interest rate

  4.36%  4.19%

Expected dividend yield

 

None

  

None

 

Expected life (average, in years)

  3.1   3.0 

Expected volatility

  83.35%-113.87%   72.69%-77.53% 

Weighted average exercise price

 $1.52  $2.16 

Weighted average fair value

 $0.86  $1.14 

 

The Company’s 2024 and 2023 average expected volatility and average expected life is based on the average of the Company’s historical information. The risk-free rate is based on the rate of U.S. Treasury zero-coupon issues with a remaining term equal to the expected life of option grants. The Company has paid no dividends on its common stock in the past and does not anticipate paying any dividends in the future.

 

The Company did not grant any shares of restricted stock during the three-months ended March 31, 2024 or 2023.  The Company’s restricted stock awards typically vest in either one year or three equal annual installments with the first installment vesting one year from the grant date. The grant date fair value for restricted stock awards is based on the quoted market value of Company stock on the grant date.

 

A summary of stock option activity for all stock option plans for the period ended March 31, 2024 is as follows:

 

  

Number of

  

Weighted Average

  

Intrinsic

 
  

Options

  

Exercise Price

  

Value

 

Outstanding as of December 31, 2023

  2,897,663  $5.57  $252 

Granted

  429,328  $1.52    

Exercised

    $  $ 

Cancelled

  (311,067) $9.73     

Outstanding as of March 31, 2024

  3,015,924  $4.56  $206 

Options Exercisable as of December 31, 2023

  1,593,935  $8.08  $30 

Options Exercisable as of March 31, 2024

  1,516,875  $7.18  $26