Quarterly report [Sections 13 or 15(d)]

Stock-Based Compensation

v3.25.2
Stock-Based Compensation
 3 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

 

Note 7. Stock-Based Compensation

 

For the three months ended June 30, 2025 and 2024, the Company incurred $57,000 and $107,000 of stock-based compensation expense, respectively. All stock-based compensation incurred is included in selling, general and administrative expense in the accompanying condensed consolidated statements of comprehensive loss.

 

For the three months ended June 30, 2025 the Company estimated the fair value of employee and non-employee stock options using the Black-Scholes option pricing model. The fair value of employee stock options was estimated using the following weighted-average assumptions:

 

     
    Weighted -  
    Average  
    Assumptions  
Fair value of the Company’s common stock on date of grant   $ 2.85  
Expected term     5 years  
Risk-free interest rate     4.38%  
Dividend yield     0%  
Volatility     112.56%  
Fair value of options granted   $ 2.32  

 

At June 30, 2025, there was unrecognized compensation costs of $233,000 related to stock options which is expected to be recognized over a weighted-average amortization period of 1.33 years.

 

Stock options award activity is as follows:

           
    Number of
Shares		     Weighted-
Average
Exercise Price		  
Outstanding at April 1, 2025     73,081     $ 43.27  
Options granted     9,000       2.85  
Options exercised     (8,500 )     2.68  
Options forfeited     (1,074 )     79.15  
Options expired     –       –  
Outstanding at June 30, 2025     72,507     $ 42.47  
Exercisable at June 30, 2025     39,177     $ 73.86  

 

The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s common stock, or $2.85 per share at June 30, 2025.

 

Restricted stock award activity is as follows:

           
   

Number of

Shares

    

Weighted

Average Award

Date Fair Value

per Share

  
Unvested restricted stock awards outstanding at April 1, 2025     45,000     $ 2.68  
Restricted stock awards granted     60,500       2.85  
Restricted stock awards vested     –       –  
Unvested restricted stock awards outstanding at June 30, 2025     105,500     $ 2.78  

 

A tax benefit of $23,000 has been recognized as a result of non-qualified stock options exercised during the three months ended June 30, 2025.

 

The Company issues new shares of common stock upon exercise of stock options or release of restricted stock awards.