Note 12. Stock-Based Compensation Awards

 

The following table sets forth the total stock-based compensation cost included in the Company’s consolidated statements of operations for the years ended December 31, 2024 and 2023:

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

2024

 

 

2023

Research and development

 

 

 

 

$

157

 

$

160

General and administrative (*)

 

 

 

 

 

730

 

 

292

Total

 

 

 

 

$

887

 

$

452

(*) - Includes approximately $72,000 in stock bonuses pursuant to the 2022 Omnibus Incentive Plan.

Equity incentive plan - summary

2022 Omnibus Incentive Plan

 

The Company’s Board of Directors adopted, and the shareholders approved the 2022 Omnibus Incentive Plan to provide long-term incentive for its employees and non-employee service providers. The vesting of stock options is stated in each individual grant agreement, which is generally either one or four years. Options granted expire 10 years after the date of grant.

 

2019 Stock Incentive Plan

 

The Company’s Board of Directors adopted the 2019 Stock Incentive Plan on February 25, 2019, to provide long-term incentive for its employees and non-employee service providers. The Stock Incentive Plan was terminated on October 28, 2022, and no further awards were granted under such plan.

Stock Options

Option activity for the year ended December 31, 2024, is as follows:

2022 Omnibus Incentive Plan - Options

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

Weighted

 

 

 

 

Average

 

 

 

 

 

Average

 

 

Total

 

Remaining

 

 

 

 

 

Exercise

 

 

Intrinsic

 

Contractual

($ in thousands)

 

Options

 

 

Price

 

 

Value

 

Life (Years)

 

 

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2023

 

14,045

 

$

46.00

 

$

 

9.3

Exercised

 

 

 

 

 

 

 

 

 

Issued

 

 

 

 

 

 

 

 

 

Forfeited / cancelled

 

(931)

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2024

 

13,114

 

$

46.00

 

$

 

8.5

Vested and exercisable as of December 31, 2024

 

13,114

 

$

 

$

 

8.5

2019 Stock Incentive Plan - Options

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

Weighted

 

 

 

 

Average

 

 

 

 

 

Average

 

 

Total

 

Remaining

 

 

 

 

 

Exercise

 

 

Intrinsic

 

Contractual

($ in thousands)

 

Options

 

 

Price

 

 

Value

 

Life (Years)

 

 

 

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2023

 

9,797

 

$

46.00

 

$

 

6.7

Exercised

 

 

 

 

 

 

 

 

 

Issued

 

 

 

 

 

 

 

 

 

Forfeited / cancelled

 

(980)

 

 

 

 

 

 

 

 

Outstanding as of December 31, 2024

 

8,817

 

$

46.00

 

$

 

5.9

Vested and exercisable as of December 31, 2024

 

8,503

 

$

46.00

 

$

 

5.9

Restricted Stock Units

A summary of the Company’s restricted stock unit (“RSU”) activity for the year ended December 31, 2024, is as follows:

2022 Omnibus Incentive Plan - RSUs

 

 

 

 

Restricted Stock Units

 

 

Weighted Average Grant Date Fair Value (per share)

Outstanding as of December 31, 2023

 

 

 

9,361

 

$

36.75

Granted

 

 

 

219,500

 

 

 

Vested

 

 

 

(9,183)

 

 

 

Forfeited / cancelled

 

 

 

(178)

 

 

 

Outstanding as of December 31, 2024

 

 

 

219,500

 

$

5.09

 

2019 Stock Incentive Plan - RSUs

 

 

 

 

Restricted Stock Units

 

 

Weighted Average Grant Date Fair Value (per share)

Outstanding as of December 31, 2023

 

 

 

3,698

 

$

200.00

Granted

 

 

 

 

 

 

Vested

 

 

 

(2,529)

 

 

 

Forfeited / cancelled

 

 

 

(422)

 

 

 

Outstanding as of December 31, 2024

 

 

 

747

 

$

200.00

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.