Note 15     SHARE-BASED COMPENSATION

 

In 2018, the Company’s Board of Directors and stockholders adopted the 2018 Stock Option and Award Incentive Plan (the “2018 Plan”). The 2018 Plan provides for the issuance of equity-based awards to employees and non-employee service providers. As of December 31, 2025, 5,459,605 shares of common stock remained available for future issuance under the 2018 Plan.

 

During the years ended December 31, 2025 and 2024, the Company granted equity-based awards, primarily in the form of warrants, in exchange for services rendered. Refer to Class A and Class B Warrants in Note 12 Warrants for additional details.

 

For the years ended December 31, 2025 and 2024, the Company recognized share-based compensation expense of $59,854 and $60,831, respectively.

 

Warrants

 

As of December 31, 2025, the Company had outstanding warrants issued to officers, directors, and employees to purchase shares of common stock. Refer to Note 11 Warrant – Class A and Class B Warrants.

 

Share-Based Compensation Expense

 

For the years ended December 31, 2025 and 2024, the Company recognized share-based compensation expense of $59,854 and $60,831, respectively.

  

Historical Timeline

Fiscal YearFiled
2025Apr 15, 2026Showing above
2024May 6, 2025
2023Apr 1, 2024
2022Mar 31, 2023
2021Mar 23, 2022
2020Apr 15, 2021
2019May 14, 2020
2018Apr 15, 2019

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.