9. Stock-Based Compensation

 

A summary of the Company’s outstanding stock option activity for the years ended December 31, 2025 and 2024 is as follows:

 

       December 31, 2025     
      

Weighted-

Average
Exercise

  

Weighted-

Average

Remaining

Contractual
Life

   Intrinsic 
   Options   Price   (Years)   Value 
As of December 31, 2024   35   $18,872    5.5    - 
Granted   170,000    3.65    9.4    - 
Exercised   -    -    -    - 
Forfeited   -    -    -    - 
Expired   (9)   17,540    -    - 
As of December 31, 2025   170,026   $6.65    9.4   $77,600 
Exercisable at December 31, 2025   170,026   $6.65    9.4   $77,600 
Vested and expected to vest at December 31, 2025   170,026   $6.65    9.4   $77,600 

 

          December 31, 2024        
         

Weighted-

Average
Exercise

   

Weighted-

Average

Remaining

Contractual Life

    Intrinsic  
    Options     Price     (Years)     Value  
As of December 31, 2023     60     $ 21,954       6.9       -  
Granted     -       -       -       -  
Exercised     -       -       -       -  
Forfeited     (24 )     3,861,275       -       -  
Expired     (1 )     891,768,343       -       -  
As of December 31, 2024     35     $ 18,872       5.5     $ -  
Exercisable at December 31, 2024     35     $ 24,292       6.1     $ -  
Vested and expected to vest at December 31, 2024     10     $ 38,168       5.5     $ -  

 

The Company estimates the fair value of each stock option on the grant date using the Black-Scholes-Merton valuation model, which requires several estimates including an estimate of the fair value of the underlying common stock on grant date. The expected volatility was based on an average of the historical volatility of the Company. The expected term was contractual life of option. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option.

 

Unrecognized stock-based compensation as of December 31, 2025 is as follows (in thousands):

 

  

Unrecognized

Stock-Based

Compensation

  

Weighted

Average

Remaining
of

Recognition
(in years)

 
Stock options  $-    0.0 
Stock grants  $1,497    0.9 

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 20, 2026Showing above
2024Mar 19, 2025
2023Mar 27, 2024
2022Mar 29, 2023

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.