NOTE 13 – STOCK-BASED COMPENSATION

We grant equity compensation awards to directors, employees, and contractors under the 2021 Omnibus Equity Compensation Plan. We have granted restricted stock units (“RSUs”) and stock options with service-based vesting conditions with vesting typically occurring over a 3-year period.

The award quantities and grant date fair values have been retroactively adjusted to reflect the Reverse Split.

Restricted Stock Units

The following table summarizes the activity of our RSUs granted under our Equity Incentive Plan during the three months ended December 31, 2025:

SCHEDULE OF RESTRICTED STOCK UNITS VESTING 

During the quarter ended December 31, 2025, we awarded 32,695 RSUs to new employees. Vesting occurs over three years beginning on March 1, 2026, and ending on March 1, 2028, for 30,771 granted RSUs and the remaining 1,924 vest on March 1, 2026. The average grant date fair value of RSUs granted during the three months ended December 31, 2025, was $3.36. The Company recognizes compensation cost for unvested share-based awards on a straight-line basis over the requisite service period.

Our total stock-based compensation expense for the three months ended December 31, 2025, was $100 thousand for the amortization of outstanding equity compensation grants. Stock-based compensation of $76 thousand is included in general and administrative expense, $15 thousand in selling and marketing expense, and $9 thousand in research and development expense.

The unamortized stock compensation expense at December 31, 2025, was $531 thousand, and the remaining weighted average term to vesting was 1.64 years.