Stock-Based Compensation

6 Months Ended

Jun. 30, 2024

Note 9

Stock-Based Compensation:

The Company’s 2016 Omnibus Incentive Stock Plan (“2016 Plan”), as amended, has reserved up to 7,832,651 shares of common stock for future issuance. As of June 30, 2024, there were 7,261,588 shares of common stock remaining available for issuance for awards under the 2016 Plan.

The Company measures share‑based awards at their grant‑date fair values and records compensation expense on a straight‑line basis over the requisite service period of the awards. The Company recorded share‑based compensation expense (for all awards and modifications, if any) in the accompanying condensed consolidated statements of operations as follows:

	Three Months Ended June 30,
	2024		2023
Selling and marketing	$	13	$	56
General and administrative		150		296
	$	163	$	352

	Six Months Ended June 30,
	2024			2023
Selling and marketing*	$	(24	)	$	578
General and administrative		299			99
	$	275		$	677

*Selling and marketing expense was negative during the six months ended June 30, 2024 due to the forfeiture of awards during the period.

On April 3, 2023, the Company granted 15,000 stock-based options to its former Chief Executive Officer. The vesting of these awards was contingent upon meeting one or more financial goals (a performance condition) or a common stock share price (a market condition). The fair value of stock-based awards is determined at the date of grant. Stock-based compensation expense is recorded ratably for market condition awards during the requisite service period and is not reversed, except for forfeitures, at the vesting date regardless of whether the market condition is met. Stock-based compensation expense for performance condition awards is re-evaluated at each reporting period based on the probability of the achievement of the goal. The 15,000 stock-based options were forfeited in the fourth quarter of 2023 due to the Chief Executive Officer’s separation and failure to achieve the vesting conditions.

Stock Options

The following table summarizes stock option activity for the six months ended June 30, 2024:

	Number of Shares Under Option Plan			Weighted- Average Exercise Price per Option		Weighted- Average Remaining Contractual Term (in years)
Outstanding at January 1, 2024		772,864		$	11.07
Granted		10,000			5.35
Forfeited and expired		(252,514	)		15.38
Outstanding at June 30, 2024		530,350		$	8.90		8.5
Exercisable at June 30, 2024		142,191		$	15.49		6.6
Vested and expected to vest at June 30, 2024		530,350		$	8.90		8.5

As of June 30, 2024, the total unrecognized compensation expense related to unvested stock option awards was $1,512, which the Company expects to recognize over a weighted average period of approximately 2.7 years. The options outstanding and exercisable at June 30, 2024 and exercisable at June 30, 2023 had no intrinsic value. The aggregate intrinsic value of options outstanding at June 30, 2023 was $1.

For the six months ended June 30, 2024, the grant date fair value of all option grants was estimated at the time of grant using the Black-Scholes option-pricing model using the following weighted average assumptions:

Expected volatility	77.0	%
Risk‑free rate	4.1	%
Expected term (in years)	6.3
Dividend rate	0.00	%

Restricted Stock Units

Restricted stock units have been issued to certain board members. Activity in restricted stock units is summarized in the following table:

	Number of Units			Weighted- Average Grant Date Fair Value
Unvested at January 1, 2024		2,265		$	10.30
Vested		(1,414	)		10.30
Unvested at June 30, 2024		851		$	10.30

As of June 30, 2024, the total unrecognized compensation expense related to restricted stock units was de minimis.