The Company has certain stock option plans under which it may award ISO and/or NQSOs to employees, officers, outside directors, and outside consultants.

On July 22, 2026, the Company issued an NQSO to each of the Company’s seven reelected outside (non-management) directors for the purchase of up to 10,000 shares of the Company’s Common Stock under the Company’s 2003 Outside Directors Stock Plan. Dr. Louis Centofanti and Mark Duff, each an executive officer of the Company as well as a director, were not eligible to receive an option under the 2003 Outside Directors Stock Plan. Each NQSO granted has a 10 ten-year term and vests at 25% per year over a four-year period, commencing on the first anniversary of the grant date. The exercise price of each NQSO is $16.64 per share, which was equal to the fair market value of the Company’s Common Stock on the day preceding the grant date, in accordance with the 2003 Outside Director Stock Plan.

The following table summarizes stock-based compensation recognized for the three and nine months ended September 30, 2026, and 2025 for our employee and director stock options (in thousands).

 Schedule of Stock-based Compensation Recognized for Stock Options

As of September 30, 2026, the Company had approximately $1,953,000 of total unrecognized compensation costs related to unvested options for employees and directors. The weighted average period over which the unrecognized compensation costs are expected to be recognized is approximately 2.9 years.

The summary of the Company’s stock option plans as of September 30, 2026, and September 30, 2025, and changes during the periods then ended, are presented below. The Company’s plans consist of the 2017 Stock Option Plan and the 2003 Outside Directors Stock Plan:

 Schedule of Stock Options Roll Forward

During the nine months ended September 30, 2026, the Company issued a total of 28,955 shares of its Common Stock under the 2003 Outside Directors Stock Plan to its outside directors as compensation for serving on the Board. The Company recorded approximately $357,000 in compensation expenses (included in SG&A) in connection with the issuance of shares of its Common Stock to outside directors.

During the nine months ended September 30, 2026, the Company issued an aggregate 16,781 shares of its Common Stock from cashless exercises of options for the purchase of 30,100 shares of the Company’s Common Stock ranging from $3.95 per share to $10.05 per share. Additionally, the Company issued an aggregate 26,800 shares of its Common Stock from cash exercises of options for the purchase of 26,800 shares of the Company’s Common Stock ranging from $3.95 per share to $7.75 per share, resulting in proceeds of approximately $164,000.

In connection with the Company’s sales of its Common Stock in May 2024 and December 2024, the Company issued warrants to certain underwriters, placement agents, and their designees to purchase an aggregate of 188,038 shares of the Company’s Common Stock. The warrants consisted of (i) warrants to purchase 61,538 shares of Common Stock at an exercise price of $12.19 per share issued in connection with the May 2024 offering and (ii) warrants to purchase 126,500 shares of Common Stock at an exercise price of $11.50 per share issued in connection with the December 2024 offering. These warrants remained outstanding as of September 30, 2026.