12. RESTRICTED STOCK UNITS

A summary of restricted stock unit activity for the years ended December 31, 2024 and 2023 is presented below:

SUMMARY OF RESTRICTED STOCK AWARD ACTIVITY

On November 8, 2024, the Company granted 198,265 restricted stock units to officers, employees and directors. The restricted stock units vest on November 8 of each year from 2025 through 2028. These restricted stock units were valued based on the closing price of the Company’s common stock on the respective dates of issuance and had an aggregate grant date fair value of $1,939, which is being amortized as share-based compensation expense over the respective vesting terms.

On September 28, 2023, the Company granted 685 restricted stock units to its interim Chief Financial Officer. The restricted stock units vest annually through September 2027. These restricted stock units were valued based on the closing price of the Company’s common stock on the date of issuance and had an aggregate grant date fair value of $100, which is being amortized as share-based compensation expense over the vesting term.

On June 21, 2023, a total of 727 shares of restricted stock with a grant date fair value of $161 was granted pursuant to the Cost Savings Plan that was extended through April 30, 2023. These restricted stock units were valued based on the closing price of the Company’s common stock on the date of issuance and vested on the grant date. The total shares issued for these vested restricted stock units include 259 granted to officers and 50 granted to directors.

The total fair value of restricted stock units that vested or deemed vested during the year ended December 31, 2024 was $299. The share-based compensation expense recognized relating to the vesting of restricted stock units for the years ended December 31, 2024 and 2023 amounted to $1,254 and 1,103, respectively. As of December 31, 2024, the amount of unvested compensation related to issuances of restricted stock units was $2,032 which will be recognized as an expense in future periods as the shares vest. When calculating basic net loss per share, these shares are included in weighted average common shares outstanding from the time they vest. When calculating diluted net loss per share, these shares are included in weighted average common shares outstanding as of their grant date.

See Note 18 – Subsequent Events.