SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2025

The following table summarizes stock option activity for the nine months ended September 30, 2025:

			Weighted Average
	Options on				Remaining		Aggregate
	Common			Exercise	Contractual		Intrinsic
	Shares			Price	Term		Value
Outstanding January 1, 2025	3,944,284		$	2.12	8.30	$	1,486
Granted	4,113,927			1.82	-		-
Exercised	-			-	-		-
Forfeited, cancelled, expired	(2,024,762	)		5.21	-		-
Outstanding September 30, 2025	6,033,449		$	1.91	8.38	$	3,541
Exercisable September 30, 2025	1,625,078		$	2.43	6.56	$	856

Stock Option Activity, Fair Value of Assumptions

The Company uses the Black-Scholes option pricing model to determine the fair value of the service-based options that have been granted. The following table summarizes the assumptions used to compute the fair value of options granted to employees and non-employees:


	For the Nine Months Ended September 30,
		2025			2024
Expected stock price volatility		76	%		76	%
Risk-free interest rate		3.87	%		3.79	%
Expected dividend yield		0	%		0	%
Expected life of options		6			6
Weighted-average fair value of options granted	$	1.28		$	1.48

Restricted Stock Units Activity

The Plan provides for the grant of restricted stock units (“RSUs”). RSUs are settled in shares of the Company’s Common Stock as the RSUs vest. The following table summarizes RSU activity for the nine months ended September 30, 2025:


				Weighted	Weighted
	Service-Based			Average Grant	Average Vesting
	RSU's			Date Fair Value	Period (Years)
Unvested at January 1, 2025	988,102		$	2.25	3.67
Granted-service based	841,495			1.86	-
Vested	(773,368	)		1.91	-
Forfeited and cancelled	-			-	-
Unvested at September 30, 2025	1,056,229		$	2.19	2.31

Share-based Compensation for Options and Restricted Stock Units

The Company recorded share-based compensation for options and RSUs in its statements of operations for the relevant periods as follows:


	Three months ended September 30,				Nine months ended September 30,
		2025		2024		2025		2024
Selling, general, and administrative	$	632	$	878	$	3,004	$	1,735
Research and development		6		18		69		79
Total share-based expense	$	638	$	896	$	3,073	$	1,814

WRAP TECHNOLOGIES, INC. 10-Q