PROPOSAL 3:
Approval of the Amended and Restated 2024 Omnibus Equity Incentive Plan
Overview
We are asking stockholders to approve the Amended and Restated 2024 Omnibus Equity Incentive Plan (the “Existing 2024 Plan” and, as restated, the “Restated 2024 Plan”) to increase the number of shares of Company common stock available for issuance under the Existing 2024 Plan by 8,555,000. The Restated 2024 Plan was adopted by our Board on April 13, 2026, subject to approval by our stockholders at the Annual Meeting. If approved by the Company’s stockholders, the Restated 2024 Plan will become effective on the date of the Annual Meeting (the “Effective Date”).
After the proposed increase, up to a total of 9,438,055 shares will be available for new equity award grants under the Restated 2024 Plan after the Effective Date. Awards granted between April 6, 2026 and the Effective Date are expected to be minimal. However, for the avoidance of doubt, if our stockholders approve the Restated 2024 Plan, grants made from the Existing 2024 Plan between April 6, 2026 and the Effective Date will be deducted from the shares already available under the Restated 2024 Plan. Additionally, under the Restated 2024 Plan, the plan will expire ten years from the Effective Date (instead of on the original expiration date of ten years from the date on which the Existing Plan originally took effect in 2024).
Other than the increase in the number of shares of Common Stock reserved for issuance described above and the change to the expiration date, we are not proposing to make any other material changes to the Existing 2024 Plan. The Restated 2024 Plan will continue to provide incentive compensation through the grant of incentive stock options, non-qualified stock options, restricted shares, RSUs, PSUs, stock appreciation rights and other stock-based and cash awards.
As of April 6, 2026, 883,055 shares of Common Stock remained available for future grants of awards under the Existing 2024 Plan. The closing price of a share of Common Stock on the Nasdaq Stock Market on April 6, 2026 was $4.16.
We believe the ability to grant awards under the Restated 2024 Plan is necessary to enable us to attract, motivate and retain directors and key employees, and to provide incentives for such individuals through Common Stock ownership and other rights that promote and recognize the financial success and growth of our Company.
Based upon recent equity award requirements, we believe that the proposed increase of 8,555,000 shares of Common Stock to be reserved for issuance under the Restated 2024 Plan will be sufficient for equity awards for the foreseeable future. However, the number of shares of Common Stock required for future grants is dependent upon several factors that cannot be predicted, including, but not limited to, the price of the Company’s Common Stock on future grant dates. See “Summary of the Existing 2024 Plan-Key Equity Plan Data” for more details.
If stockholders do not approve the Restated 2024 Plan, the Existing 2024 Plan will continue in its current form, such that the pool of shares of Common Stock available thereunder will become depleted and be insufficient for equity awards made following our annual grants in 2026. As a result, in future years, we may not be able to continue to offer equity packages to our current employees and new employees, and thus may be less competitive than other companies that offer equity. We believe that this could impede our plans for growth and impair our ability to operate our business. In addition, if we are unable to grant competitive equity awards, we may be required to offer additional cash-based incentives to replace equity as a means of competing for talent, which we believe could adversely affect our reported earnings and financial results. We also believe that equity grants are a more effective compensation vehicle than cash awards because they better align the financial interests of employees with the interests of stockholders, and promote actions that result in long-term value creation.
If this Proposal No. 3 receives the requisite stockholder approval, the Company intends to register the additional shares of Common Stock available for issuance under the Restated 2024 Plan on a registration statement on Form S-8 under the Securities Act as soon as reasonably practicable following receipt of approval.
Restated 2024 Plan Governance Highlights
In the same form as the Existing 2024 Plan, the Restated 2024 Plan incorporates certain governance best practices, including:
•No “liberal share recycling” of any awards.
•Minimum vesting period of one year, except under certain limited circumstances and with permitted exceptions up to 5% of the share reserve.