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EQUITY
 12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
Equity [Text Block]

NOTE 10 – EQUITY

 

Dividends

 

On August 4, 2023, the Board of Directors approved the payment of a $0.20 special cash dividend per share of Common Stock to shareholders of record August 18, 2023. The dividend was paid on August 25, 2023.

 

Common Stock At-The-Market Sales Program

 

In April 2021, the Company entered into an At Market Issuance Sales Agreement (the “2021 At Market Agreement”) with the Sales Agent under which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $3,308,842 from time to time through the Sales Agent. Sales of the Company’s common stock through the Sales Agent, if any, will be made by any method that is deemed an “at the market” offering as defined by the SEC. The Company will pay to the Sales Agent a commission rate equal to 3.0% of the gross proceeds from the sale of any shares of common stock sold through the Sales Agent under the 2021 At Market Agreement.

 

Shares of common stock sold under the 2021 At Market Agreement are made pursuant to the Company’s Registration Statement on Form S-3 (File No. 333-249238), filed with the Securities and Exchange Commission (the “SEC”) on October 2, 2020, as amended, and declared effective on October 23, 2020 (the “2020 Registration Statement”), the prospectus included in the 2020 Registration Statement and the related prospectus supplement dated February 26, 2021. In June 2021, 65,452 shares of Common Stock were issued and sold generating $722,116, excluding legal expenses. In July 2021, an additional 9,548 shares of Common Stock were issued and sold generating $76,436, net of legal expenses.

 

For the years ended December 31, 2023 and 2022, the Company issued no shares under the 2021 At Market Agreement

 

Stock Repurchase Program

 

On October 10, 2019, the Company’s Board of Directors authorized a new stock repurchase program, under which the Company may repurchase up to $2 million of its outstanding common stock. Under this new stock repurchase program, the Company may repurchase shares in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by the Company’s management. The repurchase program may be extended, suspended or discontinued at any time. The Company expects to finance the program from existing cash resources. On November 5, 2021, the Board of Directors voted to increase the authorized amount of the buyback from $2 million to $5 million. As of December 31, 2023, no repurchases have been made.

 

Issuance of Common Stock

 

On September 29, 2022, the Company approved 120,000 shares of common stock in exchange for services. The market value of these shares was $297,600.

 

In December 2023, the Company issued 59,404 shares of common stock upon the exercise of stock options.

 

Stock Options

 

The Company adopted the 2019 Equity and Incentive Plan (the “2019 Plan”) to order provide long-term incentives for employees and non-employees to contribute to the growth of the Company and attain specific performance goals.

 

The fair value of each option awarded is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of Common Stock. The expected life of the options granted represents the period from date of grant to expiration (5 years). The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant. There were no stock options granted for the years ended December 31, 2023 and 2022.

A summary of the status of the Company’s stock option plans for the fiscal years ended December 31, 2023 and 2022 and changes during the years are presented below (in number of options):

 

   

Number

of Options

    

Average

Exercise Price

    

Average Remaining

Contractual Term

    

Aggregate

Intrinsic Value

  
                                 

Outstanding options at January 1, 2022

     165,620     $ 6.256       -     $ -0-  

Options granted

     -       -                  

Options canceled/forfeited

     (7,200 )   $ 6,530                  

Outstanding options at December 31, 2022

     158,420     $ 6.245    

3.49 years

     $ -0-  

Options granted

     -       -                  

Options exercised (1)

     158,420       6.245                  

Options canceled/forfeited

     -     $ -                  

Outstanding options at December 31, 2023

     -     $ -       -     $ -0-  
                                 

Vested Options:

                                

December 31, 2023:

     -     $ -       -     $ -0-  

December 31, 2022:

     115,025     $ 6.138    

3.49 years

     $ -0-  

 

 

(1)

Cashless exercise of outstanding stock options. The option holders received 59,404 shares of common stock and surrendered 158,420 shares of common stock underlying the option in payment of the exercise price. The cashless exercise was based on the market price of the average of the closing trading price of the Issuer's common stock on the 5 trading days ending prior to the date of exercise.

 

Total stock compensation recognized for the year ended December 31, 2023 and 2022 was $41,497 and $180,260, respectively.

 

As of December 31, 2023 and 2022, the unamortized compensation expense for stock options was $-0- and $41,497, respectively.

 

As of December 31, 2023, there were 1,056,670 shares available for issuance under the Plan.

 

Warrants

 

As of December 31, 2021, the Company had outstanding warrants outstanding to purchase 4,988 shares of the Company’s common stock at an exercise price of $4.01 per share. These warrants expired in March 2022.