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Share Based Awards
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Share Based Awards

Note 16 – Share Based Awards

 

The 2019 Equity Incentive Plan (the “2019 Plan”) and the 2024 Omnibus Equity Incentive Plan (the “2024 Plan”) (collectively, the “Plans”) allow us to incentivize key employees, consultants, and directors with long term compensation awards such as stock options, restricted stock, and restricted stock units (collectively, the “Awards”). The number of shares issuable in connection with Awards under the 2019 Plan were not to exceed 11,750,000. However, no shares are issuable under the 2019 Plan after the 2024 Plan became effective on October 15, 2024. The number of shares issuable in connection with Awards under the 2024 Plan may not exceed 11,250,000 plus any underlying forfeited 2019 Plan awards.

 

  A. Options

 

The range of assumptions used to calculate the fair value of options granted during the three months ended March 31, 2025 was:

 

Exercise Price   $ 8.56 – 8.56 
Stock price on date of grant   8.46 – 8.46 
Risk-free interest rate   4.44 – 4.44%
Dividend yield   — 
Expected term (years)   5.97 – 5.97 
Volatility   191.15 – 191.15%

 

A summary of options activity under the Plan since December 31, 2024 was:

 

   Shares  

Weighted-

Average

Exercise

Price

  

Weighted-

Average

Remaining

Contractual

Term

  

Aggregate

Intrinsic

Value

 
Outstanding as of December 31, 2024   5,645,325    1.54    7.90    59,779,836 
Granted   402,500    8.56           
Exercised   (908,503)   1.28           
Forfeited or expired   (127,502)   1.73           
Outstanding as of March 31, 2025   5,011,820    2.06    1.99    20,221,803 
Exercisable as of March 31, 2025   1,633,529   $1.47    1.35   $7,200,542 

 

The aggregate intrinsic value of outstanding options represents the excess of the stock price at the indicated date over the exercise price of each option. As of March 31, 2025, there was $6,622,720 of unrecognized stock-based compensation expense related to unvested stock options which is expected to be recognized over the weighted average periods of 1.49 years. As of December 31, 2024, there was $4,068,622 of unrecognized stock-based compensation expense related to unvested stock options which is expected to be recognized over the weighted average periods of 1.25 years.

 

 

  B. Restricted Stock

 

A summary of restricted stock activity under the Plan since December 31, 2024 was:

 

   Shares   Weighted Average Grant-Date Fair Value Per Share 
Unvested and outstanding as of December 31, 2024   1,544,027   $3.84 
Granted   50,000    4.94 
Vested   —    — 
Forfeited   (321,428)   0.89 
Unvested and outstanding as of March 31, 2025   1,272,599   $4.64 

 

As of March 31, 2025, there was $4,497,389 of unrecognized stock-based compensation expense related to unvested restricted stock units which is expected to be recognized over the weighted average periods of 1.13 years. As of December 31, 2024, $5,328,970 of unrecognized stock-based compensation expense related to unvested restricted stock units which is expected to be recognized over the weighted average periods of 1.25 years.

 

  C. Stock Compensation

 

Stock compensation expense for the three months ended March 31 by functional operating expense was:

 

   2025   2024 
Research and development  $174,460   $115,477 
Sales and marketing   862,983    85,205 
General and administrative   561,529    604,952 
Total  $1,598,972   $805,634 

 

Stock compensation expense pertaining to options totaled $804,855 for the three months ended March 31, 2025. Stock compensation expense pertaining to restricted stock totaled $794,117 for the three months ended March 31, 2025. Stock compensation expense pertaining to options totaled $708,726 for the three months ended March 31, 2024. Stock compensation expense pertaining to restricted stock totaled $96,908 for the three months ended March 31, 2024.