v3.25.0.1
STOCK BASED COMPENSATION
 12 Months Ended
Dec. 31, 2024
STOCK BASED COMPENSATION  
STOCK-BASED COMPENSATION

NOTE 8 – STOCK-BASED COMPENSATION

 

The Company’s 2022 Stock Incentive Plan (the “Plan”) authorized the issuance of incentives relating to 900,000 shares of common stock. As of December 31, 2024, incentives relating to the issuance of 870,000 shares have been issued under the Plan, leaving 30,000 shares available for issuance. The Plan was amended by the Board of Directors on August 14, 2023, and a registration statement on Form S-8 respecting the Plan was filed with the SEC on August 23, 2023.

The following table summarizes the activity for all stock options outstanding for the years ended December 31, 2024 and 2023:

 

 

 

2024

 

 

2023

 

 

 

Shares

 

 

Weighted Average Exercise Price

 

 

Shares

 

 

Weighted Average Exercise Price

 

Options outstanding at beginning of year

 

 

670,000

 

 

$2.11

 

 

 

—

 

 

$—

 

Granted

 

 

—

 

 

 

—

 

 

 

870,000

 

 

 

2.11

 

Exercised

 

 

—

 

 

 

—

 

 

 

(200,000)

 

 

2.12

 

Forfeited

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Options outstanding at end of year

 

 

670,000

 

 

$2.11

 

 

 

670,000

 

 

$2.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options exercisable at December 31:

 

 

670,000

 

 

$2.11

 

 

 

670,000

 

 

$2.11

 

 

 The following table summarizes additional information about stock options outstanding and exercisable at December 31, 2024:

 

Options Outstanding

 

 

Options Exercisable

 

Options Outstanding

 

 

Weighted Average Remaining Contractual Life

 

 

Weighted Average Exercise Price

 

 

Aggregate Intrinsic Value

 

 

Options Exercisable

 

 

Weighted Average Exercise Price

 

 

Aggregate Intrinsic Value

 

 

670,000

 

 

 

7.92

 

 

$2.11

 

 

$—

 

 

 

670,000

 

 

$2.11

 

 

$—

 

 

The Company recognized stock-based compensation expense for stock options of $1,460,209 for the year ended December 31, 2023. The Black-Scholes option-pricing model was used to estimate the fair value of equity-based awards with the following weighted-average assumptions for the year ended December 31, 2023:

 

 

 

2023

 

Risk-free interest rate

 

 

3.88%

Expected volatility

 

 

90.00%

Expected life (years)

 

 

5.0

 

Expected dividend yield

 

—

%

 

The inputs for the Black-Scholes valuation model require management’s significant assumptions. The price per share of common stock is determined by using the closing market price on the Nasdaq Capital Market on the grant date. The risk-free interest rates are based on the rate for U.S. Treasury securities at the date of grant with maturity dates approximately equal to the expected life at the grant date. The expected life is based on the simplified method in accordance with the SEC Staff Accounting Bulletin Nos. 107 and 110. The expected volatility is estimated based on historical volatility information of peer companies that are publicly available in combination with the Company’s calculated volatility.