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Equity
 12 Months Ended
Dec. 31, 2023
Equity  
Equity

11. Equity

 

The Company has authorized 200,000,000 shares of no-par common stock at December 31, 2023 and 2022. In addition, the Company has authorized 1,000,000 shares of no-par preferred stock, none of which had been issued at December 31, 2023 or 2022.

 

Stock Purchase Warrants Outstanding

 

Transactions in common stock purchase warrants for the years ended December 31, 2023 and 2022 are as follows:

 

 

 

Number of Warrants

 

 

Exercise Prices

 

Balance December 31, 2021

 

 

669,467

 

 

$2.52-7.00

 

  Expired

 

 

(185,304)

 

$2.52-5.60

 

  Exercised

 

 

(194,869)

 

$2.52-5.60

 

Balance December 31, 2022 and 2023

 

 

289,294

 

 

$5.60-7.00

 

 

These warrants expire as follows:

 

Shares

 

 

Exercise Price

 

 

Expiration Date

 

 

235,722

 

 

$5.60

 

 

October 15, 2024

 

 

53,572

 

 

$7.00

 

 

November 12, 2024

 

 

289,294

 

 

 

 

 

 

 

 

 

On October 12, 2023, IDR amended and restated warrants issued in private placements completed in October and November of 2021. The amended and restated warrants extended the exercise period of the warrants for an additional one year.

 

Stock Options

In April 2014, the Board of Directors of the Company established the 2014 Equity Incentive Compensation Plan to authorize the granting of stock options to officers and employees. Upon exercise of the options, shares are issued from the available authorized shares of the Company. Options reserved to any one related person on an annual basis may not, upon exercise, exceed 5% and the aggregate number of all options outstanding will not exceed 10% of the issued outstanding common shares in total as calculated at that time.

 

In May 2023, the 2023 Equity Incentive Compensation Plan was voted on, and approved, by the shareholders of the Company. This plan allows for the issuance of up to 1,225,600 shares of the Company’s common stock in the form of stock options (which may be incentive stock options or nonqualified stock options) or other stock-based awards, such as stock appreciation rights, restricted stock, restricted stock units and performance shares.

 

There were no stock options granted under either plan in 2023.

 

In September 2022, the board granted 165,000 stock options to officers, board members and employees. These options vested immediately and are exercisable at $5.25 for 3 years. Total stock-based compensation recognized on these options was $505,476 and was recognized in management ($64,333), professional services ($27,571), and general and administrative ($413,572) expenses in the consolidated statement of operations. In September 2022, the board granted an additional 15,000 stock options, 7,500 each to our independent board members. These options vested immediately and are exercisable at $4.75 for 3 years. Total stock-based compensation recognized on these options was $41,799 and was recognized in management expenses in the consolidated statement of operations.

 

The fair value of stock option awards granted, and the key assumptions used in the Black-Scholes valuation model to calculate the fair value of the options are as follows:

 

 

 

September 6, 2022

 

 

September 28, 2022

 

Fair value

 

$505,476

 

 

$41,799

 

Options issued

 

 

165,000

 

 

 

15,000

 

Exercise price

 

$5.25

 

 

$4.75

 

Expected term (in years)

 

 

3.0

 

 

 

3.0

 

Risk-free rate

 

 

3.55%

 

 

4.12%

Volatility

 

 

89.3%

 

 

89.2%

Transactions in stock options for the years ended December 31, 2023 and 2022 are as follows:

 

 

 

Number of Options

 

 

Weighted Average Exercise Prices

 

Balance December 31, 2021

 

 

507,175

 

 

$5.25

 

Granted

 

 

180,000

 

 

$5.21

 

Exercised

 

 

(116,078)

 

$4.31

 

Expired

 

 

(7,143)

 

$1.96

 

Forfeited

 

 

(28,001)

 

$5.56

 

Balance December 31, 2022

 

 

535,953

 

 

$5.47

 

Forfeited

 

 

(58,504)

 

$5.47

 

Outstanding and exercisable at December 31, 2023

 

 

477,449

 

 

$5.47

 

 

At December 31, 2023 and 2022, the outstanding stock options have an intrinsic value of approximately $410,638 ($123,045 in 2022) and have a weighted average remaining term of 0.82 years (1.82 in 2022). No cashless options were exercised in the year ended December 31, 2023, however, cashless options exercised in the year ended December 31, 2022 had an intrinsic value of $677,928.