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EMPLOYEE STOCK PLANS | 9 Months Ended
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Sep. 30, 2024
Retirement Benefits [Abstract] |
EMPLOYEE STOCK PLANS | NOTE 17 — EMPLOYEE STOCK PLANS Equity Incentive Plans On May 22, 2024, the Company’s Board approved the 2024 Equity Inventive Plan (“2024 Plan”) and Restricted Stock Units (“RSUs”) Award Agreements. The 2024 Plan and RSUs Adward Agreement authorized the award of stock options, RSUs to employees and directors. As of September 30, 2024 , approximately 300,556 RSUs were granted, 1,000 RSUs were forfeited and 6,750 RSUs were exercised under the 2024 Plan. The Company recorded $256,345, $426,666, $nil and $nil stock-based compensation expense in connection with RSUs for three and nine months ended September 30, 2024 and 2023, respectively. The following table summarized the Company’s RSU activity: SUMMARY OF RESTRICTED STOCK UNIT ACTIVITY
|  | Number of RSUs |  |  | Weighted Average Grant Date Fair Value |
Granted |  |  | 300,556 |  |  |  | 3.84 |
Cancelled |  |  | (1,000 | ) |  |  | 3.88 |
Exercised |  |  | (6,750 | ) |  |  | 3.88 |
Outstanding September 30, 2024 |  |  | 292,306 |  |  | $ | 3.84 |
Exercisable, September 30, 2024 |  |  | - |  |  | $ | - |
Options On May 22, 2024, the Company signed a stock option agreement with Mr. David Shan, the Chief Executive Officer and two other executives of the Company, in connection with the 2024 Plan. As part of the compensation, the Company agrees to grant Mr. Shan options to purchase up to 46,860 common shares under Incentive Stock Option (“ISO”) plan, at an exercise price of $4.268 per share. The options were granted on May 22, 2024, and the options vest at a rate of 23,430 per year for two years, effective on May 22, 2024. The aggregate fair value of the options granted to Mr. Shan was $73,000. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying common shares at time of grant of $3.88; risk free rate of 5.0% and 4.65%; expected term of 5 years; exercise price of the options of $4.268; volatility of 88.8%; and expected future dividends of $nil. These options will expire on May 21, 2029. The Company also granted Mr. Shan options to purchase up to 103,140 common shares, at an exercise price of $4.0 per share under Nonqualified Stock Option (“NSO”) plan. The options were granted on May 22, 2024, and vest at a rate of 51,570 shares per year for two years, effective on May 22, 2024. The aggregate fair value of the options granted to Mr. Shan was $160,000. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying common shares at time of grant of $3.88; risk free rate of 5.0% and 4.65%; expected term of 10 years; exercise price of the options of $4.0; volatility of 88.8%; and expected future dividends of $nil. These options will expire on May 21, 2034. The Company also granted two executives options to purchase up to 200,000 common shares, at an exercise price of $4.0 per share under ISO and NSO plans. The options were granted on May 22, 2024, and vest at a rate of 100,000 shares per year for two years, effective on May 22, 2024. The aggregate fair value of the options granted to these two executives was $272,000. The fair value has been estimated using the Black-Scholes pricing model with the following weighted-average assumptions: market value of underlying common shares of $3.88; risk free rate of 5.0% and 4.65%; expected term of 10 years; exercise price of the options of $4.0; volatility of 88.8%; and expected future dividends of $nil. These options will expire on May 21, 2034. The Company recorded $71,754, $131,699, $nil and $nil stock-based compensation expense in connection with options for three and nine months ended September 30, 2024 and 2023, respectively. The following table summarized the Company’s share option activity: SCHEDULE OF SHARE OPTION ACTIVITY
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Life in Years |
Granted |  |  | 350,000 |  |  |  | 4.04 |  |  |  | 9.23 |
Cancelled |  |  | - |  |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |  |  |  | - |
Outstanding September 30, 2024 |  |  | 350,000 |  |  | $ | 4.04 |  |  |  | 8.97 |
Exercisable, September 30, 2024 |  |  | - |  |  | $ | - |  |  |  | - |

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