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Stock Options
 9 Months Ended
Sep. 30, 2024
Stock Options [Abstract]  
STOCK OPTIONS

13. STOCK OPTIONS

 

On October 30, 2020, the Company issued an aggregate of 54,518 (post-split, thereafter in this note for number of options and the exercise price) shares of common stock in lieu of unpaid salaries of certain employees and unpaid consulting fees under the 2016 Equity Incentive Plan, as amended, at a conversion price of $20 per share; the total amount of converted salaries and consulting fees was $1,090,361. On November 21, 2020, the Company entered into acknowledgement agreements and stock option purchase agreements with these employees and consultant; pursuant to which the Company granted stock options to purchase 54,518 shares of the Company’s common stock in lieu of common stock. The options were vested at the grant date and become exercisable for 10 years from the grant date.

 

On October 15, 2021, the Company entered into stock option agreements with 11 directors and 3 employees, pursuant to which the Company granted options to purchase an aggregate of 128,000 shares of common stock under the 2016 Equity Incentive Plan, as amended, at an exercise price of $30 per share. The options were vested at the grant date and become exercisable for 10 years from the grant date.

 

On April 16, 2022, the Company entered into stock option agreements with 5 directors, pursuant to which the Company agreed to grant options to purchase an aggregate of 76,192 shares of common stock under the 2016 Equity Incentive Plan, at an exercise price of $30 per share, exercisable for 10 years from the grant date. As of September 30, 2024, these stock options have not been granted.

 

Options issued and outstanding as of September 30, 2024, and their activities during the nine months ended are as follows:

 

    Number of
Underlying
Shares
(post-split)		     Weighted-
Average
Exercise
Price
Per Share		     Weighted-
Average
Contractual
Life
Remaining
in Years		     Aggregate
Intrinsic
Value		  
Outstanding as of January 1, 2024     258,710     $ 27.9       -     $         -  
Granted     -       -       -       -  
Forfeited     -       -       -       -  
Outstanding as of September 30, 2024     258,710     $ 27.9       6.99     $ -  
Exercisable as of September 30, 2024     258,710     $ 27.9       6.99     $ -  
Vested and expected to vest     258,710     $ 27.9       6.99     $ -  

 

There are 386,021 options available for grant under the 2016 Equity Incentive Plan as of September 30, 2024. Compensation costs associated with the Company’s stock options are recognized, based on the grant-date fair values of these options over vesting period. Accordingly, the Company recognized $0 stock-based compensation expense in connection with employee stock options for the nine months ended September 30, 2024 and 2023, respectively. There were no options exercised during the nine months ended September 30, 2024. As of September 30, 2024, there were no unvested options.

 

The fair value of stock options granted for the year ended December 31, 2022 was calculated using the Black-Scholes option-pricing model applying the following assumptions:

 

   Year ended
December 31,
2022		 
     
Risk free interest rate   2.79%
Expected term (in years)   5.00 
Dividend yield   0%
Expected volatility   83.86%