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STOCK-BASED COMPENSATION | 6 Months Ended
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Jun. 30, 2024
STOCK-BASED COMPENSATION [Abstract] |
STOCK-BASED COMPENSATION |
Note 12 | STOCK-BASED COMPENSATION
Restricted Stock Awards and Restricted Stock Units The table below includes issuances of restricted stock awards and units under the 2020 Plan and unvested equity interests of MOR which were converted into restricted common stock.
|  | Number of Restricted Shares and Units |  |  | Weighted Average Grant Date Fair Value Per Share |
Unvested at January 1, 2023 |  |  | 551,258 |  |  | $ | 3.28 |
Issued |  |  | 570,000 |  |  |  | 3.79 |
Vested |  |  | (331,934 | ) |  |  | 7.30 |
Canceled |  |  | (44,339 | ) |  |  | 0.44 |
Unvested at December 31, 2023 |  |  | 744,985 |  |  |  | 2.05 |
Issued |  |  | 350,000 |  |  |  | 2.68 |
Vested |  |  | (223,718 | ) |  |  | 4.68 |
Canceled |  |  | — |  |  |  | — |
Unvested at June 30, 2024 |  |  | 871,267 |  |  | $ | 4.09 |
The 871,267 of unvested awards at June 30, 2024 consisted of 863,498 restricted stock units and 7,769 shares of restricted stock. Stock Options As part of the business combination with Helix, the Company assumed the Helix TCS, Inc. Omnibus Stock Incentive Plan and the Bio-Tech Medical Software, Inc. 2014 Stock Incentive Plan, each as amended, pursuant to which options exercisable at prices between $2.00 and $51.80 per share for 455,089 shares of Company common stock were outstanding. As of June 30, 2024, options to purchase 210,493 shares of common stock remain outstanding. The fair value of the stock options was estimated at Level 3 in the fair value hierarchy using the Black-Scholes option pricing model and the assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgement. The assumptions used to calculate the grant date fair value of the options granted during the six months ended June 30, 2024 and 2023, are as follows:
| For the Six Months Ended June 30, |
| 2024 |  | 2023 |
Exercise Price | $ |  | 2.67 to $3.69 |  | $ |  | 3.14 to $3.79 |
Fair value of Company common stock | $ |  | 2.68 to $3.69 |  | $ |  | 3.14 to $3.79 |
Dividend yield |  |  | 0% |  |  |  | 0% |
Expected volatility | 78% to 79% |  | 79% to 80% |
Risk Free interest rate | 3.9% to 4.2% |  | 3.4% to 3.9% |
Expected life (years) remaining | 6.10 to 6.25 |  | 6.08 to 6.25 |
The following summarizes option activity under the Company’s stock plan for the six months ended June 30, 2024 and for the year ended December 31, 2023:
|  | Shares Underlying Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (in years) |
Outstanding at January 1, 2023 |  |  | 3,983,808 |  |  | $ | 10.53 |  |  |  | 8.23 |
Granted |  |  | 1,416,000 |  |  | $ | 3.46 |  |  |  | 9.28 |
Exercised |  |  | (2,452 | ) |  | $ | 2.20 |  |  |  | 4.42 |
Forfeited and expired |  |  | (1,556,812 | ) |  | $ | 12.53 |  |  |  | 7.40 |
Outstanding at December 31, 2023 |  |  | 3,840,544 |  |  | $ | 7.12 |  |  |  | 8.96 |
Granted |  |  | 467,500 |  |  | $ | 2.81 |  |  |  | 9.59 |
Exercised |  |  | (14,375 | ) |  | $ | 2.98 |  |  |  | (0.50 | )
Forfeited and expired |  |  | (146,626 | ) |  | $ | 8.07 |  |  |  | 6.97 |
Outstanding at June 30, 2024 |  |  | 4,147,043 |  |  | $ | 6.52 |  |  |  | 7.72 |
Vested options at June 30, 2024 |  |  | 1,989,123 |  |  | $ | 8.94 |  |  |  | 6.80 |
The weighted average exercise price and remaining contractual life of exercisable options as of June 30, 2024 is $8.94 and $6.80, respectively. The total aggregate intrinsic value of the exercisable options as of June 30, 2024 was approximately $9,534. Stock Compensation Expense The weighted-average grant date fair value per share for the stock options granted was $2.00 and $3.42 for the six months ended June 30, 2024 and 2023, respectively. On February 10, 2023, the Company’s Chief Executive Officer, President and Class II member of the Board of Directors resigned. In connection with the resignation, the Company entered into a separation agreement providing for, among other things, accelerated vesting of 106,656 unvested restricted shares of the Company common stock. Stock based compensation expense for the six months ended June 30, 2023 includes $349,832 related to the accelerated vesting of stock, which is included in “separation expenses” in the condensed consolidated statements of operations. At June 30, 2024, the total unrecognized stock compensation expense related to unvested stock option awards and restricted stock awards and restricted stock units granted was $9,663,271, which the Company expects to recognize over a weighted-average period of approximately 3.73 years. Stock compensation expense for the three and six months ended June 30, 2024 and 2023 is as follows:
|  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Services |  | $ | 43,849 |  |  | $ | 34,272 |  |  | $ | 76,170 |  |  | $ | 72,198 |
Research and development |  |  | (5,496 | ) |  |  | 36,964 |  |  |  | 52,995 |  |  |  | 75,156 |
Sales and marketing |  |  | 61,096 |  |  |  | 49,915 |  |  |  | 136,444 |  |  |  | 103,917 |
General and administrative |  |  | 1,563,187 |  |  |  | 1,419,191 |  |  |  | 3,055,942 |  |  |  | 2,767,472 |
Separation expenses |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 349,832 |
Subtotal |  |  | 1,662,636 |  |  |  | 1,540,342 |  |  |  | 3,321,551 |  |  |  | 3,368,575 |
Discontinued operations |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (247,308 | )
Total |  | $ | 1,662,636 |  |  | $ | 1,540,342 |  |  | $ | 3,321,551 |  |  | $ | 3,121,267 |
Total intrinsic value of options exercised during the period ended June 30, 2024 was $8,375. The total fair value of restricted shares vested during the three and six month periods ended June 30, 2024 was $63,597 and $726,664, respectively.

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