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STOCKHOLDERS’ EQUITY | 6 Months Ended
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Jun. 30, 2025
Share-Based Payment Arrangement [Abstract] |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Authorized Shares The Company has 50,000,000 authorized shares of common stock and 10,000,000 authorized shares of preferred stock, each with a par value of $0.0001 per share. 500,000 shares of preferred stock are designated as Series A Junior Participating Preferred Stock. Share Repurchase On June 28, 2024, the Company announced that its Board of Directors had authorized a $5.0 million share repurchase program of the Company’s common stock. In conjunction with the Cooperation Agreement signed on September 6, 2024, the maximum authorized repurchase amount was increased to $10.0 million. Repurchases under the program may be made through open market purchases, privately negotiated transactions, or other methods, including tender offers. Pursuant to this authorization, on May 13, 2025, the Company launched a modified “Dutch auction” tender offer to repurchase up to $8.7 million of its outstanding common stock. The tender offer expired on June 16, 2025, and the final results were announced on June 18, 2025. In accordance with the terms of the offer, the Company repurchased 38,682 shares at a purchase price of $2.80 per share, for an aggregate cost of approximately $0.1 million, excluding fees and expenses. On June 16, 2025, the Company entered into an agreement with Ladenburg Thalmann & Co. Inc. (“Ladenburg”) authorizing Ladenburg to purchase shares of the Company’s common stock on the Company’s behalf beginning on July 16, 2025, and ending on the earliest of May 15, 2026, the date the aggregate dollar limit under the Company’s repurchase authorization is reached, or the occurrence of certain other specified events. Purchases will be made from time to time, depending on market conditions, in open market or privately negotiated transactions, at prices deemed appropriate by management and are intended to comply with the safe harbor provisions of Rules 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. As of June 30, 2025, no shares have been purchased under this plan. As of June 30, 2025, a total of 523,268 shares have been purchased under the repurchase program with an average price per share of $2.53, for a total of $1.3 million. The remaining dollar value authorized for repurchase under the Company’s programs as of June 30, 2025 was approximately $8.7 million. A table of the Company’s share repurchases for the quarter ended June 30, 2025, as required by item 703 of Regulation S-K, is included in Part II, Item 2 of this Quarterly Report on Form 10-Q. Equity Incentive Plan The Company’s stockholders approved an amendment and restatement of the 2011 Equity Incentive Plan at the Company’s 2024 Annual Meeting of Stockholders held on December 12, 2024, to increase the number of plan shares by 700,000 shares, from 3,675,000 to 4,375,000 shares. As of June 30, 2025, the Company had 771,648 remaining shares of common stock available for issuance pursuant to future grants under the 2011 Equity Incentive Plan. Restricted Stock Under the 2011 Equity Incentive Plan, the Board determines the terms and conditions of each restricted stock issuance, including any future vesting restrictions. In 2024, the Company issued a total of 64,385 shares of restricted common stock with a grant date fair value of $0.2 million for their annual service as independent directors of the Company. The stock was granted in installments on the last day of each quarter and vested immediately. In the three and six months ended June 30, 2025, the Company issued its six independent directors a total of 78,150 shares of restricted common stock, respectively, with an aggregate grant date valuation of $179,996 for their service as directors of the Company. The following table contains summarized information about restricted stock issued during the years ended December 31, 2024 and the six months ended June 30, 2025:
Restricted Stock | Common Shares | Weighted Average Grant Date Fair Value | Weighted Average Remaining Years to Vest
Nonvested at December 31, 2023 | — |  | $ | — |  | 0.0
Granted | 125,863 |  | 2.54 |  |
Vested | (125,863) |  | 2.54 |  |
Nonvested at December 31, 2024 | — |  | $ | — |  | 0.0
Granted | 78,150 |  | 2.30 |  |
Vested | (78,150) |  | 2.30 |  |
Nonvested at June 30, 2025 | — |  | $ | — |  | 0.0
Although restricted stock is issued upon the grant of an award, the Company excludes restricted stock from the computations within the financial statements of total shares outstanding and basic earnings per share until such time as the restricted stock vests. Expenses recognized on restricted stock issued to independent directors for services were $89,994 and $75,006 during the three months ended June 30, 2025 and 2024, respectively, and $179,996 and $150,006 during the six months ended June 30, 2025 and 2024, respectively. On June 30, 2025, the fair value of the Company’s common stock was approximately $2.55 per share and the Company did not have any non-vested restricted stock. Restricted Stock Units The Board determines the terms and conditions of each restricted stock unit award issued under the 2011 Equity Incentive Plan. During the six months ended June 30, 2025, the Company issued a total of 573,096 time-based restricted stock units, initially valued at $1.6 million, as additional compensation, including 520,817 time-based restricted stock units, initially valued at $1.5 million, to non-executive employees and 52,279 time-based restricted stock units, initially valued at $0.1 million, to executives. These time-based restricted stock units have vesting periods ranging from 36 to 48 months from issuance. The following table contains summarized information about restricted stock units during the year ended December 31, 2024, and the six months ended June 30, 2025:
Restricted Stock Units | Common Shares | Weighted Average Grant Date Fair Value | Weighted Average Remaining Years to Vest
Nonvested at December 31, 2023 | 962,849 |  | $ | 2.60 |  | 2.5
Granted(1) | 2,348,423 |  | 2.31 |  |
Vested | (956,679) |  | 2.54 |  |
Forfeited | (305,821) |  | 2.41 |  |
Nonvested at December 31, 2024 | 2,048,772 |  | $ | 2.33 |  | 2.6
Granted | 573,096 |  | 2.83 |  |
Vested | (304,008) |  | 2.31 |  |
Forfeited | (204,393) |  | 2.55 |  |
Nonvested at June 30, 2025 | 2,113,467 |  | $ | 2.48 |  | 2.78
(1) In the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, the table summarizing the number of shares granted during the year inadvertently omitted certain equity awards, although the correct total was disclosed in the accompanying narrative. The total number of shares granted during 2024 was 2,348,423, inclusive of awards to both executive and non-executive employees. The previously reported table total of 1,858,023 has been updated to reflect the correct number of granted shares. This did not have an impact on our financial statements for the period. Expenses recognized on restricted stock units issued to employees were $0.4 million and $0.3 million during the three months ended June 30, 2025 and 2024, respectively and $0.6 million and $0.7 million during the six months ended June 30, 2025 and 2024, respectively. On June 30, 2025, the fair value of the Company’s common stock was approximately $2.55 per share, and the intrinsic value of the non-vested restricted units was $4.1 million. Future compensation related to the non-vested restricted stock units as of June 30, 2025, is $3.7 million, and it is estimated to be recognized over the weighted-average vesting period of approximately 2.78 years. Stock Options Under the 2011 Equity Incentive Plan, the Board determines the exercise price to be paid for the stock option shares, the period within which each stock option may be exercised, and the terms and conditions of each stock option. The exercise price of incentive and non-qualified stock options may not be less than 100% of the fair market value per share of the Company’s common stock on the grant date. If an individual owns stock representing more than 10% of the outstanding shares, the exercise price of each share of an incentive stock option must be equal to or exceed 110% of fair market value. Unless otherwise determined by the Board at the time of grant, the exercise price is set at the fair market value of the Company’s common stock on the grant date (or the last trading day prior to the grant date, if it is awarded on a non-trading day). Additionally, the term is set at ten years, and the option typically vest on a straight-line basis over the requisite service period as follows: 25% one year from the date of grant with the remaining vesting monthly in equal increments over the following three years. The Company issues new shares for any stock awards or options exercised under its 2011 Equity Incentive Plan. A summary of option activity under the 2011 Equity Incentive Plan during the year ended December 31, 2024, and the six months ended June 30, 2025, is presented below:
Options Outstanding | Common Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Life (Years)
Outstanding at December 31, 2023 | 343,601 |  |  | $ | 9.53 |  |  | 5.2
Exercised | (65,154) |  |  | 1.21 |  |  |
Expired | (244,588) |  |  | 10.51 |  |  |
Forfeited | (520) |  |  | 9.24 |  |  |
Outstanding at December 31, 2024 | 33,339 |  |  | $ | 18.60 |  |  | 3.7
Exercised | — |  |  | — |  |  |
Expired | (9,343) |  |  | 28.54 |  |  |
Forfeited | (9) |  |  | 12.61 |  |  |
Outstanding at June 30, 2025 | 23,987 |  |  | $ | 14.73 |  |  | 4.37
Exercisable at June 30, 2025 | 23,890 |  |  | $ | 14.75 |  |  | 4.36
During the six months ended June 30, 2025, no options were exercised. During the six months ended June 30, 2024, 313 options were exercised for gross proceeds of $701. The intrinsic value of the exercised options was $50. The fair value of the Company's common stock on June 30, 2025, was approximately $2.55 per share, and the intrinsic value on outstanding options as of June 30, 2025 was $177. The intrinsic value of the exercisable options as of June 30, 2025 was $177. A summary of the nonvested stock option activity under the 2011 Equity Incentive Plan during the years ended December 31, 2024, and the six months ended June 30, 2025, is presented below:
Nonvested Options | Common Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Years to Vest
Nonvested at December 31, 2023 | 26,373 |  |  | $ | 8.83 |  |  | 1.1
Vested | (24,728) |  |  | 18.60 |  |  |
Forfeited | (520) |  |  | 9.24 |  |  |
Nonvested at December 31, 2024 | 1,125 |  |  | 18.60 |  |  | 3.7
Vested | (1,019) |  |  | 14.73 |  |  |
Forfeited | (9) |  |  | 12.61 |  |  |
Nonvested at June 30, 2025 | 97 |  |  | $ | 14.73 |  |  | 0.1
There were outstanding options to purchase 23,987 shares with a weighted average exercise price of $14.73 per share, of which options to purchase 23,890 shares were exercisable with a weighted average exercise price of $14.75 per share as of June 30, 2025. Expense recognized on stock options issued to employees during the three months ended June 30, 2025 and 2024 were $1,568 and $44,514, respectively. Expense recognized on stock options issued to employees during the six months ended June 30, 2025 and 2024 were $9,069 and $96,479, respectively. Future compensation related to non-vested awards as of June 30, 2025, is $407, and it is estimated to be recognized over the weighted-average vesting period of approximately 0.1 years. Inducement Plan On November 30, 2023, the Board of Directors adopted the IZEA Worldwide, Inc. 2023 Inducement Plan (the “Inducement Plan”) to accommodate equity grants to new employees hired by IZEA in connection with acquisition transactions. Under the Inducement Plan, IZEA may grant restricted stock units (“RSUs”), including performance-based and time-based RSUs, with respect to up to a total of 1,800,000 shares of IZEA common stock to new employees of IZEA or its subsidiaries. Pursuant to Rule 5635(c)(4) of the NASDAQ Listing Rules, the Inducement Plan was adopted without stockholder approval. In accordance with Rule 5635(c)(4) of the NASDAQ Listing Rules, awards under the Inducement Plan can only be made to individuals not previously employees or non-employee directors of IZEA (or following such individuals’ bona fide period of non-employment with IZEA), as an inducement material to the individuals’ entry into employment with IZEA or in connection with a merger or acquisition, to the extent permitted by Rule 5635(c)(3) of the NASDAQ Listing Rules. The following table contains summarized information about inducement grant-related RSUs during the year ended December 31, 2024, and the six months ended June 30, 2025.
Inducement Shares | Time-Based | Performance Based | Total
Grant Outstanding at December 31, 2023 | 10,000 | 328,354 | 338,354
Granted | 219,355 | — | 219,355
Forfeited (1) | (179,355) | (328,354) | (507,709)
Grant Outstanding at December 31, 2024 | 50,000 | — | 50,000
Granted | — | — | —
Forfeited | — | — | —
Grant Outstanding at June 30, 2025 | 50,000 | — | 50,000
(1) Inducement shares forfeited in 2024 were related to the divestiture of Hoozu in December, 2024. Employee Stock Purchase Plan The amended and restated IZEA Worldwide, Inc. 2014 Employee Stock Purchase Plan (the “ESPP”) provides for the issuance of up to 125,000 shares of the Company’s common stock to employees regularly employed by the Company for 90 days or more on a full-time or part-time basis (20 hours or more per week on a regular schedule). The ESPP operates in successive six-month periods commencing at the beginning of each fiscal year half. Each eligible employee who elects to participate may purchase up to 10% of their annual compensation in common stock, not to exceed $21,250 annually or 2,000 shares per offering period. The purchase price will be the lower of (i) 85% of the fair market value of a share of common stock on the first day of the offering period or (ii) 85% of the fair market value of a share of common stock on the last day of the offering period. The ESPP will continue until January 1, 2028, unless otherwise terminated by the Board. The stock compensation expense on ESPP options was $769 and $1,031 for the three months ended June 30, 2025, and 2024, respectively. The stock compensation expense on ESPP options was $11,558 and $2,041 for the six months ended June 30, 2025 and 2024. As of June 30, 2025, there were 61,281 remaining shares of common stock available for future issuance under the ESPP. Shareholder Rights Plan On May 28, 2024, the Board of Directors declared a dividend of one preferred share purchase right (a “Right”) for each share of the Company’s common stock as of June 7, 2024 (the “Record Date”), pursuant to a Rights Agreement between the Company and Broadridge Corporate Issuer Solutions, LLC, as Rights Agent. This Rights Agreement, which was filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed with the SEC on May 28, 2024, expired on May 31, 2025. The Rights did not become exercisable prior to the expiration of the Rights Agreement. Summary of Stock-Based Compensation The stock-based compensation cost related to all awards granted to employees is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the employee’s requisite service period utilizing the weighted-average forfeiture rates as disclosed in “Note 1 Company and Summary of Significant Accounting Policies.” Total stock-based compensation expense recognized on restricted stock, restricted stock units, stock options, and employee stock purchase plan issuances during the three and six months ended June 30, 2025 and 2024 was recorded in the Company’s consolidated statements of operations as follows:
| Three Months Ended June 30, | Six Months Ended June 30,
| 2025 | 2024 | 2025 | 2024
Cost of revenue | 1,340 |  | $ | 56,874 |  | 63,789 |  | $ | 108,445 |
Sales and marketing | 59,994 |  | 64,719 |  | 49,724 |  | 121,207 |
General and administrative | 294,380 |  | 273,338 |  | 527,333 |  | 519,468 |
Total stock-based compensation | $ | 355,714 |  | $ | 394,931 |  | $ | 640,846 |  | $ | 749,120 |
Accumulated Other Comprehensive Income (Loss) We recognize activity in other comprehensive income (loss) for unrealized gains and losses on securities and foreign currency translation adjustments. The activity in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2025, and 2024, respectively, was as follows:
| Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024
| Unrealized Gain (Loss) on Securities | Currency Translation Adjustment | Reclassification of Foreign Currency Translation Adjustment to Income | Total Accumulated Other Comprehensive Income (Loss) | Unrealized Gain (Loss) on Securities | Currency Translation Adjustment | Total Accumulated Other Comprehensive Income
Balance at March 31 | $ | (1,694) |  | $ | 17,837 |  | $ | (34,218) |  | $ | (18,075) |  | $ | (192,414) |  | $ | 4,170 |  | $ | (188,244) |
Other comprehensive income (loss) | 1,694 |  | (34,932) |  | — |  | $ | (33,238) |  | 92,630 |  | (16,472) |  | $ | 76,158 |
Balance at June 30 | $ | — |  | $ | (17,095) |  | $ | (34,218) |  | $ | (51,313) |  | $ | (99,784) |  | $ | (12,302) |  | $ | (112,086) |
| Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024
| Unrealized Gain (Loss) on Securities | Currency Translation Adjustment | Reclassification of Foreign Currency Translation Adjustment to Income | Total Accumulated Other Comprehensive Income (Loss) | Unrealized Gain (Loss) on Securities | Currency Translation Adjustment | Total Accumulated Other Comprehensive Income
Balance at December 31 | $ | 12,209 |  | $ | 127,296 |  | $ | (34,218) |  | $ | 105,287 |  | $ | (250,591) |  | $ | — |  | $ | (250,591) |
Other comprehensive income (loss) | (12,209) |  | (144,391) |  | — |  | (156,600) |  | 150,807 |  | (12,302) |  | 138,505 |
Balance at June 30 | $ | — |  | $ | (17,095) |  | $ | (34,218) |  | $ | (51,313) |  | $ | (99,784) |  | $ | (12,302) |  | $ | (112,086) |

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