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Stock Appreciation Rights
 9 Months Ended
Sep. 30, 2024
Stock Appreciation Rights [Abstract]  
STOCK APPRECIATION RIGHTS

NOTE 6 - STOCK APPRECIATION RIGHTS

 

During the nine months ended September 30, 2024, 110,000 stock appreciation rights have been issued to employees with an exercise price of $3.84 - $3.69 respectively with a 10-year term, and vesting over a 4-year period. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 3.87 – 4.15%, (2) expected life of 6.25 years, (3) expected volatility of 113%, and (4) zero expected dividends.

 

At September 30, 2024, the Company revalued the stock appreciation rights using a stock price of $3.24 and an exercise price of $3.84 - $3.69. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 3.63%, (2) expected life of 6 years, (3) expected volatility of 112%, and (4) zero expected dividends.

 

As of September 30, 2024, the total liability related to SARs is $12,562, reflecting the fair value as of the reporting date. During the quarter ended September 30, 2024, the Company recorded compensation related to the SARs in the amount of $12,562, included in research and development expenses in the accompanying consolidated statements of operations.

 

A summary of the changes in SARs during the nine months ended September 30, 2024 is as follows.

 

   Number of
SARS		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term		   Aggregate
Intrinsic
Value		 
Outstanding at December 31, 2023   
-
   $
-
    
-
   $
-
 
Granted   110,000   $3.70    9.84   $- 
Outstanding at September 30, 2024   110,000   $3.70    9.84   $
-
 
SARs vested at September 30, 2024   
-
   $
-
    -   $- 

 

At September 30, 2024, the Company has unrecognized compensation expense of approximately $0.3 million related to unvested stock appreciation rights which will be recognized over the weighted average remaining service period of 3.83 years.