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Stockholders’ Equity | 12 Months Ended
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Dec. 31, 2022
Equity [Abstract] |
Stockholders’ Equity | Note 10. Stockholders’ Equity On June 1, 2021, the Company completed a private placement of 1,282,051 shares of its common stock at $4.68 per share, resulting in gross proceeds of $6,000,000. In 2021, holders of debt converted a total of $399,000 in principal and $234,410 in interest into 133,991 shares of common stock, and debt in the amount of $840,000 was retired (Note 7). In 2021, the Company issued 17,273 shares of common stock, valued between $4.94 - $10.15 per share, for services rendered. In 2021, the Company issued a warrant to purchase 10,550 shares of common stock at exercise prices ranging from $3.25 - $5.46 (weighted average $4.15) in exchange for services rendered. In 2022, the Company issued 23,643 shares of common stock, valued between $5.00 - $5.16 per share, for services rendered. Additionally, 5,000 fully vested shares of common stock were granted and issued for equity-based compensation at a value of $4.50 per share. In 2022, the Company issued 986 shares of common stock due to the exercise of a warrant at an exercise price of $5.07. Warrants The following is a summary of changes in warrants outstanding for the years ended December 31, 2022 and 2021: Summary of Changes in Warrants Outstanding
|  | Number of warrants |
Outstanding at December 31,2020 |  |  | 2,204,303 |
Issued |  |  | 10,550 |
Expired |  |  | (927,449 | )
Outstanding at December 31, 2021 |  |  | 1,287,404 |
Exercised |  |  | (986 | )
Expired |  |  | (106,228 | )
Outstanding at December 31, 2022 |  |  | 1,180,190 |
The following is a summary of all outstanding warrants as of December 31, 2022: Summary of Outstanding Warrants
Warrant issuance event |  | Number of warrants |  |  | Weighted average exercise price |  |  | Exercise price per share |  |  | Remaining term in years |  |  | Intrinsic value at date of grant |
Private placements of common stock |  |  | 818,683 |  |  | $ | 6.03 |  |  | $ | 5.85 – 6.89 |  |  |  | 0.28 |  |  | $ | - |
Private placement of notes |  |  | 117,692 |  |  | $ | 5.85 |  |  | $ | 5.85 |  |  |  | 0.22 |  |  | $ | - |
Settlement of deferred compensation |  |  | 243,815 |  |  | $ | 6.32 |  |  | $ | 3.51 - 9.10 |  |  |  | 1.74 |  |  | $ | - |
|  |  | 1,180,190 |  |  | $ | 6.07 |  |  | $ | 3.51 - 9.10 |  |  |  | 0.58 |  |  | $ | - |
Equity Incentive Plan Under the 2015 Equity Incentive Plan (the “2015 Plan”), the Company has reserved 1,153,846 shares for equity incentive awards for issuance to employees, members of the board of directors and other service providers. Awards may take the form of options, restricted stock, restricted stock units, performance shares and stock appreciation rights. The Company has issued options with no intrinsic value, stock awards and stock units through December 31, 2022, and issues new shares upon exercise of options or vesting of stock awards and stock units. As of December 31, 2022, there were 354,000 shares available for the issuance of awards under the 2015 Plan. The Company has reserved approximately 30,000 shares for equity awards issued outside of the 2015 Plan. Stock-Based Compensation The total amount of equity-based compensation included in general and administrative expense in the accompanying consolidated statements of operations was $386,000 and $92,000 for the years ended December 31, 2022 and 2021. As of December 31, 2022, the Company has $281,000 of total unrecognized share-based compensation expense related to unvested options, stock awards and stock units, which is expected to be amortized over the remaining weighted average period of 1.9 years. Stock Options The following is a summary of stock option activity: Summary of Stock Options Activity
|  | Number of Options |  |  | Weighted average exercise price per share |  |  | Remaining term in years |
Outstanding on December 31, 2020 |  |  | 614,271 |  |  | $ | 7.61 |  |  |  | 3.8 |
Issued |  |  | 65,805 |  |  | $ | 5.63 |  |  |  |  |
Cancelled/expired |  |  | (44,187 | ) |  | $ | 5.08 |  |  |  |  |
Outstanding on December 31, 2021 |  |  | 635,889 |  |  | $ | 7.41 |  |  |  | 3.8 |
Issued |  |  | 64,672 |  |  | $ | 5.72 |  |  |  |  |
Cancelled/expired |  |  | (17,622 | ) |  | $ | 5.08 |  |  |  |  |
Outstanding on December 31, 2022 |  |  | 682,939 |  |  | $ | 7.30 |  |  |  | 3.2 |
Exercisable, December 31, 2022 |  |  | 595,829 |  |  | $ | 7.54 |  |  |  | 2.7 |
The fair value of the options issued was calculated using the Black-Sholes option pricing model, based on the criteria shown below: Summary of Fair Value of Options Using Black-Sholes Option Pricing Model
|  | 2022 |  |  | 2021 |
Expected term (in years) |  |  | 5.5 - 8 |  |  |  | 5.5 - 8 |
Expected volatility |  |  | 82.8% - 85.7 | % |  |  | 85.0% - 89.4 | %
Risk-free interest rate |  |  | 1.5% - 3.9 | % |  |  | 0.7% - 1.3 | %
Expected dividends |  | $ | - |  |  | $ | - |
Weighted average grant date fair value per share |  | $ | 4.53 |  |  | $ | 4.04 |
Restricted Stock The following is a summary of restricted stock award and restricted stock unit activity: Summary of Restricted Stock Award and Restricted Stock Unit Activity
|  | Number of shares |  |  | Weighted average grant date fair value |
Unvested at January 1, 2021 |  |  | - |  |  | $ | - |
Unvested at January 1, 2022 |  |  | - |  |  | $ | - |
Granted |  |  | 46,554 |  |  | $ | 4.96 |
Forfeited |  |  | (4,631 | ) |  | $ | 5.38 |
Unvested at December 31, 2022 |  |  | 41,923 |  |  | $ | 4.91 |
Performance Stock Units During 2022, the Company issued performance share units (“PSUs”) that represent shares potentially issuable based upon achievement of Company and individual performance targets in 2022. The grantees have the ability to earn 0% - 200% of the PSU target award. The awards also included a time-based service requirement through March 2023. The following is a summary of PSU activity: Summary of Performance Stock Unit Activity
|  | Number of shares |  |  | Weighted average grant date fair value |
Unvested at January 1, 2022 |  |  | - |  |  | $ | - |
Granted |  |  | 123,512 |  |  | $ | 4.50 |
Forfeited |  |  | (105,834 | ) |  | $ | 4.50 |
Unvested at December 31, 2022 |  |  | 17,678 |  |  | $ | 4.50 |
In February 2023, the awards were modified to pay the original grant-date fair value of the shares expected to vest in cash. Additionally, the Company performance targets were modified to allow approximately 77,000 shares to vest that would have otherwise been forfeited. As a result of the modifications, the Company expects to record an additional $218,000 in compensation expense, primarily in 2023.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI https://asc.fasb.org/topic&trid=2208762 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI https://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 14 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496171-112644 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 18 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496189-112644 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 16 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496180-112644 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=126973232&loc=SL123496158-112644 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 6 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126731327&loc=SL126733271-114008 + Details
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