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Stockholders’ Equity | 12 Months Ended
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Dec. 31, 2023
Equity [Abstract] |
Stockholders’ Equity | Note 8. Stockholders’ Equity 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. In 2023, the Company issued 1,315,491 shares of common stock pursuant to the conversion of debt and accrued interest, as more fully described in Note 6. In 2023, the Company issued 165,779 shares of common stock for equity-based compensation. Additionally, 4,094 shares of common stock valued between $1.45 - $4.00 were issued for services. Warrants The following is a summary of changes in warrants outstanding for the years ended December 31, 2023 and 2022: Summary of Changes in Warrants Outstanding
|  | Number of warrants |
Outstanding at December 31,2021 |  |  | 1,287,404 |
Exercised |  |  | (986 | )
Expired |  |  | (106,228 | )
Outstanding at December 31, 2022 |  |  | 1,180,190 |
Expired |  |  | (936,375 | )
Outstanding at December 31, 2023 |  |  | 243,815 |
The following is a summary of all outstanding warrants as of December 31, 2023: 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 |
Settlement of deferred compensation |  |  | 243,815 |  |  | $ | 6.32 |  |  | $ | 3.51 - 9.10 |  |  |  | 0.74 |  |  | $ | - |
Equity Incentive Plan Through 2022, the Company issued equity incentive awards under the 2015 Equity Incentive Plan (the “2015 Plan”) and outside the Plan. In June 2023, the Company’s stockholders adopted the 2023 Equity Incentive Plan (the “2023 Plan”), reserving 650,000 shares for future issuance. The Board of Directors discontinued further grants under the 2015 Plan. Awards may be granted to employees, members of the Board of Directors and consultants, and 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, 2023, and issues new shares upon exercise of options or vesting of stock awards and stock units. The Company has reserved approximately 493,000 and 43,000 respectively for awards outstanding under the 2015 Plan and 2023 Plan, and 162,000 shares for equity awards issued outside either of the Company’s equity incentive plans. As of December 31, 2023, 607,000 shares remain available for the issuance of awards under the 2023 Plan. Total shares reserved for awards that are outstanding and expected to vest or available for issuance is 1,305,000 as of December 31, 2023. Stock-Based Compensation The total amount of equity-based compensation included in general and administrative expense in the accompanying consolidated statements of operations was $290,000 and $386,000 for the years ended December 31, 2023 and 2022. As of December 31, 2023, the Company has $93,000 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 1.3 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, 2021 |  |  | 635,889 |  |  | $ | 7.41 |  |  |  | 3.8 |
Issued |  |  | 64,672 |  |  | $ | 5.72 |  |  |  | 8.0 |
Cancelled/expired |  |  | (17,622 | ) |  | $ | 5.08 |  |  |  |  |
Outstanding on December 31, 2022 |  |  | 682,939 |  |  | $ | 7.30 |  |  |  | 3.2 |
Issued |  |  | 65,468 |  |  | $ | 1.50 |  |  |  | 8.0 |
Cancelled/expired |  |  | (161,316 | ) |  | $ | 7.92 |  |  |  |  |
Outstanding on December 31, 2023 |  |  | 587,091 |  |  | $ | 6.50 |  |  |  | 3.6 |
Exercisable, December 31, 2023 |  |  | 526,389 |  |  | $ | 6.73 |  |  |  | 3.2 |
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
|  | 2023 |  |  | 2022 |
Expected term (in years) |  |  | 8 |  |  |  | 5.5 - 8 |
Weighted average expected volatility |  |  | 84.4 | % |  |  | 82.8% - 85.7 | %
Weighted average risk-free interest rate |  |  | 3.7 | % |  |  | 1.5% - 3.9 | %
Expected dividends |  | $ | - |  |  | $ | - |
Weighted average grant date fair value per share |  | $ | 1.21 |  |  | $ | 4.53 |
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, 2022 |  |  | - |  |  | $ | - |
Granted |  |  | 46,554 |  |  | $ | 4.96 |
Forfeited |  |  | (4,631 | ) |  | $ | 5.38 |
Unvested at December 31, 2022 |  |  | 41,923 |  |  | $ | 4.92 |
Granted |  |  | 5,000 |  |  | $ | 1.25 |
Vested |  |  | (4,386 | ) |  | $ | 5.06 |
Forfeited |  |  | (9,931 | ) |  | $ | 3.33 |
Unvested at December 31, 2023 |  |  | 32,606 |  |  | $ | 4.82 |
Performance Stock Units During 2023 and 2022, the Company issued performance share units (“PSUs”) that represent shares potentially issuable based upon achievement of Company and individual performance targets. The grantees have the ability to earn 0% and, in some cases, up to 200% of the PSU target award. The awards also included various time-based service requirements. 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 |
Cash settled |  |  | (17,678 | ) |  | $ | 4.50 |
Granted |  |  | 288,469 |  |  | $ | 1.70 |
Forfeited |  |  | (179,330 | ) |  | $ | 1.67 |
Unvested and expected to vest at December 31, 2023 |  |  | 63,888 |  |  | $ | 1.84 |
In February 2023, the awards granted for 2022 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, and were not included in the total unvested at December 31, 2022. As a result of the modifications, the Company recorded an additional $218,000 in compensation expense in 2023.

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