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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation

11. Stock-Based Compensation

 

From time to time, we issue stock options and restricted stock as compensation for services rendered by our directors and employees.

 

Restricted Stock

 

On March 19, 2024, we granted 127,500 shares of restricted common stock to certain employees. The grants of restricted common stock had a per share fair value of $8.83, were made in accordance with the 2015 Plan, and were subject to vesting, as follows: 42,495 shares vested on March 19, 2024; 42,495 shares vest on April 2, 2025, and 42,510 shares vest on April 2, 2026. As of April 2, 2024, 10,315 shares, representing an amount of $69,525, were cancelled for payment of payroll taxes as part of a cashless grant, in accordance with the 2015 Plan, resulting in a net of 32,180 shares vested. Stock compensation of $805,955 was recorded on the issuance of the common stock for the year ended December 31, 2024.

 

On December 28, 2023, we issued 39,864 shares of restricted common stock to our directors as part of their annual compensation plan. The grants of restricted common stock were made in accordance with our 2023 Non-Employee Director Compensation Plan and were not subject to vesting. Stock compensation of $147,500 was recorded on this issuance of restricted common stock for the year ended December 31, 2023.

 

 

Stock Options

 

On August 16, 2024, we granted non-employee directors stock options to purchase 36,000 shares at an exercise price of $8.78 per share, the fair market value of the shares on the grant date, under the 2023 Non-Employee Director Compensation Plan, with 100% vesting upon grant. The total fair value of $241,735 for these stock options was recognized upon grant. On September 4, 2024, we granted employees stock options to purchase 14,500 shares at an exercise price of $10.12 per share, the fair market value of the shares on the grant date, under the 2015 Plan, with annual vesting through 2027 based on service time. The total fair value of $118,347 for these stock options is being recognized over the vesting period. We did not make any stock option grants during the twelve months ended December 31, 2023.

 

The weighted-average grant date fair value of options granted during the twelve months ended December 31, 2024 was $7.13. The weighted average assumptions that were used in calculating such values during the twelve months ended December 31, 2024, as well as the assumptions that were used in calculating such values, were based on estimates at the grant date in the table as follows:

 

   Grant Date
August 16, 2024		   Grant Date
September 4, 2024		 
Risk-free interest rate   3.77%   3.61%
Weighted average expected term   5 years     6 years 
Expected volatility   100.97%   101.00%
Expected dividend yield   0.00%   0.00%

 

A summary of stock option activity during the years ended December 31, 2024 and 2023 is as follows:

 

           Weighted-     
       Weighted-   Average     
       Average   Remaining   Aggregate 
   Shares   Exercise   Contractual   Intrinsic 
   Under Option   Price   Life   Value 
Outstanding at January 1, 2024   357,887   $5.69    8 years   $     - 
Granted   50,500    9.16           
Exercised   (29,976)   5.07           
Forfeited   (4,000)   4.63         - 
Outstanding at December 31, 2024   374,411   $6.22    7 years   $- 
                     
Exercisable at December 31, 2024   284,912   $6.06    7 years   $- 

 

           Weighted-     
       Weighted-   Average     
       Average   Remaining   Aggregate 
   Shares   Exercise   Contractual   Intrinsic 
   Under Option   Price   Life   Value 
Outstanding at January 1, 2023   365,447   $5.89    8 years   $19,200 
                     
Forfeited   (7,560)   15.34         (19,200)
Outstanding at December 31, 2023   357,887   $5.69    8 years   $- 
                     
Exercisable at December 31, 2023   186,594   $5.60    7 years   $- 

 

During the years ended December 31, 2024 and 2023, stock-based compensation for options was $690,819 and $464,529, respectively.

 

As of December 31, 2024 and 2023, there was $213,247 and $547,981, respectively, of total unrecognized compensation costs related to stock options granted under our stock option agreements. The unrecognized compensation cost is expected to be recognized over a weighted-average period of two years. The total fair value of stock options that vested during the years ended December 31, 2024 and 2023 was $696,620 and $467,771, respectively.

 

Issues of Stock-Based Compensation

 

The following represent grants of stock options, including the fair value recognized or to be recognized over the requisite service period:

 

Grant date  Shares granted
(canceled)		   Exercise price   Date fully vested  Fair value 
                
February 10, 2016   4,200   $48.00   February 10, 2020  $174,748 
December 6, 2016   2,000    38.00   December 6, 2020   63,937 
September 25, 2017   15,000    15.00   September 25, 2019   194,149 
September 25, 2017   10,000    19.00   September 25, 2019   126,862 
January 30, 2019   250    45.00   January 30, 2019   885 
March 11, 2019   (33,200)   -   -   - 
March 11, 2019   33,200    6.50   December 6, 2020   24,898(1)
March 11, 2019   10,100    6.50   March 11, 2023   44,591 
September 2, 2020   99,000    4.00   September 2, 2024   327,181 
April 14, 2022   220,587    6.08   April 14, 2025   1,152,470 
August 16, 2024   36,000    8.78   August 16, 2024   241,735 
September 4, 2024   14,500    10.12   September 4, 2027   118,347 

 

  (1) Represents incremental fair value of replacement shares compared to canceled shares.