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Equity
 9 Months Ended
Sep. 30, 2025
Equity [Abstract]  
Equity

Note 9. Equity

 

During the nine months ended September 30, 2024, the Company received proceeds of $8,670 in connection with the exercise of options covering 8,500 shares of common stock. No options or warrants were exercised during the nine-month period ended September 30, 2025.

 

On September 16, 2022, the Company entered into subscription agreements from a group of private accredited investors to sell them 2.0 million shares of common stock of the Company at a price of $2.30 per share (which represented the closing market price of the Company’s common stock on September 14, 2022 which was the date that the transaction was agreed to). As of December 31, 2022, the Company received $3,450,000 under these subscription agreements and issued 1,500,000 common shares and issued 1,500,000 warrants. During 2024, the Company received $300,000 and issued 130,434 shares and 130,434 warrants in connection with a remaining outstanding commitment under these subscription agreements. The Company has an outstanding commitment from a potential investor for the remaining $850,000 under these subscription agreements. The Company did not sell any equity securities during the nine-month periods ended September 30, 2025 and 2024.

 

The shares were issued to the investors in a private placement and, along with the shares issued in connection with the exercise of any warrants in the future, are not registered and therefore currently subject to at least a six-month holding period by the investor.

 

In December 2024, the Board of Directors approved 138,501 stock options under the Company’s 2019 Equity Incentive Plan which were granted upon shareholder approval at the annual meeting of shareholders held in June 2025. These options became fully vested upon grant and the Company recorded share-based compensation of $175,204 during the nine months ended September 30, 2025. No options were granted during the nine months ended September 30, 2024.

 

The Company valued this grant using the Black-Scholes option pricing model with the following weighted average assumptions:
 

   2025 
     
Fair value on grant date  $1.265 
Expected dividend yield   - 
Expected volatility   76%
Risk free interest rate   3.97%
Expected term of the option   5 years 

 

As of September 30, 2025, there were 1,630,434 warrants and 1,281,489 options outstanding.