XML 44 R23.htm IDEA: XBRL DOCUMENT
v3.25.1

Share-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2024
Retirement Benefits [Abstract] |
Share-Based Compensation | 13. Share-Based Compensation Summary of Restricted Common Stock The following table summarizes restricted stock activity during the year ended December 31, 2024: Schedule of Restricted Stock
|  | Unvested Shares |  |  | Issuable Shares |  |  | Fair Value at Date of Issuance |  |  | Weighted Average Grant Date Fair Value |
Balance, December 31, 2023 |  |  | 125,000 |  |  |  | - |  |  | $ | 418,750 |  |  |  | 3.35 |
Granted |  |  | 425,000 |  |  |  | - |  |  |  | 1,793,500 |  |  |  | 4.22 |
Vested |  |  | (241,666 | ) |  |  | 241,666 |  |  |  | - |  |  |  | - |
Forfeited |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Issued |  |  | - |  |  |  | (241,666 | ) |  |  | (731,400 | ) |  |  | - |
Balance, December 31, 2024 |  |  | 308,334 |  |  |  | - |  |  | $ | 1,480,850 |  |  | $ | 3.99 |
On March 1, 2023, the Company granted its Chief Executive Officer 200,000 shares of the Company’s restricted stock, and 100,000 shares of the Company’s restricted stock to employees with an aggregate fair value of $1,005,000 or $3.35 per share. The restricted stock grant vest 33% on the grant date, and 33% on each subsequent anniversary date. On March 1, 2024, the Company granted its Chief Executive Officer 200,000 shares of the Company’s restricted stock, and 225,000 shares of the Company’s restricted stock to other officers and employees with an aggregate fair value of $1,793,500 or $4.22 per share. The restricted stock grant vest 33% on the grant date, and 33% on each subsequent anniversary date. During the year ended December 31, 2024, the Company recognized stock compensation expense of $1,431,026 and issued 241,666 shares of restricted stock based upon its vesting term of the grants. As of December 31, 2024, the unamortized stock compensation expense amounted to $781,224, to be expensed upon vesting in future periods through March 1, 2026. Summary of Stock Options The Company issues common stock and stock options as incentive compensation to directors and as compensation for the services of employees, contractors and consultants of the Company. The fair value of a stock option award is calculated on the grant date using the Black-Scholes option-pricing model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect as of the grant date. The expected dividend yield assumption is based on the Company’s expectation of dividend payouts and is assumed to be zero. The expected volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. The expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). The fair market value of the common stock is determined by reference to the quoted market price of the common stock on the grant date. The expected term represents the weighted-average period of time that share option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future; and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award. A summary of stock option activity is presented below: Schedule of Stock Options
|  | Number of |  |  | Weighted Average |
|  | Options |  |  | Exercise Price |
Stock options outstanding at December 29, 2023 |  |  | 743,116 |  |  |  | 4.43 |
Granted |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |
Expired or forfeited |  |  | - |  |  |  | - |
Stock options outstanding at December 31, 2023 |  |  | 743,116 |  |  | $ | 4.43 |
Granted |  |  | 3,405,500 |  |  |  | 4.01 |
Exercised |  |  | (2,843 | ) |  |  | 3.35 |
Expired or forfeited |  |  | (23,943 | ) |  |  | (1.05 | )
Stock options outstanding at December 31, 2024 |  |  | 4,121,830 |  |  | $ | 4.28 |
Stock options exercisable at December 31, 2024 |  |  | 2,395,125 |  |  | $ | 4.32 |
Stock option expense was as follows: Schedule of Stock-based Compensation Expense
|  | Successor |  |  | Successor |  |  | Predecessor |
|  | 2024 |  |  | December 30 to December 31, 2023 |  |  | January 1, 2023 to December 29, 2023 |
Stock option expense |  | $ | 8,031,290 |  |  | $ | 5,000,000 |  |  | $ | 1,942 |
On April 1, 2024, the Company, pursuant to the terms of its 2019 Stock Incentive Plan, granted options exercisable into 3,405,500 shares to be issued to its executives and employees. The 3,405,500 stock options had an exercise price of $4.01 per share, with vesting of 33% on April 1, 2024, and then 33% on each subsequent anniversary date. The stock options are exercisable at a weighted average price of $4.01 per share with an average life to expiration of approximately nine years. The total fair value of these options at grant date was approximately $13,500,000, which was determined using a Black-Scholes-Merton option pricing model with the following average assumption: stock price of $4.01 per share, expected term of 6.00 years, volatility of 220%, dividend rate of 0%, and weighted average risk-free interest rate of 4.33%. The expected term represents the weighted-average period of time that share option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future; and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award. During the year ended December 31, 2024, the Company recognized $8,031,290 of stock compensation expense relating to vested stock options. As of December 31, 2024, the aggregate amount of unvested compensation related to stock options was approximately $5,680,244 which will be recognized as an expense as the options vest in future periods through March 2026. The weighted average remaining contractual life of common stock options outstanding and exercisable at December 31, 2024 was 8.25 years. Based on a fair market value of $1.09 per share on December 31, 2024, the intrinsic value attributed to exercisable but unexercised common stock options was $5,870 at December 31, 2024. The exercise prices of common stock options outstanding and exercisable at December 31, 2024 are as follows: Schedule of Options Summarized by Exercise Price
Exercise Prices |  |  | Options Outstanding (Shares) |  |  | Options Exercisable (Shares) |
$ | 1.00 |  |  |  | 61,004 |  |  |  | 61,000 |
$ | 1.05 |  |  |  | 9,500 |  |  |  | 9,500 |
$ | 1.50 |  |  |  | 400,000 |  |  |  | 400,000 |
$ | 2.50 |  |  |  | 50,000 |  |  |  | 50,000 |
$ | 3.00 |  |  |  | 100,000 |  |  |  | 100,000 |
$ | 3.35 |  |  |  | 92,166 |  |  |  | 76,728 |
$ | 4.22 |  |  |  | 3,405,500 |  |  |  | 1,694,236 |
$ | 363.17 |  |  |  | 3,660 |  |  |  | 3,661 |
|  |  |  |  | 4,121,830 |  |  |  | 2,395,125 |

X
- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 710 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/710/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 712 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/712/tableOfContent Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715/tableOfContent Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
Name: | us-gaap_CompensationAndEmployeeBenefitPlansTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration