XML 26 R17.htm IDEA: XBRL DOCUMENT v3.24.3
Stock-based compensation
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-based compensation

Note 11 – Stock-based compensation

 

The Company has one share-based compensation plan as describe below. Total compensation cost that has been charged against income for the plan was S$537,756 (US$407,607) during the year ended December 31, 2023. No share-based compensation has been issued for the six months ended June 30, 2024.

 

Stock Option Plan

 

In December 2023, the Company adopted the 2023 Equity Incentive Plan (the “2023 Incentive Plan”), for the purpose of granting share-based compensation awards to employees, directors and consultants to incentivize their performance and align their interests with ours. Under the 2023 Incentive Plan, we are authorized to issue an aggregate of 2,000,000 ordinary shares. As of the date of this annual report, no ordinary shares have been granted and outstanding, 1,025,527 options have been granted and outstanding, of which 688,652 options were granted to certain of our management members and directors.

 

The following summarize the terms of the 2023 Incentive Plan.

 

Types of Awards. The 2023 Incentive Plan permits the awards of options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards and/or performance compensation awards.

 

Plan Administration. The 2023 Incentive Plan is administered by the Compensation Committee of the Board or any other committee appointed by the Board to administer this Plan (or if no Committee is appointed, the Board). The plan administrator is entitled to determine the participants who are to receive awards, the number of awards to be granted, and the terms and conditions of each award grant.

 

Eligibility. Employees, directors and officers and the consultants of our company are eligible to participate pursuant to the terms of the 2023 Incentive Plan.

 

Conditions of Award. The plan administrator shall determine the participants, types of awards, numbers of shares to be covered by awards, terms and conditions of each award, and provisions with respect to the vesting schedule, settlement, exercise, repurchase, cancellation, forfeiture, restrictions, limitations or suspension of awards.

 

Term of Award. The term of each award shall be fixed by the administrator and is stated in the award agreement between recipient of an award and us. No award shall be granted under the 2023 Incentive Plan after ten years from the date the 2023 Incentive Plan was approved by the board.

 

 

Vesting Schedule. In general, the plan administrator determines the vesting schedule, which is set forth in the award agreement. Except for 75,986 has vesting period of 1 year, all option has vested immediately from the date of grant.

 

Transfer Restrictions. Unless otherwise determined by the administrator of the 2023 Incentive Plan, no award and no right under any such award shall be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order, and shall not be subject to execution, attachment, or similar process.

 

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock. An illiquidity discount was estimated which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

 

The fair value of options granted was determined using the following weighted-average assumptions as of grant date.

 

   2023 
     
Risk-free interest rate   3.93%
Illiquidity Discount   30%
Expected stock price volatility   62.3%
Dividend yield   -%

 

A summary of the activity in the 2023 Equity Incentive Plan follows:

 

  

Options

Shares

   Weighted Average Exercise Price   Weighted Average Remining Contractual Term (Year)   Aggregate Intrinsic Value 
       USD       USD 
Outstanding at beginning of year   -    -    -    - 
Granted   1,025,527    1.67    9.3    429,388 
Exercised   -    -    -    - 
Forfeited or expired   -    -    -      
Outstanding at end of year   1,025,527    1.67    9.3    429,388 
Fully vested and expected to vest   945,541    1.60    9.4      
Exercisable at end of year of 2023   945,541    9.4    9.4    407,607 

 

Information related to the stock option plan during each year follows:

 

   2022   2023   2023 
   SGD   SGD   USD 
Intrinsic value of options exercised        -    - 
Cash received from option exercises        -    - 
Tax benefit from option exercises        -    - 
Weighted average fair value of options granted        566,492    429,388 

 

As of December 31, 2023, there was S$28,736 (US$21,781) of total unrecognized compensation cost related to non-vested stock options granted under the 2023 Equity Incentive Plan. The cost is expected to be recognized under a weighted average period of 7.4 year.