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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2025
Stock-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION

10. STOCK-BASED COMPENSATION

 

Stock Options

 

On September 18, 2024, the Company adopted the 2024 Equity Incentive Plan. 1,538,462 shares of common stock have initially been reserved for the issuance of awards under the 2024 Equity Incentive Plan with 42,283 shares available for future issuance as of June 30, 2025. There were 213,692 nonqualified stock option awards issued and outstanding outside of the 2024 Equity Incentive Plan as of June 30, 2025 and December 31, 2024.

 

The Company and its consolidated subsidiaries calculate stock-based compensation expense in accordance with ASC 718. The fair value of stock-based awards is amortized over the vesting period of the award.

There were 496,179 stock options granted under the 2024 Equity Incentive Plan to the Company’s employees and directors during the three and six months ended June 30, 2025, and no stock options granted for three and six months ended June 30, 2024.

 

The stock options granted during the three and six months ended June 30, 2025, were valued utilizing the Black-Scholes options pricing model with the following inputs: $1.70-$1.93 of stock price, 4.06% risk-free rate, 78.23%-81.85% volatility, 0% dividend rate, and the expected term of 5.50-6.00 years.

 

The following represents a summary of options:

 

   Stock Options   Weighted-Average Exercise Price   Weighted-Average Remaining Contractual Term 
Issued and outstanding, December 31, 2024   213,692   $    7.33    5.12 
Granted   496,179    1.82      
Exercised   
-
    
-
      
Forfeited/Expired   
-
    
-
      
Issued and outstanding, June 30, 2025   709,871   $3.48    8.47 
Exercisable, June 30, 2025   362,604   $5.22    7.01 

 

For the three and six months ended June 30, 2025 the Company had $192,053 of stock compensation related to the stock options outstanding, of which $178,424 and $13,629 were included in general and administrative expenses and research and development expenses, respectively, on the accompanying condensed statements of operations. There was no expense related to the stock option grants recognized during the three and six months ended June 30, 2024. As of June, 2025, the remaining unamortized expense of $415,479 will be recognized over the next 2.77 years. Such amount does not include the effect of future grants of equity compensation, if any. The intrinsic value of options outstanding was $867 at June 30, 2025 and the intrinsic value of options exercisable was $0 at December 31, 2024.