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STOCK-BASED COMPENSATION EXPENSE | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION EXPENSE | NOTE 8: STOCK-BASED COMPENSATION EXPENSE The Company recorded stock-based compensation for the three and nine months ended September 30, 2023 and 2022, respectively, that were included in the following line items in our condensed consolidated statements of operations (in thousands): SCHEDULE OF STOCK BASED COMPENSATION
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Cost of revenue |  | $ | 22 |  |  | $ | 9 |  |  | $ | 82 |  |  | $ | 26 |
Research and development |  |  | 47 |  |  |  | 16 |  |  |  | 113 |  |  |  | 43 |
Selling |  |  | 30 |  |  |  | 8 |  |  |  | 72 |  |  |  | 18 |
General and administrative |  |  | 150 |  |  |  | 86 |  |  |  | 380 |  |  |  | 220 |
Total |  | $ | 249 |  |  | $ | 119 |  |  | $ | 647 |  |  | $ | 307 |
Stock-based compensation expense in three-month periods ended September 30, 2023 and 2022 included approximately $44,783 and $40,000, respectively, related to restricted stock awards that directors are entitled to receive pursuant to the Director Compensation plan. Stock-based compensation expense in both nine-month periods ended September 30, 2023 and 2022 included approximately $0.1 million related to restricted stock awards that directors are entitled to receive pursuant to the Director Compensation plan. Under this plan each of the independent directors is entitled to an Annual Equity Retainer in the amount of $40,000, to be granted on the date of the Company’s annual meeting of shareholders or upon appointment to the board of directors and vest quarterly over the following year. The following table summarizes restricted stock awards through September 30, 2023: SCHEDULE OF RESTRICTED STOCK AWARDS
|  |  |  |  | Weighted |
|  | Restricted |  |  | Average |
|  | Awards |  |  | Exercise |
|  | (in shares) |  |  | Price |
Unvested restricted stock awards at January 1, 2023 |  |  | - |  |  | $ | - |
Granted |  |  | 29,660 |  |  |  | 6.57 |
Exercised |  |  | (6,699 | ) |  |  | 6.68 |
Forfeited |  |  | - |  |  |  | - |
Unvested restricted stock awards at September 30, 2023 |  |  | 22,961 |  |  |  | 6.53 |
For the nine months ended September 30, 2023, the Company granted 254,000 stock options, vesting 25% per year over four years, with a ten-year life. The Company determined the weighted average fair value of stock options granted was $9.27 and is based upon weighted average assumptions below. SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS
Stock price |  | $ | 14.02 |
Exercise price |  | $ | 14.02 |
Dividend yield |  |  | 0 | %
Expected volatility |  |  | 72 | %
Risk-free interest rate |  |  | 3.39 | %
Expected life (in years) |  |  | 6.00 |
NOTE 8: STOCK-BASED COMPENSATION EXPENSE (continued) The following table summarizes stock options awards through September 30, 2023: SCHEDULE OF STOCK OPTIONS AWARDS
|  |  |  |  | Weighted |
|  | Stock Option |  |  | Average |
|  | Awards |  |  | Exercise |
|  | (in shares) |  |  | Price |
Outstanding at January 1, 2023 |  |  | 673,000 |  |  | $ | 5.70 |
Granted |  |  | 254,000 |  |  |  | 14.02 |
Exercised |  |  | (20,625 | ) |  |  | 4.18 |
Forfeited |  |  | (32,500 | ) |  |  | 6.57 |
Outstanding at September 30, 2023 |  |  | 873,875 |  |  |  | 8.12 |
The following table summarizes information about the outstanding and exercisable options at September 30, 2023 by ranges of exercise prices: SCHEDULE OF OUTSTANDING AND EXERCISABLE OPTIONS RANGES OF EXERCISE PRICES
|  |  | Options Outstanding |  |  | Options Exercisable |
|  |  |  |  | Weighted |  | Weighted |  |  |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  | Average |  | Average |  |  |  |  |  |  |  | Average |  |  |  |
Exercise |  |  | Number |  | Remaining |  | Exercise |  |  | Intrinsic |  |  | Number |  | Exercise |  |  | Intrinsic |
Price Range |  |  | Outstanding |  | Contractual |  | Price |  |  | Value |  |  | Exercisable |  | Price |  |  | Value |
$ | 4.00-7.00 |  |  | 487,375 |  | 8.1 |  | $ | 4.56 |  |  | $ | 1,020,173 |  |  | 209,375 |  | $ | 4.49 |  |  | $ | 451,941 |
$ | 7.01-10.00 |  |  | 20,000 |  | 4.6 |  | $ | 8.07 |  |  | $ | - |  |  | 20,000 |  | $ | 8.07 |  |  | $ | - |
$ | 10.01-13.00 |  |  | 130,000 |  | 4.3 |  | $ | 11.51 |  |  | $ | - |  |  | 120,000 |  | $ | 10.52 |  |  | $ | - |
$ | 13.01-16.00 |  |  | 236,500 |  | 9.5 |  | $ | 14.11 |  |  | $ | - |  |  | - |  |  | - |  |  | $ | - |
As of September 30, 2023, there was $2.7 million of unrecognized compensation costs related to stock options expected to be recognized over a weighted average period of 2.9 years.

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