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STOCK-BASED COMPENSATION EXPENSE | 9 Months Ended
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Sep. 30, 2024
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, 2024 and 2023, that were included in the following line items in our condensed consolidated statements of operations (in thousands): SCHEDULE OF STOCK BASED COMPENSATION EXPENSE
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
|  | Three months ended Sept. 30, |  |  | Nine months ended Sept. 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Cost of revenue |  | $ | 38 |  |  | $ | 22 |  |  | $ | 114 |  |  | $ | 82 |
Research and development |  |  | 47 |  |  |  | 47 |  |  |  | 141 |  |  |  | 113 |
Selling |  |  | 27 |  |  |  | 30 |  |  |  | 81 |  |  |  | 72 |
General and administrative |  |  | 155 |  |  |  | 150 |  |  |  | 465 |  |  |  | 380 |
Total |  | $ | 267 |  |  | $ | 249 |  |  | $ | 801 |  |  | $ | 647 |
Stock-based compensation expense for three months ended September 30, 2024 and 2023 included $50,000 and $44,783, respectively, and for the nine month periods ended September 30, 2024 and 2023 included $153,736 and $124,783, respectively, related to restricted stock awards that directors are entitled to receive pursuant to the Director Compensation Plan. Under this plan each of the Company’s 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. For the nine months ended September 30, 2024, the Company granted 5,000 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 $3.30 and is based upon weighted average assumptions below. SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS
Stock price |  | $ | 4.75 |
Exercise price |  | $ | 4.75 |
Dividend yield |  |  | 0 | %
Expected volatility |  |  | 77 | %
Risk-free interest rate |  |  | 4.12 | %
Expected life (in years) |  |  | 6.00 |
The following table summarizes stock options awards through September 30, 2024: SCHEDULE OF STOCK OPTIONS AWARDS
|  |  |  |  | Weighted |
|  | Stock Option |  |  | Average |
|  | Awards |  |  | Exercise |
|  | (in shares) |  |  | Price |
Outstanding at January 1, 2024 |  |  | 846,875 |  |  |  | 8.20 |
Granted |  |  | 5,000 |  |  |  | 4.75 |
Forfeited |  |  | (13,750 | ) |  |  | 7.94 |
Outstanding at September 30, 2024 |  |  | 838,125 |  |  | $ | 8.18 |
CVD EQUIPMENT CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) NOTE 8: STOCK-BASED COMPENSATION EXPENSE (continued) The following table summarizes information about the outstanding and exercisable options at September 30, 2024 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 |  |  |  | 459,625 |  |  |  | 7.1 |  |  | $ | 4.55 |  |  | $ | - |  |  |  | 294,125 |  |  | $ | 6.07 |  |  | $ | - |
$ | 7.01-10.00 |  |  |  | 20,000 |  |  |  | 3.6 |  |  | $ | 8.07 |  |  | $ | - |  |  |  | 20,000 |  |  | $ | 8.07 |  |  | $ | - |
$ | 10.01-13.00 |  |  |  | 130,000 |  |  |  | 2.9 |  |  | $ | 10.62 |  |  | $ | - |  |  |  | 122,500 |  |  | $ | 10.55 |  |  | $ | - |
$ | 13.01-16.00 |  |  |  | 228,500 |  |  |  | 8.5 |  |  | $ | 14.11 |  |  | $ | - |  |  |  | 57,125 |  |  | $ | 14.11 |  |  | $ | - |
As of September 30, 2024, there was $1.8 million of unrecognized compensation costs related to stock options expected to be recognized over a weighted average period of 1.3 years.

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