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Scienture Inc. 2020 Stock Option and Grant Plan
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Scienture Inc [Member]    
Scienture Inc. 2020 Stock Option and Grant Plan

Note 10 Scienture Inc. 2020 Stock Option and Grant Plan

 

The Stock Option and Grant Plan allows for the issuance of incentive stock options (“ISOs”), non-statutory stock options (“NSOs”). ISOs may be granted only to the Company’s employees (including officers and directors who are also considered employees) and ex-employees. NSOs may be granted to the Company’s employees and service providers such as advisors etc. Options under the Stock Option and Grant Plan have a contractual term of not more than 10 years.

 

 

A summary of the Company’s stock option activity under the Plans is as follows:

 

   Outstanding
Options		   Weighted-
Average
Exercise
Price		   Weighted-
Average
Remaining
Term
(Years)		 
Balance as of December 31, 2023   655,000   $0.90    7.56 
Granted   142,199    1.13      
Exercised   -    -      
Cancelled and forfeited   -    -      
Balance as of June 20, 2024   797,199   $0.94    6.21 
                
Vested and exercisable as of June 30, 2024   499,089   $0.84    5.62 

 

The weighted-average grant date fair value of options granted during the six months ended June 30, 2024 was $0.76 per share.

 

The Company recorded stock-based compensation expense in the Statement of Operations and Comprehensive Loss for the periods presented as follows:

 

   2024   2023 
   June 30, 
   2024   2023 
General and Administrative Expenses  $44,837   $39,724 
Total stock-based compensation expense  $44,837   $39,724 

 

Stock Option Valuation Assumptions

 

The fair value of each employee option grant was estimated on the date of grant using the Black-Scholes option pricing model and the following assumptions for the periods indicated:

 

   June 30, 
   2024   2023 
Expected volatility   72%   65% - 75%
Risk-free interest rate   4.1% - 4.4%   0.5% - 3.5%
Expected term   5.7 - 6.1 years    5.9 - 6.0 years 
Expected dividend   0%   0%

 

Note 10 Scienture Inc. 2020 Stock Option and Grant Plan

 

The Stock Option and Grant Plan allows for the issuance of incentive stock options (“ISOs”), non-statutory stock options (“NSOs”). ISOs may be granted only to the Company’s employees (including officers and directors who are also considered employees) and ex-employees. NSOs may be granted to the Company’s employees and service providers such as advisors etc. Options under the Stock Option and Grant Plan have a contractual term of not more than 10 years.

 

A summary of the Company’s stock option activity under the Plans is as follows:

 

   Outstanding
Options		   Weighted-
Average
Exercise
Price		   Weighted-
Average
Remaining
Term
(Years)		 
Balance as of December 31, 2022   560,000   $0.83    7.95 
Granted   185,000    1.13      
Exercised   -    -      
Cancelled and forfeited   (90,000)   -      
Balance as of December 31, 2023   655,000   $0.90    7.56 
                
Vested and exercisable as of December 31, 2023   410,065   $0.84    6.84 

 

The weighted-average grant date fair value of options granted during the years ended December 31, 2023 and 2022 are $ 0.55 and $ 0.52 per share respectively.

 

 

The Company recorded stock-based compensation expense in the Statement of Operations and Comprehensive Loss for the periods presented as follows:

 

   2023   2022 
   December 31, 
   2023   2022 
General and Administrative Expenses  $79,449   $68,087 
Total stock-based compensation expense  $79,449   $68,087 

 

Stock Option Valuation Assumptions

 

The fair value of each employee option grant was estimated on the date of grant using the Black-Scholes option pricing model and the following assumptions for the periods indicated:

 

   December 31, 
   2023   2022 
Expected volatility   65% - 75%   65% - 75%
Risk-free interest rate   0.5% - 3.5%   0.5% - 2.8%
Expected term   5.9 - 6.0 years    5.9 - 6.0 years 
Expected dividend   0%   0%