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STOCK-BASED COMPENSATION | 9 Months Ended
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Sep. 30, 2024
Share-Based Payment Arrangement [Abstract] |
STOCK-BASED COMPENSATION | NOTE 11. STOCK-BASED COMPENSATION As of September 30, 2024, the Company had an active stock-based incentive compensation plan and an employee stock purchase plan: the 2022 Equity Incentive Plan (the “2022 Plan”) and the 2022 Employee Stock Purchase Plan (the “ESPP”). All new equity compensation grants are issued under these two plans; however, outstanding awards previously issued under inactive plans will continue to vest and remain exercisable in accordance with the terms of the respective plans. The 2022 Plan provides for the grant of stock and stock-based awards including stock options, restricted stock, restricted stock units, performance awards, and stock appreciation rights. As of September 30, 2024, there are approx imately 67,000 share s available for grant under the 2022 Plan and approximately 10,000 shar es available for grant under the ESPP. Stock-Based Compensation Expense Total stock-based compensation expense recognized in the Company’s condensed consolidated statements of operations and comprehensive loss is classified as follows:
​ | ​ | Three Months Ended September 30, |  | ​ | Nine months ended September 30, |
​ |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Cost of revenue | ​ | $ | 118,774 |  | ​ | $ | 167,899 |  | ​ | $ | 364,286 |  |  | $ | 522,627 |
Research and development |  | $ | 112,528 |  | ​ | $ | 145,848 |  |  | $ | 378,442 |  |  | $ | 480,131 |
Selling and marketing |  | $ | 9,371 |  |  | $ | 81,901 |  |  | $ | (189,828 | ) |  | $ | 181,413 |
General and administrative | ​ | $ | 206,932 |  | ​ | $ | 239,380 |  | ​ | $ | 959,392 |  |  | $ | 711,618 |
Total stock-based compensation expense | ​ | $ | 447,605 |  | ​ | $ | 635,028 |  | ​ | $ | 1,512,292 |  |  | $ | 1,895,789 |
The Company’s stock-based compensation expense is based on the value of the portion of stock-based payment awards that are ultimately expected to vest. During the three months ended September 30, 2024 and 2023, stock-based compensation relating to stock-based awards granted to consultants wa s $40,993 and $149,434, respectively. During the nine months ended September 30, 2024 and 2023, stock-based compensation relating to stock-based awards granted to consultants was $152,010 and $411,602, respectively. Restricted Stock Units The Company grants Restricted Stock Units ("RSUs") to its employees for their services with a liquidity event requirement. The RSUs granted to employees vest over a period of time from the grant date and are subject to the participants continuing service to the Company over the period.
​ | ​ | RSUs |
​ |  | Number of Shares |  |  | Weighted Average Grant Date Fair Value |
Unvested at December 31, 2023 |  |  | 22,213 |  | ​ | $ | 208.80 |
RSUs granted |  |  | 45,725 |  |  | $ | 5.38 |
RSUs vested |  |  | (51,507 | ) |  | $ | 20.37 |
RSUs forfeited |  |  | (9,811 | ) |  | $ | 95.42 |
Unvested at September 30, 2024 |  |  | 6,620 |  |  | $ | 198.87 |
The total grant date fair value of RSUs awarded was $246,000 and $1,709,217 for the nine months ended September 30, 2024 and 2023, respectively. The total grant date fair value of RSUs vested was $1,049,265 and $1,490,805 for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, total unrecognize d stock-based compensation costs related to RSUs were $1,277,653, which are expected to be recognized over a remaining weighted average period of 1.53 years. As of September 30, 2024, all of the outstanding RSUs are expected to vest. Stock Options The Company's outstanding stock options generally expire 10 years from the date of grant and are exercisable when the options vest, generally over four years, the majority of which vest at a rate of 25% on the first anniversary of the grant date, with the remainder vesting ratably each month over the next three years. A summary of stock option activity is as follows:
​ |  | Number of Stock Options Outstanding |  |  | Weighted-Average Exercise Price |  |  | Weighted-Average Remaining Contractual Life (Years) |  |  | Aggregate Intrinsic Value |
Options outstanding at December 31, 2023 | ​ |  | 188,865 |  | ​ | $ | 74.41 |  |  |  | 7.9 |  | ​ | $ | — |
Options granted |  |  | 29,841 |  |  | $ | 5.46 |  |  |  |  |  |  |
Options exercised |  |  | — |  |  | $ | — |  |  |  |  |  |  |
Options cancelled or forfeited |  |  | (33,064 | ) |  | $ | 151.39 |  |  |  |  |  |  |
Options outstanding at September 30, 2024 |  |  | 185,642 |  |  | $ | 49.61 |  |  |  | 8.3 |  |  | $ | — |
Options exercisable at September 30, 2024 |  |  | 96,311 |  |  | $ | 71.87 |  |  |  | 7.7 |  |  | $ | — |
Options vested and expected to vest at September 30, 2024 |  |  | 185,642 |  | ​ | $ | 49.61 |  |  |  | 8.3 |  | ​ | $ | — |
The weighted-average grant date fair value of options granted to employees and consultants was $5.46 and $0.50 per share for the nine months ended September 30, 2024 and 2023, respectively. Aggregate intrinsic value represents the difference between the estimated fair value of the underlying Common Stock and the exercise price of outstanding, in-the-money options. The aggregate intrinsic value of options exercised wa s nil a nd $1,040 for the nine months ended September 30, 2024 and 2023, respectively. As of September 30, 2024, total unrecognized stock-based compensation cost related to stock options was $898,238, which is expected to be recognized over a weighted-average period of 2.4 yea rs. Determining the appropriate fair value of stock based awards requires the input of subjective assumptions including the fair value of the Company’s Common Stock, the expected life of the option, and expected stock price volatility. The Company used the Black Scholes option pricing model to value its stock option awards. The Company estimates the fair value of the options utilizing the Black-Scholes option pricing model, which is dependent upon several variables, including expected option term, expected volatility of the Company’s share price over the expected term, expected risk-free interest rate over the expected option term, and expected dividend yield rate over the expected option term, and actual forfeiture rates. A summary of the weighted-average assumptions the Company utilized for option grants are as follows:
​ | ​ | Nine Months Ended September 30,
​ |  | 2024 |  | 2023
Expected term (in years) | ​ | 4 | ​ | 1.0 - 5.0
Expected volatility |  | 47.8% - 55.0% |  | 44.9% - 47.4%
Risk-free interest rate |  | 4.0% - 4.5% |  | 3.8% - 5.4%
Expected dividend yield |  | 0.0% | ​ | 0.0%
Common Stock Issued for Services During the three months ended September 30, 2024, the Company paid for certain services through the issuance of 12,500 fully vested common stock. The common stock awards are equity-classified, and compensation expense was recognized based on the fair value of the Company's common stock on the date of issuance. Stock-based compensation expense associated with the awards was immaterial for the nine months ended September 30, 2024.

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