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STOCKHOLDERS’ EQUITY | 6 Months Ended
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Jun. 30, 2024
Equity [Abstract] |
STOCKHOLDERS’ EQUITY | NOTE 6 — STOCKHOLDERS’ EQUITY Issuance of Common Stock During the six months ended June 30, 2024, the Company issued 150,000 shares of common stock to affiliates of Wider in satisfaction of obligations pursuant to their collaborative agreement. A charge to research and development was recorded in 2023 at the time the Company recognized its obligation to issue these shares. During the six months ended June 30, 2023, the Company issued no shares of common stock. Options Nexalin’s 2023 Equity Incentive Plan (the “2023 Plan”) was approved by our stockholders on November 10, 2023. The Plan provides that maximum number of shares of Common Stock available for the grant of awards under the Plan shall be 1,500,000, subject to adjustment for stock dividends, stock splits or similar events. The 2023 Plan is administered by the Compensation Committee of the Board of Directors, which may in turn delegate administrative authority to one or more of our executive officers. Under the terms of the 2023 Plan, the Compensation Committee may grant equity awards, including nonqualified stock options and restricted stock to employees, officers, directors, consultants, agents, advisors and independent contractors. On July 1, 2023, the Company entered into amended employment agreements with the three executives. In addition to the cash compensation included in their employment contracts, the three executives were granted one-time bonus stock options (that were immediately vested) and performance-based stock options that would be triggered based on certain performance criteria being achieved. The amount expensed during the three months ended June 30, 2024 and 2023 in the unaudited condensed consolidated statements of operations and comprehensive loss was $44,060 and $0 respectively. The amount expensed during the six months ended June 30, 2024 and 2023 in the unaudited condensed consolidated statements of operations and comprehensive loss was $88,120 and $0 respectively. The following table presents a summary of stock option award activity during the six months ended June 30, 2024:
Schedule of stock option award activity |  |  |  |  |  |  |  |  |  |  |  |
|  | Number of options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Life In Years |
Outstanding December 31, 2023 |  |  | 2,281,879 |  |  | $ | 0.89 |  |  |  | 9.00 |
Issued |  |  | - |  |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |  |  |  | - |
Expired or cancelled |  |  | - |  |  |  | - |  |  |  | - |
Outstanding June 30, 2024 |  |  | 2,281,879 |  |  | $ | 0.89 |  |  |  | 9.00 |
The following table provides additional information about stock options that are outstanding and exercisable at June 30, 2024:
| Schedule of additional information about stock options |  |  |  |  |  |  |  |  |  |  |  |  |
Exercise Price |  |  | Outstanding Number of Options |  |  | Weighted Average Remaining Life In Years |  |  | Exercisable Number of Options |
$ | 0.89 |  |  |  | 2,281,879 |  |  | $ | 9.00 |  |  |  | 587,248 |
|  |  |  |  | 2,281,879 |  |  | $ | 9.00 |  |  |  | 587,248 |
The fair value of these stock option awards is estimated as of the grant date using a Black-Scholes option pricing model and the following assumptions: A risk-free interest rate based on the U.S. Treasury yield curve at the date of grant; an expected or contractual term; and expected volatility based on an evaluation of comparable public companies’ measures of volatility. The Company does not anticipate declaring dividends on common shares now or in the near future and has therefore assumed no dividend rate. The following table discloses the assumptions, utilized for stock options as follows:
Schedule of assumptions |  |  |  |  |  |  |  |
|  | June 30, 2024 |  |  | December 31, 2023 |
Volatility |  |  | 99.0 | % |  |  | 99.0 | %
Expected dividends |  | $ | - |  |  | $ | - |
Risk-free interest rate |  |  | 4.61 | % |  |  | 4.61 | %
Expected term (years) |  |  | 9.00 |  |  |  | 9.5 |
Warrants The issuance of warrants to purchase shares of the Company’s common stock are summarized as follows:
Schedule of warrants |  |  |  |  |  |  |  |
|  | Number of warrants |  |  | Weighted Average Exercise Price |
Outstanding December 31, 2023 |  |  | 2,662,250 |  |  | $ | 4.15 |
Issued |  |  | - |  |  |  | - |
Exercised |  |  | - |  |  |  | - |
Expired or cancelled |  |  | - |  |  |  | - |
Outstanding June 30, 2024 |  |  | 2,662,250 |  |  | $ | 4.15 |
The following table summarizes information about warrants to purchase shares of the Company’s common stock outstanding and exercisable at June 30, 2024:
| Summary information about warrants to purchase |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Exercise Price |  |  | Outstanding Number of Warrants |  |  | Weighted Average Remaining Life In Years |  |  | Weighted Average Exercise Price |  |  | Exercisable Number of Warrants |
$ | 4.15 |  |  |  | 2,315,000 |  |  |  | 1.25 |  |  | $ | 4.15 |  |  |  | 2,135,000 |
$ | 4.15 |  |  |  | 347,250 |  |  |  | 1.25 |  |  |  | 4.15 |  |  |  | 347,250 |
|  |  |  |  | 2,662,250 |  |  |  | 1.25 |  |  | $ | 4.15 |  |  |  | 2,662,250 |
The compensation expense attributed to the issuance of the warrants, if required to be recognized on the nature of the transaction, was recognized as they vested/earned. These warrants are exercisable up to three years from the date of grant. All are currently exercisable.

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