XML 36 R22.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Stock Options and Warrants | 12 Months Ended
--- | ---
Dec. 31, 2023
Stock Options and Warrants [Abstract] |
STOCK OPTIONS AND WARRANTS | Note 14. STOCK OPTIONS AND WARRANTS Stock-Based Compensation Stock Options In September 2023, the shareholders of the Company approved the amendment to the 2022 Equity Incentive Plan (“2022 Plan”) to increase the number of shares authorized to be issued under the plan by 250,000 shares, from 100,000 shares to 350,000 shares. Additionally, this amendment to the 2022 Plan specified that the Company may grant Restricted Stock Units under the 2022 Plan. During the years ended December 31, 2023 and 2022, the Company granted options to purchase 190,000 and 62,000 shares of common stock, respectively, to certain of its employees and directors. The Company recorded stock-based compensation expense for certain employees and members of the Company’s Board of Directors of $482,000 and $526,000 in its consolidated statements of operations for the years ended December 31, 2023 and 2022, respectively, and such amounts were included as a component of operating expenses. The fair values of stock options granted were estimated using the Black-Sholes option-pricing model with the following assumptions for the years ended December 31:
|  | 2023 |  |  | 2022 |
Risk-free interest rates |  |  | 3.70% - 3.97 | % |  |  | 1.38% - 2.73 | %
Expected life (in years) |  |  | 2.50 - 3.5 |  |  |  | 2.50 - 4.00 |
Expected volatility |  |  | 61 | % |  |  | 71.6% - 72.0 | %
Dividend yield |  |  | 0.00 | % |  |  | 0.00 | %
Weighted-average grant date fair value per share |  | $ | 3.46 |  |  | $ | 3.97 |
The expected life is the number of years that the Company estimates, based upon history, that the options will be outstanding prior to exercise or forfeiture. Expected life is determined using the “simplified method” permitted by Staff Accounting Bulletin No. 107. In addition to the inputs referenced above regarding the option pricing model, the Company adjusts the stock-based compensation expense for estimated forfeiture rates that are revised prospectively according to forfeiture experience. The stock volatility factor is based on the Company’s experience. A summary of the status of the Company’s stock options as of December 31, 2023 and 2022, and changes during the two years then ended are presented below.
|  |  |  |  | Wtd. Avg. |
|  |  |  |  | Exercise |
|  | Options |  |  | Price |
Balance, January 1, 2022 |  |  | 246,850 |  |  | $ | 12.54 |
Granted during the period |  |  | 62,000 |  |  |  | 8.40 |
Exercised during the period |  |  | - |  |  |  | - |
Terminated/Expired during the period |  |  | (5,800 | ) |  |  | 12.04 |
Balance, December 31, 2022 |  |  | 303,050 |  |  | $ | 11.70 |
Granted during the period |  |  | 189,620 |  |  |  | 3.46 |
Exercised during the period |  |  | - |  |  |  | - |
Terminated/Expired during the period |  |  | (30,800 | ) |  |  | 13.60 |
Balance, December 31, 2023 |  |  | 461,870 |  |  | $ | 8.34 |
Exercisable at December 31, 2023 |  |  | 397,539 |  |  | $ | 8.94 |
Issuance of Stock Options Issued in 2023 On May 23, 2023, the Company granted options to its directors and certain members of management and employees, stock options to purchase an aggregate of 108,620 shares of the Company’s common stock at a price of $3.43 per share. The options expire on the June 30, 2028 and vested immediately. On June 2, 2023, the Company granted to its directors, stock options to purchase an aggregate of 6,000 shares of the Company’s common stock at a price of $3.50 per share. The options expire on the fifth anniversary of the grant date and vest over a term of one year. On June 2, 2023, the Company granted to certain members of management and employees, stock options to purchase an aggregate of 75,000 shares of the Company’s common stock at a price of $3.50 per share. The options expire on the fifth anniversary of the grant date and vest over a term of three year. Issued in 2022 On January 31, 2022, the Company granted certain employees, stock options to purchase an aggregate of 3,000 shares of the Company’s common stock at a price of $8.50 per share. The options expire on the fifth anniversary of the grant date and vest over a term of three years. On April 6, 2022, the Company granted to its directors, stock options to purchase an aggregate of 6,000 shares of the Company’s common stock at a price of $8.40 per share. The options expire on the fifth anniversary of the grant date and vest over a term of one year. On April 11, 2022, the Company granted to certain members of management and certain employees, stock options to purchase an aggregate of 53,000 shares of the Company’s common stock at a price of $8.40 per share. The options expire on the fifth anniversary of the grant date and vest over a term of three years. The following table summarizes information about outstanding stock options at December 31, 2023:
|  | Number |  |  |  |  | Wtd. Avg. |
Range of Exercise Price |  | Outstanding |  |  | Wtd.Avg, Life |  | Exercise Price |
$3.46 - $15.60 |  |  | 461,870 |  |  | 2.7 years |  | $ | 8.94 |
The following table summarizes information about exercisable stock options at December 31, 2022:
|  | Number |  |  |  |  | Wtd. Avg. |
Range of Exercise Price |  | Exercisable |  |  | Wtd.Avg, Life |  | Exercise Price |
$8.40 - $15.60 |  |  | 303,050 |  |  | 2.5 years |  | $ | 11.70 |
As of December 31, 2023, there was $95,000 of unrecognized compensation cost related to non-vested stock option awards, which is to be recognized over the remaining weighted average vesting period of 1.3 years. The aggregate intrinsic value at December 31, 2023 was based on the Company’s closing stock price of $3.25 was $0. The aggregate intrinsic value at December 31, 2022 was based on the Company’s closing stock price of 4.25 was approximately $0. The aggregate intrinsic value was calculated based on the positive difference between the closing market price of the Company’s Common Stock and the exercise prices of the underlying options. The weighted average fair value of options granted during the years ended December 31, 2023 and 2022 was $8.40 and $8.40 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2023 and 2022 was $0. The total fair value of shares vested during the years ended December 31, 2023 and 2022 was $417,000 and $316,000, respectively. Warrants During both the years ended December 31, 2023 and 2022, the Company did not issue any warrants. The following tables summarize the Company’s outstanding warrants as of December 31, 2023 and changes during the two years then ended:
|  |  |  |  |  |  |  | Wtd. Avg. |
|  |  |  |  | Wtd. Avg. |  |  | Remaining |
|  |  |  |  | Exercise |  |  | Contractual |
|  | Warrants |  |  | Price |  |  | Life (years) |
Balance, January 1, 2022 |  |  | 150,722 |  |  | $ | 21.94 |  |  |  | 0.75 |
Granted during the period |  |  | - |  |  |  | - |  |  |  | - |
Terminated/Expired during the period |  |  | (122,722 | ) |  |  | 23.75 |  |  |  | - |
Balance, December 31, 2022 |  |  | 28,000 |  |  | $ | 14.00 |  |  |  | 0.75 |
Granted during the period |  |  | - |  |  |  | - |  |  |  | - |
Terminated/Expired during the period |  |  | (28,000 | ) |  | $ | 14.00 |  |  |  | - |
Balance, December 31, 2023 |  |  | - |  |  | $ | - |  |  |  | - |
Exercisable at December 31, 2023 |  |  | - |  |  | $ | - |  |  |  | - |
The aggregate intrinsic value at both December 31, 2023 and 2022 was $0 based on the Company’s closing stock price of $3.25 and $4.25, respectively.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration