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Stockholders' Equity | 9 Months Ended
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Sep. 30, 2023
Stockholders' Equity [Abstract] |
STOCKHOLDERS’ EQUITY | NOTE 8 – STOCKHOLDERS’ EQUITY Stock-Based Compensation: Equity plans Under the 2018 Equity Plan, the number of shares issuable under the Plan on the first day of each fiscal year increase by an amount equal to the lower of (i) 100,000 shares (after a later 10 for 1 stock split) or (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year. As of September 30, 2023, there were no shares issuable under the 2018 Equity Plan until it automatically replenishes on January 1, 2024. At the Company’s annual meeting on May 17, 2023, the stockholders approved an amendment to the 2021 Equity Plan that, amongst other things, increased the number of the shares available under the 2021 Equity Plan to 10,000,000 shares. As of September 30, 2023, the number of shares reserved under the 2021 Equity Plan was 5,217,548. The Company recognized stock-based compensation expense during the three and nine months ended September 30, 2023, and 2022 as follows:
|  | For the three months ended September 30, |  |  | For the nine months ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Performance-based restricted stock awards* |  | $ | (812,901 | ) |  | $ | 163,865 |  |  | $ | (479,343 | ) |  | $ | 517,789 |
Service-based restricted stock awards |  |  | 4,096,717 |  |  |  | 133,465 |  |  |  | 4,146,709 |  |  |  | 439,052 |
Stock issued to consultants |  |  | - |  |  |  | - |  |  |  | 307,069 |  |  |  | - |
Common stock warrant expense |  |  | 500,500 |  |  |  | 500,500 |  |  |  | 1,501,500 |  |  |  | 1,167,833 |
Total stock-based compensation |  | $ | 3,784,316 |  |  | $ | 797,830 |  |  | $ | 5,475,935 |  |  | $ | 2,124,674 |
* | The performance-based restricted stock awards contain reversal of share-based payment expenses from 2021 onwards for forfeited awards due to staff departures.
Performance-based awards Performance-based awards generally vest over a three-year performance period upon the successful completion of specified market and performance conditions. The following table presents a summary of the Company’s performance-based awards restricted stock awards activity:
|  | Number of shares |  |  | Weighted Average Remaining Contractual Life (in years) |
Outstanding as of December 31, 2022 |  |  | 342,310 |  |  |  | 8.33 |
Issued |  |  | - |  |  |  |  |
Exercised |  |  | (100,000 | ) |  |  |  |
Expired/forfeited |  |  | (66,765 | ) |  |  |  |
Outstanding as of September 30, 2023 |  |  | 175,545 |  |  |  | 8.41 |
Exercisable as of September 30, 2023 |  |  | 144,327 |  |  |  | 6.65 |
As of September 30, 2023, there was approximately $0.18 million of unrecognized compensation cost related to the performance-based awards, which is expected to be recognized over a remaining weighted-average vesting period of approximately one year. Service-based restricted stock awards Service-based awards generally vest over a one-year service period. The following table presents a summary of the Company’s service-based awards activity:
|  | Number of shares |  |  | Weighted Average Remaining Contractual Life (in years) |
Outstanding as of December 31, 2022 |  |  | 74,246 |  |  |  | 8.42 |
Issued |  |  | 6,143,346 |  |  |  |  |
Exercised |  |  | (77,092 | ) |  |  |  |
Expired/forfeited |  |  | (655,619 | ) |  |  |  |
Outstanding as of September 30, 2023 |  |  | 5,484,881 |  |  |  | 2.47 |
Exercisable as of September 30, 2023 |  |  | 233,014 |  |  |  | 0.07 |
As of September 30, 2023, there was approximately $5.56 million of unrecognized compensation cost related to the service-based restricted stock awards, which is expected to be recognized over a remaining weighted-average vesting period of approximately six months. Stock options awards Stock options awards vest upon the successful completion of specified market conditions. The following table presents a summary of the Company’s Stock options awards activity:
|  | Number of shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (in years) |
Outstanding as of December 31, 2022 |  |  | 417 |  |  | $ | 35.90 |  |  |  | 1.26 |
Issued |  |  | 1,750,000 |  |  |  | 1.89 |  |  |  |  |
Exercised |  |  | - |  |  |  | - |  |  |  |  |
Expired |  |  | - |  |  |  | - |  |  |  |  |
Outstanding as of September 30, 2023 |  |  | 1,750,417 |  |  | $ | 1.90 |  |  |  | 9.75 |
Exercisable as of September 30, 2023 |  |  | 417 |  |  | $ | 35.90 |  |  |  | 1.26 |
The options have no intrinsic value as of Sept 30, 2023 or Dec 31, 2022. Common Stock Warrants A summary of the status of the Company’s outstanding stock warrants and changes during the nine months ended September 30, 2023, is as follows:
|  | Number of Warrants |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (in years) |
Outstanding as of December 31, 2022 |  |  | 2,825,278 |  |  |  | 4.17 |  |  |  | 3.54 |
Issued |  |  | 2,967,512 |  |  |  | - |  |  |  | - |
Exercised |  |  | (246,668 | ) |  |  | - |  |  |  | - |
Expired |  |  | - |  |  |  | - |  |  |  | - |
Outstanding as of September 30, 2023 |  |  | 5,546,122 |  |  | $ | 14.31 |  |  |  | 3.44 |
Warrants exercisable as of September 30, 2023 |  |  | 5,546,122 |  |  | $ | 14.31 |  |  |  | 3.44 |
As of September 30, 2023, there was approximately $0.33 million of unrecognized compensation cost related to the warrants issued is expected to be recognized over a remaining weighted-average vesting period of approximately three months. Common Stock During the quarter ended September 30, 2023, there were exercises of restricted stock units and common stock options into 63,334 shares of common stock of the Company.

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