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Stock Based Compensation
 12 Months Ended
Dec. 31, 2023
Stock Based Compensation [Abstract]  
STOCK BASED COMPENSATION

NOTE 13:- 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 December 31, 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. In addition, the shares available under the 2021 Equity Plan increased by 1,000,000 shares on January 1, 2024 to 11,000,000.

 

As of December 31, 2023, the number of shares reserved under the 2021 Equity Plan was 10,000,000 with 680,238 shares available for grant.

 

The Company recognized stock-based compensation expense during the year ended December 31, 2023 and 2022, as follows:

 

   December 31, 
   2023   2022 
Performance-based restricted stock awards*  $(423,360)  $643,350 
Service-based restricted stock awards   7,522,436    700,797 
Stock issued to consultants   307,069    - 
Common stock warrant expense   1,835,166    1,668,333 
Option expense   1,593,527    - 
Total stock-based compensation  $10,834,838   $3,012,480 

 

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 
Exercised   (100,000)   
- 
 
Expired/forfeited   (166,765)   
- 
 
Outstanding as of December 31, 2023   75,545    8.58 
Exercisable as of December 31, 2023   44,327    4.60 

 

As of December 31, 2023, there was approximately $0.12 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 seven months.

 

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   (203,760)   
- 
 
Expired/forfeited   (771,439)   
- 
 
Outstanding as of December 31, 2023   5,242,393    2.28 
Exercisable as of December 31, 2023   16,804    0.03 

 

As of December 31, 2023, there was approximately $2.79 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 three 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)		   Aggregate
Intrinsic
Value		 
Outstanding as of December 31, 2022   417   $35.90    1.26   $- 
Issued   3,500,000    1.22    -     6,923,000 
Outstanding as of December 31, 2023   3,500,417   $1.23    9.70   $6,923,000 
Exercisable as of December 31, 2023   417   $-    -     $- 

 

As of December 31, 2023, there was approximately $1.84 million of unrecognized compensation cost related to the stock options awards, which is expected to be recognized over a remaining weighted-average vesting period of approximately eight months.