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STOCKHOLDERS’ DEFICIT
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
STOCKHOLDERS’ DEFICIT

NOTE 5 - STOCKHOLDERS’ DEFICIT

 

Common Stock

 

During the six months ended June 30, 2023, the Company issued 9,644 shares of common stock for rounding of shares related to the Reverse Split.

 

Stock-Based Compensation

 

The Company adopted an Employee, Director and Consultant Stock Plan on June 17, 2016 (the “2016 Plan”). Pursuant to the 2016 Plan, the Company’s Compensation Committee may grant awards to any employee, officer, director, consultant, advisor or other individual service provider of the Company or any subsidiary. Due to an annual “evergreen” provision in the 2016 Plan, the number of shares reserved for future grants was increased by 184,260 and 142,457 in 2022 and 2021, respectively. As a result of these increases, as of June 30, 2023 and December 31, 2022, the aggregate number of shares of common stock available for awards under the 2016 Plan was 1,543,872 shares and 1,543,872 shares, respectively. Options issued under the 2016 Plan are exercisable for up to ten years from the date of issuance.

 

There were 1,357,466 options outstanding as of June 30, 2023. During the three and six months ended June 30, 2023, the Company issued no options.

 

 

The following is an analysis of the stock option grant activity under the Plan:

 

       Weighted
Average		   Weighted
Average		 
   Number   Exercise Price   Remaining Life 
Stock Options               
Outstanding December 31, 2022   1,357,466   $7.39    5.41 
Granted   -   $-    - 
Expired   -   $-    - 
Exercised   -   $-    - 
Outstanding June 30, 2023   1,357,466   $7.39    4.99 

 

A summary of the status of the Company’s nonvested options as of June 30, 2023, and changes during the six months ended June 30, 2023, is presented below:

 

Nonvested Options  Options   Weighted-Average
Exercise Price		 
Nonvested at December 31, 2022   118,187   $13.07 
Granted   -   $- 
Vested   41,792   $10.92 
Forfeited   -   $- 
Nonvested at June 30, 2023   76,395   $14.25 

 

As of June 30, 2023, the Company had 1,357,466 shares issuable under options outstanding at a weighted average exercise price of $7.39 and an intrinsic value of $0.

 

The total number of options granted during the six months ended June 30, 2023 and 2022 was 0 and 50,000, respectively. The exercise price for these options was $4.84 per share.

 

The Company recognized compensation expense related to options issued of $166,707 and $215,535 for the three months ended June 30, 2023 and 2022, respectively, in which $51,526 and $195,624 is included in general and administrative expenses and $115,181 and $19,911 in research and development expenses, respectively. For the three months ended June 30, 2023 and 2022, $1,713 and $50,542 of the stock compensation was related to employees and $164,994 and $164,993 was related to non-employees, respectively.

 

The Company recognized compensation expense related to options issued of $333,414 and $430,881 for the six months ended June 30, 2023 and 2022, respectively, in which $103,052 and $372,573 is included in general and administrative expenses and $230,362 and $58,308 in research and development expenses, respectively. For the six months ended June 30, 2023 and 2022, $3,426 and $99,370 of the stock compensation was related to employees and $329,988 and $331,511 was related to non-employees, respectively.

 

As of June 30, 2023, the unamortized stock option expense was $1,009,544 with $5,425 being related to employees and $1,004,119 being related to non-employees. As of June 30, 2023, the weighted average period for the unamortized stock compensation to be recognized is 3.81 years.

 

 

Warrants:

 

A summary of warrant issuances are as follows:

 

       Weighted
Average		   Weighted
Average		 
   Number   Exercise Price   Remaining Life 
Warrants               
                
Outstanding December 31, 2022   1,537,158   $13.49    2.15 
Granted   -    -    - 
Expired   (482,092)   4.00    - 
Exercised   -    -    - 
Outstanding June 30, 2023   1,055,066   $17.82    2.56 

 

As of June 30, 2023, the Company had 1,055,066 shares issuable under warrants outstanding at a weighted average exercise price of $17.82 and an intrinsic value of $0.

 

The Company recognized compensation expense related to warrants issued of $0 and $20,433 during the three months ended June 30, 2023 and 2022, respectively.

 

The Company recognized compensation expense related to warrants issued of $0 and $20,433 during the six months ended June 30, 2023 and 2022, respectively.