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STOCKHOLDERS’ EQUITY
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 6 - STOCKHOLDERS’ EQUITY

 

Common Stock

 

During the year ended December 31, 2023, the Company issued 9,644 shares of common stock for rounding of shares related to the Reverse Split.

 

During the years ended December 31, 2022, the Company issued 18,912 shares of common stock for the conversion of notes and interest.

 

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 186,594 and 184,260 in 2023 and 2022, respectively. As a result of these increases, as of December 31, 2023 and December 31, 2022, the aggregate number of shares of common stock available for awards under the 2016 Plan was 1,279,181 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 December 31, 2023. During the year ended December 31, 2023, the Company issued no options.

 

There were 1,357,466 options outstanding as of December 31, 2022. The fair value of each stock option granted during the year ended December 31, 2022 was estimated using the Black-Scholes assumptions and or factors as follows:

 

Exercise price  $4.84 
Expected dividend yield   0%
Risk free interest rate   1.73%
Expected life in years   10 
Expected volatility   146%

 

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

 

   Number  

Weighted Average

Exercise Price

  

Weighted Average

Remaining Life

 
Stock Options               
Outstanding December 31, 2021   1,380,216   $7.36    

6.32

 
Granted   12,500    4.84    9.02 
Expired   (35,250)   6.09    - 
Exercised   -    -    - 
Outstanding December 31, 2022   1,357,466   $7.39    5.41 
Granted   -   -    - 
Expired   -   -    - 
Exercised   -   -    - 
Outstanding December 31, 2023   1,357,466   $7.39    4.49 

 

A summary of the status of the Company’s nonvested options as of December 31, 2023, and changes during the years ended December 31, 2023 and 2022, is presented below:

 

Nonvested Options  Options  

Weighted-Average

Exercise Price

 
Nonvested at December 31, 2021   202,583   $

12.32

 
Granted   12,500    4.84 
Vested   (96,896)   10.44 
Forfeited   -    - 
Nonvested at December 31, 2022   118,187   $13.07 
Granted   -   - 
Vested   (68,355)  11.87 
Forfeited   -   - 
Nonvested at December 31, 2023   49,832   $14.72 

 

As of December 31, 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 year   ended December 31, 2023 and 2022 was 0 and 12,500, respectively. The exercise price for these options was $4.84 per share.

 

The Company recognized compensation expense related to options issued of $666,828 and $844,248 for the years ended December 31, 2023 and 2022, respectively, in which $206,104 and $747,830 is included in general and administrative expenses and $460,724 and $96,418 in research and development expenses, respectively. For the years ended December 31, 2023 and 2022, $6,852 and $182,748 of the stock compensation was related to employees and $659,976 and $661,500 was related to non-employees, respectively.

 

As of December 31, 2023, the unamortized stock option expense was $676,415 with $2,284 being related to employees and $674,131 being related to non-employees. As of December 31, 2023, the weighted average period for the unamortized stock compensation to be recognized is 3.55 years.

 

Warrants:

 

A summary of warrant issuances are as follows:

 

   Number  

Weighted Average

Exercise Price

  

Weighted Average

Remaining Life

 
Warrants               
                
Outstanding December 31, 2021   1,533,158   $13.52    3.15 
Granted   4,000    5.00    4.02 
Expired   -    -    - 
Exercised   -    -    - 
Outstanding December 31, 2022   1,537,158   $13.49    2.15 
Granted   -    -    - 
Expired   (594,592)   4.00    - 
Exercised   -    -    - 
Outstanding December 31, 2023   942,566   $19.47    2.31 

 

As of December 31, 2023, the Company had 942,566 shares issuable under warrants outstanding at a weighted average exercise price of $19.47 and an intrinsic value of $0.

 

The Company recognized compensation expense related to warrants issued of $0 and $20,433 during the years ended December 31, 2023 and 2022, respectively.