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STOCKHOLDERS’ EQUITY
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 5 - STOCKHOLDERS’ EQUITY

 

Common Stock

 

During the three months ended March 31, 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 196,857, 186,594 and 184,260 in 2024, 2023 and 2022, respectively. As a result of these increases, as of March 31, 2024 and December 31, 2023, the aggregate number of shares of common stock available for awards under the 2016 Plan was 873,763   shares and 1,279,181 shares, respectively. Options issued under the 2016 Plan are exercisable for up to ten years from the date of issuance.

 

There were 1,959,741 options outstanding as of March 31, 2024. During the three months ended March 31, 2024, the Company issued 742,150 options.

 

There were 1,357,466 options outstanding as of December 31, 2023.

 

The fair value of each stock option granted during the three months ended March 31, 2024 was estimated using the Black-Scholes assumptions and or factors as follows:

Exercise price  $ 0.84-$5.00 
Expected dividend yield   0%
Risk free interest rate   4.01%-4.25%
Expected life in years   10 
Expected volatility   213-215%

 

 

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, 2023   1,357,466   $7.39    4.49 
Granted   742,150    1.73    9.98 
Expired   (139,875)   5.94    - 
Exercised   -    -    - 
Outstanding March 31, 2024   1,959,741   $5.35    6.50 

 

A summary of the status of the Company’s nonvested options as of March 31, 2024, and changes during the three months ended March 31, 2024,   is presented below:

 

Nonvested Options  Options  

Weighted-Average

Exercise Price

 
Nonvested at December 31, 2023   49,832   $14.72 
Granted   742,150    1.73 
Vested   (16,961)   11.27 
Forfeited   -    - 
Nonvested at March 31, 2024   775,021   $2.36 

 

As of March 31, 2024, the Company had 1,959,741 shares issuable under options outstanding at a weighted average exercise price of $5.35 and an intrinsic value of $26,053.

 

The Company recognized compensation expense related to options issued of $161,861 and $166,707 for the three months ended March 31, 2024 and 2023, respectively, in which $52,360 and $51,526 is included in general and administrative expenses and $109,501 and $115,181 in research and development expenses, respectively. For the three months ended March 31, 2024 and 2023, $637 and $1,713 of the stock compensation was related to employees and $161,224 and   $164,994 was related to non-employees, respectively.

 

As of March 31, 2024, the unamortized stock option expense was $1,777,138 with $727,677 being related to employees and $1,049,461   being related to non-employees. As of March 31, 2024, the weighted average remaining vesting period for the unamortized stock compensation to be recognized is 2.86 years.

 

On January 8, 2024, the Company issued 20,750 options to purchase the Company’s common stock to consultants and an employee. These options have an exercise price of $0.84 and expire in 10 years from issuance. These options vest over 48 months.

 

On February 12, 2024, the Company entered into a consulting agreement. As part of this agreement the Company agrees to pay $5,000 per month and issue 4,400 options to purchase the Company’s common stock. These options have an exercise price of $5.00 and expire in 10 years from issuance. These options vest over three months.

 

On March 25, 2024, the Company issued 717,000 options to purchase the Company’s common stock to officers, board of directors and consultants. These options have an exercise price of $1.74 and expire in 10 years from issuance. These options vest between 24 and 48 months with 160,000 options to vest upon achievement of certain performance conditions.

 

 

Warrants:

 

A summary of warrant issuances are as follows:

 

   Number  

Weighted Average

Exercise Price

  

Weighted Average

Remaining Life

 
Warrants               
                
Outstanding December 31, 2023   942,566   $19.47    2.31 
Granted   -    -    - 
Expired   -    -    - 
Exercised   -    -    - 
Outstanding March 31, 2024   942,566   $19.47    2.06 

 

As of March 31, 2024, 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 $0 during the three ended March 31, 2024 and 2023, respectively.