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STOCKHOLDERS’ EQUITY
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 5 - STOCKHOLDERS’ EQUITY

 

Common Stock

 

During the three months ended March 31, 2025, the Company issued 20,303 shares of common stock for cash.

 

During the three months ended March 31, 2024, the Company issued no shares of common stock.

 

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 14,062, 13,329 and 13,162 in 2024, 2023 and 2022, respectively. As a result of these increases, as of March 31, 2025 and December 31, 2024, the aggregate number of shares of common stock available for awards under the 2016 Plan was 62,412 shares and 91,371 shares, respectively. Options issued under the 2016 Plan are exercisable for up to ten years from the date of issuance.

 

There were 136,183 options outstanding as of March 31, 2025. During the three months ended March 31, 2025 and 2024, the Company issued 0 and 53,025 options, respectively.

 

There were 139,577 options outstanding as of December 31, 2024.

 

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  $ 11.76-$70.00 
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, 2024   139,577   $5.29    5.77 
Granted   -    -    - 
Expired   (3,394)   69.98    - 
Exercised   -    -    - 
Outstanding March 31, 2025   136,183   $3.72    5.53 

 

A summary of the status of the Company’s nonvested options as of March 31, 2025, and changes during the three months ended March 31, 2025 is presented below:

 

Nonvested Options  Options  

Weighted-

Average

Exercise Price

 
Nonvested at December 31, 2024   39,917   $26.46 
Granted   -    - 
Vested   (4,794)   1.07 
Forfeited   -    - 
Nonvested at March 31, 2025   35,123   $3.72 

 

As of March 31, 2025, the Company had 136,183 shares issuable under options outstanding at a weighted average exercise price of $3.63 and an intrinsic value of $0.

 

The Company recognized compensation expense related to options issued of $236,014 and $161,861 for the three months ended March 31, 2025 and 2024, respectively, in which $134,769 and $52,360 is included in general and administrative expenses and $101,245 and $109,501 in research and development expenses, respectively. For the three months ended March 31, 2025 and 2024, $81,052 and $637 of the stock compensation was related to employees and $154,962 and $161,224 was related to non-employees, respectively.

 

As of March 31, 2025, the unamortized stock option expense was $804,531 with $465,616 being related to employees and $338,915 being related to non-employees. As of March 31, 2025, the weighted average remaining vesting period for the unamortized stock compensation to be recognized is 2.82 years.

 

On February 21, 2025, the Company held its 2024 Annual Meeting of Stockholders (the “Annual Meeting”) on February 21, 2025. At the Company’s Annual Meeting, the Company’s stockholders approved the proposal to approve the repricing of certain outstanding stock options granted (the “Option Grants”) under the Company’s 2006 and 2016 Equity Incentive Plans (the “Plans”) to allow the Board of Directors (the “Board”) to reprice the exercise price of outstanding stock options under the Plans. Pursuant to that authority, on February 21, 2025, the Board repriced the Option Grants. The repriced Option Grants under the 2006 Equity Incentive Plan had original exercise prices ranging from $56.00 to $70.00 per share, and the repriced Option Grants under the 2016 Equity Incentive Plan had original exercise prices ranging from $24.36 to $278.88 per share. All of the Option Grants under the Plans were repriced to have an exercise price of $3.72 per share, which was the closing price of the Company’s common stock on February 21, 2025.

 

 

Warrants:

 

A summary of warrant issuances are as follows:

 

   Number  

Weighted

Average

Exercise Price

  

Weighted

Average

Remaining Life

 
Warrants               
                
Outstanding December 31, 2024   354,904   $58.97    2.92 
Granted   -    -    - 
Expired   -    -    - 
Exercised   -    -    - 
Outstanding March 31, 2025   354,904   $58.97    2.67 

 

As of March 31, 2025, the Company had 354,904 shares issuable under warrants outstanding at a weighted average exercise price of $58.97 and an intrinsic value of $0.

 

The Company recognized compensation expense related to warrants issued of $0 and $0 during the three months ended March 31, 2025 and 2024, respectively.