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Equity-Based Compensation
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Equity-Based Compensation

Note 3: Equity-Based Compensation

 

The fair value of each option and equity warrant award is estimated on the date of grant using a Black-Scholes-Merton option pricing valuation model. Expected volatility is based on the historical volatility of the price of the Company’s stock. The risk-free interest rate is based on U.S. Treasury issues with a term equal to the expected life of the option and equity warrant. The Company uses historical data to estimate expected dividend yield, expected life and forfeiture rates. During the six months ended June 30, 2023, there were no options granted and 300,000 options granted during the six months ended June 30, 2022.

 

Employee stock option activity during the three months ended June 30, 2023, was as follows:

 

Stock option activity for employees:

 

   Number of
Options		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term
(Years)		   Aggregate
Intrinsic
Value		 
Outstanding March 31, 2023   2,020,214   $3.01    8.55   $— 
Granted   —    —    —    — 
Forfeited   —    —    —    — 
Expired   (663)   —    —    — 
Outstanding June 30, 2023   2,019,551   $3.01    8.36   $— 
Vested and expected to vest June 30, 2023   2,019,551   $3.01    8.36   $— 
Exercisable June 30, 2023   1,852,887   $2.13    6.50   $— 

 

Unvested stock option activity for employees:

   Number of
Options		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term
(Years)		   Aggregate
Intrinsic
Value		 
Unvested March 31, 2023   267,326   $5.23    8.55   $— 
Granted   —    —    —    — 
Expired   (663)   .30    —    — 
Vested   (99,999)   .44    9.83    — 
Unvested June 30, 2023   166,664   $9.17    6.41   $— 

 

 

Stock option activity for non-employees:

   Number of
Options		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term (Years)		   Aggregate
Intrinsic
Value		 
Outstanding March 31, 2023   579,155   $3.09    8.36   $— 
Granted   —    —    —    — 
Forfeited   —    —    —    — 
Expired   (123)   —    —    — 
Outstanding June 30, 2023   579,032   $3.09    8.36   $— 
Vested and expected to vest June 30, 2023   579,032   $3.09    8.36   $— 
Exercisable June 30, 2023   512,366   $2.99    4.67   $— 

 

Unvested stock option activity for non-employees:

 

   Number of
Options		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term
(Years)		   Aggregate
Intrinsic
Value		 
Unvested March 31, 2023   104,289   $11.39    5.75   $— 
Granted   —    —    —    — 
Expired   (123)   .38    7.86    — 
Vested   (37,500)   .46    9.14    — 
Unvested June 30, 2023   66,666   $9.45    4.59   $— 

 

Stock-based compensation expense was approximately $50,000 and $275,000 for the three months ended June 30, 2023 and 2022, respectively.

 

Employee stock option activity during the six months ended June 30, 2023, was as follows:

 

Stock option activity for employees:

 

   Number of
Options		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term
(Years)		   Aggregate
Intrinsic
Value		 
Outstanding January 1, 2023   2,020,214   $3.01    8.86   $— 
Granted   —    —    —    — 
Forfeited   —    —    —    — 
Expired   (663)   —    —    — 
Outstanding June 30, 2023   2,019,551   $3.01    8.36   $— 
Vested and expected to vest June 30, 2023   2,019,551   $3.01    8.36   $— 
Exercisable June 30, 2023   1,852,887   $2.13    6.50   $— 

 

Unvested stock option activity for employees:

 

   Number of
Options		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term
(Years)		   Aggregate
Intrinsic
Value		 
Unvested January 1, 2023   392,326   $4.15    5.85   $— 
Granted   —    —    —    — 
Expired   (663)   .30    —    — 
Vested   (224,999)   .44    9.83    — 
Unvested June 30, 2023   166,664   $9.17    6.41   $— 

 

 

Stock option activity for non-employees:

 

   Number of
Options		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term
(Years)		   Aggregate
Intrinsic
Value		 
Outstanding January 1, 2023   579,155   $3.09    7.93   $— 
Granted   —    —    —    — 
Forfeited   —    —    —    — 
Expired   (123)   —    —    — 
Outstanding June 30, 2023   579,032   $3.09    8.36   $— 
Vested and expected to vest June 30, 2023   579,032   $3.09    8.36   $— 
Exercisable June 30, 2023   512,366   $2.99    4.67   $— 

 

Unvested stock option activity for non-employees:

 

   Number of
Options		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term
(Years)		   Aggregate
Intrinsic
Value		 
Unvested January 1, 2023   166,789   $4.05    9.49   $— 
Granted   —    —    —    — 
Expired   (123)   .38    7.86    — 
Vested   (100,000)   .46    9.14    — 
Unvested June 30, 2023   66,666   $9.45    4.59   $— 

 

Stock-based compensation expense was approximately $132,000 and $517,000 for the six months ended June 30, 2023 and 2022, respectively.

 

On June 30, 2023, and 2022, respectively, there was approximately $85,000 and $454,000 of unrecognized equity-based compensation cost related to options granted under the Equity Incentive Plan.