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Equity-Based Compensation | 6 Months Ended
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Jun. 30, 2024
Share-Based Payment Arrangement [Abstract] |
Equity-Based Compensation | Note 4: Equity-Based Compensation The 2018 Equity Incentive Plan, effective September 12, 2018, as amended and restated on August 19, 2019 (the “2018 Equity Incentive Plan”) authorizes the grant of (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Stock Appreciation Rights, (iv) Restricted Stock Awards, (v) Restricted Stock Unit Awards, (vi) Performance Stock Awards, (vii) Performance Cash Awards, and (viii) Other Stock Awards. Initially, a maximum of 7,000,000 shares of Common Stock were reserved for potential issuance pursuant to awards under the 2018 Equity Incentive Plan. When the plan was amended and restated, an additional 250,000 shares were reserved for potential issuance pursuant to awards under the 2018 Equity Incentive Plan. The number of shares of the Company’s common stock available for grant and issuance under the 2018 Equity Incentive Plan is subject to an annual increase on July 1 of each calendar year, by an amount equal to two percent (2%) of the then outstanding shares of the Company’s common stock (the “2018 Plan Evergreen Provision”). On August 3, 2020 and July 1, 2021, 2022 and 2023, the number of shares of the Company’s common stock available for grant and issuance under the 2018 Equity Incentive Plan increased by 979,311 shares, 956,660 shares, 960,976 shares and 968,389 shares, respectively. As a result of the 2018 Plan Evergreen Provisions, a maximum of 10,865,336 shares of Common Stock is reserved for potential issuance pursuant to awards under the 2018 Equity Incentive Plan as of January 1, 2024. Unless sooner terminated, the 2018 Equity Incentive Plan will continue in effect for a period of 10 years from its effective date. During the fiscal year ending December 31, 2018 the Board of Directors (the “Board”) issued 1,189,284 options to each employee, the officers and directors at the exercise price of $9.68 expiring in 10 years. During the fiscal year ending December 31, 2019, 1,727,756 options were issued to each of these officers with an exercise price of $9.68 for a period of ten years with a vesting period of one year. During the fiscal year ending December 31, 2020, 1,025,000 options were issued to each of these officers and directors with an exercise price range of $2.77 to $3.07 for a period of ten years with a vesting period of one year During the fiscal year ending December 31, 2021, 613,512 options were issued to officers, directors and consultants with an exercise price range of $1.11 to $1.71 for a period of ten years with a vesting period of one year. During the fiscal year ending December 31, 2022, 850,000 options were issued to officers, directors and consultants with an exercise price range of $0.31 to $0.71 for a period of ten years with a vesting period of one year. During the fiscal year ending December 31, 2023, 400,000 options were issued to officers with an exercise price range of $0.47 for a period of ten years with a vesting period of one year. During the six months ended June 30, 2024 there were no options issued. 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, 2024 and 2023, there were no options granted. Stock options activity during the three months ended June 30, 2024, was as follows: Stock option activity for employees: Schedule of Stock Option Activity
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (Years) |  |  | Aggregate Intrinsic Value |
Outstanding March 31, 2024 |  |  | 2,408,438 |  |  | $ | 2.50 |  |  |  | 8.70 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Expired |  |  | (663 | ) |  |  | — |  |  |  | — |  |  |  | — |
Outstanding June 30, 2024 |  |  | 2,407,775 |  |  | $ | 2.50 |  |  |  | 8.70 |  |  | $ | — |
Vested and expected to vest June 30, 2024 |  |  | 2,407,775 |  |  | $ | 2.50 |  |  |  | 8.70 |  |  | $ | — |
Exercisable June 30, 2024 |  |  | 2,241,109 |  |  | $ | 1.83 |  |  |  | 6.89 |  |  | $ | — |
Unvested stock option activity for employees: Schedule of Unvested Stock Option Activity
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (Years) |  |  | Aggregate Intrinsic Value |
Unvested March 31, 2024 |  |  | 266,666 |  |  | $ | 2.75 |  |  |  | 14.52 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Expired |  |  | (663 | ) |  |  | — |  |  |  | — |  |  |  | — |
Vested |  |  | (99,337 | ) |  |  | 0.47 |  |  |  | 7.04 |  |  |  | — |
Unvested June 30, 2024 |  |  | 166,666 |  |  | $ | 4.11 |  |  |  | 18.87 |  |  | $ | — |
Stock option activity for non-employees: Schedule of Stock Option Activity
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (Years) |  |  | Aggregate Intrinsic Value |
Outstanding March 31, 2024 |  |  | 885,055 |  |  | $ | 2.02 |  |  |  | 9.23 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding June 30, 2024 |  |  | 885,055 |  |  | $ | 2.02 |  |  |  | 9.23 |  |  | $ | — |
Vested and expected to vest June 30, 2024 |  |  | 885,055 |  |  | $ | 2.02 |  |  |  | 9.23 |  |  | $ | — |
Exercisable June 30, 2024 |  |  | 730,055 |  |  | $ | 2.27 |  |  |  | 10.04 |  |  | $ | — |
Unvested stock option activity for non-employees: Schedule of Unvested Stock Option Activity
|  | Number of Options |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (Years) |  |  | Aggregate Intrinsic Value |
Unvested March 31, 2024 |  |  | 245,001 |  |  | $ | 2.33 |  |  |  | 11.15 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Vested |  |  | (90,000 | ) |  |  | 0.46 |  |  |  | 10.18 |  |  |  | — |
Unvested June 30, 2024 |  |  | 155,001 |  |  | $ | 3.42 |  |  |  | 11.30 |  |  | $ | — |
Stock-based compensation expense was approximately $80,000 and $50,000 for the three months ended June 30, 2024 and 2023, resulting in a decrease in general and administrative expenses, respectively. Employee stock option activity during the six months ended June 30, 2024, 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, 2024 |  |  | 2,408,438 |  |  | $ | 2.50 |  |  |  | 8.70 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Expired |  |  | (663 | ) |  |  | — |  |  |  | — |  |  |  | — |
Outstanding June 30, 2024 |  |  | 2,407,775 |  |  | $ | 2.50 |  |  |  | 8.70 |  |  | $ | — |
Vested and expected to vest June 30, 2024 |  |  | 2,407,775 |  |  | $ | 2.50 |  |  |  | 8.70 |  |  | $ | — |
Exercisable June 30, 2024 |  |  | 2,241,109 |  |  | $ | 1.83 |  |  |  | 6.89 |  |  | $ | — |
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, 2024 |  |  | 366,666 |  |  | $ | 2.13 |  |  |  | 12.44 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Expired |  |  | (663 | ) |  |  | — |  |  |  | — |  |  |  | — |
Vested |  |  | (199,337 | ) |  |  | 0.47 |  |  |  | 7.04 |  |  |  | — |
Unvested June 30, 2024 |  |  | 166,666 |  |  | $ | 4.11 |  |  |  | 18.87 |  |  | $ | — |
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, 2024 |  |  | 885,055 |  |  | $ | 2.02 |  |  |  | 9.23 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding June 30, 2024 |  |  | 885,055 |  |  | $ | 2.02 |  |  |  | 9.23 |  |  | $ | — |
Vested and expected to vest June 30, 2024 |  |  | 885,055 |  |  | $ | 2.02 |  |  |  | 9.23 |  |  | $ | — |
Exercisable June 30, 2024 |  |  | 730,055 |  |  | $ | 2.27 |  |  |  | 10.04 |  |  | $ | — |
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, 2024 |  |  | 335,001 |  |  | $ | 1.83 |  |  |  | 10.70 |  |  | $ | — |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Expired |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Vested |  |  | (180,000 | ) |  |  | 0.46 |  |  |  | 10.18 |  |  |  | — |
Unvested June 30, 2024 |  |  | 155,001 |  |  | $ | 3.42 |  |  |  | 11.30 |  |  | $ | — |
Stock-based compensation expense was approximately $160,000 and $132,000 for the six months ended June 30, 2024 and 2023, respectively. On June 30, 2024, and 2023, respectively, there was approximately $134,000 and $85,000 of unrecognized equity-based compensation cost related to options granted under the Equity Incentive Plan.

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