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Note 11 - Stockholders' Equity
 6 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Equity [Text Block]

11.

STOCKHOLDERS’ EQUITY

 

Issuances of Common Stock

 

During the six-month periods ended June 30, 2023, there have not been any shares of common stock issued to anyone outside the Company, except as noted below under Issuances to Directors, Executive Officers & Consultants

 

On June 18, 2021, the stockholders approved the Employee Stock Purchase Plan. Under the terms of this plan, 789,000 shares of common stock are reserved for issuance to employees and officers of the Company at a purchase price equal to 85% of the lower of the closing price of the common stock on the first day or the last day of the offering period as reported on the Nasdaq Capital Market. Eligible employees are granted an option to purchase shares under the plan funded by payroll deductions. The Board may suspend or terminate the plan at any time, otherwise the plan expires June 17, 2031. On June 30, 2023, 28,020 shares were issued to employees which resulted in a $3,563 non-cash compensation expense for the Company. On June 30, 2022, 26,006 shares were issued to employees which resulted in a $8,314 non-cash compensation expense for the Company.

 

On March 8, 2022, the Company issued 269,060 shares of common stock of which 89,687 shares were held back by the Company to secure certain indemnification obligations under the Swivel Secure stock purchase agreement. The shares of Company common stock were issued at a total cost of $600,004, priced at $2.23, based on the contractual 20 day volume-weighted average price of the Company’s common stock immediately prior to the payment date as reported on the Nasdaq Capital Market

 

Issuances of Restricted Stock

 

Restricted stock consists of shares of common stock that are subject to restrictions on transfer and risk of forfeiture until the fulfillment of specified conditions. The fair value of nonvested shares is determined based on the market price of the Company's common stock on the grant date. Nonvested stock is expensed ratably over the term of the restriction period.

 

During the six-month periods ended June 30, 2023 and 2022, the Company issued 40,000 and 275,000 shares of restricted common stock, respectively, to certain employees and directors. These shares vest in equal annual installments over a three-year period from the date of grant and had a fair value on the date of issuance of $31,200 and $592,075, respectively.

 

During the six-month periods ended June 30, 2023 and 2022, 34,209 and 1,250 shares of restricted common stock were forfeited, respectively.

 

Restricted stock compensation for the three-month periods ended June 30, 2023 and 2022, was $54,781 and $51,204, respectively.

 

Restricted stock compensation for the six-month periods ended June 30, 2023 and 2022, was $113,837 and $91,044, respectively.

 

Issuances to Directors, Executive Officers & Consultants

 

During the three and six-month periods ended June 30, 2023, the Company issued 23,150 and 38,538 shares of common stock to its directors in lieu of payment of board and committee fees valued at $16,002 and $28,004, respectively. 

 

During the three and six-month periods ended June 30, 2022, the Company issued 9,117 and 18,499 shares of common stock to its directors in lieu of payment of board and committee fees valued at $18,006 and $40,026, respectively. 

 

Employees’ exercise options

 

During the three and six-month periods ended June 30, 2023 and 2022, no employee stock options were exercised.

 

3. Warrants

 

There were no warrants issued during the three and six-month periods ended June 30, 2023 and 2022.