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Note 12 - Stockholders' Equity
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Equity [Text Block]

12.

STOCKHOLDERS’ EQUITY

 

Issuances of Common Stock

 

During the nine-month periods ended September 30, 2024, and 2023, there have not been any shares of common stock issued to anyone outside the Company, except as noted in this Note 12.

 

On June 18, 2021, the stockholders approved the Employee Stock Purchase Plan. Under the terms of this plan, 43,334 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 28, 2024, 1,390 shares were issued to employees which resulted in a $456 non-cash compensation expense for the Company. On June 30, 2023, 1,557 shares were issued to employees which resulted in a $3,563 non-cash compensation expense for the Company. 

 

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 nine-month periods ended September 30, 2024 and 2023, the Company issued 168,963 and 16,404 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 $244,996 and $31,200, respectively.

 

During the nine-month periods ended September 30, 2024 and 2023, 1,351 and 2,650 shares of restricted common stock were forfeited, respectively.

 

Share based compensation for the nine-month periods ended September 30, 2024 and 2023, was $171,617 and $220,591, respectively.

 

Issuances to Directors

 

During the nine-month periods ended September 30, 2024, and 2023, the Company issued 4,287 and 3,078, shares of common stock to its directors in lieu of payment of board and committee fees valued at $9,003 and $39,006, respectively. 

 

Employees’ exercise options

 

During the nine-month periods ended September 30, 2024 and 2023, no employee stock options were exercised.

 

3. Warrants

 

During the nine-month period ended September 30, 2024, the entered into a warrant inducement agreement with an existing institutional investor for the immediate exercise of certain outstanding warrants that the Company issued on October 30, 2023. Pursuant to the warrant inducement agreement, the investor agreed to exercise outstanding warrants to purchase an aggregate of 1,030,556 shares of the Company's common stock at an amended exercise price of $1.85. The gross proceeds from the exercise of the warrants was approximately $1.9 million, prior to deducting placement agent fees and estimated offering expenses. In consideration for the immediate exercise of the warrants, the Company also agreed to issue to the investor unregistered Series A Warrants to purchase an aggregate of 1,030,556 shares of the Company's common stock and unregistered Series B Warrants to purchase an aggregate of 1,030,556 shares of the Company's common stock, each with an exercise price of $1.85 per share. The Series A Warrants and Series B Warrants share substantially the same terms, are immediately exercisable and will expire five years from the date of issuance. 

 

There were no warrants issued for the nine-month period ended September 31, 2023. 

 

There were 911,672 prefunded warrants exercised during the nine-month period ended September 30, 2024.