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STOCK-BASED COMPENSATION
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]    
STOCK-BASED COMPENSATION

NOTE 15 – STOCK-BASED COMPENSATION

 

The Company accounts for its stock-based compensation in accordance with the fair value recognition of ASC 718.

 

2024 Stock Incentive Plan

 

The Company did not grant options during the three months March 31, 2025 or 2024.

 

 

Compensation-based stock option activity for qualified and unqualified stock options are summarized below:

 

  

Number of

Options

  

Weighted

Average

Exercise

Price

  

Weighted

Average

Remaining

Life In Years

  

Intrinsic

Value

 
Outstanding, December 31, 2024   1,131,000   $0.93         - 
Granted   -    0           
Exercised   -    0           
Forfeited   -    0           
Outstanding, March 31, 2025   1,131,000   $0.93    4.5   $- 
Exercisable, March 31, 2025   1,103,500   $0.93    4.5   $- 

 

The following table summarizes information about options to purchase shares of the Company’s Class A common stock outstanding and exercisable at March 31, 2025:

 

Options Outstanding   Options Exerciseable
Exercise Price  

Outstanding

Number of

Options

  

Weighted

Average

Remaining

Life In Years

 

Exerciseable

Number of

Options

 
$0.93    1,131,000   4.5   1,103,500 
      1,131,000       1,103,500 

 

Total compensation expense related to options was $3,341 for the three months ended March 31, 2025. As of March 31, 2025, there was future compensation cost of $7,798 with a weighted average recognition period of 0.75 years.

 

The aggregate intrinsic value totaled $0 and was based on the Company’s closing stock price of $0.35 as of March 31, 2025, which would have been received by the option holders had all option holders exercised their options as of that date.

 

Stock-Based Compensation Expense

 

The following table presents information related to stock-based compensation expense:

 

  

For the

Three Months Ended

March 31,

  

Unrecognized at

March 31,

  

Weighted Average

Remaining

Amortization

Period

 
   2025   2025   (Years) 
General and administrative  $3,341   $7,798    0.75 
Total  $3,341   $7,798    0.75 

 

NOTE 19 – STOCK-BASED COMPENSATION

 

The Company accounts for its stock-based compensation in accordance with the fair value recognition of ASC 718.

 

Stock Issued For Compensation

 

On April 17, 2024, the Company issued 71,832 shares of Class A Common Stock to the former chief financial officer for services rendered with a fair value of $1.67 per share.

 

 

2024 Stock Incentive Plan

 

On October 24, 2024, the Company filed a Form S-8 to register 1,600,000 shares of the Company’s Class A Common Stock to participants in the TruGolf Holdings, Inc. 2024 Stock Incentive Plan (the “2024 Plan”). Awards to be made under the 2024 Plan consist of covering up to the sum of (i) 1,600,000 shares; and (ii) an annual increase commencing on January 1, 2025 and continuing annually on each anniversary thereof through (and including) January 1, 2035, equal to the lesser of (A) 5% of the shares of Company Common Stock outstanding on a fully diluted basis on the last day of the immediately preceding fiscal year and (B) such smaller number of shares as determined by the Board or the Committee (the “Overall Share Limit”). Shares issued or delivered under the 2024 Plan may consist of authorized but unissued shares of common stock, shares purchased on the open market or treasury shares.

 

On October 11, 2024, the Company granted options to purchase an aggregate of 1,131,000 shares of Class A Common Stock at an exercise price of $0.93 per share and a fair value of $538,323. Vesting terms of these options are as follows: (i) 1,076,000 options vest upon issuance and (ii) 55,000 options vest 50% upon issuance and 50% on the one-year anniversary of the grant date. The options were valued using the Black-Scholes option pricing model under the following assumptions as found in the table below.

 

   Number of Options   Weighted Average Exercise Price   Weighted Average Remaining Life In Years   Intrinsic Value 
Outstanding, January 1, 2024   -   $-         - 
Granted   1,131,000    0.93           
Exercised   -    0           
Forfeited   -    0           
Outstanding, December 31, 2024   1,131,000   $0.93    4.8   $- 
Exercisable, December 31, 2024   783,500   $0.93    4.8   $- 

 

The weighted average grant date fair value of the options granted and vested during the year ended December 31, 2024, was $538,323 and $524,960, respectively. The weighted average non-vested grant date fair value of non-vested options was $13,368 at December 31, 2024.

 

The following table summarizes information about options to purchase shares of the Company’s Class A Common Stock outstanding and exercisable at December 31, 2024:

 

Options Outstanding   Options Exerciseable 
Exercise Price   Outstanding Number of Options   Weighted Average Remaining Life In Years   Exerciseable Number of Options 
$0.93    1,131,000    4.8    783,500 
      1,131,000         783,500 

 

 

In applying the Black-Scholes option pricing model to stock options granted, the Company used the following assumptions:

 

   For the Years Ended December 31, 
   2024   2023 
Risk free interest rate   3.88%   0.00%
Expected term (years)   5.00 - 5.25    - 
Expected volatility   53.49%   0.00%
Expected dividends   0.00%   0.00%

 

Stock-Based Compensation Expense

 

The following table presents information related to stock-based compensation expense:

 

           Weighted Average 
   For the Year Ended Decemebr 31,   Unrecognized at December 31,   Remaining Amortization Period 
   2024   2024   (Years) 
General and administrative  $538,323   $13,368    1.00 
Total  $538,323   $13,368    1.00