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STOCK OPTION PLAN AND WARRANTS | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
STOCK OPTION PLAN AND WARRANTS | NOTE 6 STOCK OPTION PLAN AND WARRANTS Stock Options On January 18, 2010, we adopted the 2010 Stock Option Plan (the “2010 Option Plan”), which allows the Board to grant options to purchase up to 15,625 shares of common stock to directors, officers, key employees, and service providers of our company. In 2011, the 2010 Option Plan was amended to increase the number of shares issuable under the 2010 Option Plan to 375,000 shares. In 2012, 2010 Option Plan was again amended to increase the number of shares issuable under the 2010 Option Plan to 203,125 shares. The shares issuable pursuant to the 2010 Option Plan are registered with the SEC under Forms S-8 filed on February 4, 2010 (No. 333- 164691), June 24, 2011 (No. 333-175143), and December 4, 2013 (No. 333-192655). The 2010 Option Plan expired on January 18, 2020. As of December 31, 2024 there were 23,659 options outstanding under the 2010 Option Plan. On December 15, 2020, we adopted the Iveda Solutions, Inc. 2020 Plan (the “2020 Plan”). The 2020 Plan has a maximum of 156,250 shares authorized with similar terms and conditions to the 2010 Option Plan. As of December 31, 2024 there were 193,397 options outstanding under the 2020 Option Plan. The shares issuable pursuant to the 2020 Option Plan are registered with the SEC under Forms S-8 filed on October 7, 2022 (No. 333- 267792). In 2024, the 2020 Option Plan was amended to increase the number of shares issuable under the 2020 Option Plan to 656,250 shares. As of December 31, 2024 and December 31, 2023, there were 217,056 and 162,265 options outstanding, respectively, under all the option plans. Stock options may be granted as either incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or as options not qualified under Section 422 of the Code. All options are issued with an exercise price at or above the fair market value of the common stock on the date of the grant as determined by our Board of Directors. Incentive stock option plan awards of restricted stock are intended to qualify as deductible performance-based compensation under Section 162(m) of the Code. Incentive Stock Option awards of unrestricted stock are not designed to be deductible to us under Section 162(m). Under the plans, stock options will terminate on the tenth anniversary date of the grant or earlier if provided in the grant. We have also granted non-qualified stock options to employees and contractors. All non-qualified options are generally issued with an exercise price no less than the fair value of the common stock on the date of the grant as determined by our Board of Directors. Options may be exercised up to ten years following the date of the grant, with vesting schedules determined by us upon grant. Vesting schedules vary by grant, with some fully vesting immediately upon grant to others that ratably vest over a period of time up to four years. Standard vested options may be exercised up to three months following date of termination of the relationship unless alternate terms are specified at grant. The fair values of options are determined using the Black-Scholes option-pricing model. The estimated fair value of options is recognized as expense on the straight-line basis over the options’ vesting periods. At December 31, 2024, we had approximately $32,800 unrecognized stock-based compensation. During 2024 and 2023, the Company granted 79,000 and 37,188 stock options with a weighted average fair value of $1.10 and $0.34 per share, respectively. The Company recorded stock compensation costs of $122,600 and $104,600 on vesting of the options during 2024 and 2023, respectively. Stock option transactions during 2024 and 2023 were as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS
|  | 2024 |  |  | 2023 |
|  | Shares |  |  | Weighted- Average Exercise Price |  |  | Shares |  |  | Weighted- Average Exercise Price |
Outstanding at Beginning of Year |  |  | 162,625 |  |  | $ | 36.01 |  |  |  | 126,805 |  |  | $ | 36.08 |
Granted |  |  | 79,000 |  |  |  | 1.78 |  |  |  | 37,188 |  |  |  | 5.48 |
Exercised |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Forfeited or Cancelled |  |  | (24,569 | ) |  |  | 75.86 |  |  |  | (1,367 | ) |  |  | 10.78 |
Outstanding at End of Year |  |  | 217,056 |  |  |  | 18.56 |  |  |  | 162,625 |  |  |  | 36.01 |
Options Exercisable at Year-End |  |  | 214,525 |  |  | $ | 18.74 |  |  |  | 157,547 |  |  | $ | 36.96 |
Information with respect to stock options outstanding and exercisable at December 31, 2024 is as follows: SCHEDULE OF STOCK OPTION OUTSTANDING AND EXERCISABLE AND EXERCISABLE EXERCISE PRICE RANGE
|  | Options Outstanding |  |  | Options Exercisable |
Range of Exercise Prices |  | Number Outstanding at December 31, 2024 |  |  | Weighted- Average Remaining Contractual Life |  |  | Weighted- Average Exercise Price |  |  | Number Exercisable at December 31, 2024 |  |  | Weighted- Average Exercise Price |
$ | 1.58-142.08 |  |  | 217,056 |  |  |  | 7.7 |  |  | $ | 4.50 |  |  |  | 214,525 |  |  | $ | 18.74 |
The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for options granted. Warrant transactions during 2024 and 2023 were as follows: SCHEDULE OF WARRANT TRANSACTIONS
|  | 2024 |  |  | 2023 |
|  | Shares |  |  | Weighted- Average Exercise Price |  |  | Shares |  |  | Weighted- Average Exercise Price |
Outstanding at Beginning of Year |  |  | 631,737 |  |  | $ | 75.34 |  |  |  | 779,208 |  |  | $ | 21.28 |
Granted |  |  | 1,296,876 |  |  |  | 3.47 |  |  |  | 1,406 |  |  |  | 5.72 |
Exercised |  |  | - |  |  |  | - |  |  |  | (118,238 | ) |  |  | 11.20 |
Forfeited or Cancelled |  |  | (46,537 | ) |  |  | 24.23 |  |  |  | (30,639 | ) |  |  | 26.74 |
Outstanding at End of Year |  |  | 1,882,076 |  |  |  | 2.84 |  |  |  | 631,737 |  |  |  | 75.34 |
Warrant Exercisable at Year-End |  |  | 585,200 |  |  |  | 2.84 |  |  |  | 631,737 |  |  |  | 75.34 |
Weighted-Average Fair Value of Warrants Granted During the Year |  | $ | 0.25 |  |  |  |  |  |  | $ | 0.24 |  |  |  |  |
Information with respect to warrants outstanding and exercisable at December 31, 2024 is as follows: SUMMARY OF WARRANTS OUTSTANDING AND EXERCISABLE
|  |  | Warrants Outstanding |  |  | Warrants Exercisable |
Range of Exercise Prices |  |  | Number Outstanding at December 31, 2024 |  |  | Weighted- Average Remaining Contractual Life |  |  | Weighted- Average Exercise Price |  |  | Number Exercisable at December 31, 2024 |  |  | Weighted- Average Exercise Price |
$ | 3.44 -$85.12 |  |  |  | 1,882,076 |  |  |  | 2.3 |  |  | $ | 3.47 |  |  |  | 585,200 |  |  | $ | 22.59 |
The fair value of each warrant granted is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for options granted. During the year ended December 31, 2023, warrant holders exercised 118,238 warrants to acquire 118,238 shares for net proceeds to the Company of $1,322,885.

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