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Stock Compensation
 3 Months Ended
Mar. 31, 2023
Stock Compensation [Abstract]  
STOCK COMPENSATION

5. STOCK COMPENSATION

 

Stock Incentive Plans

 

In 2018, the Company adopted the 2018 Stock Incentive Plan (the “2018 Plan”) for employees, consultants, and directors. The 2018 Plan, which is administered by the Board of Directors, permits the Company to grant incentive and nonqualified stock options for the purchase of common stock, and restricted stock awards. The maximum number of shares reserved for issuance under the 2018 Plan is 629,440.  At March 31, 2023, there were 262,269 shares available for grant under the 2018 Plan.

 

On July 6, 2021, the Company’s board of directors and stockholders approved and adopted the Bluejay Diagnostics, Inc. 2021 Stock Plan (the “2021 Plan”). A total of 1,960,000 shares of common stock were approved to be initially reserved for issuance under the 2021 Stock Plan. At March 31, 2023, there were 807,541 shares available for grant under the 2021 Plan.

 

Stock Award Activity

 

The following table summarizes the status of the Company’s non-vested restricted stock awards for the three months ended March 31, 2023:

 

   Non-vested
Restricted Stock Awards		 
   Number of
Shares		   Weighted
Average
Grant Date
Fair Value		 
Outstanding at December 31, 2022   60,000   $1.29 
Granted   512,180    0.44 
Vested   (374,680)   0.44 
Forfeited   
-
    
-
 
Outstanding at March 31, 2023   197,500   $0.70 

 

In February 2023, the Company issued 374,680 fully vested restricted stock units to certain employees in lieu of cash to satisfy their 2022 bonuses. The number of restricted stock unit awards issued were determined based on the approved bonus amount divided by the market price of the Company’s common stock on the date of grant. The value of fully vested restricted stock unit awards issued is recorded as stock compensation expense on the date of grant with a reversal of the related accrued bonus recorded in 2022.

 

The following is a summary of stock option activity for the nine months ended March 31, 2023:

 

   Number of
Stock
Options		   Weighted
Average
Exercise
Price Per
Share		   Weighted
Average
Remaining
Contractual
Life in Years		   Aggregate
Intrinsic
Value		 
Outstanding at December 31, 2022   719,835   $1.96    6.5   $20,578 
Granted   20,000    0.53           
Exercised   
-
    
-
    
-
    
-
 
Cancelled and forfeited   
-
    
-
    
-
    
-
 
Outstanding at March 31, 2023   739,835   $1.92    7.7   $23,316 
Exercisable at March 31, 2023   564,440   $1.86    7.4   $23,316 

 

The weighted average grant date fair value of options granted during the three months ended March 31, 2023 and 2022 was $0.44 per share and $1.48 per share, respectively. The Company calculated the grant-date fair value of stock option awards granted during the three months ended March 31, 2023 and 2022 using the Black-Scholes model with the following assumptions:

 

   Three Months Ended
March 31,		 
   2023   2022 
Risk-free interest rate   3.63%   1.58% - 2.40% 
Expected dividend yield   0.00%   0.00%
Volatility factor   108.78%   102.03% 
Expected life of option (in years)   6.00     5.37 – 6.00 

 

Stock-Based Compensation Expense

 

For the three months ended March 31,2023 and 2022, the Company recorded stock-based compensation expense as follows:

 

   Three Months Ended
March 31,		 
   2023   2022 
Research and development  $44,845   $17,311 
General and administrative   159,584    108,305 
Sales and marketing   15,160    470 
Total stock-based compensation  $219,589   $126,086 

 

At March 31, 2023, there was approximately $114,985 of unrecognized compensation expense related to non-vested stock option awards that are expected to be recognized over a weighted-average period of 1.8 years. At March 31, 2023, there was approximately $89,451 of unrecognized compensation expense related to non-vested restricted stock awards that are expected to be recognized over a weighted-average period of 1.1 years.