| STOCK-BASED COMPENSATION |
Note 13. STOCK-BASED COMPENSATION
The Company granted options and restricted stock awards
under its 2014 Equity Incentive Plan (the “2014 Plan”). Under the 2014 Plan, the Company is authorized to grant options or
restricted stock for up to 2,000,000 shares of Common Stock. On June 6, 2023, the Company received stockholder approval to increase the
number of authorized shares from 1,142,857 to 2,000,000. Options or restricted stock awards may be granted to employees, the Company’s
board of directors, and external consultants who provide services to the Company. Options and restricted stock awards granted under the
2014 Plan have vesting schedules with terms of one to three years and become fully exercisable based on specific terms imposed at the
date of grant. The 2014 Plan expired according to the respective 10-year term of the 2014 Plan in March 2024. A new 2024 Incentive Compensation
Plan (the “2024 Plan”) was approved at the Annual Meeting of Shareholders on June 4, 2024.
The Company has recorded stock-based
compensation expense related to the issuance of restricted stock awards in the following line items in the accompanying condensed consolidated
statements of operations:
SUMMARY OF STOCK-BASED COMPENSATION EXPENSE RECOGNIZED FOR STOCK OPTION AWARDS
| |
|
2025 |
|
|
2024 |
|
| |
|
Three Months Ended
March 31, |
|
| |
|
2025 |
|
|
2024 |
|
| |
|
|
|
|
|
|
| Research and development |
|
$ |
21,250 |
|
|
$ |
21,882 |
|
| General and administrative |
|
|
305,366 |
|
|
|
260,731 |
|
| Total stock-based compensation expense |
|
$ |
326,616 |
|
|
$ |
282,613 |
|
The following table summarizes
stock option activity under the 2014 Plan and 2024 Plan:
SUMMARY OF OPTION ACTIVITY
| |
|
Number of
options |
|
|
Weighted-average
exercise price |
|
|
Weighted-average
remaining contractual
term (in years) |
|
|
Aggregate
intrinsic value |
|
| Outstanding at December 31, 2024 |
|
|
304,125 |
|
|
$ |
6.95 |
|
|
|
4.45 |
|
|
|
— |
|
| Granted |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Exercised |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Forfeited |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Outstanding at March 31, 2025 |
|
|
304,125 |
|
|
$ |
6.95 |
|
|
|
4.20 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Vested and exercisable at March 31, 2025 |
|
|
304,125 |
|
|
$ |
6.95 |
|
|
|
4.20 |
|
|
|
— |
|
As of March 31, 2025, there was no unrecognized compensation
cost related to non-vested stock options.
The following table summarizes restricted stock award
activity under the 2014 Plan and 2024 Plan:
SUMMARY OF RESTRICTED STOCK AWARD
| |
|
|
Number of |
|
|
|
|
|
|
|
|
As of March 31, 2025 |
|
| |
|
|
restricted
stock awards
(RSA) |
|
|
Weighted-
average
grant price |
|
|
FMV on
grant date |
|
|
Vested
number
of RSA |
|
|
Unvested
number
of RSA |
|
| Balance at December 31, 2024 |
|
|
|
1,326,861 |
|
|
$ |
1.99 |
|
|
$ |
2,636,259 |
|
|
|
1,072,838 |
|
|
|
254,023 |
|
| Granted |
|
|
|
253,398 |
|
|
|
0.84 |
|
|
|
212,875 |
|
|
|
66,658 |
|
|
|
186,740 |
|
| Forfeited |
|
|
|
(10,289 |
) |
|
|
0.81 |
|
|
|
(8,334 |
) |
|
|
— |
|
|
|
(10,289 |
) |
| Balance at March 31, 2025 |
|
|
|
1,569,970 |
|
|
$ |
2.24 |
|
|
$ |
2,840,800 |
|
|
|
1,139,496 |
|
|
|
430,474 |
|
During the three months ended March
31, 2025, the Company issued restricted stock awards (“RSAs”) for an aggregate of 243,109
shares of Common Stock to employees, non-employees, and the board of directors. The shares vest in equal monthly installments over
terms of immediately and up to three
years, subject to the employees and non-employees providing continuous service through the vesting date. During the three
months ended March 31, 2025, 92,601
shares vested from RSAs granted prior to January 1, 2025, and 66,658
shares vested from RSAs granted during the three months ended March 31, 2025.
|