| STOCK-BASED COMPENSATION |
Note
13. STOCK-BASED COMPENSATION
Under
the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), the Company is authorized to grant options or restricted
stock for up to 66,666
shares of Common Stock. On June 6, 2023, the Company received
stockholder approval to increase the number of authorized shares from 38,095
to 66,666,
adjusted for the 30-1 reverse split. 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 at the end of its 10-year
term 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 consolidated statements of operations:
SUMMARY OF STOCK-BASED COMPENSATION EXPENSE RECOGNIZED FOR STOCK OPTION AWARDS
| |
|
Year Ended
December 31,
|
|
| |
|
2025 |
|
|
2024 |
|
| |
|
|
|
|
|
|
| Research and development |
|
$ |
51,953 |
|
|
$ |
99,174 |
|
| Clinical |
|
|
10,282 |
|
|
|
10,000 |
|
| Selling, general and administrative |
|
|
609,239 |
|
|
|
880,507 |
|
| Total stock-based compensation expense |
|
$ |
671,474 |
|
|
$ |
989,681 |
|
The
following table summarizes stock option activity under the 2014 and 2024 Plans:
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 |
|
|
9,649 |
|
|
$ |
207.84 |
|
|
|
4.45 |
|
|
|
— |
|
| Granted |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Exercised |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Forfeited |
|
|
(594 |
) |
|
|
147.28 |
|
|
|
— |
|
|
|
— |
|
| Outstanding at December 31, 2025 |
|
|
9,055 |
|
|
$ |
211.56 |
|
|
|
3.67 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Vested and exercisable at December 31, 2025 |
|
|
9,055 |
|
|
$ |
211.56 |
|
|
|
3.67 |
|
|
|
— |
|
As
of December 31, 2025, there was no unrecognized compensation cost related to non-vested stock options.
Restricted
Stock Awards
The
following table summarizes restricted stock award activity under the 2014 and 2024 Plan:
SUMMARY OF RESTRICTED STOCK AWARD
| |
|
Number of |
|
|
|
|
|
|
|
|
As of December 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 |
|
|
44,261 |
|
|
$ |
56.88 |
|
|
$ |
2,517,630 |
|
|
|
40,244 |
|
|
|
3,859 |
|
| Granted |
|
|
8,598 |
|
|
|
22.37 |
|
|
|
214,003 |
|
|
|
7,195 |
|
|
|
512 |
|
| Forfeited |
|
|
(1,049 |
) |
|
|
21.30 |
|
|
|
(21,651 |
) |
|
|
— |
|
|
|
— |
|
| Balance at December 31, 2025 |
|
|
51,810 |
|
|
$ |
51.87 |
|
|
$ |
2,709,982 |
|
|
|
47,439 |
|
|
|
4,371 |
|
During
the year ended December 31, 2025, the Company issued restricted stock awards (“RSAs”) for 8,598
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 year
ended December 31, 2025, 7,195
shares vested from RSAs granted in 2025, and 7,621
shares vested from RSA’s granted prior to 2025.
|