| STOCK-BASED COMPENSATION |
Note
13. STOCK-BASED COMPENSATION
Under
the Company’s 2104 Equity Incentive Plan (the “2014 Plan”), the Company is authorized to grant options or restricted
stock for up to 66,667 shares of Common Stock. On June 6, 2023, the Company received stockholder approval to increase the number of authorized
shares from 38,095 to 66,667, 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 condensed consolidated statements of operations:
SUMMARY OF STOCK-BASED COMPENSATION EXPENSE RECOGNIZED FOR STOCK OPTION AWARDS
| |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| |
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
| |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
|
$ |
— |
|
|
$ |
30,605 |
|
|
$ |
12,916 |
|
|
$ |
87,832 |
|
| Selling, General and administrative |
|
|
67,132 |
|
|
|
155,082 |
|
|
|
592,439 |
|
|
|
667,762 |
|
| Total stock-based compensation
expense |
|
$ |
67,132 |
|
|
$ |
185,687 |
|
|
$ |
605,355 |
|
|
$ |
755,594 |
|
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 |
|
|
9,649 |
|
|
$ |
207.84 |
|
|
|
4.45 |
|
|
|
— |
|
| Granted |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Exercised |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Forfeited |
|
|
(594 |
) |
|
|
147.28 |
|
|
|
— |
|
|
|
— |
|
| Outstanding at September 30, 2025 |
|
|
9,055 |
|
|
$ |
211.82 |
|
|
|
3.90 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Vested and exercisable at September 30, 2025 |
|
|
9,055 |
|
|
$ |
211.82 |
|
|
|
3.90 |
|
|
|
— |
|
As
of September 30, 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 September 30, 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 |
|
|
44,107 |
|
|
$ |
57.08 |
|
|
$ |
2,517,843 |
|
|
|
39,415 |
|
|
|
4,692 |
|
| Granted |
|
|
8,598 |
|
|
|
24.89 |
|
|
|
214,003 |
|
|
|
5,628 |
|
|
|
2,113 |
|
| Forfeited |
|
|
(856 |
) |
|
|
24.30 |
|
|
|
(20,800 |
) |
|
|
— |
|
|
|
— |
|
| Balance at September 30, 2025 |
|
|
51,849 |
|
|
$ |
52.28 |
|
|
$ |
2,711,046 |
|
|
|
45,043 |
|
|
|
6,805 |
|
During
the nine months ended September 30, 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 nine
months ended September 30, 2025, 5,628 shares vested from RSAs granted in 2025, and 6,788 shares vested from RSA’s granted prior to 2025.
|