Annual report [Section 13 and 15(d), not S-K Item 405]

STOCK-BASED COMPENSATION

v3.25.1
STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 12. STOCK-BASED COMPENSATION

On July 15, 2024, the Board approved an amendment to the 2014 Plan to extend the term of the Plan for an additional ten years, effective as of January 1, 2024. The 2014 Plan is a broad-based plan under which shares of our common stock are authorized for issuance for awards, including stock options, stock appreciation rights, restricted stock, and cash incentive awards to members of our Board, executive officers, employees and independent contractors. At December 31, 2024, a total of 10,550,750 shares of our common stock were authorized for issuance. At December 31, 2024, 2,577,675 shares remained available for issuance as new awards under the 2014 Plan.

Stock Options

During the years ended December 31, 2024 and 2023, we issued 440,000 and 445,000 options to purchase our common stock, respectively, to executive officers, employees and independent contractors. The fair value of all stock options granted for the years ended December 31, 2024 and 2023, was determined to be $384,892 and $470,205, respectively, using the Black-Scholes option pricing model with the following assumptions:

 

 

 

Options Issued For the Twelve Months Ended December 31, 2024

 

Options Issued For the Twelve Months Ended December 31, 2023

Dividend yield

 

0%

 

0%

Expected volatility

 

61.62% - 62.71%

 

55.56% - 62.43%

Risk-free interest rate

 

4.17% - 4.56%

 

3.82% - 4.66%

Expected life (years)

 

5.0

 

5.0

 

A summary of stock option activity is as follows:

 

 

 

Common
Stock
Options

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual
Term (Years)

 

 

Aggregate
Intrinsic
Value

 

Outstanding -- December 31, 2023

 

 

1,540,001

 

 

$

2.70

 

 

 

3.0

 

 

$

(1,233,541

)

Granted

 

440,000

 

 

 

1.55

 

 

 

-

 

 

 

—

 

Exercised

 

 

(38,333

)

 

 

1.46

 

 

 

-

 

 

 

—

 

Forfeited or expired

 

 

(366,667

)

 

 

2.63

 

 

 

-

 

 

 

—

 

Outstanding -- December 31, 2024

 

 

1,575,001

 

 

 

2.43

 

 

 

3.1

 

 

$

1,144,030

 

Exercisable -- December 31, 2024

 

718,326

 

 

$

3.04

 

 

 

2.1

 

 

$

311,690

 

 

A summary of unvested stock option activity is as follows:

 

 

 

Common
Stock
Options

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual
Term (Years)

 

 

Aggregate
Intrinsic
Value

 

Unvested – December 31, 2023

 

 

798,344

 

 

$

2.73

 

 

 

2.0

 

 

$

(662,626

)

Granted

 

440,000

 

 

 

1.55

 

 

 

—

 

 

 

—

 

Vested

 

 

(321,667

)

 

 

3.17

 

 

 

—

 

 

 

—

 

Forfeited

 

 

(60,002

)

 

 

3.44

 

 

 

—

 

 

 

—

 

Unvested - December 31, 2024

 

 

856,675

 

 

$

1.91

 

 

 

2.3

 

 

$

832,340

 

 

As of December 31, 2024, our unrecognized share-based compensation expense associated with the stock options issued was $299,145, which is expected to be amortized over a weighted-average period of 2.3 years.

 

Restricted Stock Units

During the year ended December 31, 2024, we issued an aggregate of 136,527 restricted shares of our common stock valued at $255,042 to our board members in consideration of their service on the Board. These shares vested immediately on the grant date.

On December 30, 2024, Mr. Reback received 70,000 shares of restricted shares of our common stock, valued at $194,600, which vested immediately on the grant date.

On March 1, 2024, an employee received 36,364 shares of restricted shares of our common stock, valued at $60,001 vesting over a two-year period.

At December 31, 2024 and 2023, unvested restricted shares were 36,364 and 25,001 respectively. There were no forfeitures of vested restricted shares in 2024 or 2023. As of December 31, 2024, there were 2,966,247 restricted shares outstanding.