Common Stock Warrants and Options

12 Months Ended

Dec. 31, 2024

Common Stock Warrants And Options

Common Stock Warrants and Options

Note 7 – Common Stock Warrants and Options

Common Stock Warrants

Stock warrant transactions for the years ended December 31, 2024 and 2023, were as follows:

	Number of			Weighted Average
	Warrants			Exercise Price
Warrants outstanding at December 31, 2022		77,909		$	159.00
Granted		326,333			21.30
Forfeited/cancelled		(2,613	)		102.00
Exercised		(96,667	)		0.003
Warrants outstanding at December 31, 2023		304,962		$	63.30
Granted		828,800			4.47
Forfeited/cancelled		(13,333	)		165.00
Exercised		—			—
Warrants outstanding at December 31, 2024		1,120,429		$	18.85
Warrants exercisable at December 31, 2024		1,120,429		$	18.85

As of December 31, 2024, all outstanding warrants are fully vested and had an exercise price greater than the market price of the Company’s common stock, which resulted in no intrinsic value.

Warrants outstanding as of December 31, 2024, 2024 are exercisable as follows:

		Warrants Outstanding and Exercisable as of September 30, 2024
Range of Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price
$	4.35		740,000		4.4	$	4.35
	5.4375		88,800		4.4		5.4375
	30.00		216,666		3.5		30.00
	37.50		13,000		3.0		37.50
	102.00		1,867		0.6		102.00
	165.00		52,316		1.1		165.00
	206.25		7,780		1.1		206.25
			1,120,429		4.0		18.85

Common Stock Options

In April 2022 the Company established the 2022 Omnibus Incentive Plan (the “Plan”). The Plan was approved by our Board and stockholders. The purpose of the Plan is to grant stock and options to purchase our common stock, and other incentive awards, to our employees, directors, and key consultants. The maximum number of shares of common stock that may be issued pursuant to awards granted under the Plan is 166,667. The shares of our common stock underlying cancelled and forfeited awards issued under the Plan may again become available for grant under the Plan. As of December 31, 2024, there were 124,600 stock options outstanding and 25,935 shares of restricted stock granted in prior years under the Plan, which left 16,132 shares available for grant under the Plan.

The following table summarizes stock option transactions for the years ended December 31, 2024 and 2023:

	Number of			Weighted Average
	Options			Exercise Price
Options outstanding at December 31, 2022		54,348		$	77.10
Granted		83,333			22.50
Forfeited/cancelled		(11,416	)		84.30
Exercised		—			—
Options outstanding at December 31, 2023		126,265		$	40.15
Granted		23,335			2.11
Forfeited/cancelled		(25,000	)		41.80
Exercised		—			—
Options outstanding at December 31, 2024		124,600		$	32.69
Options exercisable at December 31, 2024		105,802		$	38.12

The weighted average remaining contractual life of all options outstanding, and all options vested and exercisable as of December 31, 2024 was 8.3 years. Furthermore, as of December 31, 2024, the intrinsic value of options outstanding amounted to approximately $22,000, and the intrinsic value of options vested and exercisable amounted to approximately $18,000.

On October 17, 2024, the Company granted stock options to an officer to purchase an aggregate of 23,335 shares of common stock. The stock options are exercisable at $2.11 per share, expire in 10 years, vest over three years with a fair value of approximately $45,000 on the date of grant which will be amortized over the vesting period.

In January and May 2023, the Company granted stock options to a employees and members of the Board to purchase 83,333 shares of common stock. The stock options are exercisable at $10.50 and $25.50  per share, expire in 10 years, vest over twelve months with a fair value of $1.6 million on the date of grant which will be amortized over the vesting period.

The total fair value of options that vested during years ended December 31, 2024 and 2023, was $230,000 and $1,770,000, respectively, and is included in selling, general and administrative expense in the accompanying statements of operations. As of December 31, 2024, 105,802 stock options were vested and exercisable and unvested compensation expense amounted to approximately $30,000.

Options outstanding as of December 31, 2024 are exercisable as follows:

Range of Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price
$	2.11		23,335		9.8	$	2.11
	10.50		16,667		8.4		10.50
	25.50		50,000		8.1		25.50
	74.40		34,598		7.5		74.40
			124,600