Note 5 - Stockholders' Equity, Stock Options and Warrants

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Equity [Text Block]

NOTE 5 – STOCKHOLDERS’ EQUITY, STOCK OPTIONS AND WARRANTS

Series F Preferred Stock Dividend and Reverse Stock Split

On March 16, 2023, the Board of Directors of the Company authorized the issuance of 80,000 shares of Series F Preferred Stock, par value $0.01 per share.

On March 16, 2023, the Board of Directors of the Company declared a dividend of one one-thousandth of a share of Series F Preferred Stock, par value $0.01 per share, for each outstanding share of the Company’s common stock held on record as of March 27, 2023. 79,404 shares of Series F Preferred Stock were issued pursuant to the stock dividend. Each share of Series F Preferred Stock entitled the holder thereof to 1,000,000 votes per share to vote together with the outstanding shares of common stock of the Company as a single class to adopt an amendment to the Company’s Certificate of Incorporation to affect a reverse stock split. See Note 10 - Subsequent Events.

Equity Incentive Plan

The Company has an equity incentive plan, which allows issuance of incentive and non-qualified stock options to employees, directors, and consultants of the Company, where permitted under the plan. The exercise price for each stock option is determined by the Board of Directors. Vesting requirements are determined by the Board of Directors when granted and currently range from immediate to three years. Options under this plan have terms ranging from three to ten years.

The following summarizes transactions for stock options and warrants for the periods indicated:

	Stock Options					Warrants
	Number of Shares			Average Exercise Price		Number of Shares			Average Exercise Price
Outstanding at December 31, 2021		53,144		$	96.60		1,584,995		$	33.20
Issued		1,599			8.40		1,053,136			14.00
Forfeited		(2,013	)		17.60		-			-
Expired		(3,677	)		208.40		(5,422	)		329.60
Cancelled		-			-		(816,272	)		30.20
Outstanding at December 31, 2022		49,053		$	91.69		1,816,437		$	22.60
Issued		488			6.70		-			-
Forfeited		-			-		-			-
Expired		(1,736	)		148.58		(4,058	)		200.00
Outstanding at March 31, 2023		47,805		$	84.88		1,812,379		$	22.20

Stock-based compensation expense recognized for three months ended March 31, 2023 and March 31, 2022 was $9,287 and $36,518, respectively. The Company has $5,584 of unrecognized compensation expense related to non-vested stock options that is expected to be recognized over the next 21 months and $19,971 of unrecognized compensation expense related to non-vested restricted stock units that is expected to be recognized over the next 10 months. At March 31, 2023, there were 2,500 restricted stock units (“RSUs”) outstanding under the plan.