Note 11 - Stock-Based Compensation

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 11 – STOCK-BASED COMPENSATION

Equity Incentive Plan

On December 30, 2024, the Company’s stockholders approved the 2024 Equity Incentive Plan (the “2024 Plan”) at the Company’s Annual Meeting of Stockholders and the 2024 Plan became effective. The 2024 Plan allows for the issuance of non-statutory stock options and incentive stock options, stock appreciation rights, stock awards, restricted stock, restricted stock units, and performance awards to employees, directors, and consultants of the Company, where permitted under the plan. Due to the approval of the 2024 Plan, no new awards will be granted under the Company’s Amended and Restated 2012 Stock Incentive Plan. The exercise price for each stock option is determined by the market price on the date of issuance. Vesting requirements are determined by the Board of Directors when granted and currently range from immediate to three years. Options outstanding under this plan have a contractual life of ten years.

ASC 718, Compensation – Stock Compensation (“ASC 718”), requires that a company that issues equity as compensation record compensation expense that corresponds to the estimated cost of those equity grants. ASC 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model or other acceptable means.

There was no stock-based compensation expense for employees recognized for the three and six months ended June 30, 2025. During the three and six months ended June 30, 2025, the Company issued shares of common stock with a grant date fair value of $100,000 to nonemployees in exchange for digital marketing services partially rendered through June 30, 2025, with remaining services to be rendered by August 2025. Compensation for services rendered through June 30, 2025 is recorded within Sales and marketing expense in the condensed consolidated statement of net loss for the three and six months ended June 30, 2025. Compensation related to remaining services to be provided is recorded within Prepaid expenses and other assets in the condensed consolidated balance sheet as of June 30, 2025. Stock-based compensation expense, net of forfeitures, recognized for the three and six months ended June 30, 2024 was $246 and $804, respectively. Stock-based compensation expense for the three and six months ended June 30, 2024 is recorded within each of the captions comprising Operating expenses. The Company has no unrecognized compensation expense related to unvested stock options that is expected to be recognized in future months.

The Company determines the grant date fair value of options using a Black-Scholes option valuation model based upon assumptions regarding risk-free interest rate, expected dividend rate, volatility, and estimated term. There were no stock options granted during the six months ended June 30, 2025 and 2024.

The following summarizes transactions for stock options for the period indicated: 

	Number of Shares			Average Exercise Price
Outstanding as of December 31, 2024		43,595		$	82.70
Issued		-			-
Expired		(1,482	)		71.20
Exercised		-			-
Outstanding as of June 30, 2025		42,113		$	88.98