Note 7 - Stock Options and Restricted Shares

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

7. Stock Options and Restricted Shares

The outstanding options at  September 30, 2024 consisted of the following:

						Weighted
						Average
						Remaining
	Number of			Exercise		Contractual Life
	Shares			Price		(years)
Outstanding at December 31, 2023		1,207,888		$	3.71		8.28
Options granted (expired) during 9 months ended September 30, 2024:		(2,778	)	$	2.65
Options Granted at $2.11 Exercise Price		1,378,364		$	2.11
Options Granted at $2.66 Exercise Price		25,000		$	2.66
Options Granted at $2.44 Exercise Price		100,000		$	2.44
Options Granted at $1.50 Exercise Price		800,000		$	1.50
Options Granted at $2.75 Exercise Price		2,000,000		$	2.75
Options forfeited at $2.65 Exercise Price		(7,222	)	$	2.65
Options Granted at $1.76 Exercise Price		100,000		$	1.76
Options Granted at $1.49 Exercise Price		20,000		$	1.49
Options Granted at $2.20 Exercise Price		20,000		$	2.20
Outstanding at September 30, 2024		5,641,252
Outstanding Options at $2.00 Exercise Price		250,000		$	2.00		7.27
Outstanding Options at $2.40 Exercise Price		90,893		$	2.40		7.27
Outstanding Options at $9.00 Exercise Price		256,750		$	9.00		6.23
Outstanding Options at $26.20 Exercise Price		6,750		$	26.20		3.57
Outstanding options at $2.65 Exercise Price		5,000		$	2.65		8.55
Outstanding Options Granted at $2.10 Exercise Price		588,495		$	2.10		8.78
Outstanding Options at $2.11 Exercise Price		1,378,364		$	2.11		9.47
Outstanding Options at $2.66 Exercise Price		25,000		$	2.66		9.37
Outstanding Options at $2.44 Exercise Price		100,000		$	2.44		9.40
Outstanding Options at $1.50 Exercise Price		800,000		$	1.50		2.30
Outstanding Options at $2.75 Exercise Price		2,000,000		$	2.75		2.35
Options Granted at $1.76 Exercise Price		100,000		$	1.76		9.74
Options Granted at $1.49 Exercise Price		20,000		$	1.49		9.74
Options Granted at $2.20 Exercise Price		20,000		$	2.20		9.73
Outstanding at September 30, 2024		5,641,252		$	2.59		5.58

At  September 30, 2024 3,498,196 of the outstanding stock options were exercisable.

On January 18, 2024, in conjunction with the Note disclosed in Note 4 - Debt, the Company issued 800,000 options to purchase 800,000 shares of the Company's common stock with an exercise price of $1.50 to the Investor. See Note 4 - Debt, for additional disclosures related to this issuance.

On February 14, 2024, the Compensation Committee(the "Compensation Committee") of the Company's Board of Directors (the "Board") granted an employee options to purchase 25,000 shares of the Company's common stock at an exercise price of $2.66 per share. The options vest ratably over 36 months and expire on the tenth anniversary of the grant date.

On February 23, 2024, the Compensation Committee granted to Franklin Lim, the Company’s Chief Financial Officer, options to purchase 100,000 shares of the Company's common stock at an exercise price of $2.44 per share. The options vested immediately upon grant and expire on the tenth anniversary of the grant date.

On April 17, 2024, the Compensation Committee granted to an employee options to purchase 20,000 shares of the Company's common stock at an exercise price of $2.20 per share. The options vest ratably over 36 months and expire on the tenth anniversary of the grant date.

On June 3, 2024, the Compensation Committee granted to an employee options to purchase 20,000 shares of the Company's common stock at an exercise price of $1.49 per share. The options vest ratably over 36 months and expire on the tenth anniversary of the grant date.

On June 17, 2024, the Compensation Committee granted to an employee options to purchase 100,000 shares of the Company's common stock at an exercise price of $1.76 per share. The options vest ratably over 36 months and expire on the tenth anniversary of the grant date.

As of September 30, 2024, the outstanding stock options had intrinsic value of $250,200.

On February 28, 2024, the Company issued options to an external party to purchase 2,000,000 shares of the Company's common stock at an exercise price of $2.75 per share, contingent upon achieving certain sales targets. On September 30, 2024, the sales targets were not met and therefore, no compensation expense was recorded. These options expire on February 5, 2027.

Restricted Shares

In November 2023, the Company awarded 65,660 restricted shares to a vendor that will vest over a six-month period in exchange for marketing services to be provided over the same period. As a result, the Company recorded stock compensation expense of $0 and $58,671 during the three and nine months ended September 30, 2024.