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STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2025

Note 12

STOCK-BASED COMPENSATION

Restricted Stock Awards and Restricted Stock Units

The table below includes issuances of restricted stock awards and units under the 2020 Plan and unvested equity interests of MOR which were converted into restricted common stock.


	Number of Restricted Shares and Units			Weighted Average Grant Date Fair Value Per Share
Unvested at January 1, 2024	744,985		$	2.05
Issued	1,176,000			2.22
Vested	(268,737	)		4.78
Canceled	(5,000	)		9.47
Unvested at December 31, 2024	1,647,248			3.03
Issued	820,000			1.96
Vested	(273,750	)		4.72
Canceled	(567,250	)		2.33
Unvested at September 30, 2025	1,626,248		$	2.30

The 1,626,248 of unvested awards at September 30, 2025 consisted of restricted stock units.

Stock Options

The fair value of the stock options was estimated at Level 3 in the fair value hierarchy using the Black-Scholes option pricing model and the assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgement. The assumptions used to calculate the grant date fair value of the options granted during the nine months ended September 30, 2025 and 2024, are as follows:


	For the Nine Months Ended September 30,
	2025	2024
Exercise Price	$1.90 to $2.06	$2.60 to $3.69
Fair value of Company common stock	$1.90 to $2.06	$2.60 to $3.69
Dividend yield	0%	0%
Expected volatility	71% to 75%	77% to 79%
Risk Free interest rate	3.90% to 4.20%	3.80% to 4.20%
Expected life (years) remaining	6.10 to 6.25	6.10 to 6.25

The following summarizes option activity under the Company’s stock plan for the nine months ended September 30, 2025 and for the year ended December 31, 2024:


	Shares Underlying Options			Weighted Average Exercise Price
Outstanding at January 1, 2024	3,840,544		$	7.12
Granted	483,500		$	2.79
Exercised	(14,375	)	$	2.98
Forfeited and expired	(357,873	)	$	7.49
Outstanding at December 31, 2024	3,951,796		$	6.47
Granted	176,000		$	2.04
Exercised	(7,837	)	$	2.20
Forfeited and expired	(1,789,919	)	$	7.15
Outstanding at September 30, 2025	2,330,040		$	5.62
Vested options at September 30, 2025	1,511,972		$	7.03

The weighted average exercise price and remaining contractual life of options outstanding as of September 30, 2025 was $5.62 and 7.08 years, respectively. The total aggregate intrinsic value of the options outstanding as of September 30, 2025 was approximately $36,480.

The weighted average exercise price and remaining contractual life of exercisable options as of September 30, 2025 was $7.03 and 6.53 years, respectively. The total aggregate intrinsic value of the exercisable options as of September 30, 2025 was approximately $0.

Stock Compensation Expense

The weighted-average grant date fair value per share for the stock options granted was $1.41 and $2.00 for the nine months ended September 30, 2025 and 2024, respectively.

At September 30, 2025, the total unrecognized stock compensation expense related to unvested stock option awards and restricted stock awards and restricted stock units granted was $4,632,726, which the Company expects to recognize over a weighted-average period of approximately 1.7 years. Stock compensation expense for the three and nine months ended September 30, 2025 and 2024 was as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
		2025		2024		2025		2024
Services	$	27,126	$	38,254	$	109,272	$	114,424
Research and development		29,040		26,517		90,833		79,512
Sales and marketing		95,061		66,828		266,954		203,272
General and administrative		566,589		1,420,443		2,205,045		4,476,385
Total		717,816	$	1,552,042		2,672,104	$	4,873,593

Total intrinsic value of options exercised during the three and nine months ended September 30, 2025 was $0 and $2,351. The total fair value of restricted shares vested during the three and nine months ended September 30, 2025 was $21,100 and $663,300.

Total intrinsic value of options exercised during the three and nine months ended September 30, 2024 was $0 and $8,375. The total fair value of restricted shares vested during the three and nine months ended September 30, 2024 was $38,381 and $765,045.