Stock Option Plan

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

During 2022, the Company created a stock option plan (the “Plan”) that provides for the granting of options to certain employees for the purchase of the Company’s class D common shares. The Plan provides for the grant of stock options for eligible employees as determined by the Board of Directors and does not guarantee employment rights. During the six month period ended June 30, 2024 and 2023 the Company granted options to purchase 333,574 and 227,666 shares, respectively, of the Company’s common shares at an exercise price of

8. Stock Option Plan (continued)

$0.0001 per share. The weighted-average grant date fair values of options granted was $0.60 per share. The fair values of the stock-based awards granted were calculated with the following assumptions:


Risk-free interest rate	3.81	%
Expected term (years)	5-10
Expected volatility	80.00	%
Dividend yield	0.00	%

For the three and six month periods ended June 30, 2024 and 2023, the Company recorded approximately $0 and $98,000 for the three months ended and $1,273,000 and $292,000 for the six months ended, respectively, of stock-based compensation expense. On February 7, 2024, as a result of the Reverse Recapitalization (Note 1),

4,000,000 stock options were exercised and converted at an exchange ratio of 0.0661 into 264,400 shares of Newco Class A common stock. This stock option plan was closed upon the business combination and a new equity incentive plan was approved and implemented as of February 7, 2024.

Stock option activity for the periods ended June 30, 2024 and 2023 is summarized as follows:


	Shares	Weighted Average Exercise Price	Weighted Remaining Contractual Life(Years)
Options outstanding at December 31, 2022	3,468,760	0.0001	6.65
Granted	227,666	0.0001	6.65
Exercised	—	—	—
Expired or forfeited	—	—	—

Options outstanding at June 30, 2023	3,696,426	0.0001	6.15



Options outstanding at December 31, 2023	3,666,426	0.0001	8.10
Granted	333,574	0.0001	8.10
Exercised	(4,000,000)	0.0001	—
Expired or forfeited	—	—	—

Options outstanding at June 30, 2024	—	—	—