Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Stock-Based Compensation

4. Stock-Based Compensation

Invizyne’s 2020 Equity Incentive Plan (the “2020 Plan”), which was approved by the Invizyne shareholders, permits grants to its officers, directors, and employees for up to 938,832 shares of Invizyne’s Common Stock. On May 1^st, 2023 the board and shareholders approved an increase of 1,558,175 shares under the plan. The 2020 Plan authorizes the issuance of stock options, shares of restricted stock, and restricted stock units, among other forms of equity-based awards.

On May 1, 2023, stock options to purchase 51,940 shares of Common Stock were granted at an exercise price of $3.32 per share, which was equal to the fair value of the Common Stock on the date of grant and are exercisable for a period of 7 years. The stock options vest ratably over a period of 5 years. The inputs used to determine the fair value was Common Stock price of $3.32, option exercise price of $3.32, expected life in years of 5 years, with a contract life of 7 years, risk-free rate of 3.64%, expected annual volatility of 121.70%, and annual rate of dividends of $0.

On November 1, 2023, stock options to purchase 457,065 shares of Common Stock were granted at an exercise price of $3.32 per share, which was equal to the fair value of the Common Stock on the date of grant and are exercisable for a period of 7 years. The stock options vest ratably over a period of 5 years. The inputs used to determine the fair value was Common Stock price of $3.32, option exercise price of $3.32, expected life in years of 5 years, with a contract life of 7 years, risk-free rate of 4.67%, expected annual volatility of 144.94%, and annual rate of dividends of $0.

On February 1, 2024, stock options to purchase 155,818 shares of Common Stock were granted at an exercise price of $3.32 per share, which was equal to the fair value of the Common Stock on the date of grant and are exercisable for a period of 7 years. The stock options vest ratably over a period of 5 years. The inputs used to determine the fair value was Common Stock price of $3.32, option exercise price of $3.32, expected life in years of 5 years, with a contract life of 7 years, risk-free rate of 4.20%, expected annual volatility of 95.85%, and annual rate of dividends of $0.

On April 1, 2024, stock options to purchase 125,975 shares of Common Stock were granted at an exercise price of $8.00 per share, which was equal to the fair value of the Common Stock on the date of grant and are exercisable for a period of 7 years. The stock options vest ratably over a period of 5 years. The inputs used to determine the fair value was Common Stock price of $8.00, option exercise price of $8.00, expected life in years of 5 years, with a contract life of 7 years, risk-free rate of 4.34%, expected annual volatility of 95.38%, and annual rate of dividends of $0.

On May 19, 2024, 2,347 stock options were exercised using a cashless exercise option. The individual received a stock option grant of 5,194 shares of which 3,376 shares were vested and exercisable. 1,029 shares were sold using a cashless exercise option in order to acquire the remaining 2,347 shares. The remaining unvested options totaling 1,818 shares were forfeited.

On June 1, 2024, stock options to purchase 444,076 shares of Common Stock were granted at an exercise price of $8.00 per share, which was equal to the fair value of the Common Stock on the date of grant and are exercisable for a period of 7 years. The stock options vest ratably over a period of 5 years. The inputs used to determine the fair value was Common Stock price of $8.00, option exercise price of $8.00, expected life in years of 5 years, with a contract life of 7 years, risk-free rate of 4.52%, expected annual volatility of 94.78%, and annual rate of dividends of $0.

As of September 30, 2024 stock options to purchase 491,262 shares of Common Stock were vested, the weighted average exercise price is $4.58, the aggregate intrinsic value is $0.00, and the weighted average remaining contractual term is 6.01 years. Invizyne stock-based compensation were $808,362 and $174,440 for the nine months ended September 30, 2024 and 2023. As of September 30, 2024, the unrecognized stock-based compensation is $4,871,597.

A summary of stock option activity during the nine months ended September 30, 2024 and 2023 is presented below:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in Years)
Stock options outstanding at January 1, 2023		533,680		$	2.44		4.83
Granted		51,940			3.32		7
Exercised		-			-		-
Expired		-			-		-
Stock options outstanding at September 30, 2023		585,620		$	2.52		4.54
Granted		457,067			3.32		7.00
Exercised		-			-		-
Expired		-			-		-
Stock options outstanding at December 31, 2023		1,042,687		$	2.86		5.47
Granted		725,878			7.00		7.00
Exercised		(3,376	)		-		-
Expired		(12,206	)		2.44		-
Stock options outstanding at September 30, 2024		1,752,983			4.57		6.01
Stock options exercisable at September 30, 2023		288,959		$	2.52		4.54
Stock options exercisable at September 30, 2024		491,262		$	4.58		5.84

On March 28, 2022, Invizyne granted 241,718 restricted stock units (“RSUs”) at a value of $2.44 per share. These RSUs were issued in 2021 in lieu of cash bonuses. As these RSUs do not vest until the expiration of any lock up after an initial public offering of the Company, or upon the change of control of the Company by Invizyne, which is outside of the control of the Company, no compensation expense related to these RSUs has been recorded. These RSUs fully vest upon the expiration of any lockup period after an initial public offering, or upon the change of control of Invizyne. The Company will record stock-based compensation for these RSUs when the RSUs begin to vest, and the unrecognized stock-based compensation is $589,792.

On May 1, 2023, Invizyne granted 100,820 restricted stock units (“RSUs”) at a value of $3.32 per share. These RSUs were issued in 2023 in lieu of cash bonuses. As these RSUs do not vest until the expiration of any lock up after an initial public offering of the Company, or upon the change of control of the Company by Invizyne, which is outside of the control of the Company, no compensation expense related to these RSUs has been recorded. These RSUs fully vest upon the expiration of any lockup period after an initial public offering, or upon the change of control of Invizyne. The Company will record stock-based compensation for these RSUs when the RSUs begin to vest, and the unrecognized stock-based compensation is $334,722.

	Number of Restricted Stock Units		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (in Years)
Restricted stock units outstanding at December 31, 2023		424,656	$	2.64		8.62
Granted		-		-		-
Exercised		-		-		-
Expired		-		-		-
Forfeited		-		-		-
Restricted stock units outstanding at September 30, 2024		424,656	$	2.64		8.04
Restricted stock units at September 30, 2023		424,656	$	2.64		8.81
Restricted stock units at September 30, 2024		424,656	$	2.64		7.62