STOCK COMPENSATION

3 Months Ended

Jun. 30, 2024

Equity [Abstract]

STOCK COMPENSATION

8. STOCK COMPENSATION

The following tables summarize share-based compensation expenses relating to RSUs and stock options and the effect on basic and diluted loss per common share during the three month periods ended June 30, 2024 and 2023:

	June 30, 2024			June 30, 2023
Vesting of stock options and restricted stock units	$	139,328		$	250,114
Total stock-based compensation expense	$	139,328		$	250,114
Weighted average number of common shares outstanding – basic and diluted		7,457,888			2,431,476
Basic and diluted loss per common share attributable to stock-based compensation expense	$	(0.10	)	$	(0.16	)

All of the stock-based compensation expense recorded during the three months ended June 30, 2024 and 2023, an aggregate of $139,328 and $250,114, respectively, is included in payroll and related expense in the accompanying condensed consolidated statements of operations. Stock-based compensation expense recorded during each of the three months ended June 30, 2024 and 2023 represented an impact on basic and diluted loss per common share of $(0.02) and $(0.16), respectively.

Stock Option Activity

We did not issue any stock options during the three months ended June 30, 2024 and 2023.

Stock options outstanding that have vested as of June 30, 2024 and stock options that are expected to vest subsequent to June 30, 2024 are as follows:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term in Years
Vested		61,977	$	17.37		6.81
Expected to vest		23,873	$	14.60		7.60
Total		85,850

A summary of stock option activity during the three months ended June 30, 2024 is presented below:

	Amount		Range of Exercise Price		Weighted Average Exercise Price
Outstanding at beginning of year		86,466	$	6.90 – 25.20	$	22.40
Granted		–	$	–	$	–
Cancelled/Expired		616	$	14.10-1,425.00	$	206.34
Outstanding June 30, 2024		85,850	$	6.90 – 25.20	$	16.60
Exercisable, June 30, 2024		61,977	$	6.90 – 25.20	$	17.37

There were no stock option grants during the three months ended June 30, 2024 and 2023. There were 131,576 RSUs granted during the three months June 30, 2024. The weighted average grant date fair value of RSUs granted during the three months ended June 30, 2024 was $1.52. There were no stock option exercises during the three months ended June 30, 2024 and 2023. On June 30, 2024, our outstanding stock options had no intrinsic value, since the closing share price on that date of $0.50 per share was below the exercise price of our outstanding stock options.

The table below summarizes nonvested stock options as of June 30, 2024 and changes during the three months ended June 30, 2024.

	Shares			Weighted Average Grant Date Fair Value
Nonvested stock options at April 1, 2024		28,653		$	1.44
Vested		(4,780	)	$	1.62
Forfeited		–
Nonvested stock options at June 30, 2024		23,873

The detail of the options outstanding and exercisable as of June 30, 2024 is as follows:

		Options Outstanding				Options Exercisable
	Exercise Prices	Number Outstanding	Weighted Average Remaining Life (Years)		Weighted Average Exercise Price	Number Outstanding		Weighted Average Exercise Price
$	6.90 - 16.80	61,672	7.23 years	$	13.23	41,326	$	13.46
$	25.20	24,178	6.52 years	$	25.20	20,651	$	25.20
		85,850				61,977

We recorded stock-based compensation expense related to RSU issuances and to options granted totaling $139,328 and $250,114 for the three months ended June 30, 2024 and 2023, respectively. These expenses were recorded as stock compensation included in payroll and related expenses in the accompanying consolidated statement of operations for the three months ended June 30, 2024 and 2023.

The table below summarizes restricted stock units as of June 30, 2024 and changes during the three months ended June 30, 2024.

	Shares
Nonvested RSUs at April 1, 2024		4,885
Granted		131,576
Vested		(27,602	)
Tax withholding payments or tax equivalent payments for net share settlement of restricted stock units		(10,177	)
Nonvested RSUs at June 31, 2024		98,682

Our total stock-based compensation for the three months ended June 30, 2024 and 2023 included the following:

	Three Months Ended
	June 30, 2024		June 30, 2023
Vesting of restricted stock units	$	68,750	$	37,500
Vesting of stock options		70,578		212,614
Total Stock-Based Compensation	$	139,328	$	250,114

We review share-based compensation on a quarterly basis for changes to the estimate of expected award forfeitures based on actual forfeiture experience. The cumulative effect of adjusting the forfeiture rate for all expense amortization is recognized in the period the forfeiture estimate is changed. The effect of forfeiture adjustments for the three months ended June 30, 2024 was insignificant.

On June 30, 2024, our outstanding stock options had no intrinsic value since the closing price on that date of $0.50 per share was below the weighted average exercise price of our outstanding stock options.

At June 30, 2024, there was approximately $310,674 of unrecognized compensation cost related to share-based payments, which is expected to be recognized over a weighted average period of 1.45 years.