Stock Based Compensation

6 Months Ended

Jun. 30, 2024

Stock Based Compensation

Stock-based Compensation

Note 7 – Stock-Based Compensation

a) Warrants

The following table summarizes the changes in warrants of the Company outstanding during the six-month period ended June 30, 2024.

	Number of Warrants		Weighted Average Exercise Price ($)
Outstanding at December 31, 2023		862,500		3.05
Granted		-		-
Expired/Cancelled		-		-
Outstanding at June 30, 2024		862,500		3.05
Exercisable at June 30, 2024		862,500		3.05

Below is a table summarizing the warrants issued and outstanding as of June 30, 2024, which have an aggregate weighted average remaining contractual life of 3.33 years.

Number Outstanding	Number Exercisable		Exercise Price ($)		Weighted Average Remaining Contractual Life (Years)		Proceeds to Company if Exercised ($)
448,500		448,500		2.00		3.96		897,000
54,000		54,000		3.05		4.26		164,700
50,000		50,000		3.45		1.67		172,500
125,000		125,000		3.95		2.51		493,750
185,000		185,000		4.90		2.59		906,500
862,500		862,500						2,634,450

Stock-based compensation expense related to warrants of $5,238 and $20,320 was recorded in the six months ended June 30, 2024 and June 30, 2023, respectively. Total remaining unrecognized compensation cost related to non-vested warrants is $nil. As of June 30, 2024, the total intrinsic value of warrants outstanding was $nil.

b) Options

The following table summarizes the changes in options outstanding of the Company during the six-month period ended June 30, 2024.

	Number of  Options			Weighted Average Exercise Price ($)
Outstanding at December 31, 2023		4,699,569			3.87
Expired/Cancelled		(36,821	)		3.40
Outstanding at June 30, 2024		4,662,748			3.88
Exercisable at June 30, 2024		4,662,748			3.88

b) Options (continued)

Below is a table summarizing the options issued and outstanding as of June 30, 2024, all of which were issued pursuant to the Company’s 2011 Equity Incentive Plan (for option issuances prior to 2016) or the 2015 Stock Incentive Plan (the “2015 Plan”) (for option and RSU issuances commencing in 2016)and which have an aggregate weighted average remaining contractual life of 3.71 years. As of June 30, 2024, an aggregate of 9,700,000 shares of common stock were authorized for issuance under the 2015 Plan, of which 354,782 shares of common stock remained available for future issuance thereunder.

Number Outstanding	Number Exercisable		Exercise Price ($)		Weighted Average Remaining Contractual Life (Years)		Proceeds to Company if Exercised ($)
585,000		585,000		3.25		0.62		1,901,250
944,748		944,748		3.40		7.10		3,212,143
740,000		740,000		3.60		5.86		2,664,000
1,607,837		1,607,837		4.00		2.24		6,431,348
89,163		89,163		4.38		3.57		390,534
50,000		50,000		4.80		2.51		240,000
646,000		646,000		5.00		2.74		3,230,000
4,662,748		4,662,748						18,069,275

Stock-based compensation expense related to stock options of $nil and $235,368 was recorded in the six months ended June 30, 2024 and June 30, 2023, respectively. Total remaining unrecognized compensation cost related to non-vested stock options is $nil. As of June 30, 2024, the total intrinsic value of stock options outstanding was $nil.

c) Restricted Stock Units

Below is a table summarizing the RSUs issued and outstanding as of June 30, 2024, all of which were issued pursuant to the 2015 Plan.

	RSUs (#)			Weighted Average Grant Date Fair Value Share Price ($)
Outstanding at December 31, 2023		3,634,952			1.01
Granted		426,340			0.72
Vested/Settled		(202,261	)		2.46
Cancelled / Forfeited		(87,206	)		1.13
Outstanding at June 30, 2024		3,771,825			0.89

c) Restricted Stock Units (continued)

Below is a table summarizing the RSUs granted during the six months ended June 30, 2024, all of which were issued pursuant to the 2015 Plan. The RSUs vest equally over periods stated on the dates noted, subject to the recipient’s continued service to the Company, and will result in the RSU compensation expense stated. On June 1, 2024, the Company granted 297,340 RSUs of common stock to certain directors and employees in exchange for their election to reduce their cash compensation for a period of three months for services provided to the Company. These RSUs will vest on May 1, 2025, subject to continued service by the recipient.

Equity  Incentive  Plan	RSUs Granted (#)		Grant Date	Vesting Period	First Vesting Date	Second Vesting Date		Third Vesting Date		RSU Expense ($)
2015		14,000	Feb 22, 2024	36 Months	Feb 22, 2025	Feb 22, 2026		Feb 22, 2027			13,589
2015		115,000	May 23, 2024	36 Months	May 23, 2025	May 23, 2026		May 23, 2027			85,389
2015		297,340	Jun 1, 2024	11 Months	May 1, 2025		N/A		N/A		209,832
		426,340									308,810

Below is a table summarizing the RSUs vested and settled during the six months ended June 30, 2024, all of which were issued pursuant to the 2015 Plan.

Equity Incentive Plan	RSUs Vested (#)		Vest Date	Shares Issued (#)		Shares Withheld for Taxes (#)
2015		21,582	Feb 8, 2024		21,582		-
2015		9,000	Mar 1, 2024		6,057		2,943
2015		44,217	Mar 27, 2024		40,530		3,687
2015		51,000	Apr 4, 2024		32,337		18,663
2015		50,000	May 1, 2024		34,496		15,504
2015		11,500	Jun 1, 2024		6,670		4,830
2015		14,962	Jun 15, 2024		11,684		3,278
		202,261			153,356		48,905

c) Restricted Stock Units (continued)

Below is a table summarizing the RSUs cancelled during the six months ended June 30, 2024, all of which were originally issued pursuant to the 2015 Plan.

Equity Incentive Plan	RSUs (#)		Cancellation Date	Vesting Date	RSUs Cancelled (#)
2015		8,000	Jan 16, 2024	Sep 28, 2024		8,000
2015		6,000	Jan 16, 2024	Oct 4, 2024		6,000
2015		8,000	Jan 16, 2024	Sep 28, 2025		8,000
2015		6,000	Jan 16, 2024	Oct 4, 2025		6,000
2015		8,000	Jan 16, 2024	Sep 28, 2026		8,000
2015		667	Feb 9, 2024	Jun 15, 2024		667
2015		667	Feb 9, 2024	Jun 15, 2025		667
2015		666	Feb 9, 2024	Jun 15, 2026		666
2015		1,775	Mar 25, 2024	Mar 27, 2024		1,775
2015		2,098	Mar 25, 2024	Jun 15, 2024		2,098
2015		2,667	May 17, 2024	Oct 4, 2024		2,667
2015		2,666	May 17, 2024	Oct 4, 2025		2,666
2015		1,000	May 17, 2024	Mar 27, 2025		1,000
2015		1,000	May 17, 2024	Mar 27, 2026		1,000
2015		3,334	May 17, 2024	Sep 28, 2024		3,334
2015		3,333	May 17, 2024	Sep 28, 2025		3,333
2015		3,333	May 17, 2024	Sep 28, 2026		3,333
2015		9,334	May 31, 2024	Sep 11, 2024		9,334
2015		9,333	May 31, 2024	Sep 11, 2025		9,333
2015		9,333	May 31, 2024	Sep 11, 2026		9,333
		87,206				87,206

c) Restricted Stock Units (continued)

Below is a table summarizing the RSUs issued and outstanding as of June 30, 2024 and which have an aggregate weighted average remaining contractual life of 1.37 years.

RSUs Outstanding (#)	Weighted Average Grant Date Fair Value Share Price ($)		Weighted Average Remaining Contractual Life (Years)
40,000		0.58		1.37
450,000		0.68		2.80
450,000		0.69		1.76
1,535,000		0.70		1.25
297,340		0.71		0.84
115,000		0.74		1.90
14,000		0.97		1.65
6,000		1.31		1.20
14,000		1.32		1.04
702,654		1.46		0.76
17,332		1.58		0.73
12,500		1.69		0.23
54,333		1.72		1.17
29,000		2.01		0.13
666		2.15		0.92
34,000		2.95		0.19
3,771,825

Stock-based compensation expense related to RSUs of $614,028 and $1,030,143 was recorded in the six months ended June 30, 2024 and June 30, 2023, respectively. Total remaining unrecognized compensation cost related to non-vested RSUs is $1,256,598.