Stock Based Compensation

9 Months Ended

Sep. 30, 2024

Stock Based Compensation

Stock-based Compensation

Note 7 – Stock-Based Compensation

a) (i) Common Stock Warrants

The following table summarizes the changes in common stock warrants of the Company outstanding during the nine-month period ended September 30, 2024.

	Number of Warrants		Weighted Average Exercise Price ($)
Outstanding at December 31, 2023		862,500		3.050
Granted		3,557,273		0.001
Expired/Cancelled		-		-
Outstanding at September 30, 2024		4,419,773		0.597
Exercisable at September 30, 2024		4,419,773		0.597

Below is a table summarizing the common stock warrants issued and outstanding as of September 30, 2024, which have an aggregate weighted average remaining contractual life of 0.60 years. The proceeds if exercised assume the warrants are exercised for cash.

Number Outstanding		Number Exercisable		Exercise Price ($)		Weighted Average Remaining Contractual Life (Years)		Proceeds to Company if Exercised ($)
	3,557,273		3,557,273		0.001		-		3,557
	448,500		448,500		2.000		3.71		897,000
	54,000		54,000		3.050		4.01		164,700
	50,000		50,000		3.450		1.42		172,500
	125,000		125,000		3.950		2.25		493,750
	185,000		185,000		4.900		2.34		906,500
	4,419,773		4,419,773						2,638,007

Stock-based compensation expense related to warrants of $5,238 and $25,447 was recorded in the nine months ended September 30, 2024 and September 30, 2023, respectively. Total remaining unrecognized compensation cost related to non-vested warrants is $nil. As of September 30, 2024, the total intrinsic value of warrants outstanding was $nil.

a) (ii) Warrants – Series A and Series B Common Stock Warrants

The following table summarizes the changes in Series A and Series B common stock warrants of the Company outstanding during the nine-month period ended September 30, 2024.

	Number of Warrants		Weighted Average Exercise Price ($)
Outstanding at December 31, 2023		-		-
Granted		25,836,364		0.57
Exercised		-		-
Expired/Cancelled		-		-
Outstanding at September 30, 2024		25,836,364		0.57
Exercisable at September 30, 2024		-		-

Below is a table summarizing the Series A and Series B common stock warrants issued and outstanding as of September 30, 2024, which have a maximum aggregate weighted average remaining contractual life of 3.88 years (assuming that certain Company milestones set forth in the warrants are not achieved). The proceeds if exercised as reflected in the table below assume the warrants are exercised for cash.

Description	Number Outstanding		Number Exercisable		Exercise Price ($)		Weighted Average Remaining Contractual Life (Years)		Proceeds to Company if Exercised ($)
Investor A Warrants		12,727,273		-		0.5700		2.36		7,254,546
Investor B Warrants		12,727,273		-		0.5700		5.36		7,254,546
Placement Agent Series B Warrants		381,818		-		0.6875		4.86		262,500
		25,836,364		-						14,771,591

b) Options

The following table summarizes the changes in options outstanding of the Company during the nine-month period ended September 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 September 30, 2024		4,662,748			3.88
Exercisable at September 30, 2024		4,662,748			3.88

b) Options (continued)

Below is a table summarizing the options issued and outstanding as of September 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 Plan (for option and RSU issuances commencing in 2016)and which have an aggregate weighted average remaining contractual life of 3.46 years. As of September 30, 2024, an aggregate of 9,700,000 shares of common stock were authorized for issuance under the 2015 Plan, of which 603,502 shares of common stock remained available for future issuance thereunder. At the Annual Meeting on July 2, 2024, the stockholders approved and adopted the Company’s 2024 Stock Incentive Plan (the “2024 Plan”) which authorizes up to 7,500,000 shares of common stock for issuance pursuant to awards granted under the 2024 Plan. The 2024 Plan had previously been approved by the Board of Directors of the Company on April 24, 2024. As of September 30, 2024, no shares of common stock have been granted under the 2024 Plan.

Number Outstanding		Number Exercisable		Exercise Price ($)		Weighted Average Remaining Contractual Life (Years)		Proceeds to Company if Exercised ($)
	585,000		585,000		3.25		0.36		1,901,250
	944,748		944,748		3.40		6.84		3,212,143
	740,000		740,000		3.60		5.61		2,664,000
	1,607,837		1,607,837		4.00		1.98		6,431,348
	89,163		89,163		4.38		3.32		390,534
	50,000		50,000		4.80		2.25		240,000
	646,000		646,000		5.00		2.49		3,230,000
	4,662,748		4,662,748						18,069,275

Stock-based compensation expense related to stock options of $nil and $287,013 was recorded in the nine months ended September 30, 2024 and September 30, 2023, respectively. Total remaining unrecognized compensation cost related to non-vested stock options is $nil. As of September 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 September 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		844,313			0.71
Vested/Settled		(573,203	)		1.40
Cancelled / Forfeited		(677,213	)		0.83
Outstanding at September 30, 2024		3,228,849			0.90

c) Restricted Stock Units (continued)

Below is a table summarizing the RSUs granted during the nine months ended September 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. On July 1, 2024, the Company granted 38,198 RSUs of common stock to an employee in exchange for the employee’s election to reduce their cash compensation for a period of three months for services provided to the Company. These RSUs will vest on June 1, 2025, subject to continued service by the recipient. On July 8, 2024, the Company granted 21,583 RSUs of common stock to a consultant in exchange for advisory services. These RSUs will vest on January 1, 2025, subject to continued service to the Company by the recipient. On September 1, 2024, the Company granted 343,192 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 June 1, 2025, subject to continued service by the recipient. On September 30, 2024, the Company granted 15,000 RSUs to a non-employee director, vesting in three equal installments on the first, second and third anniversaries of the date of grant, subject to continued services 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
2015	38,198	Jul 1, 2024	11 Months	Jun 1, 2025	N/A	N/A	23,645
2015	21,583	Jul 8, 2024	6 Months	Jan 1, 2025	N/A	N/A	13,209
2015	343,192	Sep 1, 2024	9 Months	Jun 1, 2025	N/A	N/A	247,098
2015	15,000	Sep 30, 2024	36 Months	Sep 30, 2025	Sep 30, 2026	Sep 30, 2027	9,015
	844,313						601,777

c) Restricted Stock Units (continued)

Below is a table summarizing the RSUs vested and settled during the nine months ended September 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
2015		4,667	Jul 13, 2024		3,165		1,502
2015		29,000	Aug 15, 2024		21,291		7,709
2015		2,000	Sep 11, 2024		2,000		-
2015		2,500	Sep 21, 2024		2,500		-
2015		332,775	Sep 28, 2024		265,300		67,475
		573,203			447,612		125,591

c) Restricted Stock Units (continued)

Below is a table summarizing the RSUs cancelled during the nine months ended September 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
2015		3,333	Jul 12, 2024	Oct 4, 2024		3,333
2015		3,333	Jul 12, 2024	Oct 4, 2025		3,333
2015		5,666	Aug 4, 2024	Oct 4, 2025		5,666
2015		10,000	Aug 4, 2024	Sep 21, 2024		10,000
2015		5,667	Aug 4, 2024	Oct 4, 2024		5,667
2015		178,909	Aug 15, 2024	Sep 28, 2024		178,909
2015		178,894	Aug 15, 2024	Sep 28, 2025		178,894
2015		178,872	Aug 15, 2024	Sep 28, 2026		178,872
2015		8,000	Aug 31, 2024	Mar 27, 2025		8,000
2015		8,000	Aug 31, 2024	Mar 27, 2026		8,000
2015		4,667	Aug 31, 2024	Oct 4, 2024		4,667
2015		4,666	Aug 31, 2024	Oct 4, 2025		4,666
		677,213				677,213

c) Restricted Stock Units (continued)

Below is a table summarizing the RSUs issued and outstanding as of September 30, 2024 and which have an aggregate weighted average remaining contractual life of 1.23 years.

RSUs Outstanding (#)		Weighted Average Grant Date Fair Value Share Price ($)		Weighted Average Remaining Contractual Life (Years)
	40,000		0.58		1.12
	15,000		0.60		2.00
	21,583		0.61		0.25
	38,198		0.62		0.67
	450,000		0.68		2.55
	450,000		0.69		1.51
	665,550		0.70		1.00
	297,340		0.71		0.58
	343,192		0.72		0.67
	115,000		0.74		1.64
	14,000		0.97		1.40
	4,000		1.31		0.97
	9,333		1.32		0.86
	675,322		1.46		0.49
	17,332		1.58		0.60
	38,333		1.72		0.92
	666		2.15		0.66
	34,000		2.95		0.13
	3,228,849

Stock-based compensation expense related to RSUs of $937,567 and $1,511,351 was recorded in the nine months ended September 30, 2024 and September 30, 2023, respectively. Total remaining unrecognized compensation cost related to non-vested RSUs is $1,031,071.