| Options |
Note
9. Options
During
the years ended December 31, 2024 and December 31, 2023, $2,968 and $69,125, respectively, in compensation expense was recognized on
the following:
| 1. |
Ten-year
10 options to purchase an aggregate of 351 shares of common stock at an exercise price of $2,000.00, which vest as to 25% of the
shares subject to the option each year from the date of grant, were issued to various long-term employees under the 2018 Plan during
the year ended December 31, 2019 and 166 was forfeited during the year ended December 31, 2024. |
| 2. |
Ten-year
10 option to purchase 250 shares of common stock at an exercise price of $2,000.00, which vest as to 20% of the shares subject to
the option each year from the date of grant, were issued to an officer of the Company under the 2018 Plan during the year ended
December 31, 2019. |
| 3. |
Ten-year
10 options to purchase an aggregate of 25 shares of common stock at an exercise price of $2,000.00, which vest as to 25% of the
shares subject to the option each year from the date of grant, were issued to various contractors during the year ended December 31,
2019 and 25 was forfeited during the year ended December 31, 2024. |
| 4. |
Three-year
3 options to purchase an aggregate of 500 shares of common stock at an exercise price of $2,000.00, which vest in equal monthly
installments during the first year from the date of grant, were issued to the Company’s directors during the year ended
December 31, 2021 and expired in accordance with their terms during the year ended December 31, 2024. |
| 5. |
Three-year
option 3 to purchase 7 shares of common stock at an exercise price of $6,000.00, which vest in equal monthly installments during the
term of the option, were issued to an officer of the Company during the year ended December 31, 2021 and was forfeited during the year ended December 31, 2024. |
| 6. |
Five-year
5 options to purchase an aggregate of 175 shares of common stock at an exercise price of $2,000.00, which vest in equal monthly
installments during the term of the option, were issued to the Company’s directors during the year ended December 31,
2022 and 25 was forfeited during the year ended December 31, 2024. |
| 7. |
Three-year
3 options to purchase 28 shares of common stock at an exercise price of $860.00, which vest in equal monthly installments during the
term of the option, were issued to an employee during the year ended December 31, 2022. |
| 8. |
Three-year
3 option to purchase 6 shares of common stock at an exercise price of $790.00, which vest in equal monthly installments during the
term of the option, were issued to an employee during the year ended December 31, 2022. |
| 9. |
Three-year
3 option to purchase 864 shares of common stock at an exercise price of $40.00, which vest in equal monthly installments during the
term of the option, were issued to an officer of the Company during the year ended December 31, 2023 and was forfeited during the year ended December 31, 2024. |
| 10. |
Three-year
3 option to purchase 1,030 shares of common stock at an exercise price of $17.50, which vest in equal monthly installments during
the term of the option, were issued to an employee during the year ended December 31, 2023. |
The
following table summarizes the assumptions used to estimate the fair value of the stock options granted for the years ended December
31, 2024 and 2023:
Schedule
of Fair Value of Stock Options
| | |
2024 | | |
2023 | |
| Expected
Volatility | |
| - | % | |
| 35%
– 45 % | |
| Risk
Free Interest Rate | |
| - | % | |
| 2.87%
– 4.72 % | |
| Expected
life of options | |
| - | | |
| 3.0
– 5.0 | |
On
August 3, 2023, the Company granted an officer a three-year 3 option to purchase 864 shares of common stock at an exercise price of
$40.00, which vest in equal monthly installments during the term of the option.
On
October 1, 2023, the Company granted an employee a three-year 3 option to purchase 1,030 shares of common stock at an exercise price
of $18.00, which vest in equal monthly installments during the term of the option.
Under
the Black-Scholes option pricing model, the fair value of the 864 options and 1,030 options granted during the year ended December 31,
2023 is estimated at $12,261 and $5,489, respectively, on the date of grant using the following assumptions: stock price of $40.00 and
$18.00 at the grant date, exercise price of the option, option term, volatility rate of 45.44% and 35.97% and risk-free interest rate
of 4.58% and 4.72%, respectively. The unrecognized portion of the expense remaining at December 31, 2024, is $0 and $3,131, respectively,
which is expected to be recognized to expense over a period of two years.
The
following table represents option activity for the years ended December 31, 2024 and 2023:
Schedule
of Option Activity
| | |
Number
of
Options | | |
Weighted
Average
Exercise
Price | | |
Weighted
Average
Remaining
Contractual
Life
in Years | | |
Aggregate
Intrinsic
Value | |
| Outstanding – December
31, 2022 | |
| 4,462 | | |
$ | 2,000.00 | | |
| 5.25 | | |
| | |
| Exercisable – December 31, 2022 | |
| 4,122 | | |
$ | 2,000.00 | | |
| 5.28 | | |
$ | - | |
| Granted | |
| 1,894 | | |
$ | 29.00 | | |
| | | |
| | |
| Forfeited | |
| (25 | ) | |
$ | 2,000.00 | | |
| | | |
| | |
| Vested | |
| 4,398 | | |
| - | | |
| | | |
| | |
| Outstanding – December 31, 2023 | |
| 6,331 | | |
$ | 1,426.52 | | |
| 3.80 | | |
| | |
| Exercisable – December 31, 2023 | |
| 4,398 | | |
$ | 1,426.52 | | |
| 4.27 | | |
$ | - | |
| Granted | |
| - | | |
$ | - | | |
| | | |
| | |
| Forfeited | |
| 1,087 | | |
$ | - | | |
| | | |
| | |
| Expired | |
| 500 | | |
$ | - | | |
| | | |
| | |
| Vested | |
| 4,076 | | |
| - | | |
| | | |
| | |
| Outstanding – December 31, 2024 | |
| 4,744 | | |
$ | 1,532.26 | | |
| 3.34 | | |
| | |
| Exercisable – December 31, 2024 | |
| 4,076 | | |
$ | 1,532.26 | | |
| 3.61 | | |
$ | - | |
For
the year ended December 31, 2023, the Company determined that the five-year 5 option to purchase 25 shares of common stock at an
exercise price of $2,000.00 granted to a director in 2022 was forfeited as the director resigned in 2023.
For
the year ended December 31, 2024, the Company determined that the five-year 5 option
to purchase 25 shares
of common stock at an exercise price of $2,000.00 granted
to a director in 2022 was forfeited as the director resigned in 2024. In addition, a 10
ten-year option to purchase 191
shares of common stock at an exercise price of $2,000.00,
granted to various long-term employees under the 2018 Plan was forfeited as the employees resigned. Furthermore, a 3
three-year option to purchase 864
shares of common stock at an exercise price of $40.00,
and a separate 3 three-year option to purchase 7 shares of common stock at an exercise price of $6,000.00, both granted to an
officer of the Company were forfeited upon the officer’s resignation.
The
non-vested options outstanding are 668
and 1,933 for
the years ended December 31, 2024 and 2023, respectively.
|