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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2025
Stock-based Compensation  
STOCK-BASED COMPENSATION

NOTE 8 – STOCK-BASED COMPENSATION

 

The following table summarizes the source and classification of the Company’s stock-based compensation expense:

 

                   
        Three Months Ended
March 31,		  
Source of Stock-Based Compensation Expense   Classification in the Condensed Consolidated
Statements of Operations		   2025     2024  
Unicorns common stock awards   Cost of revenues   $ -     $ 100,000  
Restricted stock units   General and administrative     13,371       13,390  
Total Stock-based compensation       $ 13,371     $ 113,390  

 

Unicorns Common Stock Awards

 

On March 14, 2021, Unicorns, a majority-owned subsidiary of the Company, granted Unicorns Common Stock Awards to the executive producers of the Unicorn Hunters TV show. These awards have a grant-date fair value equal to the fair market value of the underlying Unicorns stock on the grant date less present value of expected dividends. During the three months ended March 31, 2025 and 2024, the Company recorded stock-based compensation expense within the Cost of Revenues line item of $0 thousand and $100 thousand, respectively, in relation to the vesting of five million Unicorns Common Stock Awards. As of March 31, 2025, five million Unicorns Common Stock Awards remain outstanding and not vested. The total grant-date fair value of the outstanding Unicorns Common Stock Awards amount to $100 thousand, for which no stock-based compensation expense has been recorded as the Company has assessed that performance condition is not probable of being met.

 

Restricted Stock Units Classified as Equity

 

The following table summarizes information about RSUs as of and for the three months ended March 31, 2025:

 

               
    Equity
Classified		     Weighted Average
Grant Date Fair Value		  
Beginning balance - January 1, 2025     6,526     $ 0.73  
Granted     19,584          
Vested     (19,584 )        
Ending balance - March 31, 2025     6,526     $ 0.73  

 

The Company recorded $13 thousand and $13 thousand of stock-based compensation expense relating to equity classified RSU’s during the three months ended March 31, 2025 and 2024, respectively.

 

Stock Options

 

The following is a summary of stock option activity and related information for the three months ended March 31, 2025:

 

                                       
    Number of
Shares		    

Weighted
Average
Exercise Price

     Weighted
Average
Grant Date
Fair Value		     Weighted
Average
Remaining
Contractual
Term (Years)		     Aggregate
Intrinsic Value		  
Beginning balance January 1, 2025     55,110,881     $ 0.031               4.61     $ 14,639,230  
Granted     -       -                          
Exercised     -       -                          
Adjustments     -       -                          
Ending balance March 31, 2025     55,110,881     $ 0.031               4.31     $ 10,813,889  
Vested and exercisable as of March 31, 2025     55,110,881     $ 0.031               4.31     $ 10,813,889  

 

As of March 31, 2025 and December 31, 2024, there was no unrecognized stock-based compensation for stock options because all outstanding shares were fully vested. For the three months ended March 31, 2025 and 2024, there was no stock-based compensation for stock options.