12. Share-Based Compensation

Summary of Restricted Common Stock

The following table summarizes restricted stock activity during the six months ended June 30, 2025:

Schedule of Restricted Stock 

On February 1, 2025, the Company granted its Chief Executive Officer 250,000 shares of the Company’s restricted stock and granted 200,000 shares of the Company’s restricted stock to other officers with an aggregate fair value of $414,000 or $0.92 per share. The restricted stock grant vest monthly over a 36-month period.

During the six months ended June 30, 2025 and 2024, the Company recognized stock compensation expense of $1,063,918 and $1,589,609 and issued 339,584 and 241,666 shares of restricted stock, respectively, based upon its vesting term of the grants. As of June 30, 2025, the unamortized stock compensation expense amounted to $3,872,307, to be expensed upon vesting in future periods through February 2028.

Summary of Stock Options

A summary of stock option activity is presented below:

Schedule of Stock Options 

On February 1, 2025, the Company, pursuant to the terms of its 2019 Stock Incentive Plan, granted options exercisable into 1,170,000 shares of the Company’s common stock to its executives and employees. The stock options vest over 36 months equally. The stock options are exercisable at a weighted average price of $0.92 per share with an average life to expiration of approximately three years. The total fair value of these options at grant date was approximately $1,073,000, which was determined using a Black-Scholes-Merton option pricing model with the following average assumption: stock price of $0.92 per share, expected term of 6.00 years, volatility of 241%, dividend rate of 0%, and weighted average risk-free interest rate of 4.45%. The expected term represents the weighted-average period of time that share option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future; and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award.

During the six months ended June 30, 2025 and 2024, the Company recognized $1,962,000 and $5,706,311 of stock compensation expense relating to vested stock options. As of June 30, 2025, the aggregate amount of unvested compensation related to stock options was approximately $2,340,674 which will be recognized as an expense as the options vest in future periods through February 2028.

The weighted average remaining contractual life of common stock options outstanding at June 30, 2025, was 8.68 years. Based on a fair market value of $1.50 per share on June 30, 2025, the intrinsic value attributed to exercisable but unexercised common stock options was $629,975 at June 30, 2025.

The exercise prices of common stock options outstanding and exercisable at June 30, 2025 are as follows:

Schedule of Options Summarized by Exercise Price