Note
13. STOCK-BASED COMPENSATION
Under
the Company’s 2014 Equity Incentive Plan (the “2014 Plan”), the Company is authorized to grant options or
restricted stock for up to 66,666 shares
of Common Stock. On June 6, 2023, the Company received stockholder approval to increase the number of authorized shares from 38,095 to 66,666. Options
or restricted stock awards may be granted to employees, the Company’s board of directors, and external consultants who provide
services to the Company. Options and restricted stock awards granted under the 2014 Plan have vesting schedules with terms of one to
three years and become fully exercisable based on specific terms imposed at the date of grant. The
2014 Plan expired at the end of its 10-year
term in March 2024. The Company’s 2024 Equity Incentive Compensation Plan (the “2024 Plan”) was approved at the
Annual Meeting of Shareholders on June 4, 2024.
The
Company has recorded stock-based compensation expense related to the issuance of restricted stock awards in the following line items
in the accompanying condensed consolidated statements of operations:
SUMMARY OF STOCK-BASED COMPENSATION EXPENSE RECOGNIZED FOR STOCK OPTION AWARDS
| | |
2026 | | |
2025 | |
| | |
Three Months
Ended March 31, | |
| | |
2026 | | |
2025 | |
| | |
| | |
| |
| Research and development | |
$ | 1,074 | | |
$ | 21,250 | |
| General and administrative | |
| 13,266 | | |
| 305,366 | |
| Total stock-based compensation expense | |
$ | 14,340 | | |
$ | 326,616 | |
The
following table summarizes stock option activity under the 2014 Plan and 2024 Plan:
SUMMARY OF OPTION ACTIVITY
| | |
Number of
options | | |
Weighted-average
exercise price | | |
Weighted-average
remaining contractual
term (in years) | | |
Aggregate
intrinsic value | |
| Outstanding at December 31, 2025 | |
| 9,055 | | |
$ | 211.56 | | |
| 3.67 | | |
| — | |
| Granted | |
| — | | |
| — | | |
| — | | |
| — | |
| Exercised | |
| — | | |
| — | | |
| — | | |
| — | |
| Forfeited | |
| — | | |
| — | | |
| — | | |
| — | |
| Outstanding at March 31, 2026 | |
| 9,055 | | |
$ | 211.56 | | |
| 3.42 | | |
| — | |
| | |
| | | |
| | | |
| | | |
| | |
| Vested and exercisable at March 31, 2026 | |
| 9,055 | | |
$ | 211.56 | | |
| 3.42 | | |
| — | |
As
of March 31, 2026, there was no unrecognized compensation cost related to non-vested stock options.
The
following table summarizes restricted stock award activity under the 2014 Plan and 2024 Plan:
SUMMARY OF RESTRICTED STOCK AWARD
| | |
Number of | | |
| | |
| | |
As of March 31, 2026 | |
| | |
restricted
stock awards
(RSA) | | |
Weighted-
average
grant price | | |
FMV on
grant date | | |
Vested
number
of RSA | | |
Unvested
number
of RSA | |
| Balance at December 31, 2025 | |
| 51,810 | | |
$ | 51.87 | | |
$ | 2,709,982 | | |
| 47,951 | | |
| 3,859 | |
| Granted | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| Forfeited | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
| Balance at March 31, 2026 | |
| 51,810 | | |
$ | 51.87 | | |
$ | 2,709,982 | | |
| 47,951 | | |
| 3,859 | |
During
the three months ended March 31, 2026, the Company issued no restricted stock awards (“RSAs”). During the three months ended
March 31, 2026, 512 shares vested from RSAs granted prior to January 1, 2026.
During
the three months ended March 31, 2025, the Company issued RSAs for an aggregate of 8,432 shares of Common Stock to employees, non-employees,
and the board of directors. The shares vest in equal monthly installments over terms of immediately and up to three years, subject to
the employees and non-employees providing continuous service through the vesting date.
|