Note 10 - Stockholders' Equity |
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| Equity [Text Block] |
NOTE 10 – STOCKHOLDERS’ EQUITY
Common Stock – The Company has 50,000,000 authorized shares of Common Stock, $0.001 par value. As of June 30, 2026 and December 31, 2025, there were 32,947,841 and 9,627,064 shares of Common Stock issued and outstanding, respectively.
Stock Issuances
During the six months ended June 30, 2026, the Company has made the following issuances of Common Stock:
On January 26, 2026, the Company issued 136,998 shares of Common Stock to settle RSUs. The RSUs were valued at $271,256 for services provided by the Company's board of directors (the "Board of Directors") in 2025. The Company recognized the stock-based compensation of the award over the requisite service period during the year ended December 31, 2025.
On January 27, 2026, the Company issued 63,149 shares of Common Stock to settle RSUs. The RSUs were valued at $137,549 for services provided by the Company's Senior Leadership Team (the "SLT") in 2025. The Company recognized the stock-based compensation of the award over the requisite service period during the year ended December 31, 2025.
On January 27, 2026, the Company issued 87,374 shares of Common Stock to settle RSUs. The RSUs were valued at $230,741 for services provided by management in 2025. The Company recognized the stock-based compensation of the award over the requisite service period during the year ended December 31, 2025. In connection with the issuance, 67,840 shares of Common Stock, with a total value of $172,198, were withheld from vesting to settle tax withholdings associated with stock-based compensation.
On February 12, 2026, the Company issued 7,389 shares of Common Stock to settle RSUs. The RSUs were valued at $14,630 for services provided by the Company's SLT in 2025. The Company recognized the stock-based compensation of the award over the requisite service period during the year ended December 31, 2025.
On February 12, 2026, the Company issued 25,867 shares of Common Stock to settle RSUs. The RSUs were valued at $47,337 for services provided by management in 2025. The Company recognized the stock-based compensation of the award over the requisite service period during the year ended December 31, 2025. In connection with the issuance, 5,589 shares of Common Stock, with a total value of $10,228, were withheld from vesting to settle tax withholdings associated with stock-based compensation.
On June 8, 2026, the Company issued 20,000,000 shares of Common Stock in a public offering. The shares were priced at $1.00 per share, and net proceed before company advisor costs was $18,400,000. Total underwriting discounts and offering costs were $293,344.
On June 8, 2026, the Company issued 3,000,000 shares of Common stock at a share price of $1.00 in exchange for the cancellation of $3.0 million of outstanding senior promissory notes in a private placement. The remaining $3.0 million of outstanding senior promissory notes were repaid with cash.
Warrants
On June 8, 2026, the Company issued 800,000 underwriter warrants to the underwriter in the public offering. The warrants have an exercise price of $1.25. The warrants were classified as equity instruments and measured at fair value using the Black-Scholes option pricing model. As the warrants were issued as compensation for services directly attributable to the public offering, their fair value of $512,192 was recorded as an increase to additional paid-in capital with an equal reduction to additional paid-in capital as an equity issuance cost. Accordingly, the issuance of the warrants had no impact on net income or total stockholders’ equity.
The following is a summary of the periodic changes in warrants outstanding for the six months ended June 30, 2026, and 2025:
Stock-based Compensation
Directors of the Company receive share compensation consisting of annual grants of $36,750 ($73,500 for the Chairman of the Board) in RSUs per annum with one-year vesting.
In 2022, the Company’s Board of Directors adopted an Equity Incentive Plan (the “2022 Incentive Plan”). Under the terms and conditions of the 2022 Incentive Plan, the Board of Directors is empowered to grant stock awards, including RSUs, to officers and directors of the Company. At June 30, 2026, 309,527 RSUs were granted and outstanding under the 2022 Incentive Plan.
The Company recognizes compensation costs for RSU grants to Directors and management based on the stock price on the date of the grant.
The Company recognized stock-based compensation expense related to RSU grants of $218,325 and $230,552 for the three-month periods ended June 30, 2026, and 2025, respectively. On June 30, 2026, the Company had $1,208,819 of unrecognized compensation cost related to non-vested stock grants.
A summary of the status of the RSUs as of June 30, 2026 and changes during the period are presented below:
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