v3.26.1
STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 5: STOCK-BASED COMPENSATION

 

The Company has an equity incentive plan for grants to employees, officers, consultants, directors, and other service providers that was approved in 2021 (the “2021 Plan”). The 2021 Plan provides for the grant of non-qualified stock options, incentive stock options, restricted stock awards, restricted stock units, unrestricted stock awards, stock appreciation rights and other forms of stock-based compensation. The 2021 Plan permits the Company’s board to change the type, terms, and conditions of awards as circumstances may change. This flexibility to adjust the type of compensation to be granted is particularly important given current economic and world events.

 

A summary of the stock option activity during the six months ended June 30, 2026 is presented in the table below:

 

   Number of Options   Weighted Average Exercise Price   Weighted Average Remaining Life   Intrinsic Value 
Outstanding as of January 1, 2026   123,907   $104.70    7.3   $- 
Granted   50,000   $2.38    9.6   $31,250 
Forfeited and cancelled   (85,351)  $-    -   $- 
Outstanding as of June 30, 2026   88,556   $64.38    8.1   $33,438 
Exercisable as of June 30, 2026   42,722   $130.89    6.4   $4,792 
Vested and expected to vest as of June 30, 2026   88,555   $64.38    8.1   $33,438 

 

The following table summarizes the total stock-based compensation expense included in the unaudited condensed consolidated statements of operations for the periods presented:

 

   2026   2025   2026   2025 
   For the Three Months Ended June 30,   For the Six Months Ended June 30, 
   2026   2025   2026   2025 
Research and development  $(2,610)  $59,867   $22,584   $129,529 
General and administrative   (61,673)   120,896    140,313   292,125 
Total stock-based compensation  $(64,283)  $180,763   $162,897  $421,654 

 

As of June 30, 2026, total compensation cost not yet recognized related to unvested stock options was approximately $0.1 million, which is expected to be recognized over a weighted-average period of approximately 2.6 years.

 

The Company estimates the fair value of stock options on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires estimates of highly subjective assumptions, which affect the fair value of each stock option. The weighted average inputs used to measure the value of the options granted during the six months ended June 30, 2026 are presented in the table below. The weighted average fair value of stock options issued during the six months ended June 30, 2026 was $2.01 per share.

 

Weighted average Black Scholes assumptions:    
   2026 
Exercise Price  $2.38 
Expected term (in years)   5.8 
Volatility   113.5%
Dividend yield   0%
Risk free rate   3.7%

 

The following table presents the exercise price of outstanding stock options as of June 30, 2026:

 

Exercise price  Options outstanding 
$0.01 - $80.00   67,513 
$0.01 - $80.00   67,513 
$80.00 or higher   21,042 
Total   88,555