Stockholders' Equity |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| Stockholders’ Equity [Abstract] | |
| STOCKHOLDERS' EQUITY | NOTE 11 – STOCKHOLDERS’ EQUITY
On May 7, 2025, the Company engaged a new investment banker to advise on capital funding and strategic alternatives which include the prospective sale of the Company. The Company agreed to pay a fee equal to 1.75% or 2.00% of the transaction value upon closing, which is dependent upon the aggregate consideration received. There is a minimum fee threshold amount of $1,000,000. fees were paid to this new investment banker during the six months ended June 30, 2026.
Option Amendments and Adjustments
On January 9, 2026, the Board of Directors approved amendments extending the term of certain outstanding options to purchase in the aggregate 400,000 shares of common stock of the Company at an exercise price of $0.90 per share. These options were scheduled to expire on January 15, 2026 and the expiration date was extended to December 31, 2030. The increase in fair value of this term extension was $65,392 which was expensed during the six months ended June 30, 2026. The Company used the Black-Scholes option pricing model to calculate the increase in fair value, with the following assumptions for the extended options: dividend yield, expected volatility of 75.9%, risk free interest rate of 3.77%, and expected option life of 5.0 years.
On May 11, 2026, the Board of Directors approved amendments extending the term of certain outstanding options to purchase in the aggregate 391,950 shares of common stock of the Company at exercise prices ranging from $0.94 to $1.06 per share. These options were scheduled to expire in May and June 2026 and the expiration dates were extended to dates ranging from December 31, 2028, through June 3, 2031. The increase in fair value of these term extensions was $185,935 which was expensed during the six months ended June 30, 2026. The Company used the Black-Scholes option pricing model to calculate the increase in fair value, with the following assumptions for the extended options: dividend yield, expected volatility ranging between 89.8% and 91.8%, risk free interest rate ranging between 3.98% and 4.13%, and expected option life ranging between 2.7 and 4.7 years.
Issuance of Restricted Shares
A restricted stock award (“RSA”) is an award of common shares that is subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the shares before the restricted shares vest. Shares of nonvested restricted stock have the same voting rights as common stock, are entitled to receive dividends and other distributions thereon and are considered to be currently issued and outstanding. The Company’s restricted stock awards generally vest over a period of one year. The Company expenses the cost of the restricted stock awards, which is determined to be the fair market value of the shares at the date of grant, straight-line over the period during which the restrictions lapse. For these purposes, the fair market value of the restricted stock is determined based on the closing price of the Company’s common stock on the grant date. There were RSAs granted during the three and six months ended June 30, 2026. |