STOCK APPRECIATION RIGHTS LIABILITY |
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| Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCK APPRECIATION RIGHTS LIABILITY | 12. STOCK APPRECIATION RIGHTS LIABILITY
Effective May 15, 2023, the Company issued 1,500,000 stock appreciation rights (the “Smallwood SARs”) to Brady Smallwood, its former Chief Operating Officer (“COO”). The Smallwood SARs were valued utilizing the Black-Scholes valuation model, and had an aggregate fair value of $9,794 upon issuance; this amount was charged to operations and credited to stock appreciation rights liability. The Smallwood SARs are revalued each quarter, and any gain or loss in the fair value is charged to non-cash compensation expense.
During the three months ended June 30, 2026 and 2025, Smallwood SARs decreased in fair value in the amount of $733 and $287,858, respectively. During the six months ended June 30, 2026 and 2025, Smallwood SARs decreased in fair value in the amount of $16,143 and $227,263, respectively. These amounts were charged to non-cash compensation. At June 30, 2026 and December 31, 2025, the Smallwood SARs had a fair value of $0 and $16,143, respectively.
The change in valuation of the Smallwood SARs is summarized in the table below:
The Smallwood SARs were valued using the Black-Scholes valuation model utilizing the following variables:
The price of the Company’s common stock on the date of the grant of the Smallwood SARs was $0.41. The exercise prices at the dates of the grants were $1.50 and $2.00. As of June 30, 2026, no SARs were executed and all SARs were expired. |
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