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Share-Based Compensation
6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation

8. Share-Based Compensation

 

2023 Stock Incentive Plan

 

The Company effectuated an amendment to its 2021 Stock Incentive Plan, now restated as the Company 2023 Stock Incentive Plan (the “2023 SIP” or “Plan”) which includes, among other things, a change in the number of reserved shares under the Plan. Under the 2023 SIP, subject to a change in capital structure or a change in control, the aggregate number of shares which may be issued or transferred pursuant to awards under the Plan will be equal to up to twenty percent (20%) of shares of outstanding common stock of the Company existing as of December 31st of the previous calendar year (the “Plan Share Reserve”). Upon the effectiveness of the 2023 SIP on June 14, 2023, the aggregate number of shares which may be issued pursuant to awards under the Plan is 871,075 shares of common stock, including shares that remained available for grant under the 2021 Stock Incentive Plan. As of June 30, 2024, 870,200 shares have been granted under the 2023 SIP.

 

2021 Stock Incentive Plan

 

On September 28, 2021, the Company’s board of directors, and on May 16, 2022, its shareholders approved the 2021 Stock Incentive Plan (the “2021 SIP”). During the period from January 1, 2023 up to the date that the prior plan was superseded by the 2023 SIP, no shares were granted under the 2021 SIP.

 

2021 Employee Stock Purchase Plan

 

On September 28, 2021, the Company’s board of directors, and on May 16, 2022, its shareholders approved the 2021 Employee Stock Purchase Plan (the “2021 ESPP”). As of June 30, 2024, no shares were issued under the 2021 ESPP.

 

 

Restricted Stock Units (“RSUs”)

 

RSUs entitle the recipient to be paid out an equal number of common stock shares upon vesting. The fair value of RSUs is based on market price of the underlying stock on the date of grant. A summary of the Company’s RSUs activity and related information for the three and six months ended June 30, 2024 and for the three and six months ended June 30, 2023 were as follows:

 

   2024   2023 
   Number of
Shares
   Weighted-Average
Grant Date Fair
Value Per Share
   Number of
Shares
   Weighted-Average
Grant Date Fair
Value Per Share
 
Unvested balance at January 1   954,306   $4.39    160,000   $12.08 
RSUs granted   -   $-    -   $- 
RSUs vested   (133,964)  $5.74    (5,866)  $55.50 
RSUs forfeited   (5,950)  $3.46    (7,600)  $7.15 
Unvested balance at March 31   814,392   $4.18    146,534   $10.60 
RSUs granted   -         -      
RSUs vested   -         (20,220)  $6.69 
RSUs forfeited   (4,410)  $4.16    (6,970)  $6.38 
Unvested balance at June 30   809,982   $4.18    119,344   $11.51 

 

Stock Options and Warrants

 

During the three and six months ended June 30, 2024 and 2023, no shares were granted, forfeited, expired or exercised. As of June 30, 2024, there were 7,332 shares in the form of stock options and 6,034 shares in the form of warrants outstanding, and 5,111 shares of the options and 6,034 shares of the warrants are vested and exercisable.

 

Share-Based Compensation Expense

 

Shared-based compensation expense for the three and six months ended June 30, 2024 ware $422,374 and $848,077 compared to the three and six months ended June 30, 2023 amount of $137,159 and $357,991.

 

As of June 30, 2024, the total unrecognized compensation cost related to outstanding RSUs, stock options and warrants was $2,486,290, which the Company expects to recognize over a weighted-average period of 1.86 years.