STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

NOTE 11. STOCK-BASED COMPENSATION

AYRO 2020 Long Term Incentive Plan

The Company has reserved a total of 1,229,956 shares of its common stock pursuant to the AYRO, Inc. 2020 Long-Term Incentive Plan, including shares of restricted stock that have been issued. The Company has 822,843 stock options, restricted stock and warrants remaining under this plan as of September 30, 2023.

Stock-based compensation, including restricted stock awards and stock options is included in the unaudited condensed consolidated statement of operations as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Research and development	$	6,219	$	5,269	$	18,017	$	15,069
Sales and marketing		1,999		6,001		7,488		19,816
General and administrative		214,681		320,911		706,263		888,959
Total	$	222,899	$	332,181	$	731,768	$	923,844

Options

The following table reflects a summary of stock option activity:

				Weighted Average		Contractual Life
	Number of Shares			Exercise Price		(Years)
Outstanding at December 31, 2022		97,240		$	49.20		7.56
Forfeitures		(58,544	)		7.76
Outstanding at September 30, 2023		38,696		$	87.67		6.79

Of the outstanding options, 27,460 were vested and exercisable as of September 30, 2023. At September 30, 2023, the aggregate intrinsic value of stock options vested and exercisable was $0.

The Company recognized $15,165 and $18,821 of stock option expense for the three months ended September 30, 2023, and 2022, and $46,698 and $44,899 for the nine months ended September 30, 2023, and September 30, 2022, respectively. Total compensation cost related to non-vested stock option awards not yet recognized as of September 30, 2023, was $53,321 and will be recognized on a straight-line basis through the end of the vesting periods through April 2025. The amount of future stock option compensation expense could be affected by any future option grants or by any forfeitures.

Restricted Stock

				Weighted
	Number of			Average Grant
	Shares			Price
Outstanding at December 31, 2022		82,570		$	15.28
Granted		95,087			6.00
Vested		(61,364	)		5.95
Outstanding at September 30, 2023		116,293		$	8.58

On February 1, 2023, pursuant to the AYRO, Inc. 2020 Long-Term Incentive Plan, the Company granted 95,087 shares of restricted stock to non-executive directors at a value of $6.00 per share. There are no vested and unissued shares of restricted stock awards as of September 30, 2023. As of September 30, 2023, 116,290 shares of restricted stock remain unvested and unissued.

The Company recognized compensation expense related to all restricted stock during the three months ended September 30, 2023, and 2022 of $207,716 and $313,360 and for the nine months ended September 30, 2023, and 2022 $686,869 and $878,945, respectively. Total compensation cost related to non-vested restricted stock not yet recognized as of September 30, 2023, was $220,741.