Stockholders' Equity

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Stockholders' Equity

Note 8. Stockholders’ Equity

Reverse Stock Split

On February 23, 2024, the Board approved a one-for-six (1:6) reverse split of the Company’s issued and outstanding common stock, par value $0.001 per share, pursuant to which every six outstanding shares of common stock was converted into one share of common stock (the “Reverse Stock Split”). The Reverse Stock Split was effected by the filing of an amendment to our Certificate of Incorporation on March 7, 2024 which provided that the Reverse Stock Split become effective at 12:01 a.m. eastern time on March 12, 2024. The amendment provided that no fractional shares shall be issued and, in lieu thereof, any person who would otherwise be entitled to a fractional share of common stock as a result of the Reverse Stock Split would be entitled to receive one share of common stock. The Company’s common stock began trading on The Nasdaq Capital Market on a split-adjusted basis on March 12, 2024. The Company has retroactively adjusted all share amounts and per share data herein to give effect to the Reverse Stock Split.

Stock Options

The following is a summary of the stock option plan activity during the six months ended June 30, 2024 and 2023:

	2024				2023
	Number of		Weighted Average		Number of			Weighted Average
	Options		Exercise Price		Options			Exercise Price
Options outstanding at beginning of the year		599,597	$	9.00		186,877		$	19.56
Granted		-		-		414,417			4.50
Forfeited		-		-		(1,697	)		72.18
Exercised		-		-		-			-
Options outstanding at June 30,		599,597	$	9.01		599,597		$	9.01
Options exercisable at June 30,		387,110	$	11.06		307,574		$	11.34

Stock compensation expense recognized for the three and six months ended June 30, 2024 and 2023 related to stock options was approximately $0.1 million and $0.2 million, respectively for 2024 and approximately $1.1 million and $1.3 million, respectively for 2023. There was $0.4 million of unrecognized compensation cost associated with unvested stock options remaining as of June 30, 2024.

The aggregate intrinsic value of the outstanding common stock options as of June 30, 2024 and December 31, 2023 was nil. The remaining weighted average life of the options as of June 30, 2024 was approximately 8.6 years.

Stock Issuance

The following is a summary of the restricted share activity during the six months ended June 30, 2024 and 2023:

	2024					2023
	Number of			Weighted Average		Number of			Weighted Average
	Restricted Shares			Award Price		Restricted Shares			Award Price
Restricted Shares outstanding at beginning of the year		86,667		$	4.51		-		$	-
Granted		-			-		260,000		$	4.51
Vested		(86,667	)	$	4.51		(43,333	)	$	4.51
Restricted Shares outstanding at June 30,		-		$	-		216,667		$	4.51

Stock compensation expense for restricted stock for the three and six months ended June 30, 2024 and 2023 was approximately $5 thousand and $76 thousand, respectively, for 2024 and $565 thousand and $565 thousand, respectively, for 2023. There was nil unrecognized compensation cost associated with unvested restricted stock remaining as of June 30, 2024.

Warrants

The following is a summary of the warrant activity during the six months ended June 30, 2024 and 2023:

	2024				2023
	Number of Warrants		Weighted Average Exercise Price		Number of Warrants		Weighted Average Exercise Price
Warrants outstanding at beginning of the year		1,274,807	$	30.04		1,279,573	$	30.00
Granted		-		-		-		-
Exercised		-		-		-		-
Forfeited		-		-		-		-
Warrants outstanding and exercisable at June 30,		1,274,807	$	30.04		1,279,573	$	30.00

The aggregate intrinsic value of the outstanding common stock warrants as of June 30, 2024 and 2023 was nil. The remaining weighted average life of the warrants as of June 30, 2024 was 2.25 years.

At the Market Program

On June 26, 2023, the Company entered into an Equity Distribution Agreement (the “Distribution Agreement”) with Maxim Group LLC (the “Agent”), pursuant to which the Company may, from time to time, at the Company's discretion, offer and sell shares of the Company’s common stock, having an aggregate offering price of up to $4.7 million (the “Shares”), through the Agent, acting as sales agent. The Shares to be sold under the Distribution Agreement, if any, will be issued and sold pursuant to the Company’s shelf registration statement which was filed with the Securities and Exchange Commission (“SEC”) on July 30, 2021 (the “Registration Statement”) and was declared effective on August 16, 2021. A prospectus supplement related to the Company’s at the market offering ("ATM") program with the Agent under the Distribution Agreement was filed with the SEC on June 26, 2023. The ATM program was expected to remain into effect until August 15, 2024. As of June 30, 2024, no sales have been made under the ATM program, and an aggregate gross sales limit of $4.2 million remains available for issuance under the ATM program. Approximately $119 thousand of legal and professional fees incurred related to the establishment of the ATM program were deferred and recorded within "Prepaid

expenses and other assets" on the Consolidated Balance Sheets. These deferred costs were expensed in June 2024 due to the nonuse of the ATM.