STOCKHOLDERS’ EQUITY (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

SUMMARY OF LIQUIDATION PREFERENCES

The following table summarizes the liquidation preferences as of June 30, 2024, in order of liquidation:

(In Thousands)	Shares Authorized		Shares Issued and Outstanding		Liquidation Preference Balance
Series A-3 Preferred Stock		8,750,000		13,682	$	9,820
Series A-2 Preferred Stock		2,050,000		173,956		139,165
Series A-1 Preferred Stock		1,100,000		850,605		67,198
Series A Preferred Stock		250,000		194,423		3,305
Non-classified Preferred Stock		1,250,000		-		-
Total Series A Preferred Stock		13,400,000		1,232,666	$	219,487

SUMMARY OF STOCK OPTIONS ACTIVITY

A summary of stock option activity as of June 30, 2024, and December 31, 2023 is as follows:

	Weighted Average Exercise Price per Share
(In Thousands except for per share price)	Stock Options			Exercise Price per Share		Term (in years)
Outstanding as of December 31, 2022		61,288			0.13		8.4
Granted		1,357		$	0.70
Exercised		-			-
Forfeited/cancelled		(7,409	)		0.37
Outstanding as of December 31, 2023		55,236		$	0.13		7.90
Granted		-			-
Exercised		-			-
Forfeited/cancelled		(3,160	)		0.34
Outstanding as of June 30, 2024		52,076			0.17		7.89
Exercisable as of June 30, 2024		27,730		$	0.09		7.60

SCHEDULE OF OPTIONS VALUATION ASSUMPTIONS

The Company uses the Black-Scholes option pricing model to estimate the fair value of the options on the date of grant under the following assumptions:

	As of December 31, 2023
Expected life (years) (1)		5-6.5
Risk-free interest rate (2)		1.03-4.34	%
Expected volatility (3)		0.503-0.549
Annual dividend yield		0	%
Weighted average fair value of options granted	$	0.14

(1)	In accordance with SAB Topic 14, the expected life of employee stock options was estimated using the “simplified method,” as the Company has no historical information to develop reasonable expectations about future exercise patterns and employment duration for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. The Company believes the use of the simplified method is appropriate due to the employee stock options qualifying as “plain-vanilla” options under the criteria established by SAB Topic 14.
(2)	The risk-free rate was based on the United States bond yield rate at the time of grant of the award, whose term is consistent with expected life of the stock options.
(3)	Based on historical experience over a term consistent with the expected life of the stock options.
(4)	Expected annual rate of dividends is based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future.

SUMMARY OF RSU ACTIVITY

A summary of RSU activity as of June 30, 2024, and December 31, 2023 is as follows:

				Weighted-Average Grant Date
(In Thousands except for per share price)	RSU’s			Fair Value per Share
Outstanding as of December 31, 2022		17,857		$	0.07
Awarded		54,357			0.80
Vested		-
Cancelled		(11,714	)		0.80
Outstanding as of December 31, 2023		60,500		$	0.57
Awarded		-			-
Vested		-			-
Cancelled		(7,500	)		0.80
Outstanding at June 30, 2024		53,000		$	0.55

SCHEDULE OF RECOGNIZED STOCK COMPENSATION EXPENSE RELATED TO STOCK OPTIONS AND RSU

During the three and six months ended June 30, 2024, and 2023, the Company recognized stock compensation expense related to stock options and RSU’s, as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(In Thousands)	2024		2023		2024		2023
Cost of Goods Sold	$	693	$	1,044	$	1,669	$	1,292
General and Administrative		491		998		1,347		1,234
Sales and Marketing		222		278		605		344
Research and Development		475		-		1,304		-
Total Stock-Based Compensation Expense	$	1,881	$	2,320	$	4,925	$	2,870