Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION

v3.23.1
STOCK-BASED COMPENSATION
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Stock-based compensation expense for the years ended December 31, 2022 and 2021 was $2,571,785 and $1,840,913, respectively based on the vesting schedule of the stock grants and options. During the year ended December 31, 2022, 62,172 shares vested and were issued to employees and directors. During the year ended December 31, 2021, 122,629 shares vested and were issued to employees and directors. No cash flow effects are anticipated for stock grants.
The Company has adopted equity incentive plans ("Incentive Plans") which provide for the issuance of incentive stock options, stock grants and stock-based awards to employees, directors, and consultants of the Company to reward and attract employees and compensate the Board and vendors when applicable. The Incentive Plans are administered by the Company's Board. Stock grants under the Incentive Plans are valued at the price of the stock on the date of grant. The fair value of the options is calculated using the Black-Scholes pricing model based on the estimated market value of the underlying common stock at the valuation measurement date,
the remaining contractual term of the options, risk-free interest rate and expected volatility of the price of the underlying common stock of 100%. There is a moderate degree of subjectivity involved when estimating the value of stock options with the Black-Scholes option pricing model as the assumptions used are moderately judgmental. Stock grants and stock options are sometimes offered as part of an employment offer package, to ensure continuity of service or as a reward for performance. Stock grants and stock options typically require a 1 to 3 year period of continued employment or service performance before the stock grant or stock option vests.
    The following schedule shows stock grant activity for the years ended December 31, 2022 and 2021:
Number of
Shares
Grants unissued as of December 31, 2020 118,889
Grants awarded 157,413
Forfeiture/cancelled — 
Grants vested (122,629)
Grants unissued as of December 31, 2021 153,673
Grants awarded 542,584
Forfeiture/Cancelled (139,226)
Grants vested (62,172)
Grants unissued as of December 31, 2022 494,859
The following table summarizes stock grant vesting periods:
Number of
Shares
Unrecognized Stock
Compensation Expense
As of December 31,
336,800 $ 1,150,112  2023
158,059 518,530  2024
494,859 $ 1,668,642 
The following schedules show stock option activity for the years ended December 31, 2022 and 2021:
Number of
Shares
Weighted Average Remaining
Life (Years)
Weighted Average
Exercise
Price
Stock options outstanding as of December 31, 2020 638,278 7.25 $ 6.49 
Issued 76,003 4.00 $ 6.00 
Exercised (4,777) $ 6.78 
Expired (68,167) 4.31 $ 7.89 
Stock options outstanding at December 31, 2021 641,337 7.55 $ 6.27 
Stock options exercisable at December 31, 2021 493,724 7.69 $ 6.46 
Number of
Shares
Weighted Average Remaining
Life (Years)
Weighted Average
Exercise
Price
Stock options outstanding as of December 31, 2021 641,337 7.55 $ 6.27 
Issued 76,246 9.00 $ 10.48 
Exercised (4,555) $ 6.00 
Expired (43,640) 6.25 $ 6.04 
Stock options outstanding at December 31, 2022 669,388 7.85 $ 6.77 
Stock options exercisable at December 31, 2022 618,651 6.74 $ 6.30 
The following table summarizes stock option vesting periods under the Incentive Plans:
Number of
Shares
Unrecognized Stock
Compensation Expense
As of December 31,
39,089 $ 167,358  2023
11,648 39,044  2024
50,737 $ 206,402 
The aggregate intrinsic value of the stock options outstanding and exercisable at December 31, 2022 is $0.