Note 7 – Common Stock Warrants and Options

Common Stock Warrants

Stock warrant transactions for the six months ended September 30, 2024 were as follows:

Schedule of Warrant Activity

As of September 30, 2024, all outstanding warrants are fully vested and had an exercise price greater than the market price of the Company’s common stock, which resulted in no intrinsic value.

Warrants outstanding as of September 30, 2024 are exercisable as follows:

Schedule of Warrants Outstanding and Exercisable

Common Stock Options

In April 2022 the Company established the 2022 Omnibus Incentive Plan (the “Plan”). The Plan was approved by our Board and stockholders. The purpose of the Plan is to grant stock and options to purchase our common stock, and other incentive awards, to our employees, directors, and key consultants. The maximum number of shares of common stock that may be issued pursuant to awards granted under the Plan is 166,667. The shares of our common stock underlying cancelled and forfeited awards issued under the Plan may again become available for grant under the Plan. As of September 30, 2024, there were 39,467 shares available for grant under the Plan.

The following table summarizes stock option transactions for the nine months ended September 30, 2024:

Schedule of Options Activity

The weighted average remaining contractual life of all options outstanding, and all options vested and exercisable as of September 30, 2024 was 8.2 years. Furthermore, all options outstanding and all options vested and exercisable as of September 30, 2024 had an exercise price greater than the market price of the Company’s common stock, which resulted in no intrinsic value.

The total fair value of options that vested during the nine months ended September 30, 2024 and 2023, was $222,000 and $1,338,000, respectively, and is included in selling, general and administrative expense in the accompanying unaudited condensed consolidated statements of operations. As of September 30, 2024, all outstanding stock options were fully vested and exercisable and there was no unvested compensation expense.

On May 15, 2023, the Company granted stock options to a member of the Board to purchase 16,666 shares of common stock. The stock options are exercisable at $10.50 per share, expire in 10 years, vest over twelve months and have a fair value of $150,000 on at the date of grant which will be amortized over the vesting period.

On January 27, 2023, the Company granted stock options to employees and members of the Board to purchase an aggregate of 66,667 shares of common stock. The stock options are exercisable at $25.50 per share, expire in 10 years, vest over twelve months and have a fair value of $1.4 million at the date of grant which will be amortized over the vesting period.

Options outstanding as of September 30, 2024 are exercisable as follows:

Schedule of Options Outstanding and Options Exercisable