Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Stockholders Deficit

v3.24.0.1
Note 7 - Stockholders Deficit
 3 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Equity [Text Block]

7. STOCKHOLDERS DEFICIT

 

Common Stock

 

On November 30, 2023, the Company issued a total of 52,918 shares of Common Stock in full satisfaction of all previously outstanding Series 2 Convertible Notes with the principal balance of $450,000 and outstanding accrued interest of $137,946.

 

 

2013 Stock Incentive Plan

 

On June 18, 2013, the Company established the 2013 Stock Incentive Plan (the “2013 Plan”). Under the 2013 Plan, as of September 30, 2022, a maximum number of 170,571 shares of the Company’s authorized and available common stock could be issued in the form of options, stock appreciation rights, sales or bonuses of restricted stock, restricted stock units or dividend equivalent rights, and an award may consist of one such security or benefit, or two or more of them in any combination or alternative. The 2013 Plan provides that on the first business day of each fiscal year commencing with fiscal year 2014, the number of shares of our common stock reserved for issuance under the 2013 Plan for all awards except for incentive stock option awards will be subject to increase by an amount equal to the lesser of (A) 15,000 Shares, (B) four (4) percent of the number of shares outstanding on the last day of the immediately preceding fiscal year of the Company, or (C) such lesser number of shares as determined by the Company’s Board of Directors (the “Board”). The exercise price of each option shall be the fair value as determined in good faith by the Board at the time each option is granted. On October 1, 2022, the aggregate number of authorized shares under the Plan was further increased by 15,000 shares to a total of 185,571 shares. On June 18, 2023, the 2013 Stock Incentive Plan expired.

 

The exercise price of each option is equal to the closing price of a share of the Company’s Common Stock on the date of grant.

 

Common Stock Options

 

Stock compensation activity under the 2013 Plan for the three months ended December 31, 2023 follows:

 

   

Option

Shares

Outstanding

    

Weighted

Average

Exercise

Price

    

Weighted

Average

Remaining

Contractual

Term

(years)

    

Aggregate

Intrinsic

Value

  

Outstanding at September 30, 2023

     102,125     $ 38.00                  

Awarded

     -                          

Forfeited/Cancelled

     (1,825

)

     (67,000 )                

Outstanding at December 31, 2023

     100,300     $ 38.00       4.0     $ 11,000  

Vested at December 31, 2023

     86,119     $ 42.00       3.5       —  

Vested and expected to vest at December 31, 2023

     100,300     $ 38.00       4.5       —  

 

On June 18, 2023, the 2013 Stock Incentive Plan expired. Therefore, no shares are available for future grants under the 2013 Plan as of December 31, 2023.

 

Share-based compensation expense recorded in the Company’s Condensed Consolidated Statements of Operations for the three months ended December 31, 2023 and 2022 resulting from options awarded to the Company’s employees, directors and consultants was approximately $29,000 and $104,000, respectively. Of this amount, during the three months ended December 31, 2023 and 2022, $6,000 and $14,000, respectively, were recorded as research and development expense, and $23,000 and $90,000, respectively were recorded as general and administrative expense in the Company’s Condensed Consolidated Statements of Operations.

.

During the three months ended December 31, 2023 and 2022, no options awarded were exercised.

 

As of December 31, 2023, there is approximately $85,000 of unrecognized compensation expense related to unvested stock-based compensation arrangements granted under the 2013 Plan. That cost is expected to be recognized over a weighted average period of 1.09 years.

 

Restricted Stock

 

For the three months ended December 31, 2023 and 2022, compensation expense recorded for the restricted stock awards was approximately $0 and $2,000, respectively. As of December 31, 2023, there were no unvested stock options.