Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Stockholders Deficit

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Note 7 - Stockholders Deficit
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Equity [Text Block]

7. STOCKHOLDERS DEFICIT

 

Common Stock

 

In January 2024 certain shareholders of the Company exchanged a total of 300,000 shares of Company’s Common Stock for 300,073 of pre-funded warrants to purchase shares of Common Stock. At the date of the exchange, the fair value of the common stock received approximates the fair value of the warrants issued. The pre-funded warrants are fully vested, exercisable at $0.001 per share, and expire in 5 years.

 

2013 Stock Incentive Plan

 

On September 1, 2023, a majority of shareholders approved the 2023 Stock Plan with 455,169 common shares reserved to be issued under the plan. As of March 31, 2024, there were no issuances under the new plan.

 

On June 18, 2013, the Company established the 2013 Stock Incentive Plan (the “2013 Plan”). Under the 2013 Plan, the Company can issue or grant a total of 185,571 shares, as amended. On June 18, 2023, the 2013 Stock Incentive Plan expired, and no shares are available for grants under the 2013 Plan.

 

Common Stock Options

 

Stock compensation activity under the 2013 Plan for the six months ended March 31, 2024 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       5.58     $ -  

Awarded

     -       -       -       -  

Forfeited/Cancelled

     (1,825

)

     (67.00 )     -       -  

Outstanding at December 31, 2023

     100,300       38.00       4.00       11,000  

Awarded

     -       -       -       -  

Forfeited/Cancelled

     (12,025 )     (58.00 )     -       -  

Outstanding at March 31, 2024

     88,275     $ 35.00       5.00       -  

Vested at March 31, 2024

     74,769     $ 39.00       3.50       -  

Vested and expected to vest at March 31, 2024

     88,275     $ 35.00       5.00       -  

 

During the six months ended March 31, 2024 and 2023, the Company recorded stock compensation expense of $25,909 and $172,550 to account the fair value of the stock options that vested.

 

As of March 31, 2024, there is approximately $45,000 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 1.34 years.

 

 

Restricted Stock

 

For the three months ended March 31, 2024 and 2023, compensation expense recorded for the restricted stock awards was approximately $0 and $1,000, respectively. For the six months ended March 31, 2024 and 2023, compensation expense recorded for the restricted stock awards was approximately $0 and $3,000, respectively.

 

As of March 31, 2023, there was no unrecognized compensation expense related to unvested stock-based compensation arrangements granted under the 2013 Plan.