9. Stock Compensation Plan

On September 29, 2023 the Board of Directors approved an amendment to the 2021 Equity Incentive Plan (the “Incentive Plan”) to increase the authorized shares available under the Incentive Plan by 1,000,000. The amendment was approved by the Shareholders on December 14, 2023.

As amended the Incentive Plan provides aggregate number of shares of Common Stock that may be issued under the 2021 Plan will not exceed the sum of (i) 1,166,167 new shares, plus (ii) the Prior Plan’s Available Reserve; plus, (iii) the number of Returning Shares, if any, as such shares become available from time to time.

Options are granted at the fair market value of the Company’s stock on the date of grant which determines the exercise price after the completion of the vesting period. Options can vest either immediately or over a period of up to three years from their respective grant dates and expire 10 years from the date of grant. As of March 31, 2024 and December 31, 2023, the Company did not award any stock appreciation rights under the 2021 Incentive Plan.

A summary of stock option activity for the three months ended March 31, 2024 is as follows:

Summary of Stock Option Activity 

As of March 31, 2024, an aggregate of 241,814 shares of common stock are covered by outstanding option awards and 1,042,812 shares of common stock are available for future awards under the 2021 Incentive Plan.

Total compensation cost related to stock options was approximately $64,289 and $79,966 for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was approximately $223,569 of unrecognized compensation costs related to stock options, which is expected to be recognized over a weighted average period of less than one year.

Restricted stock grant activity during the quarter ended March 31, 2024 was as follows:

 Schedule of Restricted Stock Activity

Total compensation cost related to restricted stock awards was approximately $5,055 for the three months ended March 31, 2024. There was no compensation cost related to restricted stock awards for the three months ended March 31, 2024.