Stockholders’ Equity | 8. Stockholders’ Equity Preferred Stock The Company has 10,000,000 0.00001 5,500,000 734,492 73,449 10 4.99 315,000 Common Stock The Company has 100,000,000 0.00001 ● Exchanged 734,429 ● Issued 205,984 226,138 ● Cancelled 112,225 ● Issued 39,879 After the Company signed two licenses for two drug programs from universities in the first half of 2022 it engaged an independent valuation firm to perform an Enterprise-Equity valuation. The results of this engagement resulted in an increase in the value per share of common stock used in the Black Scholes option pricing model employed to value the Company’s equity grants and warrant issuances. In February 2023, the Company completed its IPO for the sale of 1,297,318 6.50 8.4 7.80 8.125 In connection with the completion of its IPO, the Company issued an aggregate of 331,166 In connection with the IPO, in February 2023, the Company completed a 1-for-7 reverse split of our common stock. In February 2023, the Company issued 7,692 50,000 In the second quarter of 2023, we issued 436,533 436,533 1,494,658 Dilutive securities are excluded from the diluted earnings per share calculation because their effect is anti-dilutive. As of December 31, 2023 and December 31, 2022, 3,521,880 927,373 527,717 69,217 2022 Equity Incentive Plan In November 2022, the Company’s Board of Directors adopted, and its shareholders approved the 2022 Equity Incentive Plan (the “Plan”). The Plan provides for the granting of equity-based awards to employees, directors, and consultants. The Plan provides for equity-based awards including incentive stock options, non-qualified stock options, stock appreciation rights, performance share awards, cash awards and other equity-based awards. Awards are limited to a maximum term of 10 900,000 15 441,500 Stock Options The following tables summarizes the stock option activity for the years ended December 31, 2023 and 2022: Schedule of Stock Options Activity Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2021 468,571 $ 3.32 7.4 $ - Granted - $ - Exercised - $ - Forfeited / canceled (399,354 ) $ - Outstanding at December 31, 2022 69,217 $ 3.06 7.1 $ - Granted 458,500 $ 4.34 Exercised - $ - Forfeited / canceled - $ - Outstanding at December 31, 2023 527,717 $ 4.17 9.0 $ 112,141 Vested at December 31, 2023 255,826 $ 4.01 8.5 $ 62,193 The fair value of options granted in the year ended December 31, 2023 was estimated using the Black-Scholes option pricing model based on the assumptions in the table below: Schedule of Options Valuation Assumptions 2023 Expected dividend yield 0% Expected volatility 87 92 Risk-free interest rate 3.4 4.4 Expected life (in years) 5.0 6.0 ● Volatility - ● Expected life of options – ● Risk-free interest rate – ● Dividend yield – The weighted-average grant-date fair value of options granted during the year ended December 31, 2023 was $ 3.15 1,445,200 585,500 No During the years ended December 31, 2023 and 2022, the Company recognized $ 592,268 2,010 As of December 31, 2023, the total unrecognized compensation expense related to unvested stock options, was approximately $ 861,000 1.9 Warrants During the years ended December 31, 2023 and 2022, the Company granted a total of 3,195,906 415,247 ten years vest over varying periods up to 24 months from the grant date 27,867 39,265 350,908 337,269 51,941 11,097 42,057 1,883 During the year ended December 31, 2021, the Company granted a total of 431,659 200,000 12,462 five years 0 200,000 During the year ended December 31, 2021, the Company issued 92,859 12,980 five years 50,735 11,097 99,000 115,185 2.50 1.00 15,412 195,000 225,000 2.50 64,978 The 92,859 During the year ended December 31, 2023, the Company issued the following warrants: ● In February 2023, in connection with the completion of the initial public offering, the Company issued 276,452 4.27 5 ● In February 2023, in connection with the completion of the initial public offering, the Company issued 18,000 8.125 4 ● As part of the sale of units in the Company’s initial public offering the Company issued 1,297,318 7.80 5 1,297,318 8.125 5 ● In February 2023, as part of the Company’s initial public offering, the Company issued 153,409 7.80 5 153,409 8.125 5 The following table provides details over the Company’s outstanding warrants including those issued as consideration for services and those issued in conjunction with transactions as of December 31, 2023: Schedule of Outstanding Warrants Exercise Price Expiration Number of Warrants $0.0007 2030 274,286 $2.10 $2.66 2026 2032 460,445 $3.36 $4.27 2028 2029 115,277 $6.51 $7.80 2026 2032 1,484,929 $8.125 2027 2028 1,461,227 3,796,164 During the years ended December 31, 2023 and 2022, the Company recognized $ 39,265 338,142 Warrants Issued as Consideration for Services The following table summarizes the activity for warrants issued as consideration for services for the years ended December 31, 2023 and 2022: Schedule of Warrant Activity Number of Warrants Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2021 885,373 $ 2.59 7.4 $ 2,147 Granted 56,629 $ 3.87 Exercised - $ - Forfeited / canceled (263,826 ) $ 5.50 Outstanding at December 31, 2022 678,176 $ 1.57 7.6 $ 2,131,123 Granted - $ - Exercised - $ - Forfeited / canceled - $ - Outstanding at December 31, 2023 678,176 $ 1.57 6.6 $ 1,209,136 Vested at December 31, 2023 671,789 $ 1.56 6.6 $ 1,205,305 The fair value of options granted in the years ended 2022 were estimated using the Black-Scholes option pricing model based on the assumptions in the table below: Schedule of Warrants Valuation Assumptions 2022 Expected dividend yield 0 Expected volatility 89 Risk-free interest rate 1.86 1.97 Expected life (in years) 10 ● Volatility - ● Expected life of options – ● Risk-free interest rate – ● Dividend yield – No warrants were issued in the year ended December 31, 2023. As of December 31, 2023, the total unrecognized compensation expense related to unvested warrants was approximately $ 3,000 0.2 The total grant-date fair value of warrants vested during the year ended December 31, 2023 was approximately $ 39,300 |