Bluejay Diagnostics, Inc. Stock Compensation Disclosure

5. STOCK COMPENSATION

 

Stock Incentive Plans

 

In 2018, the Company adopted the 2018 Stock Incentive Plan (the “2018 Plan”) for employees, consultants, and directors. The 2018 Plan, which is administered by the Company’s Board of Directors, permits the Company to grant incentive and nonqualified stock options for the purchase of common stock, and restricted stock awards. The maximum number of shares of common stock reserved for issuance under the 2018 Plan is 31,472. At December 31, 2023 there were 13,113 shares of common stock available for grant under the 2018 Plan.

 

On July 6, 2021, the Company’s Board of Directors and stockholders approved and adopted the Bluejay Diagnostics, Inc. 2021 Stock Plan (the “2021 Plan”). A total of 98,000 shares of common stock were approved to be initially reserved for issuance under the 2021 Stock Plan. At December 31, 2023 there were 40,377 shares of common stock available for grant under the 2021 Plan.

 

Stock Award Activity

 

The following table summarizes the status of the Company’s non-vested restricted stock awards for years ended December 31, 2023:

 

		Non-vested Restricted Stock Awards
		Number of Shares				Weighted Average Grant Date Fair Value
Outstanding at December 31, 2022			3,000			$	25.80
Granted			25,609				8.80
Vested			(19,484	)			9.45
Cancelled / forfeited			(1,250	)			25.80
Outstanding at December, 2023			7,875			$	10.96

 

The following is a summary of stock option activity for the year ended December 31, 2023:

 

		Number of Stock Options				Weighted Average Exercise Price Per Share				Weighted Average Remaining Contractual Life in Years				Aggregate Intrinsic  Value
Outstanding at December 31, 2022			35,992			$	39.25				6.5			$	20,578
Granted			1,000				10.60
Exercised			-				-
Cancelled / forfeited			(7,222	)			46.57
Outstanding at December 31, 2023			29,770			$	36.51				6.7			$	-
Exercisable at December 31, 2023			25,548			$	35.59				6.5			$	-

 

The weighted average grant date fair value of options granted during the years ended December 31, 2023 and 2022 was $10.60 per share and $28.40 per share, respectively. The Company determined the grant-date fair value of stock option awards granted during the years ended December 31, 2023 and 2022 using the Black-Scholes model with the following assumptions:

 

		2023				2022
Risk-free interest rate			3.63	%			1.58% – 4.35%
Expected dividend yield			0.00	%			0.00%
Volatility factor			108.78	%			102.03% – 107.36%
Expected life of option (in years)			6.00				5.40 – 6.00

 

Stock-Based Compensation Expense

  

For the years ended December 31, 2023 and 2022, the Company recorded stock-based compensation expense as follows:

 

		Year ended December 31,
		2023				2022
Research and development		$	62,955			$	64,352
General and administrative			133,840				367,702
Marketing and business development			(7,550	)			950
Total stock-based compensation		$	189,245			$	433,004

 

At December 31, 2023, there was approximately $38,002 of unrecognized compensation expense related to non-vested stock option awards that are expected to be recognized over a weighted-average period of 1.16 years. At December 31, 2023, there was approximately $14,060 of unrecognized compensation expense related to non-vested restricted stock awards that are expected to be recognized over a weighted-average period of 0.75 years.