Ideal Power Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Equity Incentive Plan

Note 6 - Equity Incentive Plan

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Text Block]

Note 6 — Equity Incentive Plan

In May 2013, the Company adopted the 2013 Equity Incentive Plan (as amended and restated, the “Plan”) and reserved shares of common stock for issuance under the Plan, which was last amended in June 2023. The Plan is administered by the Compensation Committee of the Company’s Board of Directors (the “Board”). At September 30, 2023, 524,680 shares of common stock were available for issuance under the Plan.

A summary of the Company’s stock option activity and related information is as follows:

					Weighted
			Weighted		Average
			Average		Remaining
	Stock		Exercise		Life
	Options		Price		(in years)
Outstanding at December 31, 2022		513,948	$	7.59		6.6
Granted		12,000	$	11.96
Outstanding at September 30, 2023		525,948	$	7.69		5.9
Exercisable at September 30, 2023		463,950	$	7.09		5.6

A summary of the Company’s restricted stock unit (RSU) and performance stock unit (PSU) activity is as follows:

	RSUs			PSUs
Outstanding at December 31, 2022		183,666			114,000
Granted		39,750			—
Vested		(20,667	)		—
Outstanding at September 30, 2023		202,749			114,000

During the nine months ended September 30, 2023, the Company granted 27,550 RSUs to Board members, 12,200 RSUs to employees and 12,000 stock options to employees under the Plan. The estimated fair value of these equity grants, calculated using the Black-Scholes option valuation model for the stock options, was $529,389, $263,558 of which was recognized during the nine months ended September 30, 2023.

At September 30, 2023, there was $1,944,010of unrecognized compensation cost related to non-vested equity awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 0.9 years.