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

Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Equity Incentive Plan

Note 7 - Equity Incentive Plan

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Text Block]

Note 7 — 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. At March 31, 2024, 453,839 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, 2023		525,948		$	7.69		6.6
Exercised		(8,334	)	$	10.41
Outstanding at March 31, 2024		517,614		$	7.65		5.4
Exercisable at March 31, 2024		479,285		$	7.34		5.2

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, 2023		171,530			114,000
Granted		50,710			—
Vested		(9,679	)		—
Outstanding at March 31, 2022		212,561			114,000

During the three months ended March 31, 2024, the Company granted 38,710 RSUs to Board members and 12,000 RSUs to employees under the Plan. The estimated fair value of these equity grants was $397,803, $82,362 of which was recognized during the three months ended March 31, 2024.

At March 31, 2024, there was $1,885,023 of 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.