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

6 Months Ended

Jun. 30, 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 June 30, 2024, 308,162 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 June 30, 2024		517,614		$	7.65		5.1
Exercisable at June 30, 2024		487,617		$	7.39		5.0

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		197,594			—
Vested		(23,425	)		—
Outstanding at June 30, 2024		345,699			114,000

During the six months ended June 30, 2024, the Company granted 38,710 RSUs to Board members, 125,000 RSUs to executives and 33,884 RSUs to employees under the Plan. The estimated fair value of these equity grants was $1,439,058, of which $178,063 was recognized in stock-based compensation expense totaling $745,600 for the six months ended June 30, 2024.

At June 30, 2024, there was $2,561,697 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 1.1 years.