Equity

6 Months Ended

Jun. 30, 2025

11. Equity

Preferred Stock

As of June 30, 2025, the Company was authorized to issue 20 million shares of preferred stock with a par value of $0.001 per share, of which 600,000 shares had been designated as Series A convertible and 166,000 shares had been issued and are outstanding.

In the event of any liquidation, dissolution or winding up of the Company, the holders of preferred stock shall be entitled to receive, prior and in preference to any distribution of any of the assets of the Company to the holders of common stock, an amount equal to $10 for each share of preferred stock, plus all unpaid dividends that have been accrued, accumulated or declared. As of June 30, 2025, the total liquidation preference on the preferred stock is $1,689,050. The Company may redeem the preferred stock from the holders at any time following the second anniversary of the closing of the original purchase of the preferred stock. The Series A Convertible Preferred Stock can be converted to common stock at 80% of the prevailing market price over the previous 30-day period at the option of the Company.

Holders of preferred stock are entitled to receive preferential cumulative dividends, only if declared by the board of directors, at a rate of 7% per annum per share of the liquidation preference amount of $10 per share. During the three months ended June 30, 2025 and 2024, the Board of Directors has declared and paid dividends on the preferred stock of $29,050 and $29,050, respectively. During the six months ended June 30, 2025 and 2024, the Board of Directors has declared and paid dividends on the preferred stock of $58,100 and $29,050, respectively. As of June 30, 2025 and December 31, 2024, preferred dividends are in arrears by $29,050 and $29,050, respectively.

December 31, 2024 dividends in arrears were declared and paid in January 2025. March 31, 2025 dividends in arrears were declared and paid in May 2025. June 30, 2025 dividends in arrears were declared and paid in July 2025.

Common Stock

As of both June 30, 2025 and December 31, 2024, the Company was authorized to issue 100 million shares of common stock with a par value of $0.001 per share, of which 3,001,216 shares were issued and outstanding.

Stock Options

In 2019, the Company’s Board of Directors approved the creation of the 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan provides for the issuance of incentive stock options to designated employees, certain key advisors and non-employee members of the Board of Directors with the opportunity to receive grant awards to acquire, in the aggregate, up to 300,000 shares of the Corporation’s common stock. The following table summarizes information about employee stock options outstanding at June 30, 2025:


Outstanding Options				Vested Options
Number Outstanding at June 30, 2025	Weighted Average Remaining Term		Weighted Average Exercise Price	Number Exercisable at June 30, 2025	Weighted Average Remaining Term		Weighted Average Exercise Price
91,200	4.92	$	0.80	91,200	4.92	$	0.80
10,000	7.25		4.50	10,000	7.25		4.50
10,000	2.25		4.95	10,000	2.25		4.95
111,200	4.89 years	$	1.51	111,200	4.89 years	$	1.51

A summary of information regarding the stock options outstanding is as follows:


	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Intrinsic Value
Outstanding at December 31, 2024		111,200	$	1.51		5.13 years	$	98,496
Issued		—		—		—		—
Exercised		—		—		—		—
Outstanding at June 30, 2025		111,200	$	1.51		4.64 years	$	138,624
Exercisable at June 30, 2025		111,200	$	1.51		4.64 years	$	138,624

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing price of the Common Stock, which was $2.32 per share on June 30, 2025 and $1.88 per share on December 31, 2024. During the three months ended June 30, 2025 and 2024, the Company recognized $0 and $7,050 of stock option expense, respectively. During the six months ended June 30, 2025 and 2024, the Company recognized $0 and $14,100 of stock option expense, respectively.

Stock Warrants

A summary of information regarding the stock warrants outstanding is as follows:

Schedule of stock warrants
	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Intrinsic Value
Outstanding at December 31, 2024		1,035,000		$	7.09		0.6 years		—
Issued		—			—		—		—
Expired		(800,000	)	$	8.00		—		—
Exercised		—			—		—		—
Outstanding at June 30, 2025		235,000		$	4.00		1.2 years		—
Exercisable at June 30, 2025		235,000		$	4.00		1.2 years		—

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing price of the Common Stock, which was $2.32 per share on June 30, 2025 and $1.88 per share on December 31, 2024. The warrants vested immediately. During each of the three and six months ended June 30, 2025 and 2024, the Company recognized no stock warrant expense.

- Definition

The entire disclosure for equity.

+ References

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+ Details

STANDARD PREMIUM FINANCE HOLDINGS, INC. 10-Q