Note 7 – Stock Options

The Company’s stockholders approved our 2024 Equity Incentive Plan (the “Plan”) in May 2024. In July 2024, the Company’s stockholders amended the Plan to increase the number of shares issuable thereunder to 2,000,000. As of March 31, 2025, the Company had 682,967 shares of common stock available for future issuance under the Plan.

The Plan provide for the grant of incentive stock options to our employees and our subsidiaries’ employees, and for the grant of stock options, stock bonus awards, restricted stock awards, performance stock awards and other forms of stock compensation to our employees, including officers, consultants and directors. The Plan also provides that the grant of performance stock awards may be paid out in cash as determined by the committee administering the Plan.

Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option pricing model with a volatility figure derived from historical data. The Company accounts for the expected life of options based on the contractual life of the options.

On January 15, 2025, the Company issued options to purchase 40,000 shares of common stock with a $5.00 exercise price with a fair value of $132,651. The Company estimated the fair value of the options using the Black-Scholes Pricing Model based on the following assumptions: (1) dividend yield of 0%, (2) expected volatility of 149.21%, (3) risk-free interest rate of 4.59%, and (4) expected life of 10 years.

There were no options exercised during the three months ended March 31, 2025, and 2024, respectively.

A summary of the stock option activity for the three months ended March 31, 2025, and 2024, is as follows:

Schedule of Stock Option Activity

A summary of the stock options outstanding at March 31, 2025, is as follows:

 Schedule of Exercise Price of Stock Options

The aggregate intrinsic value of outstanding stock options was $0, based on options with an exercise price less than the Company’s stock price of $4.04 as of March 31, 2025, which would have been received by the option holders had those option holders exercised their options as of that date.

The fair value of all options that vested during the three months ended March 31, 2025, and 2024 was $241,864 and $0, respectively. Unrecognized compensation expense was $2,897,697 as of March 31, 2025.