11. Equity incentive plan

On September 27, 2024, the Company’s Board of Directors approved the Company’s 2024 Equity Incentive Plan (the “Equity Incentive Plan”). On October 10, 2024, the Company granted stock options to certain individuals who were the Company’s directors and employees to purchase an aggregate of 2,640,250 shares of common stock at an exercise price of $0.46 per share. The options have a contractual term of ten years and vest upon the satisfaction of service conditions for Company employees and performance conditions for Company directors. Of the 2,640,250 stock options granted, 1,122,925 stock options vested on February 18, 2025 upon the completion of the Company’s IPO.

The fair value of the stock options was estimated using the Black-Scholes option-pricing model. The following table summarizes the significant assumptions used to estimate the fair value of the stock option.

 Schedule of Assumptions Used to Estimate the Fair Value of the Stock Option

The Company recognized stock-based compensation expenses of $3,512 and nil during the three months ended March 31, 2025 and 2024, respectively. Stock-based compensation expenses are included in the selling, general and administrative expenses in the Consolidated Statements of Operations.

The following is a summary of stock option activity under the Company’s Equity Incentive Plan during the three months ended March 31, 2025:

Schedule of Stock Option Activity

As of March 31, 2025, the Company’s unrecognized stock based compensation expense for unvested options was $4,750.