v3.25.2
Note 3 - Stockholders' Equity
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Equity [Text Block]

NOTE 3 – STOCKHOLDERS’ EQUITY

 

Warrants to Purchase Common Stock of the Company

 

We use the Black-Scholes-Merton option pricing model (“Black-Scholes Model”) to determine the fair value of Warrants. The Black-Scholes Model requires the use of a number of assumptions including expected volatility of the stock price, risk-free interest rate, and expected term. The expected volatility is based on historical volatility of the Company’s stock. The risk-free interest rate was based on U.S. Treasury yields commensurate with the expected term of the warrants. The expected term of the warrants was based on the contractual term and management’s expectations of exercise behavior.

 

A summary of our Warrants activity and related information follows:

 

              

Weighted

 
          

Weighted

  

Average

 
  

Number of

  

Range of

  

Average

  

Remaining

 
  

Shares Under

  

Warrant Price

  

Exercise

  

Contractual

 
  

Warrant

  

Per Share

  

Price

  

Life

 

Balance at December 31, 2024

  5,694,445  

0.011 -0.0303

  $0.024   1.6 

Granted

  —   —   —   — 

Expired

  (4,444,445)  0.027   0.027   — 

Canceled

  —   —   —   — 

Balance at June 30, 2025

  1,250,000  

0.011 -0.0303

  $0.014   4.5 

 

Options to Purchase Common Stock of the Company

 

During the six months ended June 30, 2025, 35,000 options to purchase our Common Stock were granted.

 

A summary of our stock option activity and related information follows:

 

          

Weighted

     
      

Weighted

  

Average

     
  

Number of

  

Average

  

Remaining

  

Aggregate

 
  

Shares Under

  

Exercise

  

Contractual

  

Intrinsic

 
  

Options

  

Price

  

Life

  

Value

 

Balance at December 31, 2024

  67,556,835  $0.07   6.5  $104,475 

Granted

  35,000   0.02   9.8   — 

Forfeited/Expired

  (1,635,000)  0.11   —   — 

Exercised

  —   —   —   — 

Balance at June 30, 2025

  65,956,835  $0.07   6.0  $— 

Vested and Exercisable at June 30, 2025

  45,426,596  $0.06   5.0  $— 

 

During the three and six months ended June 30, 2025 and 2024, share-based compensation expense for options were $156,002 and $310,734 for 2025, and $158,424 and $211,695 for 2024, respectively. This stock compensation expense is allocated to Network operations, General and administration, Sales and marketing, and Research and development within the accompanying Condensed Consolidated Statements of Operations. The estimate of forfeitures is to be recorded at the time of grant and revised in subsequent periods if actual forfeitures differ from the estimates. We have not included an adjustment to our stock-based compensation expense based on the nominal amount of the historical forfeiture rate. We do, however, revise our stock-based compensation expense based on actual forfeitures during each reporting period.

 

At June 30, 2025, total unrecognized estimated compensation expense related to non-vested Options granted prior to that date was approximately $1,022,373, which is expected to be recognized over a weighted-average period of 1.7 years. No tax benefit was realized due to a continued pattern of operating losses.