NOTE J — EQUITY-BASED COMPENSATION

Option Awards

2025 Activity

Generally, options have a service vesting condition of 25% cliff after 1 year and then monthly thereafter for 36 months (2.067% per month).

The following table provides the estimates included in the inputs to the Black-Scholes pricing model for the options granted:

SCHEDULE OF SHARE-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS

There were no stock options granted for the period ended June 30, 2025.

A summary of option activity for the six months ended June 30, 2025 is as follows:

SCHEDULE OF STOCK OPTION ACTIVITY

The aggregate intrinsic value of options outstanding and options exercisable as of June 30, 2025 was $9,285 and $302,645, respectively. At June 30, 2025, future stock-based compensation for options granted and outstanding of $1,016,182 will be recognized over a remaining weighted-average requisite service period of 0.86.

The Company recorded stock-based compensation expense related to options of $128,839 and $291,610 in the three months ended June 30, 2025 and 2024, respectively, to the accompanying unaudited condensed consolidated statements of operations. The Company recorded stock-based compensation expense related to options of $413,346 and $698,590 in the six months ended June 30, 2025 and 2024, respectively, to the accompanying unaudited condensed consolidated statements of operations.

Common Stock Warrants

Compensatory Warrants

As of June 30, 2025, there were 955,359 warrants outstanding at a weighted average exercise price of $3.20 per share, with expiration dates ranging from 2028 to 2033. No compensatory warrants were issued during the period ended June 30, 2025.

The following table provides the estimates included in the inputs to the Black-Scholes pricing model for the AFG and compensatory warrants granted:

SCHEDULE OF FAIR VALUE MEASUREMENT INPUTS AND VALUATION TECHNIQUES 

The Company has recorded stock-based compensation related to its options, restricted share awards, and warrants in the accompanying unaudited condensed consolidated statements of operations as follows:

 SCHEDULE OF STOCK BASED COMPENSATION

Stock-based compensation capitalized as part of capitalized software costs for the six months ended June 30, 2025 and 2024 was $5,731 and $205,154, respectively, which is in addition to amounts included in the table above.

Restricted share awards

During the six months ended June 30, 2025, the Company issued 223,586 restricted share awards to certain of its directors and officers. All of the restricted share awards granted vested immediately upon grant. The fair value of a restricted share award is equal to the fair market value price of the Company’s Common Stock on the date of grant. The Company recorded stock-based compensation expense of $228,987 for the six months ended June 30, 2025 related to these restricted share awards.

The following table summarizes activity related to restricted share awards:

 SCHEDULE OF ACTIVITY RELATED TO RESTRICTED SHARE AWARDS