v3.26.1
Note 4 - Stockholders' Equity
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Equity [Text Block]

NOTE 4 – STOCKHOLDERS’ EQUITY

 

Preferred Stock

 

At December 31, 2025, and 2024, we had 20,000,000 shares of Preferred Stock, par value $0.001 authorized, and zero shares outstanding, which can be designated by our Board of Directors.

 

Common Stock

 

At December 31, 2025 and 2024, we had 800,000,000 and 800,000,000 authorized shares of Common Stock, $0.001 par value, respectively. 583,880,748 and 583,880,748 shares of Common Stock are issued and outstanding, respectively. 

 

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 the 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.

 

Active Warrant Holders

 

A summary of our Warrants activity and related information follows:

 

              

Weighted

 
          

Weighted

  

Average

 
      

Range of

  

Average

  

Remaining

 
  

Number of Shares

  

Warrant Price

  

Exercise

  

Contractual

 
  

Under Warrant

  

Per Share

  

Price

  

Life

 

Balance at December 31, 2023

  5,694,445  

$0.01-$0.03

  $0.024   2.6 

Granted

  —   —   —   — 

Expired

  —   —   —   — 

Canceled

  —   —   —   — 

Balance at December 31, 2024

  5,694,445  

$0.01-$0.03

  $0.024   1.6 

Granted

  —   —   —   — 

Expired

  (4,444,445)  0.03   0.027   — 

Canceled

  —   —   —   — 

Ending Balance at December 31, 2025

  1,250,000  

$0.01-$0.03

  $0.014   4.0 

 

Stock Options

 

The Company’s Stock Incentive Plans include the CareView Communications, Inc.’s 2007 Stock Incentive Plan (“2007 Plan”), 2009 Stock Incentive Plan (the “2009 Plan”), 2015 Stock Option Plan (the “2015 Plan”), 2016 Stock Option Plan (the “2016 Plan”), 2020 Stock Option Plan ( the “2020 Plan”), and 2024 Stock Option Plan (the "2024 Plan"), pursuant to which 8,000,000, 10,000,000, 5,000,000, 20,000,000, 20,000,000, and 30,000,000 shares of Common Stock were reserved for issuance upon the exercise of options, respectively. The Stock Incentive Plans are designed to serve as an incentive for retaining our qualified and competent key employees, officers and directors, and certain consultants and advisors. The Stock Options vest over three years and have an exercise period of ten years from the date of issuance.  

 

At December 31, 2025, Plan Options to purchase 8,000,000 shares of our Common Stock have been issued with zero remaining outstanding under the 2007 Plan, Plan Options to purchase 10,000,000 shares have been issued with zero remaining outstanding under the 2009 Plan, Plan Options to purchase 5,000,000 shares have been issued with 2,323,296 remaining outstanding under the 2015 Plan, Plan Options to purchase 20,000,000 shares have been issued with 19,086,821 remaining outstanding under the 2016 Plan, Plan Options to purchase 20,000,000 shares have been issued with 16,126,794 remaining outstanding under the 2020 Plan and Plan Options to purchase 23,931,058 shares have been issued with 23,731,058 remaining outstanding under the 2024 Plan.  

 

The valuation methodology used to determine the fair value Plan Options (the “Option(s)”) issued was the Black- Scholes Model. The Black-Scholes Model requires the use of a number of assumptions including volatility of the stock price, the weighted average risk-free interest rate, and the weighted average expected term of the options. 

 

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

 

          

Weighted

     
  

Number of

  

Weighted

  

Average

     
  

Shares

  

Average

  

Remaining

  

Aggregate

 
  

Under

  

Exercise

  

Contractual

  

Intrinsic

 
  

Option

  

Price

  

Life

  

Value

 

Balance at December 31, 2024

  67,556,835  $0.07   6.5  $104,475 

Granted

  105,000   0.02   9.4   — 

Forfeited/Expired

  (1,946,000)  0.44   —   — 

Exercised

  —   —   —   — 

Balance at December 31, 2025

  65,715,835  $0.06   5.6  $— 

Vested and Exercisable at December 31, 2025

  45,418,930  $0.06   4.5  $— 

 

Share-based compensation expense for Options charged to our operating results for the twelve months ended December 31, 2025, and 2024 were $620,342 and $529,601 respectively. 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 December 31, 2025, total unrecognized estimated compensation expense related to non-vested Options granted was $711,981 which is expected to be recognized over a weighted- average period of 1.2 years. No tax benefit was realized due to a continued pattern of operating losses.