NOTE 12 - STOCK OPTIONS

In 2008, the Board of Directors (“Board”) of the Company adopted the 2008 Equity Incentive Plan (“2008 Plan”) that was approved by the shareholders. Under the 2008 Plan, the Company was authorized to grant options to purchase up to 25,000,000 shares of common stock to any officer, other employee or director of, or any consultant or other independent contractor who provides services to the Company. The 2008 Plan was intended to permit stock options granted to employees under the 2008 Plan to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended (“Incentive Stock Options”). All options granted under the 2008 Plan, which were not intended to qualify as Incentive Stock Options are deemed to be non-qualified options (“Non-Statutory Stock Options”). The 2008 Plan expired on March 3, 2019, and no additional grants may be made under the plan. However, options granted prior to the expiration date remain outstanding in accordance with their contractual terms. As of December 31, 2025, options to purchase 200,000 shares of common stock were outstanding and unexercised under the 2008 Plan. No shares remain available for future grants under the 2008 Plan.

During 2013, the Board adopted the 2013 Equity Incentive Plan (“2013 Plan”), which was approved by stockholders at the 2013 annual meeting of stockholders. Under the 2013 Plan, the Company was authorized to grant awards of stock options, restricted stock, restricted stock units and other stock-based awards of up to an aggregate of 5,000,000 shares of common stock to any officer, employee, director or consultant. The 2013 Plan was intended to permit stock options granted to employees under the 2013 Plan to qualify as Incentive Stock Options. All options granted under the 2013 Plan, which were not intended to qualify as Incentive Stock Options, are deemed to be Non-Statutory Stock Options. The 2013 Plan expired on November 18, 2023, and no additional awards may be granted under the plan. However, awards granted prior to the expiration date remain outstanding in accordance with their respective terms. As of December 31, 2025, awards covering an aggregate of 200,000 shares of common stock were outstanding under the 2013 Plan, consisting of 200,000 shares underlying stock options and 0 shares of nonvested restricted stock or restricted stock units. No shares are available for future grants under the 2013 Plan.

The Company also grants stock options outside the option plans on terms determined by the Board.

In connection with Incentive Stock Options, the exercise price of each option may not be less than 100% of the fair market value of the common stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company).

Prior to January 1, 2014, volatility in all instances presented is the Company’s estimate of volatility that is based on the volatility of other public companies that are in closely related industries to the Company. Beginning January 1, 2014, volatility in all instances presented is the Company’s estimate of volatility that is based on the historical volatility of the Company’s common stock.

The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted by the Company during the years ended December 31, 2025 and 2024:

The following table summarizes the activities for the Company’s stock options for the years ended December 31, 2025 and 2024:

During the years ended December 31, 2025 and 2024, the weighted average fair value per share of stock options granted during the year was $0.23 and $0.37. The fair value of stock options for employees is expensed over the vesting term in accordance with the terms of the related stock option agreements and for consultants is expensed over the vesting term, if that is shorter than the term of the consulting agreement, otherwise over the term of the consulting agreement. For the years ended December 31, 2025 and 2024, the Company expensed $527,637 and $650,921 relative to the fair value of stock options granted.

As of December 31, 2025, there was $0 of unrecognized compensation cost related to outstanding stock options. The difference, if any, between the stock options exercisable at December 31, 2025 and the stock options exercisable and expected to vest relates to management’s estimate of options expected to vest in the future.