Note 13 – Options

The 2020 Equity Plan was approved by written consent of a majority of shareholders of record as of November 12, 2019 and adopted by the Board of Directors on December 5, 2019, as provided in the definitive information statement filed with Securities and Exchange Commission on January 10, 2020 (the “DEF 14C”). The description of the 2020 Equity Plan is qualified in its entirety by the text of the 2020 Equity Plan, a copy of which was attached as Annex C to the DEF 14C.

Amendment to the 2020 Stock Incentive Plan

On January 8, 2024, our stockholders took action by written consent to ratify the amendment to the 2020 Stock Incentive Plan (the “2020 Plan”) approved by the Board of Directors on December 15, 2023. On December 15, 2023, our Board approved an amendment to the 2020 Plan to effect an increase in the number of shares that remain available for issuance under the 2020 Plan by an additional 2,150,000 shares up to an aggregate of 2,964,150 shares available for issuance under the 2020 Plan (the “2020 Plan Amendment”). Before the 2020 Plan Amendment, the number of shares available for issuance under the 2020 Plan would be too limited to effectively operate as an incentive and retention tool for employees, officers, directors, non-employee directors and consultants of the Company and its affiliates (as defined in the 2020 Plan). The 2020 Plan and the approved increase enabled us to continue our policy of equity ownership by employees, officers, directors, non-employee directors and consultants of the Company and its affiliates as an incentive to contribute to the creation of long-term value for our stockholders.

2024 Stock Incentive Plan

Effective February 15, 2024, the Board of Directors adopted the 2024 Stock Incentive Plan (the “2024 Plan”) under which a total of 3,000,000 share of our common stock have been reserved for issuance of Incentive Stock Options, or ISOs, Non-Qualified Stock Options, or NSOs, restricted share awards, stock unit awards, SARs, other stock-based awards, performance-based stock awards, (collectively, “stock awards”) and cash-based awards (stock awards and cash-based awards are collectively referred to as “awards”). ISOs may be granted only to our employees, including officers, and the employees of our parent or subsidiaries. All other awards may be granted to our employees, officers, our non-employee directors, and consultants and the employees and consultants of our subsidiaries, and affiliates.

On February 12, 2026, the Majority Stockholders approved the Stockholder Consent approving, among other things, an amendment to our 2024 Plan to increase the number of shares of Common Stock of the Corporation reserved for issuance of new grants under the 2024 Plan to 10,000,000 shares, resulting in an aggregate maximum number of 9,959,789 shares available for issuance as of such date.

As of February 23, 2026, 2,959,789 shares of Common Stock remained available for grant under the 2024 Plan. The Board believed that additional Shares were necessary to meet the Corporation’s anticipated equity compensation needs.

Following the amendment, the total number of Shares that are available for future awards under the 2024 Plan is equal to 9,959,789, including the 2,959,789 shares that remained available for grants as of February 23, 2026, less shares subject to awards made after February 23, 2026, and subject to adjustment as provided in the 2024 Plan and as described below.

General

The 2024 Plan enables our Board to provide equity-based incentives through grants of awards to the Corporation’s present and future employees, directors, consultants and other third-party service providers.

The 2024 Plan authorizes the grant of Incentive Stock Options, ("ISOs”), Non-Qualified Stock Options, restricted share awards, stock unit awards, stock appreciation rights ("SARs”), other stock-based awards, performance-based stock awards, (collectively, "stock awards”) and cash-based awards (stock awards and cash-based awards are collectively referred to as "awards”). ISOs may be granted only to our employees, including officers, and the employees of our parent or subsidiaries. All other awards may be granted to our employees, officers, our non-employee directors, and consultants and the employees and consultants of our subsidiaries, and affiliates.

Outstanding Options

Options Granted

During the twelve months ended December 31, 2025, 25 employees were granted options to purchase an aggregate of 118,111 shares of the Company's common stock, having a weighted average exercise price of $2.64, exercisable over a 10-year term. The options will vest 60% on the third anniversary, and 20% each anniversary thereafter until fully vested. The Company uses the Black-Scholes Pricing Model to determine the fair value of options at the grant date. Inputs to this model include, expected term, risk-free interest rate, volatility, and the dividend rate. Due to a limited exercise history, the Company uses the simplified method of calculating expected term, which results in expected term of 6.8 years options granted in 2025. The Company uses an interest rate from the U.S. Department of the Treasury’s published yield curve which corresponds to the expected term. The options will vest 60% on the third anniversary, and 20% each anniversary thereafter until fully vested. The estimated value using the Black-Scholes Pricing Model, based on a volatility rate of 102% and an average call option fair value of $2.23, was $253,491. The options are being expensed over the vesting period.

Options Cancelled or Forfeited

Approximately 921,236 options with a weighted average strike price of $25.74 per share were forfeited by former employees during the twelve months ended December 31, 2025. Reductions to share compensation expense are recognized at the time of forfeiture.

Options Expired

During the twelve months ended December 31, 2025, no options expired.

Options Exercised

No options were exercised during the twelve months ended December 31, 2025 and 50,459 options were exercised during the twelve months ended December 31, 2024. Proceeds from options exercises during the twelve months ended December 31, 2024 amounted to $163,854.

Options Exercisable

There were 782,537 options exercisable as of December 31, 2025.

Options Expense

As of December 31, 2025, the remaining unamortized balance to be expensed over the next five years is $2,762,545 and the weighted-average period over which these awards are expected to be recognized is approximately 1.4 years.