STOCK-BASED COMPENSATION

12 Months Ended

Dec. 31, 2025

NOTE 9 – STOCK-BASED COMPENSATION

The following table summarizes the source and classification of the Company’s stock-based compensation expense:


Source of Stock-Based Compensation Expense	Classification in the Consolidated Statements of Operations	2025		2024
Unicorns common stock awards	Cost of revenues	$	-	$	100,000
Restricted stock units	General and administrative		163,033		53,483
Total Stock-based compensation		$	163,033	$	153,483

Unicorns Common Stock Awards

On March 14, 2021, Unicorns, a majority-owned subsidiary of the Company, granted Unicorns Common Stock Awards to the executive producers of the Unicorn Hunters TV show. These awards have a grant-date fair value equal to the fair market value of the underlying Unicorns stock on the grant date less present value of expected dividends. During the year ended December 31, 2025 and 2024, the Company recorded stock-based compensation expense within the Cost of Revenues line item of $0 and $100 thousand, respectively, in relation to the vesting of five million Unicorns Common Stock Awards. As of December 31, 2025, five million Unicorns Common Stock Awards remain outstanding and not vested. The total grant-date fair value of the outstanding Unicorns Common Stock Awards amount to $100 thousand, for which no stock-based compensation expense has been recorded as the Company has assessed that is not probable the performance condition is going to be achieved.

Restricted Stock Units Classified as Equity

The following table summarizes information about RSUs as of and for the years ended December 31, 2025 and 2024:


	Equity Classified			Weighted Average Grant Date Fair Value
Beginning balance - January 1, 2024		84,862
Vested		(78,336	)
Ending balance - December 31, 2024		6,526		$	0.73

Beginning balance - January 1, 2025		6,526
Granted		551,960
Vested		(558,488	)
Forfeited		2
Ending balance - December 31, 2025		-		$	0.00

The Company recorded $163 thousand and $53 thousand of stock-based compensation expense relating to equity classified RSU’s during the years ended December 31, 2025 and 2024, respectively.

Stock Options

The following is a summary of stock option activity and related information for the years ended December 31, 2025 and 2024:

Schedule of stock option activity
	Number of Shares			Weighted Average Exercise Price		Weighted Average Grant Date Fair Value	Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Beginning balance January 1, 2024		55,535,881		$	0.031			5.61	$	18,619,327
Granted		-			-
Exercised		(430,000	)		-					-
Adjustments		5,000
Ending balance December 31, 2024		55,110,881		$	0.031			4.61	$	14,639,230

Beginning balance January 1, 2025		55,110,881		$	0.031			4.61	$	14,639,230
Granted		-			-
Exercised		-			-
Adjustments		-			-
Ending balance December 31, 2025		55,110,881		$	0.031			4.61	$	2,121,886
Vested and exercisable as of December 31, 2025		55,110,881		$	0.031			4.61	$	2,121,886

As of December 31, 2025 and 2024, there was no unrecognized stock-based compensation for stock options because all outstanding shares were fully vested. For the years ended December 31, 2025, and 2024, there was no stock-based compensation for stock options.