10. Share-Based Compensation

Summary of Restricted Common Stock

The following table summarizes restricted stock activity during the three months ended March 31, 2026:

Schedule of Restricted Stock 

On February 2, 2026, the Company granted its Chief Executive Officer 500,000 shares of the Company’s restricted stock, its directors an aggregate of 300,000 shares of the Company’s restricted stock, and its executives an aggregate of 600,000 restricted shares of the Company’s common stock. The 1,400,000 restricted shares of the Company’s common stock had an aggregate fair value of $1,456,000, or $1.04 per share. The restricted shares of common stock vest monthly over a 36-month period.

On February 1, 2025, the Company granted its Chief Executive Officer 250,000 shares of the Company’s restricted stock and granted 200,000 shares of the Company’s restricted stock to other officers with an aggregate fair value of $414,000 or $0.92 per share. The restricted stock grant vest monthly over a 36-month period.

During the three months March 31, 2026 and 2025, the Company recognized $526,778 and $568,709 of stock compensation expense relating to restricted stock. As of March 31, 2026, the aggregate amount of unvested compensation related to restricted stock was approximately $3,810,111 which will be recognized as an expense as the restricted stock vest in future periods through February 2029.

Summary of Stock Options

A summary of stock option activity is presented below:

Schedule of Stock Options 

On February 2, 2026, the Company, pursuant to the terms of its 2019 Stock Incentive Plan, granted options exercisable into 765,000 shares of its common stock to its executives and employees. The stock options are exercisable at a weighted average price of $1.04 per share with an average life to expiration of approximately six years. The total fair value of these options at the grant date was approximately $791,000, which was determined using a Black-Scholes option pricing model with the following average assumption: stock price of $1.04 per share, expected term of 6.00 years, volatility of 218%, dividend rate of 0%, and weighted average risk-free interest rate of 3.74%.

On February 1, 2025, the Company, pursuant to the terms of its 2019 Stock Incentive Plan, granted options exercisable into 1,170,000 shares of the Company’s common stock to its executives and employees. The stock options vest over 36 months equally. The stock options are exercisable at a weighted average price of $0.92 per share with an average life to expiration of approximately three years. The total fair value of these options at grant date was approximately $1,073,000, which was determined using a Black-Scholes-Merton option pricing model with the following average assumption: stock price of $0.92 per share, expected term of 6.00 years, volatility of 241%, dividend rate of 0%, and weighted average risk-free interest rate of 4.45%.

During the three months March 31, 2026 and 2025, the Company recognized $622,033 and $994,295 of stock compensation expense relating to vested stock options. As of March 31, 2026, the aggregate amount of unvested compensation related to stock options was approximately $1,071,022 which will be recognized as an expense as the options vest in future periods through February 2029.

The weighted average remaining contractual life of common stock options outstanding and exercisable at March 31, 2026, was 8.22 years. Based on a fair market value of $1.00 per share on March 31, 2026, the intrinsic value attributed to exercisable and unexercised common stock options was $79,378 at March 31, 2026.

The exercise prices of common stock options outstanding and exercisable at March 31, 2026 are as follows:

Schedule of Options Summarized by Exercise Price