8. Stock Options

The Company has a Stock Incentive Plan (the "SIP"), that authorizes the granting of stock options up to 10 percent of the total number of issued and outstanding shares of common stock, that provides for the grant of stock options, incentive stock options, stock appreciation rights, restricted stock awards, and incentive awards to eligible individuals including directors, executive officers and advisors that have furnished bona fide services to the Company not related to the sale of securities in a capital-raising transaction. On December 10, 2024, the Company's shareholders, at their Annual Meeting, ratified and reapproved the Stock Option Plan.

On January 29, 2026, the Company granted 200,000 stock options to one employee and a consultant. The options are exercisable at $0.77 per share and expire on January 28, 2031. The options were fully vested upon grant. The fair value of the options was determined to be $136,320 using the Black-Scholes valuation model. As the options were fully vested at issuance, the entire fair value was recognized as share-based compensation expense during the three months ended March 31, 2026. This expense was included in management and administrative expenses on the Company's Condensed Consolidated Statement of Operations. The Company recognized $102,240 in compensation expense for share-based payment awards issued to non-employees as part of the total compensation expense recognized during the same period.

The fair value of each option award was estimated on the date of the grant using the assumptions noted in the following table:

	January 29, 2026
Stock price	$0.74
Exercise price	$0.77
Expected volatility	156.11%
Expected dividends	-
Expected terms (in years)	5.0
Risk-free rate	3.80%

During the three months ended March 31, 2026, the Company received proceeds of $40,000 from the exercise of 250,000 stock options, including 100,000 options at an exercise price of $0.10 per share and 150,000 options at an exercise price of $0.20 per share.

The following is a summary of the Company's options issued and outstanding under the SIP:

	Shares			Weighted Average Exercise Price
Outstanding and exercisable at December 31, 2025	5,995,000		$	0.13
Granted	200,000			0.77
Exercised	(250,000	)		0.16
Outstanding and exercisable at March 31, 2026	5,945,000		$	0.15

The weighted average remaining contractual term of options outstanding and exercisable at March 31, 2026 was 3.29 years. As of March 31, 2026, the aggregate intrinsic value of options outstanding and exercisable was $3,569,250, based on the Company's closing stock price of $0.75 per share on that date.