NOTE 6 - STOCK APPRECIATION RIGHTS

During the three months ended March 31, 2026, 175,000 cash-settled stock appreciation rights have been issued to consultants with an exercise price of $4.11 – $4.32 with a 10-year term and vesting over a 4-year period. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 3.81% – 3.87%, (2) expected life of 6.25 years, (3) expected volatility of 135%, and (4) zero expected dividends.

At March 31, 2026, the Company revalued the cash-settled stock appreciation rights using a stock price of $6.96 and an exercise price of $0.45 - $4.32. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 3.92% - 4.02%, (2) expected life of 4.50 – 6.25 years, (3) expected volatility of 130% - 148% and (4) zero expected dividends.

As of March 31, 2026, the total liability related to cash-settled SARs is $3,738,583, reflecting the fair value as of the reporting date. During the quarters ended March 31, 2026, the Company recorded compensation related to the cash-settled SARs in the amount of $802,590 and 1,875,062, included in research and development and general and administrative expenses, respectively in the accompanying unaudited condensed consolidated statements of operations.

A summary of the changes in SARs during the three months ended March 31, 2026 is as follows:

At March 31, 2026, the Company has unrecognized compensation expense of approximately $32,066,100 related to unvested stock appreciation rights which will be recognized over the weighted average remaining service period of 3.59 years.