v3.26.1
Note 3 - Stockholders' Equity
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Equity [Text Block]

NOTE 3 – STOCKHOLDERS’ EQUITY

 

Warrants to Purchase Common Stock of the Company

 

We use the Black-Scholes-Merton option pricing model (“Black-Scholes Model”) to determine the fair value of Warrants. The Black-Scholes Model requires the use of a number of assumptions including expected volatility of the stock price, risk-free interest rate, and expected term. The expected volatility is based on the historical volatility of the Company’s stock. The risk-free interest rate was based on U.S. Treasury yields commensurate with the expected term of the warrants. The expected term of the warrants was based on the contractual term and management’s expectations of exercise behavior.

 

A summary of our Warrants activity and related information follows:

 

              

Weighted

 
          

Weighted

  

Average

 
  

Number of

  

Range of

  

Average

  

Remaining

 
  

Shares Under

  

Warrant Price

  

Exercise

  

Contractual

 
  

Warrant

  

Per Share

  

Price

  

Life

 

Balance at December 31, 2025

  1,250,000  

$0.01 - $0.03

  $0.014   4.0 

Granted

  —   —   —   — 

Expired

  —   —   —   — 

Canceled

  —   —   —   — 

Balance at March 31, 2026

  1,250,000  

$0.01 - $0.03

  $0.014   3.7 

 

Stock Options

 

The Company’s Stock Incentive Plans include the CareView Communications, Inc.’s 2007 Stock Incentive Plan (“2007 Plan”), 2009 Stock Incentive Plan (the “2009 Plan”), 2015 Stock Option Plan (the “2015 Plan”), 2016 Stock Option Plan (the “2016 Plan”), 2020 Stock Option Plan ( the “2020 Plan”), and 2024 Stock Option Plan (the "2024 Plan"), pursuant to which 8,000,000, 10,000,000, 5,000,000, 20,000,000, 20,000,000, and 30,000,000 shares of Common Stock were reserved for issuance upon the exercise of options, respectively. The Stock Incentive Plans are designed to serve as an incentive for retaining our qualified and competent key employees, officers and directors, and certain consultants and advisors. The Stock Options vest over three years and have an exercise period of ten years from the date of issuance.  

 

At  March 31, 2026, Plan Options to purchase 8,000,000 shares of our Common Stock have been issued with zero remaining outstanding under the 2007 Plan, Plan Options to purchase 10,000,000 shares have been issued with zero remaining outstanding under the 2009 Plan, Plan Options to purchase 5,000,000 shares have been issued with 2,697,499 remaining outstanding under the 2015 Plan, Plan Options to purchase 20,000,000 shares have been issued with 19,615,945 remaining outstanding under the 2016 Plan, Plan Options to purchase 20,000,000 shares have been issued with 19,401,333 remaining outstanding under the 2020 Plan and Plan Options to purchase 23,931,058 shares have been issued with 23,712,058 remaining outstanding under the 2024 Plan.  

 

The valuation methodology used to determine the fair value Plan Options (the “Option(s)”) issued was the Black- Scholes Model. The Black-Scholes Model requires the use of a number of assumptions including volatility of the stock price, the weighted average risk-free interest rate, and the weighted average expected term of the options. The fair value of stock options granted was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: expected volatility ranging from 292.5% to 294.3%, an expected term of 6 years, a risk-free interest rate of 3.75%, and an expected dividend yield of 0%. The underlying stock price at the grant date ranged from $0.02 to $0.03, and the exercise price ranged from $0.02 to $0.03 per share.

 

A summary of our stock option activity and related information follows:

 

          

Weighted

     
      

Weighted

  

Average

     
  

Number of

  

Average

  

Remaining

  

Aggregate

 
  

Shares Under

  

Exercise

  

Contractual

  

Intrinsic

 
  

Options

  

Price

  

Life

  

Value

 

Balance at December 31, 2025

  65,715,835  $0.06   5.6  $— 

Granted

  41,000   0.03   9.8   — 

Forfeited/Expired

  (330,000)  0.16   —   — 

Exercised

  —   —   —   — 

Balance at March 31, 2026

  65,426,835  $0.07   5.7  $660 

Vested and Exercisable at March 31, 2026

  55,149,882  $0.06   4.9  $— 

 

Share-based compensation expense for Options charged to our operating results for the three months ended March 31, 2026, and 2025 were $150,302 and $154,732 respectively. The estimate of forfeitures is to be recorded at the time of grant and revised in subsequent periods if actual forfeitures differ from the estimates. We have not included an adjustment to our stock-based compensation expense based on the nominal amount of the historical forfeiture rate. We do, however, revise our stock-based compensation expense based on actual forfeitures during each reporting period.

 

At March 31, 2026, total unrecognized estimated compensation expense related to non-vested Options granted prior to that date was approximately $561,590, which is expected to be recognized over a weighted-average period of 0.9 years. No tax benefit was realized due to a continued pattern of operating losses.