v3.26.1
STOCK TRANSACTIONS
3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
STOCK TRANSACTIONS

NOTE 4 - STOCK TRANSACTIONS

 

Warrants

 

During the three months ended March 31, 2025 and 2024, the Company did not issue any warrants. As of March 31, 2026 and December 31, 2025, the Company had 199,733 warrants outstanding at an exercise price of $0.66.

 

Series B-1 Convertible Preferred Stock (“B-1 Stock”)

 

On June 15, 2023, the Company amended the Articles of Incorporation to authorize 5,000,000 shares of the B-1 Stock (“B-1 shares”). The B-1 shares are convertible into common shares, at a rate of 66.66 of common stock for each share of B-1 shares. The par value of the B-1 shares is $0.0001. The B-1 shares shall not be entitled to any dividends and have no voting rights. In the event of a liquidation, the B-1 Stockholders are entitled to distribution prior to common stockholders but not before any other preferred stockholders.

 

 

On December 18, 2024, the Company entered into a cancellation agreement with related party promissory note holders for cancellation of $3,665,303 in outstanding principal and interest in exchange for issuance of 750,075 shares of the Company’s B-1 Stock.

 

The Series B-1 Preferred Shares and any shares of common stock issued under the aforementioned agreements are “restricted” securities under Rule 144 of the Securities Act of 1933, as amended.

 

The B-1 shares have a liquidation preference of $1.00 per share or $765,075 as of March 31, 2026 and December 31, 2025, respectively.

 

Options

 

In 2005, the Company authorized the 2005 Equity Plan that made available shares of common stock for issuance through awards of options, restricted stock, stock bonuses, stock appreciation rights and restricted stock units. The following table summarizes stock option activity for the three months ended March 31, 2026:

 

   Shares   Weighted Average Exercise Price   Weighted Average Fair Value   Weighted Average Remaining Contractual Term (Years)   Intrinsic Value 
Outstanding, January 1, 2026   8,288    1.448    1.62    0.60     
Granted                    
Exercised                    
Forfeited/expired                    
Outstanding, March 31, 2026   8,288    1.448    1.62    0.35     
                          
Vested/exercisable at March 31, 2026   8,288    1.448    1.62    0.35     

 

Adoption of Stock Repurchase Plan

 

On August 23, 2016, the Company’s Board of Directors authorized the Company to implement a stock repurchase plan for issued and outstanding common stock. The repurchase plan could be discontinued at any time at the Company’s discretion.