v3.26.1
Stockholders’ Deficit
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Stockholders’ Deficit

9. Stockholders’ Deficit

 

Preferred Stock

 

During the three months ended March 31, 2026, the Company issued 171,735 shares of Series D-1 Convertible Preferred Stock upon the conversion of $455,000 of principal and $36,501 of accrued interest outstanding on the 2025 Notes.

 

Preferred Shares

 

On January 30, 2026, the Company filed amendments with the State of Delaware extending the automatic conversion date of its Series D and Series D-1 Preferred Stock to December 31, 2028.

 

See Note 15 for details on issuances of Series D-1 Preferred Stock subsequent to March 31, 2026.

 

 

Stock Options

 

On April 1, 2025, the Company granted 5-year options for purchase of 120,000 options per quarter, and issued on the first day of the quarter, totaling to 480,000 throughout the term, at an exercise price of $0.30 to a consultant (the “Consultant Options”).

 

The grant date value of the stock options was calculated using the Black Scholes valuation model with the following assumptions:

 

      
Risk free interest rate   3.86%
Expected term (years)   2.5 
Expected volatility   90%
Expected dividends   0.00%

 

No stock options were exercised during the three months ended March 31, 2026 and 2025, respectively.

 

The following table summarizes stock option activities during the three months ended March 31, 2026:

 

   Shares   Weighted Average Exercise
Price		   Weighted Average Remaining
Life
in Years		   Aggregate
Intrinsic
Value		 
                 
Options outstanding at January 1, 2026   50,683,344   $0.2863    8.8   $            - 
Options exercisable at January 1, 2026   34,427,368   $0.2863    8.8   $- 
                     
Granted   

120,000

   $0.30    8.8   $- 
                     
Options outstanding at March 31, 2026   50,803,349   $0.2863    8.6   $- 
Options exercisable at March 31, 2026   34,547,368   $0.2864    8.6   $- 

 

The following table summarizes information about outstanding and exercisable options at March 31, 2026:

 

Options Outstanding   Options Exercisable     
    Outstanding   Weighted Average   Exercisable     
    Number of   Remaining Life   Number of     
Exercise Price   Options   In Years   Options   Intrinsic Value 
                  
$0.2862    814,681    3.92    543,124   $             - 
$0.2862    49,503,426    8.92    33,519,002   $- 
$0.2862    5,242    4.75    5,242   $- 
$0.3000    480,000    4.25    480,000   $- 
      50,803,349         34,547,368   $- 

 

During the three months ended March 31, 2026 and 2025, the Company recognized stock-based compensation expense of $306,051 and $315,100, respectively, in connection with the amortization of stock options, of which $13,342 and $13,894, respectively, is included in research and development expense and $292,709 and $301,206, respectively, is included in general and administrative expense.

 

As of March 31, 2026, there was $924,557 of unrecognized stock-based compensation related to the above stock options, which will be recognized over the weighted average remaining vesting period of 6.7 months.