Note 9 – STOCK-BASED COMPENSATION

2023 Equity Incentive Plan

Our 2023 Equity Incentive Plan (the “2023 Plan”), which replaced our 2019 Equity Incentive Plan (the “2019 Plan”), became effective on September 13, 2023. On December 10, 2025, our stockholders approved an amendment to our 2023 Plan to increase the number of shares of our Common Stock, par value $0.00001 per share, available for issuance under the 2023 Plan by ten million (10,000,000) shares (the “Plan Amendment”). The Plan Amendment was previously adopted by our Board of Directors on October 31, 2025.

Stock Options

We grant stock options vesting solely upon the continued service of the recipient. We recognize the accounting grant date fair value of equity-based awards as compensation expense over the required service period of each award, which is generally 1 to 4 years. Stock options expire 10 years from the date of grant.

The following table summarizes stock option activity for the three months ended March 31, 2026:

 SCHEDULE OF STOCK OPTION ACTIVITY

The aggregate intrinsic value for stock options outstanding and exercisable is defined as the positive difference between the fair market value of our Common Stock and the exercise price of the stock options.

Total stock-based compensation expense related to the stock options was $278,447 and $850,992 for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, there was unrecognized compensation expense of $1,299,916 with a weighted average recognition period of 1.72 years related to the stock options. The total intrinsic value of options exercised during the three months ended March 31, 2026 and 2025, was zero.

The weighted-average grant-date fair value of stock options granted during the three months ended March 31, 2026 was $0.36. During the three months ended March 31, 2026, 118,421 options vested, net of forfeitures.

Restricted Stock Units

We granted restricted stock units (“RSUs”) that only contain a service-based vesting condition that is typically satisfied over four years. We recognize the accounting grant date fair value of equity-based awards as compensation expense over the requisite service period. The fair value of RSUs is determined by the closing price of our Common Stock on the grant date. On June 13, 2025, we granted 1,550,000 RSUs with a weighted-average grant date fair value of $0.96. During the three months ended March 31, 2026, 400,000 RSUs were forfeited due to employee termination. At March 31, 2026, 1,150,000 RSUs were outstanding. Total stock-based compensation expense related to the RSUs was $14,926 for the three months ended March 31, 2026. As of March 31, 2026, there was unrecognized compensation expense of $883,200 with a weighted average recognition period of 3.20 years related to the RSUs.