12. STOCK-BASED COMPENSATION PLAN

Options to Employees and Directors

On June 19, 2015, the stockholders of the Company approved the China Recycling Energy Corporation Omnibus Equity Plan (the “Plan”) at its annual meeting. The total shares of Common Stock authorized for issuance during the term of the Plan is 12,463.  The Plan was effective immediately upon its adoption by the Board of Directors on April 24, 2015, subject to stockholder approval, and will terminate on the earliest to occur of (i) the 10th anniversary of the Plan’s effective date, or (ii) the date on which all shares available for issuance under the Plan shall have been issued as fully-vested shares. The stockholders approved the Plan at their annual meeting on June 19, 2015.

The following table summarizes option activity with respect to employees and independent directors for the three months ended March 31, 2026:

Restricted Stock

In April 2025, the Compensation Committee of the Company, which administers the Plan, granted two employees 12,413 shares of Common Stock (“Restricted Stock”) under the Plan, which grants vested immediately, subject to the Grantee remaining in continuous Service with the Corporation, in good standing, until such date.

In October 2025, the Company granted 290,000 restricted stocks to three new employees in the engineering department. These awards shall vest on six-month anniversary of the date of grant, provided that the grantee has continuously provided services to the corporation through such vesting date.

The Company recognized US$437,900 and nil share-based compensations for the three months ended March 31, 2026 and 2025.