NOTE N—STOCK OPTIONS

2023 Stock Incentive Plan

On December 14, 2023, the stockholders approved the 2023 Stock Incentive Plan.  The 2023 Plan initially reserved 33,333 shares of common stock for issuance of options, restricted stock, and other equity based awards to employees, officers, directors, consultants advisors and independent contractors of the Company. Options are issued at exercise prices which may not be below 100% of fair market value (or 110% of the fair market value if, at the time the option is granted, the participant owns, directly or indirectly, more than 10% of the total combined voting power of all classes of our stock) and have terms not to exceed ten years. Options issued under the 2023 Plan vest pursuant to the terms of stock option agreements with the recipients. In the event of a change in control, certain awards issued under this plan may be subject to additional acceleration of vesting as may be provided in the participants’ written agreement or as determined by the Board or Compensation Committee. The 2023 Plan expires on December 13, 2033, unless terminated earlier. On August 8, 2025, at the Annual Meeting, a proposal was approved to amend the plan to reserve an additional 70,000 shares of common stock. In 2025, the Company issued 28,300 restricted shares to employees of which 3,026 were forfeited.  The Company also issued 2,316 shares to the Board of Directors for payments of Board fees.

2015 Stock Option Plan

On January 27, 2016, the stockholders approved the 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan initially reserved 1,042 shares of common stock for issuance of options, restricted stock, and other equity based awards to employees, officers, directors, and consultants of the Company. In 2021, the stockholders approved an amendment to the 2015 to increase the shares of common stock authorized for issuance under the 2015 Plan from 1,042 shares to 4,383 shares together with other technical changes. The term of stock options granted under the 2015 Plan, may not exceed ten years, exercise prices may not be below 100-110% of fair market value, and vesting occurs over time periods set forth in written agreements with the recipients. In the event of a change in control, certain stock awards issued under the 2015 Plan may be subject to additional acceleration of vesting as may be provided in the participants’ written agreement. The 2015 Plan expired in December 2025.

Non-Plan Stock Options

Periodically, the Company has granted options outside of the 2015 Plan to various employees and consultants. In the event of change in control, as defined, certain of the non-plan options outstanding vest immediately.

Stock Option Activity

Information summarizing option activity is as follows:

The options outstanding and exercisable at December 31, 2025 were in the following exercise price ranges (as adjusted to reflect our 1-for-10 reverse stock split, which was effective April 30, 2026):

The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $5.40, $17.10, and $30.00 as of December 31, 2025, 2024 and 2023, respectively, which would have been received by the option holders had all option holders exercised their options as of that date. There were no in-the-money options exercisable as of December 31, 2025, 2024 and 2023.

The weighted average fair value of options granted during the years ended December 31, 2025 and 2024 was $0 as no options were granted in either year. The total intrinsic value of options exercised during the years ended December 31, 2025 and 2024 was $0 as no options were exercised in either year. The total fair value of shares vested during the years ended December 31, 2025 and 2024 was $0 as no options vested in either year.

As of December 31, 2024, there was no future forfeiture adjusted compensation costs related to nonvested stock options.