Stock Options and Warrants

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Note 13 – Stock Options and Warrants

Incentive stock options and non-qualified stock options

– In September 2016, the Company adopted the 2016 Stock Plan (2016 Plan), which provides for the grant of shares of stock options and restricted stock awards to employees, non-employee directors, and non-employee consultants. As of March 31, 2026, the 2016 Stock Plan, as amended, authorized 1,726,130 shares. The options typically have a contractual term of ten years. Stock options comprise all of the awards granted since the 2016 Plan’s inception. Stock options granted under the 2016 Plan typically vest over a four-year period with a one-year cliff, but also include grants that vest over shorter periods of time. As of March 31, 2026, the 2016 Plan had 271,687 shares available for future issuance.

A summary of information related to stock options is as follows:

				Weighted
				Average		Intrinsic
	Options			Exercise Price		Value

Outstanding as of December 31, 2025		1,213,313			0.21	$	8,856,243
Granted		-
Exercised		(4,667	)		0.27
Forfeited		(22,221	)		0.18
Outstanding as of March 31, 2026		1,186,425			0.21	$	8,659,981

Exercisable as of March 31, 2026		721,964			0.21	$	5,269,777
Exercisable and expected to vest as of March 31, 2026		1,186,425			0.21	$	8,659,981

The following table presents the range assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted to employees and directors in the three months ended March 31:

	2026		2025
Weighted average grant-date fair value of options during the period		N/A	$	2.54
Weighted average duration (years) to expiration of outstanding options at period-end		N/A		8.25

There were no grants of options during the three months ended March 31, 2026. Stock-based compensation expense for stock options of $220,932 and $44,548 was recognized for the three months

ended

March 31, 2026 and March 31, 2025, respectively, and is included in general and administrative expenses in the accompanying consolidated statements of operations. Total unrecognized compensation cost related to non-vested stock option awards amounted to $1,802,948, as of March 31, 2026. The remaining expense is expected to be recognized over a weighted-average period of approximately 33 months.

Preferred Stock and Common Stock warrants

– During the year ended December 31, 2025, the Company entered into arrangements with its vendors and investors in which it provided Preferred Stock and Common Stock warrants (the warrants) in lieu of cash for goods and services provided or embedded in the Company promissory notes (see Note 8). The warrants generally have a term of five to ten years and are typically fully vested at issuance.

As of December 31, 2025, there were 1,328,185 Preferred Stock warrants outstanding and exercisable with a weighted average exercise price of $1.46 per share. During the three months ended March 31, 2026, 531,274 shares were exercised for cash proceeds of $77,997 and 409,722 shares were exercised for a net 209,054 shares of Series B-1 Preferred Stock. Additionally, during the three months ended March 31, 2026, a total of 387,189 Preferred Stock warrants were converted to 129,063 Common Stock warrants. There was no gain or loss on the conversion as there were no material changes to the economics of the underlying warrants. Accordingly, there were no preferred stock warrants outstanding at March 31, 2026.

A summary of information related to Common Stock warrants is as follows:

	Common			Weighted
	Stock			Average
	Warrants			Exercise Price

Outstanding as of December 31, 2025		716,816		$	2.19
Granted		129,063			4.39
Exercised		(290,860	)		0.94
Forfeited		-			-

Outstanding as of March 31, 2026		555,019		$	3.35

Exercisable as of March 31, 2026		555,019		$	3.35


		2026		2025
Weighted average grant-date fair value of warrants granted during the year	$	7.35	$	7.35
Weighted average duration (years) to expiration of outstanding		2.79		3.67

Common stock warrants were valued using the Black-Scholes model with the following inputs as of March 31:

Common stock warrants	2026			2025

Risk free interest rate		4.3	%		4.4	%
Expected dividend yield		0.0	%		0.0	%
Expected volatility		65.0	%		65.0	%
Expected life (years)		10			10