v3.26.1
STOCK OPTIONS AND WARRANTS
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
STOCK OPTIONS AND WARRANTS

5. STOCK OPTIONS AND WARRANTS

 

Stock Options

 

The 2022 Incentive Plan authorizes a variety of incentive equity awards consisting of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, and reserves for issuance up to 500,000,000 shares of the Company’s common stock.

 

Transactions involving our options are summarized as follows:

SCHEDULE OF STOCK OPTIONS

           Weighted 
           Average 
       Weighted   Grant-Date 
   Number of   Average   Per Share 
   Options   Exercise Price   Fair Value 
Options outstanding at December 31, 2025   565,000,000   $0.019   $0.005 
Granted   2,500,000   $0.018   $0.018 
Canceled/Expired   -   $-   $- 
Exercised   -   $-   $- 
Options outstanding at June 30, 2026   567,500,000   $0.019   $0.005 

 

Details of our options outstanding as of June 30, 2026, are as follows:

 

Options Exercisable   Weighted Average Exercise Price of
Options Exercisable		   Weighted Average Contractual Life
of Options
Exercisable (Years)		   Weighted Average Contractual Life
of Options
Outstanding (Years)		 
 507,430,540    0.019    2.35    3.07 

 

On April 1, 2026, the Company granted 2,500,000 non-qualified stock options to a consultant. The options have an exercise price of $0.018, expire on the tenth anniversary of the grant date, and vest 69,444 options per month over a 35-month period from the grant date and the remaining 69,460 options vest at the end of the 36-month.

 

Total stock compensation expense related to the options for the six months ended June 30, 2026, and 2025, was $331,333 and $116,527, respectively. As of June 30, 2026, there was $713,294 of unrecognized compensation cost related to the Options, which is expected to be recognized over a remaining weighted-average vesting period of approximately 0.53 years.

 

 

The Company uses the Black Scholes model to value option grants. The Black Scholes model requires the use of these assumptions to determine the fair value of the stock-based awards. The Company uses management’s best estimates, which include the awards expected term, the fair value of the common stock, the expected volatility of the price of the common stock, the risk-free interest rate, and the expected dividend yield of the common stock. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. The Company has based its expected term on the simplified method available under U.S. GAAP.

 

Warrants

 

Transactions involving our warrants are summarized as follows:

 

           Weighted 
           Average 
       Weighted   Grant-Date 
   Number of   Average   Per Share 
   Warrants   Exercise Price   Fair Value 
Warrants outstanding at December 31, 2025   228,958,334   $0.048   $0.079 
Granted   -   $-   $- 
Canceled/Expired   (223,958,334)  $0.049   $0.080 
Exercised   -   $-   $- 
Warrants outstanding at June 30, 2026   5,000,000   $0.026   $0.022 

 

Details of our warrants outstanding as of June 30, 2026, are as follows:

 

Warrants Exercisable   Weighted Average
Contractual Life of
Warrants Outstanding
and Exercisable (Years)		 
 5,000,000    0.71