NOTE 6 - STOCK APPRECIATION RIGHTS

During the six months ended June 30, 2026, 275,000 cash-settled stock appreciation rights have been issued to employees and consultants with an exercise price of $4.11 to $7.42 with a 10-year term and vesting over a 4-year period. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 3.81% - 4.21%, (2) expected life of 6.25 years, (3) expected volatility of 130% - 135% and (4) zero expected dividends.

At June 30, 2026, the Company revalued the cash-settled stock appreciation rights using a stock price of $6.92 and an exercise price of $0.45 - $7.42. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 4.19% - 4.25%, (2) expected life of 4.25 – 6.25 years, (3) expected volatility of 130% - 152% and (4) zero expected dividends.

As of June 30, 2026, the total liability related to cash-settled SARs is $5,080,081, reflecting the fair value as of the reporting date. During the three months ended June 30, 2026, the Company recorded compensation related to the cash-settled SARs in the amount of $2,093,020, included $361,496 and $1,731,524 in research and development and general and administrative expenses, respectively in the accompanying unaudited condensed consolidated statements of operations. During the six months ended June 30, 2026, the Company recorded compensation related to the cash-settled SARs in the amount of $4,770,672, included $1,164,086 and $3,606,586 in research and development and general and administrative expenses, respectively in the accompanying unaudited condensed consolidated statements of operations.

A summary of the changes in SARs during the six months ended June 30, 2026 is as follows:

At June 30, 2026, the Company has unrecognized compensation expense of approximately $30,240,904 related to unvested stock appreciation rights which will be recognized over the weighted average remaining service period of 3.36 years.