Note 10 – Share Based Awards

The Company’s Board of Directors has delegated authority to the Chief Executive Officer to grant stock options to employees who are not executive officers. Any issuance of restricted stock awards or restricted stock units must be approved by the Company’s Compensation Committee. Stock options are granted for employees on a monthly to quarterly basis. Restricted stock awards and restricted stock units are granted on a quarterly basis.

Stock Options

The Plan allows the Company to incentivize key employees and directors with long term compensation awards such as stock options, restricted stock, and other similar types of awards. The Plan is authorized to issue up to 15% of the outstanding shares on a fully diluted basis giving effect to the exercise and conversion of all outstanding common stock equivalents issued outside of the Plan. In addition, the Plan has an “evergreen” provision, pursuant to which the number of shares of common stock reserved for issuance pursuant to awards under such plan shall be increased on the first day of each year beginning in 2025 and ending in 2032 equal to the lesser of (a) five percent (5%) of the shares of stock outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (b) such smaller number of shares of stock as determined by our board of directors. The Plan allows for awards to be issued up to a contractual maximum term of 10 years from the grant date. As of June 30, 2026, the Plan is authorized to issue up to 9,283,338 of awards, with 3,779,601 shares available for issuance.

During the six months ended June 30, 2026 and 2025, the Company’s Board of Directors approved the grant of 280,000 and 177,500, respectively of stock options under the Plan to certain employees. The stock options are subject to certain vesting provisions. Standard vesting on stock options have a six-month cliff vesting in which the first two quarters vest at the six-month mark and quarterly thereafter over a total of four years, however, certain stock options may have immediate vesting or shorter periods as approved. Stock options contractual term range from 5 to 10 years.

The following table presents the activity for stock options outstanding:

The range of assumptions used to calculate the fair value of options granted during the period ended June 30, 2026 was:

The total grant date fair value of stock options granted was $3,290,306 and $814,485 during the six months ended June 30, 2026 and 2025, respectively. The Company recognized $657,213 and $599,771 in stock-based compensation expense related to stock options during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, there was $4,960,077 of unrecognized stock-based compensation expense related to unvested stock options to be recognized over the remaining vesting term through 2030.

Restricted Stock

Restricted stock awards are equity grants in which the Company issues restricted common stock awards as of the grant date which are subject to certain vesting and clawback provisions. Restricted stock units are equity grants in which the Company issues a restricted stock unit subject to vesting requirements and common stock is not issued until the vesting requirements have been met. The following table presents the activity for restricted stock awards and restricted stock units outstanding:

The total value of restricted stock and restricted stock units was $14,733,972 and $9,392,782 granted during the six months ended June 30, 2026 and 2025, respectively. The Company recognized $8,928,327 and $6,819,929 in stock-based compensation expense related to restricted stock and restricted stock units during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, there was $10,519,323 of unrecognized stock-based compensation expense related to unvested restricted stock to be recognized over the remaining vesting term through 2030.

Warrants

The following table presents the activity for warrants outstanding as of June 30, 2026:

On January 9, 2026, 350,000 warrants were exercised related to the July 2025 Registered Direct Offering and the Company received proceeds of $3,395,000.