Note 11. Stock Options

On August 22, 2025, the shareholders approved the Company’s Equity Incentive Plan (the “2025 Plan”), to provide for the issuance of up to 2,000,000 options and/or shares of restricted stock be available for issuance to officers, directors, employees and consultants.

In August 2025, 1,585,000 stock options were granted to directors, executives and other employees and consultants with an exercise price of $6.41, a term of 10 years and vesting 25% upon grant and the remainder 25% per quarter over the following nine months. Also in August 2025, 200,000 options were granted to former employees and directors with immediate vesting and a term of 10 years. In October 2025, an additional 150,000 options were granted to a director and certain employees with a term of 10 years and vesting 25% upon grant and the remainder 25% per quarter over the following nine months. The above options to purchase shares of the Company’s common stock, par value $0.0001per share, which were granted pursuant to the Company’s 2025 Equity Inventive Plan, have grant prices based on the closing price on the respective grant dates.

A summary of options for the six months ended June 30, 2026 is presented below:

Schedule of Stock Options

For the six months ended June 30, 2026 and 2025, the Company recognized stock-based compensation expense of $4,430,462 and $332,492, respectively, which was recorded in general and administrative expense.

For the three months ended June 30, 2026 and 2025, the Company recognized stock-based compensation expense of $2,200,255 and $288,109, respectively, which was recorded in general and administrative expense.

As of June 30, 2026 and December 31, 2025, there was $94,878 and $4,564,610, respectively, of unrecognized stock-based compensation related to unvested stock options, which is expected to be recognized over a weighted-average period of six months as of June 30, 2026.

At June 30, 2026, all of the stock options outstanding have exercise prices that exceed the market price at June 30, 2026 and as such, no intrinsic value exists. Intrinsic value is defined as the difference between the exercise price of the options and the market price of the Company’s common stock.