13. STOCK OPTIONS

The Company’s 2025 annual meeting of shareholders approved an increase in the Company’s Amended and Restated 2016 Equity Incentive Plan (the “Plan”) up to a maximum of 15% of the number of issued and outstanding shares on the date of the meeting and permit the automatic increase of such shares available under the Plan, on January 1 of each year, by that number of shares equal to 5% of the number of shares of common stock issued and outstanding on the immediately preceding December 31, commencing on January 1, 2026 and ending with the year that the additional number of shares equals 15% of the number of shares of common stock issued and outstanding as of December 31 of the previous year. As of the date of the 2025 annual meeting of shareholders, the outstanding share was 16,153,055 shares, which results in the maximum shares issuable of 2,422,958 shares under the Plan.

Stock Options

Options issued and outstanding as of June 30, 2025 and 2026, and their activities during the year then ended are as follows respectively:

Stock Warrants - Shuling

Warrants issued in July 2025 and outstanding in connection with Shuling land transaction (See Note 5) as of June 30, 2026, and their activities during the year ended are as follows:

Stock Warrants – Lind Notes

On January 5, 2025, the Company and Lind entered into a third letter agreement, pursuant to which Lind agreed to exercise for cash, 1,029,167 of the Existing Warrants to purchase shares of Common Stock, with a current exercise price of $0.75 per share, at a reduced exercise price of $0.40 per share.

In July 2025, Lind exercised 500,000 warrants and left 500,000 warrants as of December 31, 2025.

In January 2026, Lind exercised 102,000 warrants and left 398,000 warrants as of the date of this report.

Warrants issued and outstanding in connection with above Lind convertible notes as of June 30, 2025 and 2026, and their activities during the six-month period ended are as follows: