4. Stock-Based Compensation

eXoZymes’ 2020 Equity Incentive Plan (the “2020 Plan”), which was approved by the eXoZymes shareholders, permits grants to its officers, directors, and employees for up to 938,832 shares of eXoZymes’ Common Stock. On May 1, 2023, the board and shareholders approved an increase of 1,558,175 shares under the plan. The 2020 Plan authorizes the issuance of stock options, shares of restricted stock, and restricted stock units, among other forms of equity-based awards. On July 25, 2025, the Company’s shareholders approved, by a majority, the “2025 equity incentive plan”. The new plan allows for an additional 1,250,000 shares to be added to the equity incentive pool.

eXoZymes stock-based compensation was $1,720,037 and $640,753 for the six months ended June 30, 2026, and 2025. As of June 30, 2026, the unrecognized stock-based compensation is $6,000,774.

The Company measures the fair value of stock option awards using the Black-Scholes model, which requires the use of certain subjective assumptions, including expected term, expected volatility, and risk-free interest rate. These inputs are based on historical data and market conditions at the time of grant. The assumptions used for stock option grants during the periods presented are summarized in the table below:

  Schedule of Stock Option Grants

Note: Contractual term (7 years), dividend yield ($0), and valuation methodology were identical for all grants and therefore are not included in the table.

On November 15, 2025, an option holder exercised 15,000 vested stock options through a cashless exercise at an exercise price of $3.31 per share. A total of 3,439 shares were withheld to cover the exercise consideration, resulting in the issuance of 11,561 shares. No unvested options remained following this transaction.

During the six months ended June 30, 2026, option holders exercised a total of 90,742 vested stock options through cashless exercises. Of this amount, 81,951 options were exercised at an exercise price of $3.31 per share, 7,791 options were exercised at an exercise price of $2.44 per share, and 1,000 options were exercised at an exercise price of $8.00 per share. In connection with these exercises, a total of 28,142 shares were withheld to cover the exercise consideration, resulting in the issuance of 62,600 shares. All options exercised during the period were fully vested.

As of June 30, 2026, stock options to purchase 1,860,526 shares of Common Stock were outstanding, with a weighted average exercise price of $6.24, an aggregate intrinsic value of $3,986,993, and a weighted average remaining contractual term of 4.34 years. Of these, options to purchase 1,084,181 shares were vested and exercisable, with a weighted average exercise price of $4.81. The outstanding options were issued between 2021 and 2026 and have vesting terms ranging from twelve months to five years, with an expiry of seven years.

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

 Schedule of Stock Options Activity 

On July 19, 2021, eXoZymes granted 82,118 restricted stock units (“RSUs”) at a value of $2.44 per share. These RSUs were issued in 2020 in lieu of cash bonuses. These RSU were previously under a lock up which expired as of April 1, 2026. The lock agreement released the RSU’s evenly over the course of 12 months on a one-twelfth (1/12) basis. The Company has begun expensing the RSU’s starting April 1, 2026. In the period ending June 30, 2026, the Company expensed $50,092 and unrecognized stock-based compensation related to these RSUs is $150,276.

On March 28, 2022, eXoZymes granted 241,718 restricted stock units (“RSUs”) at a value of $2.44 per share. These RSUs were issued in 2021 in lieu of cash bonuses. These RSU were previously under a lock up which expired as of April 1, 2026. The lock agreement released the RSU’s evenly over the course of 12 months on a one-twelfth (1/12) basis. The Company has begun expensing the RSU’s starting April 1, 2026. In the period ending June 30, 2026, the Company expensed $144,669 and unrecognized stock-based compensation related to these RSUs is $434,008.

On May 1, 2023, eXoZymes granted 100,820 restricted stock units (“RSUs”) at a value of $3.32 per share. These RSUs were issued in 2023 in lieu of cash bonuses. These RSU were previously under a lock up which expired as of April 1, 2026. The lock agreement released the RSU’s evenly over the course of 12 months on a one-twelfth (1/12) basis. The Company has begun expensing the RSU’s starting April 1, 2026. In the period ending June 30, 2026, the Company expensed $80,923 and unrecognized stock-based compensation related to these RSUs is $242,770.

On July 1, 2025, eXoZymes granted 20,000 restricted stock units (“RSUs”) at a value of $9.48 per share, which was equal to the fair value of the Common Stock on the date of grant and are exercisable for a period of 7 years. The RSUs vest monthly over a 12-month period.

On November 10, 2025, eXoZymes extended the lock up period for current employees that had unvested RSU’s. The Lock Up Agreement extended the lock up period to April 1, 2026, as to all of the Common Shares (the “RSU Shares”), and thereafter one-twelfth (1/12) of the RSU shares will be permanently released from the provisions of the Lock Up Agreement on the first of each month, starting as of April 1, 2026, and continuing until the last release date of March 1, 2027. The extension of the Lock Up Agreement was voluntary and of the 424,656 restricted stock units individuals holding 7,870 chose to exercise their Restricted Stock Units and converted to common stock on November 14, 2025.

On January 14, 2026, eXoZymes granted 62,759 restricted stock units (“RSUs”) at a value of $10.77 per share, which was equal to the fair value of the Common Stock on the date of grant and are exercisable for a period of 7 years. The RSUs vest 15,689 on April 1, 2026, and there after vest equally per quarter until March 31, 2029. 

On March 18, 2026, the Company issued 10,002 shares of its common stock to an individual upon the vesting and settlement of previously granted Restricted Stock Units (“RSUs”), in accordance with the terms of the Company’s equity incentive plan. The shares were issued on a one-for-one basis for each vested RSU and were issued on a gross basis.

In the three months ended June 30, 2026, the Company issued 39,259 shares of its common stock upon the vesting and settlement of previously granted Restricted Stock Units (“RSUs”), in accordance with the terms of the Company’s equity incentive plan. The shares were issued on a one-for-one basis for each vested RSU and were issued on a gross basis.

  Schedule of Restricted Stock Units Activity