v3.26.1
WARRANTS AND STOCK OPTIONS (Tables)
6 Months Ended
Jun. 30, 2026
Warrants And Stock Options  
SUMMARY OF WARRANT AND STOCK ACTIVITIES

Following is a summary of the warrant and stock options activities during the three and six months ended June 30, 2026 and 2025:

  

               Weighted 
           Weighted   Average 
   Number of   Weighted   Average   Remaining 
   Warrants   Average   Grant Date   Contractual 
   and Options   Exercise Price   Fair Value   Term (in years) 
Outstanding, December 31, 2024   5,584,293   $6.43           
Granted   4,297,500   $10.62   $2.98      
Exercised   -   $-           
Expired and forfeited   (294,387)  $5.79           
Outstanding, June 30, 2025   9,587,406   $8.33           
                     
Outstanding, December 31, 2025   9,752,617   $8.54           
Granted   34,443,250   $4.48   $2.34      
Exercised   -   $-           
Expired and forfeited   (15,500)  $10.62           
Outstanding, June 30, 2026   44,180,367   $5.87         4.87 
SCHEDULE OF OPTIONS VESTED SUBJECT TO TRANCHE

  

Tranche #  Number of Options Vested Subject to Tranche   Closing Sale Price   Market Performance Milestone  Achievement Status 
                
A   1,000,000   $15.00   Achievement of closing sale price of Tranche A before January 20, 2031              - 
B   1,000,000   $20.00   Achievement of closing sale price of Tranche B before January 20, 2031   - 
C   1,000,000   $25.00   Achievement of closing sale price of Tranche C before January 20, 2031   - 
    3,000,000              
SCHEDULE OF FAIR VALUE OF WARRANTS AND OPTION

We estimate the fair value of warrants and stock options with service conditions on the grant date using the Black-Scholes-Merton model. The weighted-average assumptions used in the Black-Scholes-Merton model are as follows:

  

   June 30, 2026  June 30, 2025
Volatility  38.7% to 42.8%  45.4% to 66.2%
Dividends  0.00%  0.00%
Risk-free rate  3.6% to 4.4%  0.4% to 4.1%
Expected Term (years)  5-8  3-5

 

 

NOTE 12 – WARRANTS AND STOCK OPTIONS (Continued)

 

We estimate the fair value of stock options with market performance conditions on the grant date using the Monte Carlo simulation model. The weighted-average assumptions used in the Monte Carlo model are as follows:

 

   Tranche A   Tranche B   Tranche C 
Expected award term (in years) (1)   3.3    3.6    3.8 
Expected share price volatility   38.43%   38.43%   38.43%
Dividend yield   0.00%   0.00%   0.00%
Risk-free rate of return   3.86%   3.86%   3.86%
Forfeiture rate   0.00%   0.00%   0.00%
Grant date fair value per option (2)  $3.22   $2.85   $2.37 

 

(1) The award agreement does not specify an explicit time-based service requirement. The stock options vest solely upon satisfaction of the closing sale price prior to January 20, 2031.
   
(2) The equity-based compensation expense is recognized straight-line over the expected award term for each tranche independently.