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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 9 – STOCK-BASED COMPENSATION

 

On August 6, 2021, the Board of Directors and shareholders of the Company approved a 2021 Equity Incentive Plan (“2021 Plan”), under which 120,000 shares of common shares are authorized for issuance.

 

On August 1, 2023, the Board of Directors of the Company approved a 2023 Equity Incentive Plan, under which 100,000 shares of common shares are authorized for issuance.

 

Stock Options

 

On December 25, 2021, the Company awarded stock options to purchase 76,725 shares of common shares pursuant to the 2021 Plan at an exercise price of $50.00 per share to various officers, directors, employees and consultants of the Company. The stock options vest on each annual anniversary of the date of issuance, in an amount equal to 25% of the applicable shares of common shares, with the expiration date on December 25, 2031.

 

On August 9, 2022, the Company awarded stock options to purchase 725 shares of common shares at an exercise price of $49.60 per share to three prior employees of the Company. The stock options are fully vested and exercisable on the grant date, with the expiration date on August 9, 2026.

 

On February 3, 2023, the Company awarded stock options to purchase 5,000 shares of common shares pursuant to the 2021 Plan at an exercise price of $23.40 per share to an employee of the Company. The stock options vest 50% on the grant date and February 1, 2024, respectively, with the expiration date on February 3, 2033.

 

The following table summarizes the stock options activities and related information for the six months ended June 30, 2026 and 2025:

 

   Number of
Stock
Options		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Term
(Years)		   Intrinsic
Value		 
As of January 1, 2025   75,325   $48.23    7.01   $64,500 
Granted   -    -    -    - 
Exercised   (5,000)          23.40    -    - 
Forfeited   (325)   50.00    -    - 
As of June 30, 2025   70,000   $50.00    6.43   $- 
                     
As of January 1, 2026   56,075   $49.99    5.92   $- 
Granted   -    -    -    - 
Exercised   -    -    -    - 
Forfeited   -    -    -    - 
As of June 30, 2026   56,075   $49.99    5.42   $- 
Vested and exercisable as of June 30, 2026   56,075   $49.99    5.42   $- 

 

 

For the three and six months ended June 30, 2026, there was no stock-based compensation related to stock options. For the three and six months ended June 30, 2025, the Company recognized stock-based compensation related to stock options of $22,006 and $52,682, respectively. There was no outstanding unamortized stock-based compensation related to stock options as of June 30, 2026.

 

Restricted Stock Units (“RSUs”)

 

On February 9, 2022, the Company entered into executive employment agreements with five executives and granted 4,291 RSUs pursuant to the 2021 Plan. The RSUs vest on each annual anniversary of the date of the employment agreements, in an amount equal to 25% of the applicable shares of common shares. The fair value of the RSUs at grant date is $424,809.

 

The following table summarizes the RSUs activities and related information for the six months ended June 30, 2026 and 2025:

 

   Number of
RSUs		   Weighted
Average
Grant Date
Fair Value
Per Share		 
Unvested as of January 1, 2025   2,146   $99.00 
Granted   -    - 
Vested   (1,073)   99.00 
Forfeited   (113)   99.00 
Unvested as of June 30, 2025   960   $99.00 
           
Unvested as of January 1, 2026   796   $99.00 
Granted   -    - 
Vested   (796)   99.00 
Forfeited   -    - 
Unvested as of June 30, 2026   -   $- 

 

For the three and six months ended June 30, 2026, the Company recognized stock-based compensation related to RSUs of nil and $2,031, respectively. For the three and six months ended June 30, 2025, the Company recognized stock-based compensation related to RSUs of $5,918 and $7,522, respectively. There was no outstanding unamortized stock-based compensation related to RSUs as of June 30, 2026.