The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of grant. The assumptions employed in the calculation of the fair value of share-based compensation expense were calculated as follows for the six months ended June 30, 2026 and 2025:


	2026		2025
Common stock fair value (weighted-average)	$	1.33	$	3.39
Risk free interest rate	3.82% - 4.04%		4.04% - 4.66%
Expected dividend yield	0%		0%
Expected term	6.0 years		6.0 years
Expected stock volatility	101.2% - 105.6%		101.9% - 103.0%


				Weighted		Weighted
	Number			Average		Average
	of options			Exercise Price		Contractual Life
Outstanding at December 31, 2025		18,031,425		$	2.35	8.91 years

Forfeited and cancelled		(3,041,681	)	$	2.08
Exercised		-		$	0.00
Granted		4,103,996		$	1.33
Outstanding at June 30, 2026		19,093,740		$	2.17	8.63 years
Exercisable at June 30, 2026		3,380,598		$	3.87	5.44 years

Options outstanding had an intrinsic value of approximately $15,000,000 and $0 as of June 30, 2026 and December 31, 2025, respectively. As of June 30, 2026, there was approximately $18,000,000 of unrecognized stock compensation, which will be recognized over the next three years.

Total stock-based compensation expense for the six months ended June 30, 2026 and 2025 was allocated as follows:


	2026		2025
General and administrative	$	1,458,764	$	993,831
Research and development		3,480,710		1,837,952
Total stock-based compensation expense	$	4,939,474	$	2,831,783