NOTE 7 – STOCK OPTIONS

Summary of Options

The Company maintains the 2022 Equity Incentive Plan (the “2022 Plan”), which provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, RSUs, performance units and performance shares to employees, directors and consultants of the Company or any parent or subsidiary of the Company. The purpose of the 2022 Plan is to enable the Company to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentives to employees, directors and consultants of the Company or any parent or subsidiary of the Company, and to promote the success of the Company’s business.

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

SUMMARY OF STOCK OPTIONS

During the six months ended June 30, 2026, the Company granted stock options to a consultant to purchase 10,000 shares of common stock for services to be rendered. The options have an exercise price of $1.55 per share, and expire in five years, vesting 25% on the grant date, 50% upon playing in 15 official PGA Tour of Champions events with a Newton driver shaft or Gravity putter, and 25% at the conclusion of the 2026 PGA Tour of Champions Schwab Cup Finals. The total fair value of these options at the grant date was approximately $13,000 using the Black-Scholes option pricing model.

During the six months ended June 30, 2025, the Company granted stock options to an employee to purchase 20,000 shares of common stock for services rendered. The options have an average exercise price of $1.25 per share, expire in five years, vesting equally over four years from the employee’s start date. The total fair value of these options at the grant date was approximately $23,000 using the Black-Scholes option pricing model.

The total stock compensation expense recognized related to vesting stock options for the six months ended June 30, 2026 and 2025 amounted to $58,000 and $94,000, respectively. As of June 30, 2025, the total unrecognized stock-based compensation was $70,000, which is expected to be recognized as part of operating expense through April 2030.

As of June 30, 2026, the intrinsic value of the outstanding options under the 2022 Plan was $0.

The fair value of share option award is estimated using the Black-Scholes option pricing model based on the following weighted-average assumptions:

SCHEDULE OF BLACK SCHOLES OPTION PRICING METHOD