Stock Option Plan

6 Months Ended

Jun. 30, 2026

Note 8 - Stock Option Plan

In May 2021, the Company adopted an equity incentive plan (the “Plan”). Under the Plan, the Company may grant up to 10,000,000 stock options to eligible participants. All terms for stock options granted under the Plan will be set by the Board of Directors.

Stock Option Grants

On November 5, 2025, the Company granted stock options to certain executives and employees to purchase an aggregate of 5,150,000 shares of the Company’s common stock at an exercise price of $1.48 per share. The options have a contractual term of five (5) years and were fully vested on the grant date. The grant was approved by the Board of Directors and was made pursuant to the Plan. After giving effect to the November 5, 2025 grant, 4,850,000 shares remained available for future issuance under the Plan at both June 30, 2026 and December 31, 2025.

Of the total grant, 1,500,000 options were granted to the Company’s Chairman of the Board of Directors and President and 750,000 options were granted each to a member of the Board of Directors and the Company’s Vice-President.

The aggregate grant date fair value of stock options granted during the year ended December 31, 2025 was $4,982,588. The weighted average grant date fair value per option was $0.97.

Valuation Methodology and Assumptions

The fair value of stock options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

Schedule of fair value of stock options

Exercise price	$	1.48
Expected term		2.5 years
Expected volatility		115	%
Expected dividends		0	%
Risk free interest rate		3.63	%

Stock Option activity for the six months ended June 30, 2026 and the year ended December 31, 2025 are summarized as follows:

Schedule of stock options activity

Stock Options	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value		Weighted Average Grant Date Fair Value
Outstanding - December 31, 2024		-
Exercisable - December 31, 2024		-
Granted		5,150,000	$	1.48		4.85			$	0.97
Exercised		-
Cancelled/Forfeited		-
Outstanding - December 31, 2025		5,150,000	$	1.48		4.85	$	-
Exercisable - December 31, 2025		5,150,000	$	1.48		4.85	$	-
Granted		-	$	-
Exercised		-
Cancelled/Forfeited		-
Outstanding - June 30, 2026		5,150,000	$	1.48		4.35	$	1,339,000
Exercisable - June 30, 2026		5,150,000	$	1.48		4.35	$	1,339,000

Compensation Expense

The Company recognized stock-based compensation expense of $4,982,588 related to stock options for the year ended December 31, 2025, which was included in general and administrative expenses in those statements of operations. As the options were fully vested on the grant date, there was no unrecognized compensation cost related to stock options as of December 31, 2025.