Note 4 – Common Stock Warrants and Options

Common Stock Warrants

Common Stock warrant transactions for the six months ended June 30, 2026 were as follows:

Schedule of Common Stock Warrant Transactions 

The aggregate intrinsic value of all warrants outstanding and all warrants vested and exercisable as of June 30, 2026 was approximately $2,180,000 and $1,130,000, respectively, in each case based on the fair value of the Common Stock on June 30, 2026.

Pursuant to the May 2025 private placement of Series L Preferred Stock and 2025 Warrants, the Company issued an aggregate of 3,235,978 warrants to purchase shares of Common Stock with an initial exercise price of $2.043 per share, that are exercisable, subject to certain ownership limitations, immediately upon issuance and have a term of exercise equal to five years, as well as an aggregate of 11,756,406 warrants to purchase shares of Common Stock that vest upon the exercise of certain additional purchase rights with an initial exercise price of $2.043 per share, that are exercisable subject to certain vesting and ownership limitations, and have a term of exercise equal to five years from the date that the applicable warrant shares vest. The 2025 Warrants both have full-ratchet price and anti-dilution protections and are subject to other adjustments, as further described in the Certificate of Designation of Preferences, Rights and Limitations of Series L 10% Convertible Preferred Stock or the 2025 Warrants, as applicable, subject, solely with respect to adjustments in connection with the exercise of Greenshoe Rights, to a floor price of $0.454 per share (subject to adjustment for reverse and forward splits, recapitalizations and similar transactions). As of June 30, 2026, pursuant to full-ratchet price and anti-dilution protections the exercise price of the 2025 Warrants has been reduced to the floor price of $0.454. Since inception, the anti-dilution adjustment resulted in the 2025 Warrants being exercisable into an additional 50,737,682 shares of the Common Stock.

In April 2026, the Company issued pre-funded warrants underlying 400,000 shares of Common Stock with an aggregate fair value of $164,000 to a vendor as compensation for services. The warrants are exercisable at any time after issuance and until exercised in full.

Warrants outstanding as of June 30, 2026 are exercisable as follows:

Schedule of Warrants Exercisable 

Common Stock Options

In April 2022, the Company established the 2022 Omnibus Incentive Plan (the “Plan”). The Plan was approved by the Board and stockholders. The purpose of the Plan is to grant stock and options to purchase shares of Common Stock, and other incentive awards, to our employees, directors, and key consultants. On July 24, 2025, stockholders voted to increase the maximum number of shares of Common Stock that may be issued pursuant to awards granted under the Plan by 583,334 shares. Pursuant to the increase, the maximum number of shares of Common Stock that may be issued pursuant to awards granted under the Plan is 750,000 shares. The shares of Common Stock underlying cancelled and forfeited awards issued under the Plan may again become available for grant under the Plan. As of June 30, 2026, there were 597,550 stock options outstanding and 25,935 shares of restricted stock granted in prior years under the Plan, which left 126,515 shares available for grant under the Plan. The following table summarizes stock option transactions for the six months ended June 30, 2026:

Schedule of Options Activity 

The weighted average remaining contractual life of all options outstanding, and all options vested and exercisable as of June 30, 2026 was approximately 8.9 years. Furthermore, the aggregate intrinsic value of all options outstanding and all options vested and exercisable as of June 30, 2026 was $0, in each case based on the fair value of the Common Stock on June 30, 2026.

The total fair value of options that vested during the six months ended June 30, 2026 and 2025, was $92,000 and $7,000, respectively, and is included in selling, general and administrative expense in the accompanying unaudited condensed statements of operations. As of June 30, 2026, 514,773 stock options were vested and exercisable and unvested compensation expense amounted to approximately $98,000.

Options outstanding as of June 30, 2026 are exercisable as follows:

Schedule of Options Outstanding and Options Exercisable