NOTE
12: STOCK-BASED COMPENSATION
Stock
Options
During
the six months ended June 30, 2026, we did not grant options for the purchase of our Common stock to certain employees as consideration
for services rendered. The terms of the stock option grants are determined by our Board of Directors. Our stock options generally vest
upon the one-year anniversary date of the grant and have a maximum term of ten years.
The
following summarizes the stock option activity for the six months ended June 30, 2026:
SCHEDULE OF STOCK OPTION ACTIVITY
| | |
Options
Outstanding | | |
Weighted- Average
Exercise Price | |
| Options granted during 2026 | |
| 684,148 | | |
$ | 1.25 | |
| Grants | |
| - | | |
| - | |
| Exercised | |
| - | | |
| - | |
| Cancelled/Forfeited | |
| 180,739 | | |
| - | |
| Balance as of June 30, 2026 | |
| 503,409 | | |
$ | 1.25 | |
The
following summarizes certain information about stock options vested and expected to vest as of June 30, 2026:
SCHEDULE OF STOCK OPTIONS VESTED AND EXPECTED TO VEST
| | |
Number of
Options | | |
Weighted-Average
Remaining
Contractual Life
(In Years) | | |
Weighted-Average
Exercise Price | |
| Outstanding | |
| 503,409 | | |
| 8.14 | | |
$ | 6.15 | |
| Exercisable | |
| 490,673 | | |
| 7.17 | | |
$ | 32.89 | |
| Expected to vest | |
| 12,736 | | |
| 8.14 | | |
$ | 1.24 | |
As
of June 30, 2026 and December 31, 2025, there was $11,766 and $371,960, respectively, of total compensation costs related to non-vested
stock-based compensation arrangements which we expect to recognized within the next 12 months. The decrease in stock-based compensation
is due to an adjustment for forfeited unvested options of employees that were terminated as of June 30,2026
Restricted
Stock Awards
The
following summarizes the restricted stock activity for the three months ended June 30, 2026:
SCHEDULE OF RESTRICTED STOCK ACTIVITY
| | |
| | |
Weighted-Average | |
| | |
Shares | | |
Fair Value | |
| Balance as of December 31, 2025 | |
| 5,288 | | |
$ | 314,361 | |
| Shares of restricted stock granted | |
| - | | |
| - | |
| Exercised | |
| - | | |
| - | |
| Cancelled | |
| - | | |
| - | |
| Balance as of June 30, 2026 | |
| 5,288 | | |
$ | 314,361 | |
SCHEDULE OF RESTRICTED STOCK AWARD
| Number of Restricted Stock Awards | |
June 30,
2026 | | |
December 31,
2025 | |
| Vested | |
| 413,862 | | |
| 413,862 | |
| Non-vested | |
| - | | |
| - | |
|