v3.26.3
STOCK OPTIONS AND WARRANTS
 6 Months Ended 12 Months Ended
Jun. 30, 2026
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]    
STOCK OPTIONS AND WARRANTS

5. STOCK OPTIONS AND WARRANTS

 

Stock Options

 

The 2022 Incentive Plan authorizes a variety of incentive equity awards consisting of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, and reserves for issuance up to 500,000,000 shares of the Company’s common stock.

 

Transactions involving our options are summarized as follows:

SCHEDULE OF STOCK OPTIONS

           Weighted 
           Average 
       Weighted   Grant-Date 
   Number of   Average   Per Share 
   Options   Exercise Price   Fair Value 
Options outstanding at December 31, 2025   565,000,000   $0.019   $0.005 
Granted   2,500,000   $0.018   $0.018 
Canceled/Expired   -   $-   $- 
Exercised   -   $-   $- 
Options outstanding at June 30, 2026   567,500,000   $0.019   $0.005 

 

Details of our options outstanding as of June 30, 2026, are as follows:

 

Options Exercisable   Weighted Average Exercise Price of
Options Exercisable		   Weighted Average Contractual Life
of Options
Exercisable (Years)		   Weighted Average Contractual Life
of Options
Outstanding (Years)		 
 507,430,540    0.019    2.35    3.07 

 

On April 1, 2026, the Company granted 2,500,000 non-qualified stock options to a consultant. The options have an exercise price of $0.018, expire on the tenth anniversary of the grant date, and vest 69,444 options per month over a 35-month period from the grant date and the remaining 69,460 options vest at the end of the 36-month.

 

Total stock compensation expense related to the options for the six months ended June 30, 2026, and 2025, was $331,333 and $116,527, respectively. As of June 30, 2026, there was $713,294 of unrecognized compensation cost related to the Options, which is expected to be recognized over a remaining weighted-average vesting period of approximately 0.53 years.

 

 

The Company uses the Black Scholes model to value option grants. The Black Scholes model requires the use of these assumptions to determine the fair value of the stock-based awards. The Company uses management’s best estimates, which include the awards expected term, the fair value of the common stock, the expected volatility of the price of the common stock, the risk-free interest rate, and the expected dividend yield of the common stock. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. The Company has based its expected term on the simplified method available under U.S. GAAP.

 

Warrants

 

Transactions involving our warrants are summarized as follows:

 

           Weighted 
           Average 
       Weighted   Grant-Date 
   Number of   Average   Per Share 
   Warrants   Exercise Price   Fair Value 
Warrants outstanding at December 31, 2025   228,958,334   $0.048   $0.079 
Granted   -   $-   $- 
Canceled/Expired   (223,958,334)  $0.049   $0.080 
Exercised   -   $-   $- 
Warrants outstanding at June 30, 2026   5,000,000   $0.026   $0.022 

 

Details of our warrants outstanding as of June 30, 2026, are as follows:

 

Warrants Exercisable   Weighted Average
Contractual Life of
Warrants Outstanding
and Exercisable (Years)		 
 5,000,000    0.71 

 

4. STOCK OPTIONS AND WARRANTS

 

Stock Options

 

As of December 31, 2025 and 2024, the Company granted stock options in the amount of 2,500,000, and 2,500,000, respectively. (See Note 2).

  

 

   12/31/2025   12/31/2024 
   Number of Options   Weighted average exercise price   Number of Options   Weighted average exercise price 
Outstanding as of the beginning of the periods   562,500,000   $0.0172    560,000,000   $0.0210 
Granted   2,500,000   $0.0395    2,500,000   $0.0036 
Expired/Cancelled   -    -    -    - 
Outstanding as of the end of the periods   565,000,000   $0.0191    562,500,000   $0.0172 
Exercisable as of the end of the periods   466,626,419   $0.0206    431,051,538   $0.0204 

 

 

NEWHYDROGEN, INC.

NOTES TO FINANCIAL STATEMENTS - AUDITED

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

 

4. STOCK OPTIONS AND WARRANTS (Continued)

 

The weighted average remaining contractual life of options outstanding as of December 31, 2025 and 2024 was as follows:

 

12/31/2025       12/31/2024     
Exercisable
Price		   Stock
Options
Outstanding		   Stock
Options
Exercisable		   Weighted
Average
Remaining
Contractual
Life (years)		   Exercisable
Price		   Stock
Options
Outstanding		   Stock
Options
Exercisable		   Weighted
Average
Remaining
Contractual
Life (years)		 
$0.0137    50,000,000    32,181,971    4.22   $0.0137    50,000,000    12,500,000    5.22 
$0.0036    2,500,000    833,328    8.92   $0.0036    2,500,000    

-

    9.92 
$0.0395    2,500,000    138,888    

9.34

                     
$0.0126    5,000,000    3,472,232    7.42   $0.0126    5,000,000    972,222    8.42 
$0.0121    100,000,000    25,000,000    4.46   $0.0121    100,000,000    -    5.46 
$0.0223    5,000,000    5,000,000    6.21   $0.0223    5,000,000    2,916,667    7.21 
$0.0210    400,000,000    400,000,000    3.28   $0.0210    400,000,000    400,000,000    4.28 
      565,000,000    466,626,419              562,500,000    416,388,889      

 

The Company adopted ASC 718 to account for stock-based awards measured at fair value, using the Black Scholes Model. The fair value compensation expense is based on the grant date of the stock options and warrants. which is the date the Company and employee reach a mutual agreement on the terms of the award. The cost is then recognized as an expense over the requisite service period and the recipient performs the required services.

 

The reliability of the grant-date fair value relies heavily on the quality and reasonableness of certain input assumptions. A significant input is the expected volatility of the Company’s stock over the option’s expected term. The expected term represents the period the Company anticipates the employee will hold the option before exercising it. The Black Scholes model requires the use of these assumptions to determine the fair value of the stock-based awards. The Company uses management’s best estimates, which include the awards expected term, the fair value of the common stock, the expected volatility of the price of the common stock, the risk-free interest rate,and the expected dividend yield of the common stock. The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. The Company has based its expected term on the simplified method available under U.S. GAAP.

 

The stock options terminate between seven (7) and ten (10) years from the date of grant or upon termination of employment. As of December 31, 2025, the aggregate total of 565,000,000 stock options were outstanding.

 

The stock-based compensation expense recognized in the statement of operations during the years ended December 31, 2025 and 2024, were $848,710 and $229,220, respectively.

 

As of December 31, 2025, there was no intrinsic value with regards to the outstanding options.

 

Warrants

 

As of December 31, 2025 and 2024, the Company issued no common stock purchase warrants during the years ended December 31, 2025 and 2024.

 

As of December 31, 2025 and 2024, the outstanding warrants were as follows:

 

   12/31/2025   12/31/2024 
   Number of Options   Weighted average exercise price   Number of Options   Weighted average exercise price 
Outstanding as of the beginning of the periods   228,958,334   $0.0483    228,958,334   $0.0483 
Granted   -    -    -    - 
Purchased   -    -    -    - 
Outstanding as of the end of the periods   228,958,334   $0.0483    228,958,334   $0.0483 
Exercisable as of the end of the periods   228,958,334         228,958,334      

 

 

NEWHYDROGEN, INC.

NOTES TO FINANCIAL STATEMENTS - AUDITED

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

 

4. STOCK OPTIONS AND WARRANTS (Continued)

 

The weighted average remaining contractual life of the warrants outstanding as of December 31, 2025, was as follows:

 

12/31/2025 
Exercisable
Price		   Stock Warrants
Outstanding		   Stock Warrants
Exercisable		  

Weighted Average
Remaining

Contractual Life
(years)

 
$0.0255    5,000,000    5,000,000    1.21 
$0.04    125,000,000    125,000,000    0.27 
$0.05    9,375,000    9,375,000    0.26 
$0.06    83,333,334    83,333,334    0.58 
$0.075    6,250,000    6,250,000    0.58 
      228,958,334    228,958,334      

 

There was no warrant compensation recognized as of December 31, 2025.