| STOCK OPTIONS AND WARRANTS |
| | 7. | STOCK OPTIONS AND WARRANTS | Options Transactions involving our options are summarized as follows: Year Ended June 30, 2026 | | | | | | | | | Weighted | | | | | | | | | | | Average | | | | | | | | Weighted | | | Grant-Date | | | | | Number of | | | Average | | | Per Share | | | | | Options | | | Exercise Price | | | Fair Value | | | Options outstanding at June 30, 2025 | | | 435,894,499 | | | $ | 0.013 | | | $ | 0.012 | | | Granted | | | 45,000,000 | | | $ | 0.022 | | | $ | 0.014 | | | Canceled/Expired | | | (3,000,000 | ) | | $ | 0.016 | | | $ | 0.013 | | | Exercised | | | - | | | $ | 0.000 | | | $ | 0.000 | | | Options outstanding at June 30, 2026 | | | 477,894,499 | | | $ | 0.014 | | | $ | 0.012 | | Year Ended June 30, 2025 | | | | | | | | | Weighted | | | | | | | | | | | Average | | | | | | | | Weighted | | | Grant-Date | | | | | Number of | | | Average | | | Per Share | | | | | Options | | | Exercise Price | | | Fair Value | | | Options outstanding at June 30, 2024 | | | 266,894,499 | | | $ | 0.011 | | | $ | 0.011 | | | Granted | | | 275,000,000 | | | $ | 0.017 | | | $ | 0.013 | | | Canceled/Expired | | | (102,666,667 | ) | | $ | 0.016 | | | $ | 0.013 | | | Exercised | | | (3,333,333 | ) | | $ | 0.016 | | | $ | 0.013 | | | Options outstanding at June 30, 2025 | | | 435,894,499 | | | $ | 0.013 | | | $ | 0.012 | | Details of our options outstanding as of June 30, 2026, is 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) | | | | 342,894,499 | | | | 0.012 | | | | 3.87 | | | | 3.95 | | Details of our options outstanding as of June 30, 2025, is 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) | | | | 259,894,499 | | | | 0.011 | | | | 1.31 | | | | 3.87 | | Grant date fair value of the stock options was calculated using a modified Black Scholes option pricing model. The grant date fair value is recognized as an expense over the term of the options as they vest or on a straight-line basis. Total stock compensation expense related to the options for the year ended June 30, 2026 and 2025, was $1,166,989 and $665,058, respectively. As of June 30, 2026 there was approximately $1 million of unrecognized compensation cost related to the options, which is expected to be recognized over a remaining weighted-average vesting period of approximately 0.74 years. During the year ended June 30, 2026, the significant assumptions used in the calculation of grant date fair value of the stock options are as follows: | Risk free interest rate | | | 3.84 | % | | Expected volatility | | | 96 | % | | Stock price per share | | $ | 0.0228 | | | Expected term [1] | | | 2.75 years | | | [1] | When determining the expected term for options issued, the Company used the simplified method. | Warrants Transactions involving our warrants are summarized as follows: Year Ended June 30, 2026 | | | | | | Weighted | | | | | Number of | | | Average | | | | | Warrants | | | Exercise Price | | | Warrants outstanding at June 30, 2025 | | | 78,095,239 | | | $ | 0.121 | | | Issued | | | - | | | $ | - | | | Canceled/Expired | | | (78,095,239 | ) | | $ | 0.121 | | | Exercised | | | - | | | $ | - | | | Warrants outstanding at June 30, 2026 | | | - | | | $ | - | | Year Ended June 30, 2025 | | | | | | Weighted | | | | | Number of | | | Average | | | | | Warrants | | | Exercise Price | | | Warrants outstanding at June 30, 2024 | | | 78,095,239 | | | $ | 0.121 | | | Issued | | | - | | | $ | - | | | Canceled/Expired | | | - | | | $ | - | | | Exercised | | | - | | | $ | - | | | Warrants outstanding at June 30, 2025 | | | 78,095,239 | | | $ | 0.121 | | Details of our warrants outstanding as of June 30, 2025, is as follows: | Warrants Exercisable | | | Weighted Average Contractual Life of Warrants
Outstanding and Exercisable (Years) | | | | 78,095,239 | | | | 0.67 | |
|