NOTE 6 – STOCK OPTION PLANS AND WARRANTS

Options

The Company maintains multiple stock-based compensation plans (collectively, the Plans), including legacy plans under which certain awards may remain outstanding. The Company’s primary plan is the 2023 Employee Benefit and Consulting Services Compensation Plan (the 2023 Plan), which was approved by the Board of Directors on December 19, 2023. The 2023 Plan is substantially similar to prior plans but provides for a larger share reserve and continued flexibility in granting equity-based awards. The 2023 Plan was amended in October 2024 and December 2025 to most recently increase the number of shares available for issuance to 6,000,000 shares.

In addition, the Company adopted the 2023 Equity Participation Plan (the 2023 EP Plan), which was approved by the Board of Directors on April 17, 2023, and by stockholders on August 14, 2023. The 2023 EP Plan authorizes the issuance of up to 166,667 shares and allows for the grant of restricted unit awards.

On December 31, 2025, the Board approved an increase in the number of shares available under the 2023 Plan to 6,000,000 shares and granted 1,500,000 non-statutory stock options with a five-year term, immediately exercisable, at an exercise price of $1.10 per share to certain officers, directors, employees, and consultants.

All stock options under the Plans are granted at or above the fair market value of the common stock at the grant date. Employee and non-employee stock options vest over varying periods and generally expire either 5 or 10 years from the grant date. The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model. For option grants, the Company will take into consideration payments subject to the provisions of ASC 718 Stock Compensation. No stock options were granted during the nine months ended September 30, 2026.

The aggregate intrinsic value of options outstanding and exercisable at September 30, 2026, and December 31, 2025, is calculated as the difference between the exercise price of the underlying options and the market price of the Company’s common stock closing price of $0.50 and $1.32, respectively.

As of September 30, 2026, there is no unamortized compensation cost related to unvested stock option awards.

Warrants

Effective May 1, 2026, the Company entered into a Consulting Agreement with a third-party consultant, with a service term of nine months. Compensation under the agreement included warrants for the purchase of 120,000 shares of common stock at an exercise price of $0.50 per share, as of the effective date. The warrants are exercisable at any time for a three-year term from the effective date.

On August 12, 2026, the Company entered into a Consulting Services Agreement with an unrelated consultant. The consultant is to provide general business development services for a term of nine months from the date of the agreement. Compensation under the agreement consisted of the issuance of 1,500,000 shares of the Company’s restricted common stock and warrants to purchase 1,500,000 shares of restricted common stock over a three-year period at an exercise price of $0.50 per share.