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COMMON STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
COMMON STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK

NOTE 15 – COMMON STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK

 

Options

 

2026

 

During the three months ended March 31, 2026, the Company’s Board of Directors granted 5,000 5 year stock options with a strike price of $11.44 per share to one key employee. These options were awarded as a one-time award as a retention incentive and have a fair value of $40,948 and carry a three-year vesting period.

                 
    Shares   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term (Years)		   Aggregate
Intrinsic
Value		 
 Outstanding at December 31, 2024    606,452   $5.29    2.0   $514,394 
 Granted    20,000   $5.64    2.5   $112,200 
 Forfeited    (271,449)  $5.71    —   $— 
 Outstanding at December 31, 2025    355,003   $5.00    1.8   $2,219,665 
 Exercisable at December 31, 2025    283,000   $5.15    1.5   $1,727,688 
                       
 Outstanding at December 31, 2025    355,003   $5.00    1.8   $2,219,665 
 Granted    5,000   $11.44    4.8   $— 
 Exercised    (15,000)   $4.69    —   $— 
 Forfeited/Expired    (20,000)  $4.18    —   $— 
 Outstanding at March 31, 2026    325,003   $5.16    1.8   $575,104 
 Exercisable at March 31, 2026    251,334   $5.24    1.5   $408,018 

  

The fair value of the incentive stock option grants for the three months ended March 31, 2026 and 2025 were estimated using the following assumptions:

        
   For the Three Months Ended
March 31,		 
   2026   2025 
Stock price  $11.25   $— 
Exercise Price  $11.44   $— 
Risk free interest rate   3.55%   — 
Expected term in years   5    — 
Dividend yield   —    — 
Volatility of common stock   93.67%   — 

 

 Weighted average grant date fair value per option was $8.19 for the three months ended March 31, 2026.

 

 

Warrants

 

2026

 

In connection with the Company’s equity financing completed during the quarter ended March 31, 2026, the Company issued 5-year warrants for 433,334 common shares at an exercise price of $9.00 per share to the investment bankers who facilitated the offering. The warrants were issued contemporaneously with the closing of the financing and were included as part of the negotiated engagement terms. The warrants are indexed to the Company’s common stock, provide for settlement in a fixed number of shares for a fixed exercise price, and are freestanding equity instruments. Accordingly, they meet the criteria for equity classification under ASC 815-40 and are not subject to remeasurement in future periods.

The Company determined the warrants were non-compensatory pursuant to ASC 340-10-S99-1, as they were issued as part of the overall consideration for services directly related to the capital raise, were not tied to future performance, and did not include any vesting or service conditions.

 

The fair value of the warrants was determined using the Black-Scholes option-pricing model based on the following key assumptions: expected volatility, risk-free interest rate, expected term, and expected dividend yield as of the grant date. The resulting fair value of approximately $2,305,016 was recorded as a reduction to Additional Paid-In Capital (APIC) within stock issuance costs, with a corresponding credit to APIC for the issuance of the warrants.

 

The Company used the following assumptions in determining the fair value of the warrants:

    
Date of Grant  March 2, 2026 
Stock Price  $7.61 
Exercise Price  $9.00 
Expected Remaining Term (Years)   5.00 
Expected Volatility   92%
Dividend Yield   0%
Discount Rate - Bond Equivalent Yield   3.620%

 

No income statement impact is expected related to these warrants in future periods.  

                
   Number of
Warrants		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term (Years)		   Aggregate
Intrinsic
Value		 
Outstanding at December 31, 2024   —   $—    —   $— 
Warrants expired, forfeited, cancelled or exercised   —   $—    —   $— 
Warrants issued   375,276   $7.20    5.0   $— 
Outstanding at December 31, 2025   375,276   $7.20    4.6   $1,519,868 
Exercisable at December 31, 2025   375,276   $7.20    4.6   $1,519,868 
                     
Outstanding at December 31, 2025   375,276   $7.20    4.6   $1,519,868 
Warrants expired, forfeited, cancelled or exercised   —   $—    —   $— 
Warrants issued   433,334   $9.00    5.0   $— 
Outstanding at March 31, 2026   808,610   $8.16    4.7   $— 
Exercisable at March 31, 2026   808,610   $8.16    4.7   $— 

 

Restricted Stock

        
   Number of
Shares		   Weighted
Average
Grant
Date Fair Value Per Share		 
Unvested at December 31, 2024   —   $— 
Restricted stock granted   2,146,898   $6.13 
Restricted stock forfeited   (162,500)  $6.00 
Restricted stock vested   (20,000)  $5.22 
Unvested at December 31, 2025   1,964,398   $6.15 
Vested at December 31, 2025   20,000   $5.22 
           
Unvested at December 31, 2025   1,964,398   $6.15 
Restricted stock granted   420,000   $10.70 
Restricted stock forfeited   —   $— 
Restricted stock vested   (10,000)  $5.98 
Unvested at March 31, 2026   2,374,398   $6.95 
Vested at March 31, 2026   30,000   $5.47