XML 24 R12.htm IDEA: XBRL DOCUMENT v3.25.1
Stock Appreciation Rights
 3 Months Ended
Mar. 31, 2025
Stock Appreciation Rights [Abstract]  
STOCK APPRECIATION RIGHTS

NOTE 6 - STOCK APPRECIATION RIGHTS

 

During the three months ended March 31, 2025, 300,000 cash-settled stock appreciation rights have been issued to consultants with an exercise price of $0.45 with a 10-year term and vesting over a 4-year period. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 4.43%, (2) expected life of 6.25 years, (3) expected volatility of 135%, and (4) zero expected dividends.

 

At March 31, 2025, the Company revalued the cash-settled stock appreciation rights using a stock price of $0.27 and an exercise price of $0.45 - $3.84. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 3.96% - 4.03%, (2) expected life of 5.50 – 6.00 years, (3) expected volatility of 128% - 131% and (4) zero expected dividends.

 

As of March 31, 2025, the total liability related to cash-settled SARs is $7,505, reflecting the fair value as of the reporting date. During the quarter ended March 31, 2025, the Company recorded compensation related to the cash-settled SARs in the amount of $3,038, included in research and development expenses in the accompanying unaudited condensed consolidated statements of operations.

 

A summary of the changes in SARs during the three months ended March 31, 2025 is as follows:

 

   Number of Cash-Settled
SARS		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
Term		   Aggregate
Intrinsic
Value		 
Outstanding at December 31, 2024   110,000   $0.99    9.58   $
          -
 
Granted   300,000   $0.33    9.76   $- 
Outstanding at March 31, 2025   410,000   $1.32    9.65   $
-
 
SARs vested at March 31, 2025   
-
   $
-
    -   $- 

 

At March 31, 2025, the Company has unrecognized compensation expense of approximately $82,300 related to unvested stock appreciation rights which will be recognized over the weighted average remaining service period of 3.65 years.