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Stock Appreciation Rights
 9 Months Ended
Sep. 30, 2025
Stock Appreciation Rights [Abstract]  
STOCK APPRECIATION RIGHTS

NOTE 6 - STOCK APPRECIATION RIGHTS

 

During the nine months ended September 30, 2025, 775,000 cash-settled SARs were issued to employees and consultants with an exercise price ranging from $0.45 to $0.67 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 3.90% - 4.43%, (2) expected life of 6.25 years, (3) expected volatility of 135% - 140%, and (4) zero expected dividends.

 

At September 30, 2025, the Company revalued the cash-settled SARs using a stock price of $2.01 and an exercise price ranging from $0.45 to $3.84. Variables used in the Black-Scholes option-pricing model include: (1) discount rate of 3.74% - 3.84%, (2) expected life of 5 – 6 years, (3) expected volatility of 132% - 137% and (4) zero expected dividends.

 

As of September 30, 2025, the total liability related to cash-settled SARs is $221,107, reflecting the fair value as of the reporting date. For the nine months ended September 30, 2025, the Company recorded compensation related to the cash-settled SARs in the amount of $216,640, included $202,159 and $14,481 research and development and general and administrative expense, respectively, in the accompanying unaudited condensed consolidated statements of operations.

 

A summary of the changes in SARs during the nine months ended September 30, 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    9.65   $
-
 
Granted   775,000   $0.58    9.56   $
-
 
Outstanding at September 30, 2025   885,000   $0.97    9.47   $
-
 
SARs vested at September 30, 2025   
-
   $
-
    -   $
-
 

  

At September 30, 2025, the Company has unrecognized compensation expense of approximately $1,450,100 related to unvested SARs which will be recognized over the weighted average remaining service period of 3.46 years.