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Stock Option Plan
 9 Months Ended
Sep. 30, 2025
Stock Option Plan [Abstract]  
Stock Option Plan

8. Stock Option Plan

 

During 2022, the Company created a stock option plan (the “Plan”) that provides for the granting of options to certain employees for the purchase of the Company’s common shares. The Plan provides for the grant of stock options for eligible employees as determined by the Board of Directors and does not guarantee employment rights. During the nine months ended September 30, 2025 and 2024, the Company granted options to purchase 0 and 333,574 shares, respectively, of the Company’s common shares at an exercise price of $0.0001 per share. The weighted-average grant date fair values of options granted was $0.60 per share.

 

The fair values of the stock-based awards granted were calculated with the following assumptions:

 

Risk-free interest rate   3.81%
Expected term (years)   5-10 
Expected volatility   80%
Dividend yield   0%

 

For the three and nine month periods ended September 30, 2025 and 2024, the Company recorded approximately $0 and $1,273,000, respectively, of stock-based compensation expense under this plan. On February 7, 2024, as a result of the Reverse Recapitalization (Note 1), 4,000,000 stock options were exercised and converted at an exchange ratio of 0.0661 into 264,400 shares of common stock. This stock option plan was closed upon the business combination and a new equity incentive plan was approved and implemented as of February 7, 2024.

 

Stock option activity for the nine

months ended September 30, 2024 is summarized as follows:

 

   Shares   Weighted Average Exercise Price   Weighted Remaining Contractual Life(Years) 
Options outstanding at December 31, 2023   3,666,426    0.0001    8.10 
Granted   333,574    0.0001    8.10 
Exercised   (4,000,000)   0.0001    
—
 
Expired or forfeited   
—
    
—
    
—
 
                
Options outstanding at September 30, 2024   
—
    
—
    
—
 

 

For the three and nine months ended September 30, 2025, the Company issued 14,787 and 131,703 restricted stock units under the new equity incentive plan, that vest immediately up to eight months. During the three and nine months ended September 30, 2025, the Company recognized approximately $3,000 and $316,000 of stock compensation related to such restricted stock units and 85,287 of such units were exercised.