XML 37 R22.htm IDEA: XBRL DOCUMENT v3.26.1
Share-Based Compensation
 12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Share-Based Compensation

12. Share-Based Compensation

 

Summary of Restricted Common Stock

 

The following table summarizes restricted stock activity during the year ended December 31, 2025:

 

Schedule of Restricted Stock 

   Unvested
Shares		   Issuable
Shares		   Fair Value
at Date of
Issuance		   Weighted
Average
Grant Date
Fair Value		 
Balance, December 31, 2024   1,320,834    -   $4,531,224    3.43 
Granted   450,000    -    405,000    0.90 
Vested   (797,917)   797,917    -    - 
Forfeited   -    -    -    - 
Issued   -    (797,917)   (2,055,335)   - 
Balance, December 31, 2025   972,917    -   $2,880,889   $2.96 

 

On March 1, 2024, the Company granted its Chief Executive Officer 200,000 shares of the Company’s restricted stock and 225,000 shares of the Company’s restricted stock to other officers and employees with an aggregate fair value of $1,793,500 or $4.22 per share. The restricted stock grant vest 33% on the grant date, and 33% on each subsequent anniversary date.

 

On February 1, 2025, the Company granted its Chief Executive Officer 250,000 shares of the Company’s restricted stock and granted 200,000 shares of the Company’s restricted stock to two other officers with an aggregate fair value of $405,000 or $0.90 per share. The restricted stock grant vests monthly over 36 months.

 

During the years ended December 31, 2025 and 2024, the Company recognized stock-based compensation expense of $2,055,336 and $2,681,848, respectively, and issued 797,917 and 241,666 shares of restricted stock based on the vesting terms of the grants, respectively. As of December 31, 2025, the unamortized stock compensation expense for restricted stock amounted to $2,880,889, to be expensed upon vesting in future periods through February 2028.

 

Summary of Stock Options

 

The Company issues common stock and stock options as incentive compensation to directors and as compensation for the services of employees, contractors, and consultants of the Company.

 

The fair value of a stock option award is calculated on the grant date using the Black-Scholes option-pricing model. The fair market value of the common stock is determined by reference to the quoted market price of the common stock on the grant date. The expected term represents the weighted-average period of time that share option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future; and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award.

 

A summary of stock option activity is presented below:

 

Schedule of Stock Options 

   Number of   Weighted Average 
   Options   Exercise Price 
         
Stock options outstanding at December 31, 2023   743,116    4.43 
Granted   3,405,500    - 
Exercised   (2,843)   - 
Expired or forfeited   (23,943)   - 
Stock options outstanding at December 31, 2024   4,121,830   $4.28 
Granted   1,170,000    0.92 
Exercised   -    3.35 
Expired or forfeited   (1,244,608)   (1.05)
Stock options outstanding at December 31, 2025   4,047,222   $4.28 
Stock options exercisable at December 31, 2025   2,519,444   $4.32 

 

 

On April 1, 2024, the Company, pursuant to the terms of its 2019 Stock Incentive Plan, granted options exercisable into 3,405,500 shares of the Company’s common stock to be issued to its executives and employees. The 3,405,500 stock options had an exercise price of $4.01 per share, with 33% vesting on April 1, 2024, and 33% on each subsequent anniversary date. The stock options are exercisable at a weighted average price of $4.01 per share with an average life to expiration of approximately nine years. The total fair value of these options at the grant date was approximately $13,500,000, which was determined using a Black-Scholes option pricing model with the following average assumption: stock price of $4.01 per share, expected term of 6.00 years, volatility of 220%, dividend rate of 0%, and weighted average risk-free interest rate of 4.33%.

 

On February 1, 2025, the Company, pursuant to the terms of its 2019 Stock Incentive Plan, granted options exercisable into 1,170,000 shares of the Company’s common stock to its executives and employees. The stock options vest equally over 36 months. The stock options are exercisable at a weighted average price of $0.92 per share with an average life to expiration of approximately three years. The total fair value of these options at grant date was approximately $1,073,000, which was determined using a Black-Scholes option pricing model with the following average assumption: stock price of $0.92 per share, expected term of 6.00 years, volatility of 241%, dividend rate of 0%, and weighted average risk-free interest rate of 4.45%.

 

During the year ended December 31, 2025 and December 31, 2024, the Company recognized $3,671,565 and $8,031,290 of stock compensation expense relating to vested stock options, respectively. As of December 31, 2025, the aggregate amount of unvested compensation related to stock options was approximately $1,109,667 which will be recognized as an expense as the options vest in future periods through February 2028.

 

The weighted average remaining contractual life of common stock options outstanding and exercisable at December 31, 2025 was 8.16 years. Based on a fair market value of $1.03 per share on December 31, 2025, the intrinsic value attributed to exercisable but unexercised common stock options was $178,975 at December 31, 2025.

 

The exercise prices of common stock options outstanding and exercisable at December 31, 2025 are as follows:

 

Schedule of Options Summarized by Exercise Price 

Exercise Prices   Options Outstanding (Shares)   Options Exercisable (Shares) 
$0.92    992,222    318,611 
$1.05    7,500    7,500 
$1.25    24,000    24,000 
$1.50    400,000    400,000 
$3.35    61,000    61,000 
$4.42    2,562,500    1,708,333 
      4,047,222    2,519,444