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Stock-Based Compensation

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

8. Stock-Based Compensation

The Company periodically 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.

Stock Options Issued, Vested and Cancelled

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

As of March 31, 2026, unexpired stock options for 719,309 shares were issued and outstanding under the 2020 Plan and 2,780,691 shares were available for issuance under the 2020 Plan.

During the three months ended March 31, 2026, the Company did not grant any stock options.

On January 20, 2025, the Company granted 16,554 stock options to four non-officer directors of the Company to purchase shares of the Company’s common stock, exercisable for a period of five years at an exercise price of $2.33 per share (the closing market price on the grant date). The grant date fair value of the stock options determined pursuant to the Black-Scholes option-pricing model was determined to be $27,500 and was accrued at December 31, 2024 and charged to operations in 2024. During the three months ended March 31, 2025, there was no expense charged to operations with respect to these stock options.

On March 31, 2025, the Company granted to four non-officer directors of the Company a total of 32,181 stock options to purchase shares of the Company’s common stock, exercisable for a period of five years at an exercise price of $1.21 per share (the closing market price on the grant date). The stock options are exercisable for a period of five years and were immediately vested. The grant date fair value of the stock options determined pursuant to the Black-Scholes option-pricing model was determined to be $27,500, which was charged to operations on March 31, 2025, the date the stock options were fully vested.

The total fair value of options that vested during the three months ended March 31, 2026 and 2025, was $82,176 and $99,738 respectively.

The fair value of a stock option award is calculated on the grant date using the Black-Scholes option-pricing model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect as of the grant date. The expected dividend yield assumption is based on the Company’s expectation of dividend payouts and is assumed to be zero. The estimated volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. Unless sufficient historical exercise data is available, the expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). 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.

For stock options requiring an assessment of value during the three months ended March 31, 2025, the fair value of each stock option award was estimated using the Black-Scholes option-pricing model with the following assumptions:

Schedule of Fair Value of Each Option Award Estimated Assumption

Risk-free interest rate			3.950	%
Expected dividend yield			0	%
Expected volatility			128.78	%
Expected life			2.5 years

A summary of stock-based compensation costs for the three months ended March 31, 2026 and 2025 is as follows:

		2026				2025
		Three Months Ended March 31,
		2026				2025

Officers and directors of the Company		$	82,176			$	99,738
Non-related parties			-				-
Stock-based compensation costs		$	82,176			$	99,738

A summary of stock option activity during the three months ended March 31, 2026 is as follows:

		Number of Shares				Weighted Average Exercise Price				Weighted Average Remaining Contractual Life (in Years)
Stock options outstanding at December 31, 2025			1,158,059			$	5.033				3.34
Granted			—				—
Exercised			—				—
Expired			(10,000	)			32.10
Stock options outstanding at March 31, 2026			1,148,059				4.797				3.13

Stock options exercisable at December 31, 2025			1,059,311				5.20				3.23
Stock options exercisable at March 31, 2026			1,148,059			$	4.797				3.13

As of March 31, 2026, 1,148,059 stock options were vested and exercisable. Total deferred compensation expense for the outstanding value of unvested stock options was approximately $230,000 at March 31, 2026, which will be recognized subsequent to March 31, 2026 over a weighted-average period of approximately 9 months.

At March 31, 2026, the outstanding common stock options, including options issued in the form of warrants, are exercisable at the following prices per common share:

Exercise Prices				Options Outstanding (Shares)				Options Exercisable (Shares)
$	0.905				72,648				50,148
$	1.210				32,181				32,181
$	1.870				21,217				21,217
$	1.950				250,000				250,000
$	2.330				16,665				16,665
$	2.370				51,598				44,100
$	2.390				5,000				5,000
$	2.830				350,000				350,000
$	3.590				50,000				31,250
$	4.050				50,000				25,000
$	4.450				50,000				25,000
$	5.025				8,750				8,750
$	5.880				40,000				40,000
$	7.400				55,000				55,000
$	20.000				20,000				20,000
$	20.600				20,000				20,000
$	28.000				25,000				25,000
$	30.300				30,000				30,000
$	32.100				-				10,000
					1,148,059				1,059,311

Based on the closing fair market value of $3.07 per common share on March 31, 2026, the intrinsic value attributed to exercisable but unexercised common stock options was approximately $615,232 at March 31, 2026.

Outstanding stock options to acquire 66,249 shares of the Company’s common stock had not vested at March 31, 2026.