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Employment/Consulting Agreements

12 Months Ended

Dec. 31, 2024

(10) Employment/Consulting Agreements

The Company had contractual agreements with certain Named Executive Officers (“NEO”) in 2024 and 2023. The aggregate annual base compensation which includes bonuses and stock issuances for these NEO under their respective contractual agreements for 2024 (which takes into account amendments to these agreements effected in September 2024), and 2023 was $1,491,215 and $1,839,484, respectively. As part of the Company’s cash conservation strategy, certain NEOs were issued common stock in 2024 as a substitute for cash salaries. For the year ended December 31, 2024, stock issued as payroll totaled $250,000, which is included in the overall equity-based compensation expense. There was no stock issued as payroll for the year ended December 31, 2023. In addition, certain Officers were entitled to receive performance bonuses of up to 25% or 20% of their respective annual base salary, at the sole discretion of the Compensation Committee of the Board of Directors. For the years December 31, 2024 and 2023, there were no performance bonuses paid out. For the year ended December 31, 2023, Officers’ bonuses were $450,000 and were deferred and paid in 2024. An additional $50,000 was awarded retroactively in 2024 for 2023. For the year ended December 31, 2024, Officers’ bonuses were electively waived by the Officers.

In 2024, the Company reserved equity compensation for later issuance to these Officers.

a.	The Company reserved 300,000 ten-year options to be issued at a later date for Thomas K. Equels, Chief Executive Officer.

b.	The Company reserved 100,000 ten-year options to be issued at a later date for Peter Rodino, Chief Operating Officer and General Counsel.

The Company recorded stock compensation expense of approximately $156,600 during the year ended December 31, 2024 with regard to the 2023 issuances to Officers Equels and Rodino. The Company did not record stock compensation expense for the 2024 reserved options.

In 2023, equity was granted as a form of compensation to these Officers.

c.	The Company granted 300,000 ten-year options to purchase common stock with an exercise price of $0.47 per share to vest in one year to Thomas K. Equels, Chief Executive Officer.

d.	The Company granted 100,000 ten-year options to purchase common stock with an exercise price of $0.47 per share which vest in one year to Peter Rodino, Chief Operating Officer and General Counsel.

The Company recorded stock compensation expense of approximately $14,000 during the year ended December 31, 2023 with regard to these issuances to Officers Equels and Rodino.