6. STOCK OPTIONS

Stock options issued during the year ended December 31, 2024

During the year ended December 31, 2024, the Company granted to its Chief Financial Officer options to purchase an aggregate of 250,000 shares of the Company’s common stock with exercise prices of $0.38 per share that expire ten years from the date of grant. Half of the options granted vested upon grant and the other half vests in one year. The fair value of each option award was estimated on the date of grant using the Black-Scholes-Merton Option Pricing model based on the following assumptions: (i) a volatility rate of 267.24%, (ii) a discount rate of 4.7%, (iii) zero expected dividend yield, and (iv) an expected life of 5 years, which is the average of the term of the options and their vesting periods. The total fair value of the option grants to Ms. Missal at its grant date was approximately $95,000, $47,500 of which was allocated to general and administrative expenses during the year ended December 31, 2024, and $47,500 of which will be amortized one year from the date of grant. As of December 31, 2024, there is approximately $65,500 of unrecognized compensation cost that will be recognized in 2025.

Stock options issued during the year ended December 31, 2023

During the year ended December 31, 2023, the Company granted to directors, advisors, and employees options to purchase an aggregate of 2,050,000 shares of the Company’s common stock with exercise prices of between $0.1337 and $0.212 per share that expire ten years from the date of grant. One option granted for 300,000 shares vests over two years, the other 1,750,000 options vested upon grant. The fair value of each option award was estimated on the date of grant using the Black-Scholes-Merton Option Pricing model based on the following assumptions: (i) a volatility rate of between 269.66% and 277.5%, (ii) a discount rate of between 1.40% and 4.27%, (iii) zero expected dividend yield, and (iv) an expected life of 5 years, which is the average of the term of the options and their vesting periods. The total fair value of the option grants to directors, advisors, and employees at their grant dates was approximately $413,470, $386,530 of which was allocated to general and administrative expenses during the year ended December 31, 2023, and $26,940 of which will be amortized over two years from the date of grant. At December 31, 2023, $22,450 of the cost of the outstanding stock-based awards remained outstanding and will be amortized over the next two years.

A summary of the Company’s stock option activity during the years ended December 31, 2024 and 2023 is as follows:

SCHEDULE OF STOCK OPTION ACTIVITY 

At December 31, 2024, the 11,594,210 outstanding stock options had aggregate intrinsic value of $99,130.

A summary of the Company’s stock options outstanding as of December 31, 2024 is as follows:

SCHEDULE OF STOCK OPTION OUTSTANDING 

A summary of the Company’s stock options outstanding and exercisable as of December 31, 2023 is as follows:

SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE