NOTE 6 – STOCK BASED COMPENSATION

On August 21, 2025, at our 2025 Annual General Meeting of Shareholders, our shareholders approved the Quoin Pharmaceuticals Ltd. 2025 Equity Incentive Plan (the “2025 Plan”) and authorized the issuance pursuant to the 2025 Plan of up to 3,000,000 Ordinary Shares, subject to an automatic annual increase equal to the smaller of (a) fifteen percent (15%) of the number of Ordinary Shares issued and outstanding on a fully diluted basis on the immediately preceding December 31, or (b) an amount determined by our Board of Directors. The 2025 Plan supersedes the Amended and Restated Equity Incentive Plan (the “Amended Plan”), which was approved by the shareholders at the Company’s Annual General Meeting of Shareholders held on April 12, 2022.

The following table summarizes stock-based activities under the Amended Plan:

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The intrinsic value of exercisable options at September 30, 2025 was $0.

Stock options granted during the nine months ended September 30, 2025 were valued using the Black-Scholes option-pricing model with the following weighted average assumptions:

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The Company did not grant any options in the nine months ended September 30, 2024.

Stock based compensation expense was approximately $182,000 ($95,000 included in research and development expense and $87,000 included in general and administrative expenses) in the three months ended September 30, 2025 and approximately $864,000 ($301,000 included in research and development expense and $563,000 included in general and administrative expenses) in the nine months ended September 30, 2025.

Stock based compensation expense was approximately $313,000 ($68,000 included in research and development expense and $245,000 included in general and administrative expenses) in the three months ended September 30, 2024 and approximately $933,000 ($186,000 included in research and development expense and $747,000 included in general and administrative expenses) in the nine months ended September 30, 2024.

At September 30, 2025, the total unrecognized compensation expense related to non-vested options was approximately $2.5 million and is expected to be recognized over the remaining weighted average service period of approximately 3.53 years.