9. OPTIONS

On June 2, 2020, the Company issued 2,000,000 options, on a post reverse split basis, to purchase common stock to the then directors of the Company as compensation for serving on the board during 2019. These options are exercisable on a cashless basis for a period of ten years from September 30, 2020, at an exercise price of $0.01.

For the purpose of determining the fair market value of the options issued on June 2, 2020, the Company used the Black Scholes valuation model. The significant assumptions used in the Black Scholes valuation model for the options are as follows:

On March 13, 2023, the Company entered into non-qualified stock option agreements and granted vested ten-year options to purchase shares of the Company’s common stock for $0.175 a share, the closing price on the grant date. The Company issued options to purchase a total of 3,542,857 shares as follows: (a) 857,143 to each of the independent directors, (b) 428,571 to the chief financial officer, and 571,429 to the president of our StemVax Therapeutics subsidiary; (c) 57,143 to each of our scientific advisory board members; and (d) the remaining 542,857 to staff members and other service providers. The Options are 100% vested and exercisable on the grant date and will expire on the tenth anniversary of the grant date on March 13, 2033. The stock-based compensation expense of $563,315 relating to the 2023 grants was recorded in the income statement on the grant date as the options are fully vested and exercisable on that date.

For the purpose of determining the fair market value of the options, the Company used the Black Scholes valuation model. The significant assumptions used in the Black Scholes valuation model for the options are as follows:

A summary of the Company’s options activity and related information follows for the period ended September 30, 2023:

At September 30, 2024, the weighted average remaining contractual life of options outstanding: