9. STOCK OPTIONS

Stock options issued during the year ended December 31, 2025

During the year ended December 31, 2025, the Company granted its two independent directors and CEO options to purchase an aggregate of 750,000 shares of the Company’s common stock with exercise prices of $0.148 per share. All options vested on the date of 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 259.9%, (ii) a discount rate of 3.75%, (iii) zero expected dividend yield, and (iv) an expected life of 10 years, which is the average of the term of the options. The total fair value of the option grants was approximately $112,500. Also in the year ended December 31, 2025, the Company granted its two independent directors, its CEO, CFO and an administrative staff member, options to purchase an aggregate of 950,000 shares of the Company’s common stock with exercise prices of $0.15 per share. All options vested on the date of 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 254.2%, (ii) a discount rate of 3.73%, (iii) zero expected dividend yield, and (iv) an expected life of 10 years, which is the average of the term of the options. The total fair value of the option grants was approximately $142,500. As of December 31, 2025, there is no unrecognized compensation cost that will be recognized in 2026.

Stock options issued during the year ended December 31, 2024

During the year ended December 31, 2024, the Company granted its CFO 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 1one 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 10 years, which is the average of the term of the options and their vesting periods. The total fair value of the option grants to the Company’s CFO 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 was amortized 1one year from the date of grant. As of December 31, 2024, there was approximately $65,500 of unrecognized compensation cost to be recognized in 2025.

A summary of the Company’s stock option activity during the years ended December 31, 2025 and 2024 is as follows:

SCHEDULE OF STOCK OPTION ACTIVITY 

On December 31, 2025, the 13,193,376 outstanding stock options had aggregate intrinsic value of $3,130.

A summary of the Company’s stock options outstanding as of December 31, 2025 is as follows:

 SCHEDULE OF STOCK OPTION OUTSTANDING 

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

SCHEDULE OF STOCK OPTION OUTSTANDING AND EXERCISABLE