The Company periodically issues stock options and warrants to employees and non-employees in capital raising transactions, for services, and for financing costs.

Options

Options vest according to the terms of the specific grant and expire from 2 to 10 years from date of grant. The weighted-average, remaining contractual life of employee and non-employee options outstanding at March 31, 2026 was 6.6 years. Stock option activity for the period January 1, 2026, up to March 31, 2026, was as follows:

The weighted average exercise prices, remaining contractual lives for options granted, exercisable, and expected to vest as of March 31, 2026 were as follows:

In the three-month period ending March 31, 2026, the Company issued options to purchase 833,333 shares of common stock to members of the Board of Directors, including 500,000 options issued to the Company’s CEO/CFO pursuant to the Director Compensation Policy. 833,333 options are exercisable at $0.15 per share and vest over one year. Total fair value of these options at grant date was $125,000 using the Black-Scholes Option Pricing model with the following assumptions: expected life of 5 years; risk free interest rate of 4.19%; volatility of 189% and dividend yield of 0%. During the three-month period ended March 31, 2026 and 2025, the Company recognized compensation costs based on the fair value of options that vested of $127,000 and $6,638,000, including amounts of $50,000 and $6,134,000 to officers and directors, respectively. .

As of March 31, 2026, the market price of the Company’s stock was $0.09 per share. At March 31, 2026, the aggregate intrinsic value of the options outstanding at March 31, 2026 was $2,759,000.

Warrants

The following table summarizes certain information about the Company’s stock purchase warrants activity for the period starting January 1, 2026 up to March 31, 2026.

The weighted average exercise prices, remaining contractual lives for warrants granted, exercisable, and expected to vest as of March 31, 2026 were as follows:

In the three-month period ending March 31, 2026, the Company issued warrants to purchase 99,999 shares of common stock in exchange for services. The warrants are exercisable at a price of $0.09 to $0.10, vest one month from the date of grant, and expire two years from the date of grant. Total fair value of these warrants at grant date was $6,000 using the Black-Scholes Option Pricing model with the following assumptions: life of 2 years; risk free interest rate of 3.48% to 3.88%; volatility of 136% to 140% and dividend yield of 0%. During the three-month period ended March 31, 2026, the Company recognized compensation costs based on the fair value of warrants that vested of $5,000.

During the period ended March 31, 2026, warrants to acquire 4,953,188 shares of common stock were exercised resulting in cash proceeds of $495,000 to the Company

At March 31, 2026, the market price of the Company’s common stock was $0.09 per share. At March 31, 2026, the aggregate intrinsic value of warrants outstanding was $692,000.