Quarterly report [Sections 13 or 15(d)]

STOCK OPTIONS

v3.25.3
STOCK OPTIONS
 9 Months Ended
Sep. 30, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK OPTIONS

NOTE 11- STOCK OPTIONS

 

On July 1, 2025, the Company approved the issuance of 2,000,000 options to BlueUTA to purchase shares of the Company’s Class A common stock under the Company’s 2023 Equity Incentive Plan (“the Equity Plan”). The options were valued using the Black-Scholes option pricing model under the following assumptions as found in the table below.

  

Date     Number of Stock Options       Stock Price       Strike Price       Expected Volatility       Interest Rate       Dividend Rate      

Expected

Term (years)

       Fair Value  
7/1/2025     2,000,000     $ 0.03     $ 0.12       131.23 %     3.84 %     0.00 %     5.0     $ 41,025  

 

A summary of the status of the Company’s outstanding stock options and changes during the periods is presented below:

  

    Shares available
to purchase		     Weighted
Average		     Weighted
Average
Remaining
Contractual		     Aggregate  
    with options     Exercise Price     Term (in years)     Intrinsic Value  
Outstanding, December 31, 2024     3,640,000     $ 0.17       9.02     $ -  
Issued     2,000,000       0.12       9.75          
Exercised     -       -       -       -  
Cancelled     (100,000 )     0.17       -       -  
Expired     -       -       -       -  
Outstanding, September 30, 2025     5,540,000     $ 0.15       8.81     $ -  
                                 
Exercisable, September 30, 2025     2,147,067     $ 0.17       8.32     $ -  
                                 
Outstanding, December 31, 2023     -     $ -       -     $ -  
Issued     5,050,000       0.17       8.75       -  
Exercised     -       -       -       -  
Cancelled     (290,000 )     0.17       -       -  
Expired     -       -       -       -  
Outstanding, September 30, 2024     4,760,000     $ 0.17       9.26     $ -  
                                 
Exercisable, September 30, 2024     876,036     $ 0.17       9.26     $ -  

 

 

The compensation expense attributed to the issuance of the stock options is recognized as they vest.

 

Total compensation expense related to the stock options was $39,516 and $162,324 for the three and nine months ended September 30, 2025, respectively; total compensation expense related to the stock options was $31,293 and $146,415 for the three and nine months ended September 30, 2024, respectively, and was included in compensation expense on the statement of operations. As of September 30, 2025, there was $263,512 in future compensation cost related to non-vested stock options.

 

The aggregate intrinsic value as of September 30, 2025 is zero for total outstanding and exercisable options, which was based on our estimated fair value of the Class A common stock of $0.03, had all option holders exercised their options as of that date, net of the aggregate exercise price.