Annual report [Section 13 and 15(d), not S-K Item 405]

STOCKHOLDERS??? OPTIONS

v3.26.1
STOCKHOLDERS’ OPTIONS
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCKHOLDERS’ OPTIONS

NOTE 11 – STOCKHOLDERS’ OPTIONS

 

Company grants stock options under its 2023 Equity Incentive Plan to employees, directors, and service providers. Stock options are measured at fair value on the grant date using the Black-Scholes option pricing model and are recognized as compensation expense over the vesting period in accordance with ASC 718. The total number of shares reserved and available for issuance under the Plan is 100,000,000 shares of stock, with 94,460,000 and 96,360,000 available to be issued at December 31, 2025 and 2024, respectively.

 

On July 1, 2025, the Company granted 2,000,000 stock options to BlueUTA to purchase shares of Class A common stock. The options were valued using the Black-Scholes option pricing model, resulting in a grant-date fair value of $41,025. The valuation incorporated the following assumptions:

  

Date   Number of Stock Options     Stock Price     Strike Price     Expected Volatility     Interest Rate     Dividend Rate     Expected Term (years)     Fair Value  
7/01/2025     2,000,000     $ 0.03     $ 0.12       131.23 %     3.84 %     0.00 %     5.0     $ 41,025  

 

No stock options were granted during the year ended December 31, 2024; therefore, no valuation assumptions are presented for that period.

 

Compensation expense related to stock options was $201,713 for the year ended December 31, 2025 and $168,818 for the year ended December 31, 2024. As of December 31, 2025, unrecognized compensation cost related to non-vested stock options was $224,122.

 

A summary of stock option activity for the years ended December 31, 2025 and 2024 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, December 31, 2025     5,540,000     $ 0.15       8.56     $ -  
                                 
Exercisable, December 31, 2025     2,511,021     $ 0.16       8.14     $ -  
                                 
Outstanding, December 31, 2023     -     $ -       -     $ -  
Issued     5,050,000       0.17       9.04       -  
Exercised     -       -       -       -  
Cancelled     (1,410,000 )     0.17       -       -  
Expired     -       -       -       -  
Outstanding, December 31, 2024     3,640,000     $ 0.17       9.02     $ -  
                                 
Exercisable, December 31, 2024     876,036     $ 0.17       9.02     $ -  

 

As of December 31, 2024, the aggregate intrinsic value for total outstanding and exercisable options is zero based on the estimated fair value of the Company’s Class A common stock on that date.