NOTE 12. STOCK-BASED COMPENSATION

On July 15, 2024, the Board approved an amendment to the 2014 Plan to extend the term of the Plan for an additional ten years, effective as of January 1, 2024. The 2014 Plan is a broad-based plan under which shares of our common stock are authorized for issuance for awards, including stock options, stock appreciation rights, restricted stock, and cash incentive awards to members of our Board, executive officers, employees and independent contractors. At December 31, 2025, a total of 10,550,750 shares of our common stock were authorized for issuance. At December 31, 2025, 2,704,715 shares remained available for issuance as new awards under the 2014 Plan.

Stock Options

During the years ended December 31, 2025 and 2024, we issued 30,000 and 440,000 options to purchase our common stock, respectively, to executive officers, employees and independent contractors. The fair value of all stock options granted for the years ended December 31, 2025 and 2024, was determined to be $49,419 and $384,892, respectively, using the Black-Scholes option pricing model with the following assumptions:

As of December 31, 2025, our unrecognized share-based compensation expense associated with the stock options issued was $349,145, which is expected to be amortized over a weighted-average period of 1.57 years.

Restricted Stock

During the years ended December 31, 2025 and 2024, we issued an aggregate of 81,142 and 136,527 restricted shares of our common stock, valued at $229,634 and $255,042, respectively, to our board members in consideration of their service on the Board. These shares vested immediately on the grant dates.

At December 31, 2025 and 2024, unvested restricted shares were 0 and 36,364 respectively. The forfeitures of vested restricted shares were 18,182 and 0 in 2025 and 2024. As of December 31, 2025, there were 3,047,389 restricted shares outstanding.