NOTE 7 – STOCK OPTIONS

Stock Options Issued, Vested and Cancelled

During the three months ended September 30, 2025, the Company granted no stock options, had no forfeitures of stock options and stock options to purchase an aggregate of 4,478 shares of Common Stock, subject to time-based milestone vesting conditions, vested. During the three months ended September 30, 2024, the Company granted no stock options, had forfeitures of 12,295 stock options and stock options to purchase an aggregate of 4,771 shares of Common Stock, subject to time-based milestone vesting conditions, vested.

During the nine months ended September 30, 2025, the Company granted no stock options, had forfeitures of 30,716 stock options and stock options to purchase an aggregate of 31,857 shares of Common Stock, subject to time-based milestone vesting conditions, vested. During the nine months ended September 30, 2024, the Company issued stock options under the 2023 Plan to employees to purchase an aggregate of 104,433 shares of Common Stock with a strike price equal to $8.13 per share and a term of ten years. Of the stock options granted, stock options to purchase an aggregate of 37,433 shares of Common Stock were fully vested at issuance and the remaining stock options are subject to time-based vesting over a term ranging between one to three years. These stock options had a total fair value of approximately $849,000, as calculated using the Black-Scholes pricing model with the following assumptions: volatility of 88.41%, discount rate of 4.20%, expected term of 6.5 years, and an exercise price of $8.13. Additionally, during the nine months ended September 30, 2024, the Company had forfeitures of 17,649 stock options and stock options to purchase an aggregate of 52,309 shares of Common Stock, subject to time-based milestone vesting conditions, vested.

Stock-Based Compensation

Total stock-based compensation related to the Company’s stock options was approximately $53,000 and $121,000 for the three months ended September 30, 2025 and 2024, respectively. For the three months ended September 30, 2025, the Company recognized approximately $52,000 of stock-based compensation related to its stock options within general and administrative expense, and approximately $1,000 within research and development expense on the condensed consolidated statements of operations and comprehensive loss. For the three months ended September 30, 2024, the Company recognized approximately $107,000 of stock-based compensation related to its stock options within general and administrative expense, and approximately $14,000 within research and development expense on the condensed consolidated statements of operations and comprehensive loss.

Total stock-based compensation related to the Company’s stock options was approximately $208,000 and $553,000 for the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025, the Company recognized approximately $201,000 of stock-based compensation related to its stock options within general and administrative expense, and approximately $7,000 within research and development expense on the condensed consolidated statements of operations and comprehensive loss. For the nine months ended September 30, 2024, the Company recognized approximately $398,000 of stock-based compensation related to its stock options within general and administrative expense, and approximately $155,000 within research and development expense on the condensed consolidated statements of operations and comprehensive loss.

The following table summarizes the activity related to the Company’s stock options for the nine months ended September 30, 2025:

As of September 30, 2025, the remaining unamortized stock-based compensation expense related to the stock options was approximately $86,000 with 16 months of amortization remaining.