STOCK OPTIONS

9 Months Ended

Sep. 30, 2025

Share-Based Payment Arrangement [Abstract]

STOCK OPTIONS

9. STOCK OPTIONS

The Company has a stock option plan (“Plan”). The purpose of this Plan is to provide additional incentives to key employees, officers, directors and consultants of the Company and its subsidiaries in order to help attract and retain the best available personnel for positions of responsibility and otherwise promote the success of the Company’s business. It is intended that options issued under this Plan constitute non-qualified stock options. The general terms of awards under the option plan are that 100% of the options granted will vest the year following the grant unless an executive employee is granted a multi-year stock option grant where an equal amount vests over the next 5 years. The maximum term of options granted is 5 years and the exercise price for all options are issued for not less than fair market value at the date of the grant.

The following table summarizes the Company’s stock option activities for the year ended December 31, 2024 and the nine months ended September 30, 2025:

	Number of shares			Exercise price per share		Weighted average exercise price
Balance, December 31, 2023		1,114,000		$	1.75 – 3.61	$	3.13
Granted		1,081,000		$	2.00 – 4.05	$	2.12
Cancelled or expired		(275,000	)	$	1.75 – 3.61	$	2.54
Exercised		(80,000	)	$	1.75 – 2.44	$	2.31
Balance, December 31, 2024		1,840,000		$	2.00 – 4.05	$	2.68
Cancelled or expired		(5,034	)	$	2.00 – 3.61	$	3.24
Exercised		(174,966	)	$	2.00 – 3.61	$	2.84
Balance, September 30, 2025		1,660,000		$	2.00 – 4.05	$	2.67
Exercisable, September 30, 2025		759,000		$	2.00 – 3.61	$	2.69

During the three and nine months ended September 30, 2025 and 2024, the Company recognized stock based compensation associated with stock options as follows:

	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Line item on the statement of operations and comprehensive income (loss):
Wages, administrative salaries and benefits	$	79,739	$	126,136	$	239,219	$	489,421
Consulting		18,180		7,987		54,540		23,962
	$	97,919	$	134,123	$	293,759	$	513,383

During the nine months ended September 30, 2025, the Company granted nil (2024 – 56,000) stock options to consultants and nil (2024 – 944,000) stock options to employees. The fair value of options granted during 2024 was calculated using the following range of assumptions:

	2024
Expected life – years		3.0
Interest rate		1.76 – 4.11	%
Volatility		66.01 – 71.59	%
Fair value of options granted		$1.46 – 2.02

As of September 30, 2025, the weighted-average remaining contractual life of outstanding and exercisable options is 2.8 years and 2.6 years, respectively. As of September 30, 2025, there was approximately $310,092 of compensation expense related to non-vested awards that is expected to be recognized over a weighted average period of 1.2 years.

The aggregate intrinsic value of options outstanding and exercisable at September 30, 2025 is $11,573,559 (2024 - $2,022,015) and $5,274,469 (2024 - $637,270), respectively. During the nine months ended September 30, 2025, the intrinsic value of stock options exercised was $687,633 (2024 - $720).