STOCK BASED COMPENSATION

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

STOCK BASED COMPENSATION

14. STOCK BASED COMPENSATION

The Company has a stock option plan and stock incentive 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 plan are that 100% of the awards granted will vest the year following the grant unless an executive employee is granted a multi-year stock option award 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.

During the years ended December 31, 2025 and 2024, the Company recognized stock-based compensation as follows: 

	2025		2024
Wages, administrative salaries and benefits	$	440,017	$	623,000
Professional fees		115,250		50,130
	$	555,267	$	673,130

The following table summarizes the Company’s stock option activities for the years ended December 31, 2025 and 2024:

	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		1,091,000		$	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		1,850,000		$	2.00 – 4.05	$	2.68
Granted		66,000		$	7.00	$	7.00
Cancelled or expired		(5,000	)	$	2.00 – 3.61	$	2.84
Exercised		(212,000	)	$	2.00 – 3.61	$	2.80
Balance, December 31, 2025		1,699,000		$	2.00 – 7.00	$	2.83
Exercisable, December 31, 2025		1,083,000		$	2.00 – 4.05	$	2.74

During the year ended December 31, 2025, the Company granted 36,000 (2024 – 102,000) stock options to consultants and 30,000 (2024 – 979,000) stock options to employees. The fair value of options and awards granted during 2025 and 2024 was calculated using the following range of assumptions:

	2025			2024
Expected life – years		3.0			3.0
Interest rate		3.7	%		1.76 – 4.11	%
Volatility		64.55	%		66.01 – 71.59	%
Stock price	$	7.00		$	2.00 - 4.05
Exercise price	$	7.00		$	1.78 - 4.05
Fair value of stock awards granted	$	3.19		$	1.46 – 2.02

As of December 31, 2025, the weighted-average remaining contractual life of outstanding and exercisable options is 2.7 years and 2.6 years, respectively. As of December 31, 2025, there was approximately $380,604 of compensation expense related to non-vested options that is expected to be recognized over a weighted average period of 1.5 years.

The aggregate intrinsic value of options outstanding and exercisable at December 31, 2025 is $6,620,185 (2024 - $1,709,850) and $4,318,585 (2024 - $843,790), respectively. During the year ended December 31, 2025, the intrinsic value of stock options exercised was $861,973 (2024 - $88,730).

During the year ended December 31, 2025, the Company granted 50,000 shares as a stock award. The total fair value of the stock award was $350,000 with 10,000 shares vested upon issuance and 10,000 shares vest on each anniversary date through 2029. As of December 31, 2025, there was approximately $248,720 of compensation related to non-vested stock awards that is expected to be recognized through 2029.