6. Stock-based compensation

At September 30, 2026, the Company had in place a stock option plan for employee, non-employee directors, and consultants of the Company (the "Plan"). The Plan provides both for the direct award or sale of shares and for the grant of options to purchase shares. Under the plan, the total number of shares available for options cannot exceed 10% of the Company's issued and outstanding common shares at the time of any grant. The Company is authorized to issue options to employees, non-employee directors and consultants under the plan.

On March 30, 2026, the Company issued 19,500 stock options to directors, officers, and employees of the Company. The options are exercisable at $25 per share, expire five years from the grant date, and vest quarterly over a one-year period. On June 3, 2026, the Company issued an additional 41,500 stock options to directors, officers, and employees of the Company. The options are exercisable at $18 per share, expire five years from the grant date, and vest quarterly over a one-year period. On September 4, 2026, the Company issued 29,000 options to directors, officers and employees of the Company. The options are exercisable at $8.53 per share, expire five years from the grant date, and vest quarterly over a one year period. On September 27, 2026, the Company issued 1,000 options to a consultant of the Company. The options are exercisable at $7.50 per share, expire five years from the grant date, and vest quarterly over a one year period. During the three months ended June 30, 2026, the Company accelerated the vesting of all outstanding options, other than 41,500 options that were granted during the second quarter of 2026. This resulted in additional share-based compensation of $699,834.

The following table summarizes option transactions for the Plan:

Number of
options

Weighted
average
exercise price
$

Weighted
average
remaining
contractual life
(years)

Aggregate
intrinsic value
$

Outstanding at December 31, 2024

23,700

73.50

4.18

Granted

16,500

149.50

4.81

Exercised

(2,900

)

55.50

Forfeited

(150

)

138

Outstanding at September 30, 2025

37,150

108.50

4.06

7.5

Exercisable at September 30, 2025

22,650

80.50

3.57

Unvested at September 30, 2025

14,500

152

4.18

Outstanding at December 31, 2025

50,100

102.72

2.75

Granted

91,000

16.37

4.72

Forfeited

(900

)

43.91

Outstanding at September 30, 2026

140,200

46.76

4.25

Exercisable at September 30, 2026

79,075

72.59

3.82

Unvested at September 30, 2026

61,125

13.33

4.80

As of September 30, 2026, there were $542,574 of unrecognized stock-based compensation cost related to share options outstanding, which is expected to be recognized over a weighted-average period of 0.80 years.

The weighted average grant date fair value of awards for options granted during the nine months ended September 30, 2026, was $10.74. The fair value of options granted was estimated using the Black-Scholes option pricing model, resulting in the following weighted average assumptions for the options granted:

		September 30, 2026 Weighted-average
Exercise price		16.37
Share price		15.33
Dividend		-
Risk-free interest rate		4.27%
Estimated life (in years)		5
Expected volatility		129.93%

For the three and nine months ended September 30, 2026, stock-based compensation expense was $131,775 and $2,136,908. For the three and nine months ended September 30, 2025, stock-based compensation expense was $852,757 and $1,082,482. Stock-based compensation expense has been reported in the Company's condensed consolidated statements of operations and comprehensive loss within the line items 'general and administrative' expenses.