8. Stock Options

The Company has a Stock Incentive Plan (the "SIP"), that authorizes the granting of stock options up to 10 percent of the total number of issued and outstanding shares of common stock, that provides for the grant of stock options, incentive stock options, stock appreciation rights, restricted stock awards, and incentive awards to eligible individuals including directors, executive officers and advisors that have furnished bona fide services to the Company not related to the sale of securities in a capital-raising transaction. On December 10, 2024, the Company's shareholders, at their Annual Meeting, ratified and reapproved the Stock Option Plan.

On February 7, 2025, the Company issued 3,045,000 stock options to officers and directors of the Company. The fair value of the options was determined to be $325,815 using the Black Scholes model. The total compensation cost recognized for share-based payment awards to non-employees was $10,700. The Company has elected to recognize the effect of forfeitures in compensation cost when they occur. Previously recognized compensation cost for a nonemployee share-based payment award shall be reversed in the period that the award is forfeited. The options are exercisable on or before February 7, 2030, and have an exercise price of $0.10. The options were fully vested upon grant and the entire fair value was recognized as share-based compensation expense, included as part of management and administrative expenses on the statement of operations, during the quarter ended March 31, 2025.

The fair value of each option award was estimated on the date of the grant using the assumptions noted in the following table:

	February 7, 2025
Stock price	$0.11
Exercise price	$0.10
Expected volatility	170.7%
Expected dividends	-
Expected terms (in years)	5.0
Risk-free rate	4.33%

On March 29, 2025, 1,630,000 options expired.

The following is a summary of the Company's options issued and outstanding under the SIP:

	Shares			Weighted Average Exercise Price
Outstanding and exercisable at December 31, 2023	4,775,000		$	0.09
Expired	(1,325,000	)		0.09
Outstanding and exercisable at December 31, 2024	3,450,000		$	0.09
Granted	3,045,000			0.10
Expired	(1,630,000	)		0.10
Outstanding and exercisable at March 31, 2025	4,865,000		$	0.10

The average remaining contractual term of the options outstanding and exercisable at March 31, 2025, was 3.78 years. At March 31, 2025, options outstanding and exercisable had an aggregate intrinsic value of $164,150 based on the Company's stock price of $0.13 at March 31, 2025.