STOCK OPTION AGREEMENTS AND TRANSACTIONS

12 Months Ended

Dec. 31, 2024

STOCK AND STOCK OPTION PLANS

STOCK OPTION AGREEMENTS AND TRANSACTIONS

NOTE 8. - STOCK OPTION AGREEMENTS AND TRANSACTIONS

The Company grants stock options to its key employees and independent service providers as it deems appropriate. Most options expire from five to ten years after the grant date.

Option Agreements - The Company's Board did not approve any stock option agreements in 2024.

10,000 options were vested during 2024 for two employees.  The expense for the options was $6,291.

No options were exercised in 2024.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions. Volatility is based on the Company’s historical volatility. The expected life of the options was determined using the simplified method for plain vanilla options as stated in FASB ASC 718 to improve the accuracy of this assumption while simplifying record keeping requirements until more detailed information about the Company’s exercise behavior is available. The risk-free rate for the life of the option is based on the U.S. Treasury yield curve in effect at the time of grant.

The following assumptions were used for the year ended December 31, 2023:

Risk free interest rate	3.57% to 4.65%
Expected dividend yield		0%
Expected stock price volatility	100% to 110%
Expected life of options	2.75 to 2.87 years

The following is a summary of stock option activity, including qualified and non-qualified options for the years ended December 31, 2023 and 2024:

	Number of			Weighted		Remaining	Aggregate
	Options			Average		Contractual	Intrinsic
	Outstanding			Exercise Price		Term	Value
Outstanding at December 31, 2022		131,789		$	6.05
Granted		67,600		$	1.14
Forfeited		(15,000	)	$	13.42
Expired		(26,758	)	$	6.06
Outstanding at December 31, 2023		157,631		$	3.23
Expired		(47,422	)	$	4.53
Outstanding at December 31, 2024		110,209		$	2.67	2.9 years	$	-
Vested or expected to vest at December 31, 2024		110,209		$	2.67	2.9 years	$	-
Exercisable at December 31, 2024		110,209		$	2.67	2.9 years	$	-

At December 31, 2024, there was no unrecognized compensation cost related to outstanding non-vested options.  The balance was approximately $6,300 at December 31, 2023.

The weighted average fair value of options granted was $1.10 per share for the year ended December 31, 2023. The exercise price for all options granted equaled or exceeded the market value of the Company’s common stock on the date of grant.  There were no options granted in 2024.