Note 11—Subsequent Events

On April 4, 2023, the Company’s Compensation Committee approved the issuance of 750,000 stock options under the 2021 Stock Incentive Plan. These shares had a grant date fair value of $1.55 per share or a cumulative fair market value of $978,675 as calculated using Black-Scholes (exercise price $1.55 per share, stock price $1.55 per share, volatility of 122.12%, discount rate of 3.39% and five-year term). The grant was segmented into three vesting tranches based upon service dates (i) 250,000 units vest on the grant date, (ii) 250,000 units vest on the first anniversary of the grant date, and (iii) 250,000 units vest on the second anniversary of the grant date. The Company is amortizing the expenses over the vesting cycles of the individual tranches.

On April 13, 2023, The Board approved a payment of $500,000 to Mr. Jonnie Williams, Sr., a stockholder. Mr. Williams has met with potential strategic corporate partners on behalf of the Company as part of the Company’s business development efforts and has furthered the Company’s investor relations outreach by meeting with various current and potential investors and investment banks. As a result of these activities, Mr. Williams incurred significant expenses and the Board deemed it advisable and in the best interests of the Company and its stockholders to reimburse Mr. Williams for the expenses incurred. The reimbursement was paid on April 14, 2023.

On April 27, 2023, a shareholder exercised 135,135 prepaid equity forward contracts for 135,135 shares of common stock, no par value for net proceeds of $0.