BONK, INC. Stock Compensation Disclosure

Note 14 - Warrants and Options

 

Warrants

 

During the year ended December 31, 2024, the Company reached a settlement with Bigger Capital Fund LP, (“Bigger”) for a resolution to all issues and claims that relate to the previously filed action against the Company in the Supreme Court of the State of New York, New York County, Index No. 65018/2024 (see Note 14). Under the terms of the Settlement the Company agreed to cancel 1,656,050 original warrants with an exercise price of $1.40 held by Bigger in exchange for 5,332,889 “exchange” warrants with an exercise price of $0.4348. The fair value of the exchange warrants is $2,732,329 which is offset by the unamortized value of $439,028 of the original warrants.

Schedule of Fair Value Using Black Scholes Method

														Market
		Relative				Term				Exercise				Price on				Volatility				Risk-free
Reporting Date		Fair Value				(Years)				Price				Grant Date				Percentage				Rate
1/17/25		$	2,732,329				5			$	0,4348			$	0,5435				161	%			0.0442

 

On August 30, 2024, the Company entered into a Securities Purchase Agreement with an affiliate for the purchase of 3,370,787 shares of the Company’s common stock for a purchase price of $3,000,000 (market price of $0.89 per share) and 3,370,787 Common warrants for a purchase price of $421,348 (priced at $0.125 per share). The warrants have a 5five-year term and an exercise price of $0.89 per share.

 

The following tables summarize all warrants outstanding as of December 31, 2025 and 2024, and the related changes during the period. Exercise price is the weighted average for the respective warrants at end of period. Both the amount of warrants and their weighted average exercise price reflect the 35 for 1 split that was effected during December of 2025.

 

Summary of Warrant Outstanding

 

		Number of Warrants				Weighted Average Exercise Price
Balance at December 31, 2024			615,904			$	63.00
Yerbaé replacement warrants			60,589				31.37
Warrant purchase agreement with Core4			114,286				14.35
Warrants issued in connections with Series A preferred stock			656,957				16.10
Warrants issued in connections with Series B preferred stock			656,957				16.10
Warrants issued in private placement			52,557				16.10
Warrants exercised			(1,471,996	)			15.98
Outstanding at December 31, 2025			685,254			$	59.57
Exercisable at December 31, 2025			685,254			$	59.57

 

Stock Options

 

The following tables summarize all stock options outstanding as of December 31, 2025 and 2024, and the related changes during the period. Exercise price is the weighted average for the respective stock options at end of period. Both the amount of stock options and their weighted average exercise price reflect the 35 for 1 split that was effected during December of 2025.

Schedule of Option Outstanding

		Number of Shares				Weighted Average Exercise Price
Outstanding at January 1, 2025			529,176			$	57.75
Granted			111,309				31.49
Exercised			-				-
Forfeited or expired			(109,286	)		$	(80.31	)
Outstanding at December 31, 2025			531,199			$	48.19

 

During the year ended December 31, 2025, the Company granted a total of 111,309 5five-year options to employees of the Company of which 16,142 have vesting schedule from one to three years with an exercise price between $12.95, $22.02 and 28,535 which vested immediately upon grant with exercise prices between $11.55 and $17.15, 7,143 options which vest over varying schedules through 2026 at an exercise prices of $15.75. Additionally, the Company granted 52,346 options with exercise prices ranging from $12.59 to $241.09 which vested immediately.

 

During the year ended December 31, 2024, the Company granted a total of 158,714 5five-year options to employees of the Company of which 41,000 have vesting schedule from one to three years with an exercise price between $37.10 and $70.35 and 117,714 which vested immediately upon grant with an exercise price of $62.65. During the same period, the Company also granted a total of 146,286 5five-year options to consultants to the Company, which have vesting schedule from six months to one year with an exercise price between $35.00 and $81.20. The total fair value of the options is $17,372,444. The fair value of the options is being amortized over the vesting period. The Company recognized $14,735,228 expense related to the options for the year ended December 31, 2024.

 

 

The fair value of these options was measured using the Black-Scholes valuation model at the grant date. The table below sets forth the assumptions for Black-Scholes valuation model on the respective reporting date. For options granted to employes, we use a plain vanilla Black-Scholes calculation to calculate fair value with standard market inputs.

 Schedule of Fair Value Using Black Scholes Method

		2025				2024
Expected volatility			121%-162	%			119%-162	%
Expected dividends			-				-
Expected term (in years)			2.5-5				2.5-10
Risk-free rate			3.59%-4.89	%			3.59%-4.89	%

 

On December 31, 2025 the Company had 531,199 options outstanding.