Note 13—Stock option plans

Stock options

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock-based awards on the date of grant. The assumptions employed in the calculation of the fair value of share-based compensation expense were calculated as follows for all periods presented:

 

 

 

 

2025

 

 

2024

 

Weighted average common stock value

 

 

$

1.49

 

 

$

4.76

 

Risk free interest rate

 

 

3.82% - 4.66%

 

 

4.10% - 4.35%

 

Expected dividend yield

 

 

0%

 

 

0%

 

Expected term

 

 

6.0 years

 

 

6.0 years

 

Expected stock volatility

 

 

101.9% - 105.3%

 

 

100.1% - 103.0%

 

 

Below is a summary of stock option activity for the year ending December 31, 2025:

 

 

 

 

 

Weighted

 

 

Weighted

 

Number

 

 

Average

 

 

Average

 

of options

 

 

Exercise Price

 

 

Contractual Life

Outstanding at December 31, 2024

 

6,403,818

 

 

$

5.11

 

 

7.44 years

Forfeited and cancelled

 

(394,487

)

 

$

3.79

 

 

 

Exercised

 

(307,633

)

 

$

2.11

 

 

 

Granted

 

12,329,727

 

 

$

1.49

 

 

 

Outstanding at December 31, 2025

 

18,031,425

 

 

$

2.35

 

 

8.91 years

Exercisable at December 31, 2025

 

3,257,047

 

 

$

4.94

 

 

5.39 years

 

Options outstanding had an intrinsic value of $0 and $5,494,000 as of December 31, 2025 and December 31, 2024, respectively. As of December 31, 2025, there was $21,500,000 of unrecognized stock compensation, which will be recognized over the next three years.

Restricted Stock units

Restricted stock units (“RSU”) were assumed from the Merger issued to the former Kintara Chief Executive Officer and currently is a director of the Company, and 57 shares vested on August 1, 2025. The remaining shares assumed from the Merger, will vest on August 1, 2026, and such shares are not accounted for until they vest.

 

Stock compensation expense

Total stock-based compensation expense was allocated as follows:

 

 

 

 

2025

 

 

2024

 

General and administrative

 

 

$

2,051,112

 

 

$

843,111

 

Research and development

 

 

 

4,373,618

 

 

 

1,115,552

 

Total stock-based compensation expense

 

 

$

6,424,730

 

 

$

1,958,663

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 31, 2025

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.