OLB GROUP, INC. Stock Compensation Disclosure
NOTE 8 – STOCK OPTIONS
On January 3, 2024, the Company granted stock options to purchase 20,000 shares of common stock pursuant to the terms of the Company’s employment agreement with Mr. Yakov. 50% of the options vested immediately, 25% of the options vest on the one-year anniversary of the grant, and 25% of the options vest on the two-year anniversary of the grant. The options have an exercise price of $0.10 per share. The aggregate fair value of the options totaled $541,999 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.01 (pre-split pricing), 1.63% risk free rate, 295% volatility and expected life of the options of 10 years. The fair value of the options will be recognized over the vesting period with credits to additional paid in capital.
On January 24, 2024, Mr. Yakov exercised options to purchase a total of 118,792 shares of common stock for $4,079 (see Note 11 and Note 13).
On January 24, 2024, Mr. Smith exercised options to purchase a total of 38,107 shares of common stock for $2,761 (see Note 11 and Note 13).
A summary of the status of the Company’s outstanding stock options and changes is presented below:
| Stock Options | Options | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||
| Options outstanding December 31, 2023 | 156,899 | $ | 0.04 | $ | 1,656,270 | |||||||
| Granted | 20,000 | $ | 0.10 | |||||||||
| Exercised | (156,899 | ) | $ | 0.04 | ||||||||
| Expired | $ | |||||||||||
| Options outstanding December 31, 2024 | 20,000 | $ | 0.10 | $ | 39,400 | |||||||
| Granted | ||||||||||||
| Exercised | ||||||||||||
| Expired | ||||||||||||
| Options outstanding December 31, 2025 | 20,000 | $ | 0.10 | $ | 10,388 | |||||||
| Shares exercisable at December 31, 2025 | 20,000 | $ | 0.10 | $ | 10,388 | |||||||
During the years ended December 31, 2025 and 2024, the Company recognized $135,500 and $406,500, respectively, in stock-based compensation related to the above-mentioned options. As of December 31, 2025 there was $0 of unrecognized expense for the above-mentioned options. The weighted average contractual term of the options outstanding and of the option exercisable were 8.01 years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 1, 2026 | Showing above |
| 2024 | Apr 15, 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.