SkyAI, Inc. Stock Compensation Disclosure
On August 22, 2025, subsequent to the Board approval on July 15, 2025, the shareholders approved the Sharps Technology, Inc. 2025 Equity Incentive Plan (the “2025 Plan”), to provide for the issuance of up to options and/or shares of restricted stock be available for issuance to officers, directors, employees and consultants.
On December 19, 2024, the Company’s Shareholders approved and the Board of Directors adopted the 2024 Equity Incentive Plan (the “2024 Plan”), to provide for the issuance of up to (pre-reverse – ) options and/or shares of restricted stock be available for issuance to officers, directors, employees and consultants.
On January 24, 2023, the Company’s Board of Directors initially adopted the 2023 Equity Incentive Plan (the “2023 Plan”), to provide for the issuance of up to (pre -reverse - ) options and/or shares of restricted stock be available for issuance to officers, directors, employees and consultants. The 2023 Plan was subsequently updated to provide for the issuance of up to (pre-reverse – ) options and/or shares of restricted stock. The 2023 Plan was approved by shareholders at the annual meeting.
In August 2025, stock options were granted to directors, executives and other employees and consultants with an exercise price of $, a term of years and vesting 25% upon grant and the remainder 25% per quarter over the following nine months. Also in August 2025, options were granted to former employees and directors with immediate vesting and a term of years. In October 2025, an additional options were granted to a director and certain employees with a term of years and vesting 25% upon grant and the remainder 25% per quarter over the following nine months. The above options to purchase shares of the Company’s common stock, par value $per share, which were granted pursuant to the Company’s 2025 Equity Inventive Plan, have grant prices based on the closing price on the respective grant dates.
During the year ended December 31, 2024, the Company granted five-year options to purchase a total of shares of the Company’s common stock, par value $ per share to its directors, executive officers, employees and consultants pursuant to the Company’s 2023 Equity Incentive Plan. The options are exercisable at an average price of $ per share which was based on the closing price on the respective grant dates.
| 2025 | 2024 | |||||||||||||||
| Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | |||||||||||||
| Outstanding at beginning of year | 507 | $ | 12,561 | 365 | $ | 20,136 | ||||||||||
| Granted | 1,935,000 | 6.35 | 211 | 1,881 | ||||||||||||
| Forfeited/cancelled | (60,025 | ) | $ | 6.88 | (69 | ) | $ | 20,700 | ||||||||
| Outstanding at end of year | 1,875,482 | $ | 9.76 | 507 | $ | 12,561 | ||||||||||
| Exercisable at end of year | 1,050,480 | $ | 12.39 | 438 | $ | 13,980 | ||||||||||
SHARPS TECHNOLOGY, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
Note 13. Stock Options (continued)
As of December 31, 2025 and December 31, 2024, there was $ and $, respectively, of unrecognized stock-based compensation related to unvested stock options, which is expected to be recognized over a weighted-average period of six months as of December 31, 2025.
| Exercise Prices | Options Outstanding | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life | Options Exercisable | Aggregate Intrinsic Value on Exercisable Shares | |||||||||||||||||
| $ | to | 1,875,000 | 1,050,000 | |||||||||||||||||||
| $ | to | 188 | 186 | |||||||||||||||||||
| $ | to | 6 | 6 | |||||||||||||||||||
| $ | to | 162 | 162 | |||||||||||||||||||
| $ | 8 | 8 | ||||||||||||||||||||
| $ | 21 | 21 | ||||||||||||||||||||
| $ | 31 | 31 | ||||||||||||||||||||
| $ | 66 | 66 | ||||||||||||||||||||
For the years ended December 31, 2025, and 2024 the Company recognized stock-based compensation expense of $ and $ related to stock options.
| 2025 | 2024 | |||||||
| Expected term (years) | to | to | ||||||
| Expected volatility | % to | % | % to | % | ||||
| Risk-free interest rate | % to | % | % to | % | ||||
| Dividend rate | ||||||||
SHARPS TECHNOLOGY, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 27, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 31, 2023 | |
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.