TON Strategy Co Stock Compensation Disclosure

11. STOCK OPTIONS

 

A summary of option activity for the years ended December 31, 2025 and 2024 is presented below.

 SCHEDULE OF STOCK OPTION ACTIVITY

										Weighted-
						Weighted-				Average
						Average				Remaining				Aggregate
						Exercise				Contractual				Intrinsic
		Options				Price				Life (Years)				Value
Outstanding at January 1, 2024			10,435				240.14				4.60			$	-
Granted			9,019				9.81				-				-
Forfeited and other			(1,379	)			333.58				-				-
Exercised			-				-				-				-
Outstanding at December 31, 2024			18,075				127.61				4.22				-
Granted			13,451				6.59				-				-
Forfeited and other			(285	)			146.00				-				-
Exercised			-				-				-				-
Outstanding at December 31, 2025			31,241			$	71.29				3.52			$	-
Vested at December 31, 2025			31,241			$	71.29				3.52			$	-
Exercisable at December 31, 2025			31,241			$	71.29				3.52			$	-

 

As of December 31, 2025, the intrinsic value of the outstanding options was $0.

 

On January 7, 2025, the Company granted stock options to a board member to purchase a total of 13,451 stock options. The options have an exercise price of $6.59, expire in five years, and vest one year from the grant date. The total grant date fair value of these options was $86 based on the Black-Scholes option pricing model.

 

On November 8, 2024, the Company granted stock options to a board member to purchase a total of 9,019 stock options. The options have an exercise price of $9.81, expire in five years, and vest one year from the grant date. The total grant date fair value of these options was $80 based on the Black-Scholes option pricing model.

 

The share-based compensation expense recognized relating to the vesting of stock options for the years ended December 31, 2025 and 2024 amounted to $816 and $689, respectively. As of December 31, 2025, the total amount of unrecognized share-based compensation expense was $0.

 

 

The grant date fair value of option awards is estimated using the Black-Scholes option pricing model based on the following assumptions:

 SCHEDULE OF FAIR VALUE ASSUMPTIONS USING BLACK-SCHOLES METHOD

		Years Ended December 31,
		2025				2024
Risk free interest rate			4.46	%			4.20	%
Average expected term			5 years				5 years
Expected volatility			144	%			145	%
Expected dividend yield			-				-

 

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award; the expected term represents the weighted-average period of time that option awards are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future.