STOCK PLAN

6 Months Ended

Jun. 30, 2024

NOTE E - STOCK PLAN

The Company has reserved 10,000,000 shares of common stock for issuance to employees or consultants from the RetinalGenix Technologies Inc. 2017 Equity Incentive Plan (the “Plan”). The Company may grant stock options, restricted stock or other types of equity incentive instruments under the Plan.

The Company recognized $1,943,843 and $157,018 of stock-based compensation expense during the six months ended June 30, 2024 and 2023, respectively, related to stock options which is included in the accompanying consolidated statements of operations. As of June 30, 2024, there was approximately $184,000 of total unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a weighted-average period of approximately 1.1 years.

At June 30, 2024, there were 4,765,000 shares available to be issued under the Plan. The following table summarizes stock option activity of the Plan through June 30, 2024:

SCHEDULE OF STOCK OPTION ACTIVITY

	Options Issued			Weighted-Average Exercise Price

Options outstanding – December 31, 2022		2,360,000		$	1.00
Granted		300,000			3.00
Canceled		-			-
Forfeited		(75,000	)		1.00
Exercised		-			-
Options outstanding – December 31, 2023		2,585,000		$	1.23
Granted		50,000			3.00
Canceled		-			-
Forfeited		-			-
Exercised		(170,000	)		1.24
Options outstanding – June 30, 2024		2,465,000		$	1.27

Additional information regarding the exercisable options and average remaining contractual life of the options outstanding as of June 30, 2024 is as follows:

Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life	Number Exercisable at June 30, 2024
$	1.00		2,135,000	5.25 Years		1,909,444
	3.00		330,000	9.25 years		350,000
			2,465,000			2,259,444

The fair value of each option grant was estimated on the date of grant to be $1.17 per share using the Black-Scholes option-pricing model with the following assumption weighted-averages in 2024:

Risk-free interest rates		3.14	%
Expected life in years		5.0
Expected volatility		80	%
Expected dividend yield		0	%
Fair value common stock	$	3.00

The fair value of each option grant was estimated on the date of grant to be $1.17 -$2.11 per share using the Black-Scholes option-pricing model with the following assumption weighted-averages in 2023:

Risk-free interest rates	2.88%-3.08		%
Expected life in years		1.5
Expected volatility		80	%
Expected dividend yield		0	%
Fair value common stock	$	3.00

The risk-free interest rate assumption is determined using the yield currently available on U.S. Treasury zero-coupon issues with a remaining term commensurate with the expected term of the award. Management has estimated expected volatility based on similar comparable industry sector averages. Expected life of the option represents the period of time options are expected to be outstanding. The estimate for dividend yield is 0% because the Company has not historically paid, and does not intend to pay a dividend on its common stock in the foreseeable future.

RetinalGenix Technologies Inc. 10-Q