STOCKHOLDERS’ EQUITY

9 Months Ended

Sep. 30, 2025

NOTE 7 – STOCKHOLDERS’ EQUITY

During the nine months ended September 30, 2025 and 2024, the Company issued an aggregate of 605,896 and 114,545 shares, respectively, of its common stock for services with a fair value based on the trading price of the Company’s stock on the date of issuance of $71,734 and $10,094, respectively.

During the nine months ended September 30, 2025 and 2024, the Company issued an aggregate of 672,520 and 0 shares, respectively, of its common stock for property and equipment with a fair value of $67,253 and $0, respectively.

During the nine months ended September 30, 2025 in connection with the conversion of debt with a balance of $50,000, the Company issued 625,000 shares of its common stock and 625,000 warrants with an exercise price $0.10 and term of five years. See Note 6.

During the nine months ended September 30, 2025, the Company issued 384,408 shares of its common stock due to the cashless exercise of 650,000 options by one of its directors and one of its employees.

During the nine-months ended September 30, 2025, the Company issued 125,000 shares of its common stock due to the exercise of 125,000 warrants for $6,250.

During the nine-months ended September 30, 2025, the Company issued 4,350,000 shares of its common stock and warrants, with a strike price of 15 cents and a five-year expiration, through a private placement for proceeds of $435,000.

Warrants:

During the nine-month period ended September 30, 2025 and 2024, the Company issued 250,000 and 177,500 warrants for services with a fair value of $22,936 and $11,844, respectively for the vested warrants. An additional 500,000 unvested warrants were issued during 2025. The warrants had a fair value of $50,231 on the date of issuance and will vest upon the probability of achieving performance milestone criteria.

During the nine-month period ended September 30, 2025 and 2024, the Company issued 250,000 and 150,000 warrants for interest with a fair value of $24,477 and $9,947, respectively.

A summary of warrant activity for the year ended December 31, 2024 and nine months ended September 30, 2025 is as follows:

SCHEDULE OF WARRANT ACTIVITY

	Number of Warrants			Weighted Average Exercise Price

Balance, December 31, 2023		24,015,976			0.22
Issued in connection with:
Common stock units sold for cash		1,970,000			0.15
Services		303,500			0.11
Debt-related interest		180,000			0.15
Debt conversion		3,125,000			0.10
Expired or rescinded		(3,397,981	)		0.09
Exchanged for stock options		1,250,000			0.20
Balance, December 31, 2024		27,446,495		$	0.21
Issued in connection with:
Common stock units sold for cash		4,350,000			0.15
Debt conversion		625,000			0.10
Debt-related interest		250,000			0.15
Services		750,000			0.12
Exercised		(125,000	)		0.05
Expired		(500,000	)		0.20
Balance, September 30, 2025		32,796,495			0.20

Warrants outstanding at September 30, 2025 have a weighted average exercise price of $0.20 and a weighted average remaining term of 3.0 years.

Stock Options:

During the three and nine-month period ended September 30, 2025, the Company recognized stock-based compensation of $258,562 and $698,049 respectively versus $134,987 and $444,001 respectively for 2024. Of this amount, $55,820 was classified as general and administrative expenses for the three month period ended in 2025 and $293,955 for the nine month period, versus $7,541 and $53,262 for 2024, respectively. The remainder was classified as research and development expenses (2025: $202,742 and $404,095 for three and nine month respectively; and for 2024: $127,446 and $390,739).

A summary of option activity for the year ended December 31, 2024 and nine months ended September 30, 2025 is as follows:

SCHEDULE OF OPTION ACTIVITY

	Number of Options			Weighted Average Exercise Price
Balance, December 31, 2023		61,555,000			0.15
Options granted		29,166,571			0.11
Options expired		(500,000	)		0.05
Exchanged for warrant		(1,250,000	)		0.20
Balance, December 31, 2024		88,971,571		$	0.13
Options granted		12,774,470			0.12
Options expired		(3,158,334	)		0.16
Options exercised		(650,000	)		0.06
Balance, September 30, 2025		97,937,707			0.13
Vested, September 30, 2025		45,709,324			0.13

The weighted average exercise price of outstanding and vested options is $0.13 and $0.13, respectively. The weighted average remaining life of outstanding and vested options is 6.6 years and 5.9 years, respectively. At September 30, 2025, outstanding vested options had an intrinsic value of $2,707,390, and the total intrinsic value of all options is $5,448,826.

At September 30, 2025, remaining compensation to be recognized as future vesting of stock options is approximately $5.6 million of which approximately $0.7 million will vest with a weighted average remaining vesting period of approximately 1 year, and approximately $4.9 million will vest upon the probability of achieving performance milestone criteria.

Black Scholes Model Variables:

The fair value associated with warrants and options issued or modified during the nine months ended September 30, 2025 were valued on the date of issuance or modification.

The following ranges of assumptions were used in calculations of the Black-Scholes option pricing models for option and warrant-based stock compensation issued in the nine months ended September 30, 2025 and 2024:

		September 30, 2025			September 30, 2024
Exercise price	$	0.11 to 0.15		$	0.10 to 0.15
Risk-free interest rate		3.81% - 4.54	%		3.74% - 4.71	%
Expected term (in years)		5.0 to 10.0			5.0 to 10.0
Expected share price volatility		106.12 to 109.69	%		89.73% to 113.72	%
Expected dividend yield		0.0% - 0.0	%		0.0% - 0.0	%

- Definition

The entire disclosure for equity.

+ References

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+ Details

BLUE BIOFUELS, INC. 10-Q