NOTE 19 – STOCK COMPENSATION EXPENSES

Stock options to Employees: The Company grants shares of the Company’s common stock, par value $ 0.0001 to certain employees under the Company’s 2016 Stock Incentive Plan (the “Plan”). The price at which the Grantee is entitled to purchase the Shares upon the exercise of the Option (the “Option Price”) is $ 5.00 per Share. The Shares vest twenty percent (20%) as of the Grant Date, with the balance of the shares vesting in four equal annual installments on the first, second, third and fourth anniversaries of the Grant Date provided that the Grantee remains in the Continuous Employment of the Company or any of its subsidiaries or affiliates, as defined and provided for in the Plan. The Options, to the extent vested and not exercised, shall expire five (5) years from the Grant Date.

Restricted Stock Award to Employees: The Company grants restricted shares of the Company’s common stock, $ 0.0001 per value to certain employees under the Plan. The grant of restricted shares is made in consideration of services to be rendered by the Grantee to the Company. The Restricted Stock Awards vest twenty percent (20%) as of the Grant Date, with the balance of the Restricted Shares vesting in four equal annual installments on the first, second, third and fourth anniversaries of the Grant Date, subject to the Grantee’s continued employment by the Company, as provided for in the Plan. Unvested portions of the Restricted Stock Award may not be transferred at any time, except to the extent provided for in the Plan. Until the Restricted Stock Award granted under this Agreement vests in accordance with the terms hereof, the Grantee shall have no rights as a stockholder (including, without limitation, voting and dividend rights) with respect to any of the Restricted Shares covered by the Restricted Stock Award.

Stock Options issued to Doctors/Proctors/Advisors (“Advisor’s”): The Company issues shares of the Company’s common stock (“Advisory Shares”) to retain and compensate certain Advisors for performing services for the Company and in exchange for the compensation, which is issued in a phased manner as determined by the company. The “Services” include but are not limited to (a) providing proctoring and medical advisory services, (b) advising the Company on the development of surgical robotics procedures and improvements in design and technology (c) participation in case of observation and performance of live surgeries, and (d) disseminating information about the Company’s products in various scientific meetings and surgical robotic conferences globally (e) investor’s digital marketing support. The Company issues such Advisory Shares in a phased manner commensurate with the period over which the services are to be performed, as determined by the Company.

Stock options:

Stock options activity for the period ended March 31, 2026, was as follows:

During the three months ended March 31, 2026, no stock options are vested. Further there were no stock options issued during the end of March 31, 2026. 

Restricted Stock Awards (RSA)

Restricted Stock Awards activity for the period ended March 31, 2026, was as follows:

During the three months ended March 31, 2026, 191,555 RSAs are vested and issued during the end of March 31, 2026.

Advisory shares:

Common stock issued to consultants as advisory shares during the year as follows:

The aggregate vesting date fair value of Advisory shares was $51,674 and $498,496 during the period ended March 31, 2026 and year ended December 31, 2025 respectively.

There were no advisory shares issued during the three months period ended March 31, 2026.

Stock compensation expenses

During the three months period ended March 31, 2026 and March 31, 2025, the Company has recorded share compensation expense of $3,144,315 in relation to stock options, RSU and Advisory shares as follows:

Stock option model and assumptions

The Black-Scholes-Merton option pricing model is used to estimate the fair value of stock options and RSU granted under the Company’s share based compensation plans and the rights to acquire stock granted under the stock options plans. The weighted-average estimated fair values of stock options and the rights to acquire stock as well as the weighted-average assumptions used in calculating the fair values of stock options and the rights to acquire stock that were granted during the period ending March 31, 2026 were as follows:

As share-based compensation expense recognized in the Condensed Consolidated Statements of operations and comprehensive loss during the period ended March 31, 2026, and 2025, is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures, if any.

As of March 31, 2026, there was $4,779,448, $9,693,678 total unrecognized compensation expense related to unvested stock options and restricted stock units to acquire common stock under the 2016 Inventive Stock plan respectively. The unrecognized compensation expense is expected to be recognized over a weighted-average period of 2.72 years for unvested stock options and restricted stock units for rights granted to acquire common stock under 2016 Incentive Stock Plan.