NOTE 10 – STOCK-BASED COMPENSATION

In January 2021, the Company’s board of directors adopted the Volcon, Inc. 2021 Stock Plan, (the “2021 Plan”). The 2021 Plan is a stock-based compensation plan that provides for discretionary grants of stock options, stock awards, and restricted stock unit awards to employees, members of the board of directors and consultants (including restricted stock units issued prior to the adoption of the plan as further discussed below). The Company has reserved 39 shares of the Company’s common stock for issuance under the 2021 Plan. To the extent that an award, if forfeitable, expires, terminates or lapses, or an award is otherwise settled in cash without the delivery of shares of common stock to the participant, then any unpaid shares subject to the award will be available for future grant or issuance under the 2021 Plan. There are no shares available for issuance under the 2021 Plan as of March 31, 2025. Awards vest according to each agreement and as long as the employee remains employed with the Company or the consultant continues to provide services in accordance with the terms of the agreement.

In August 2024, as part of the compensation package for the Company’s Chief Sales Officer, the Company granted 6,250 stock options outside of the 2021 Plan with an exercise price of $13.04. In April 2025, the Company cancelled these stock options.

Stock Options

The following summarizes activity relating to common stock options to employees and consultants for services during the three months ended March 31, 2025:

Total stock-based compensation recorded for the three months ended March 31, 2025 and 2024 for all stock-based compensation awards, has been recorded as follows:

The Company does not expect to recognize any future expense related to these options. As stated above, the inducement stock options were cancelled in April 2025.