Stock Options

12 Months Ended

Dec. 31, 2023

Notes and other explanatory information [abstract]

Stock Options

16. Stock Options

The Board of Directors adopted the Trillion Energy International Inc. 2022 Long-Term Incentive Equity Plan (the “2022 Plan”) effective as of December 1, 2022. The 2022 Plan permits grants of stock options and restricted stock awards and other stock-based awards.

Under the 2022 Plan, the maximum number of shares of authorized stock that may be delivered is 10% of the total number of shares of common stock issued and outstanding of the Company as determined on the applicable date of grant of an award under the 2022 Plan. Under the 2022 Plan, the exercise price of each option shall be determined by the Board of Directors, subject to any applicable Exchange approval or rules, at the time any option or other stock-based award is granted. In no event shall such exercise price be lower than the exercise price permitted by the Exchange. The vesting schedule for each option or other stock-based award shall be specified by the Board of Directors at the time of grant, subject to any applicable Exchange approval or rules.

A continuity of the Company’s outstanding stock options for the year ended December 31, 2023 and the year ended December 31, 2022 is presented below:

	Number of options			Weighted average exercise price (CAD)
Outstanding, December 31, 2021		1,528,000		$	0.79
Granted		1,442,000			1.86
Exercised		(669,000	)		1.33
Expired		(1,000	)		0.50
Outstanding, December 31, 2022		2,300,000		$	1.27
Exercised		(440,000	)		1.65
Expired		(240,000	)		0.79
Outstanding, December 31, 2023		1,620,000		$	1.24
Exercisable, December 31, 2023		1,620,000		$	1.24

At December 31, 2023 the Company had the following outstanding stock options:

Outstanding	Exercise Price		Expiry Date	Vested
660,000		0.75 CAD	September 19, 2024		660,000
128,000		0.40 CAD	July 31, 2025		128,000
512,000		1.50 CAD	July 26, 2025		512,000
50,000		1.90 CAD	June 6, 2026		50,000
150,000		2.20 CAD	October 27, 2025		150,000
70,000		2.20 CAD	December 9, 2024		70,000
50,000		2.20 CAD	December 9, 2025		50,000
1,620,000					1,620,000

As at December 31, 2023, the weighted average remaining contractual life of outstanding stock options is 1.26 years (December 31, 2022 – 2.09 years).

TRILLION ENERGY INTERNATIONAL INC.

Notes to the Consolidated Financial Statements

For the years ended December 31, 2023 and 2022

(Expressed in U.S. dollars)

16. Stock Options (continued)

For the year ended December 31, 2023, the Company recognized $118,202 (2022 - $1,421,267) in stock-based compensation expense for options granted and vested. At December 31, 2023, the Company has $Nil (December 31, 2022 - $123,873) in unrecognized compensation expense related to stock options.

No stock options were granted during the year ended December 31, 2023.