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10-K true 2025-12-31 --12-31 2025 false 001-42212 IMPACT BIOMEDICAL INC. NV 85-3926944 1400 Broadfield Blvd. Suite 130 Houston TX 77084 (281) 415-6576 Common Stock, par value $0.001 per share Non-accelerated Filer true true false false false 7599000 107821231 0.001 None ITEM 1C - CYBERSECURITY We have a range of security measures that are designed to protect against the unauthorized access to and misappropriation of our information, corruption of data, intentional or unintentional disclosure of confidential information, or disruption of operations. These security measures include controls, security processes and monitoring of our manufacturing systems. We have cloud security tools and governance processes designed to assess, identify and manage material risks from cybersecurity threats. In addition, we maintain an information security training program designed to address phishing and email security, password security, data handling security, cloud security, operational technology security processes, and cyber-incident response and reporting processes. Our Company is committed to maintaining the highest standards of cybersecurity to protect our data, intellectual property, and customer information from cyber threats. As part of this commitment, we leverage a sophisticated cybersecurity framework that integrates the robust capabilities of the Microsoft cloud ecosystem with the specialized services of a leading third-party cybersecurity service provider. The Microsoft cloud ecosystem, including Microsoft 365, Azure, SharePoint Online, Microsoft Defender, and Microsoft InTune, forms the backbone of our cybersecurity infrastructure. These platforms offer advanced security features such as data encryption in transit and at rest, network security controls, identity and access management, and threat protection capabilities. Microsoft’s constant investment in cybersecurity research and development ensures that we benefit from cutting-edge security technologies and practices. <p class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_98F_ecyd--CybersecurityRiskThirdPartyOversightAndIdentificationProcessesFlag_dbT_c20250101__20251231_zOEpH6crOlX9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">In addition to utilizing the Microsoft cloud ecosystem, <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_907_ecyd--CybersecurityRiskManagementThirdPartyEngagedFlag_dbT_c20250101__20251231_zLbGvHnMcZd3">we have engaged a third-party service provider to enhance our cybersecurity posture further. This provider brings additional layers of security through services including: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Software Security Management: Ensuring that applications such as Office 365 and Azure are configured, maintained and following best security practices.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Security Monitoring and Consultation Services: Continuous monitoring of our systems for suspicious activities and providing expert consultation to address and mitigate potential threats.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Data Storage and Backup of Source Systems: Implementing robust data storage solutions and backup protocols to ensure data integrity and availability.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Security Policy Management: Developing and enforcing comprehensive security policies that govern all aspects of our cybersecurity efforts.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Threat Response Management: Rapid identification and response to security incidents to minimize impact.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Security Software Implementation: Deployment of state-of-the-art security software solutions that complement the security features of the Microsoft cloud ecosystem.</td></tr> </table> Our approach to cybersecurity is proactive and multifaceted, combining the scalability and reliability of the Microsoft cloud services with the agility and expertise of our third-party cybersecurity partner. Together, these resources form a comprehensive defense mechanism against a wide range of cyber threats, from phishing and malware attacks to sophisticated nation-state sponsored cyber-attacks. We continuously evaluate and adapt our cybersecurity strategy to respond to evolving threats and to align with best practices and regulatory requirements. Our commitment to cybersecurity is integral to our business operations, and we believe our strategic investments in this area significantly mitigate the risk of cybersecurity incidents that could impact our company’s reputation, financial position, or operational capabilities. true true The management of the Company is responsible for overseeing risk for the Company the VP, Engineering & Technology (“VPE&T”) the responsibility for overseeing the cybersecurity risk management strategy for the Company. true The VPE&T reviews our comprehensive cybersecurity framework, including reviewing our cybersecurity reporting protocol that provides for the notification, escalation and communication of significant cybersecurity events to the management team. true true monitoring the measures used for prevention, detection, mitigation and remediation of cybersecurity incidents. 606 We have audited the accompanying consolidated balance sheets of Impact Biomedical, Inc., and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. GRASSI & CO., CPAs, P.C. Jericho, New York

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<p id="xdx_806_eus-gaap--BusinessDescriptionAndBasisOfPresentationTextBlock_zZsH6imaublf" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">1. DESCRIPTION OF BUSINESS Nature of Operations Impact BioMedical, Inc., incorporated in the State of Nevada on October 16, 2018 (the “Company”, “Impact BioMedical”, “We”, “IBO”), discovers, confirms, and patents unique science and technologies which can be developed into new offerings in human healthcare and wellness in collaboration with external partners through licensing, co-development, joint ventures, and other relationships. By leveraging technology and new science with strategic partnerships, we provide advances in biopharmaceuticals, over the counter direct to consumer wellness offerings, and drug discovery for the prevention, inhibition, and treatment of neurological, oncologic, and inflammatory diseases. In addition to our existing efforts, we continually search for, and evaluate, other potential new offerings to add to our portfolio. Our business model includes partnering and potentially direct sales for commercialization and distribution. Potential licensors and development partners include pharmaceutical, consumer packaged goods companies and others, who would commercialize IBO technologies in exchange for milestone, and royalty payments. Currently, our operations are conducted, and our assets are owned through our principal subsidiaries: (i) Global BioLife, Inc. (“Global BioLife”), which was incorporated on April 14, 2017, (ii) Impact BioLife Science, Inc. (“Impact BioLife”), which was incorporated on August 28, 2020, (iii) Global BioMedical, Inc. (“Global BioMedical”), which was incorporated on April 18, 2017, and (iv) Sweet Sense, Inc. (“Sweet Sense”), which was incorporated on April 30, 2018. Impact has several unique and proprietary technologies that are in continuing development: Linebacker™ Linebacker is a platform of small molecule electrophilically enhanced polyphenol compounds with potential application in oncology (solid tumors), inflammatory disorders, and neurology. Polyphenols are substances found in many nuts, vegetables, and berries. Linebacker compounds are modified Myricetin, which is a common plant-derived flavonoid. Myricetin exhibits a wide range of activities that include strong antioxidant and anti-inflammatory activities. Linebacker can potentially be developed as monotherapy or co-therapy to down-regulate PIM (proviral integration site for Moloney murine leukemia virus) kinase which plays a key role as an oncogene in various cancers (e.g. colon, lung, prostate, breast). Additional potential applications include inflammatory disorders and neurology. Linebacker-1 and Linebacker-2 compounds have been licensed to ProPhase Laboratories (NASDAQ: PRPH) for development and commercialization worldwide, from which Impact Biomedical could receive future milestone and royalty payments. Laetose™ Laetose™ technology demonstrates compelling potential in reducing caloric intake and glycemic index in foods, while also inhibiting tumor necrosis factor alpha (TNF-α), a cytokine associated with inflammatory chronic diseases (data on file with IBO). The patented formulation has potential to inhibit the inflammatory and metabolic response of sugar alone and has potential applications in therapeutic administration to reduce or limit inflammatory or metabolic diseases (e.g., diabetes). Use of Laetose in a daily diet, compared to sugar, could result in 30% lower sugar consumption and lower caloric and glycemic index/load. Functional Fragrance Formulation (“3F”) 3F is a suite of “functional fragrances” containing specialized botanical ingredients (e.g., terpenes) with potential application as an antimicrobial, or as an additive in insect repellents, detergents, lotions, shampoo, fabrics and other substances to increase effectiveness. Global BioLife is seeking to commercialize this product. Together with Chemia, we are attempting to license 3F. Any potential profits from the 3F project will be split between Global BioLife and Chemia pursuant to the terms of the 20- year Royalty Agreement. Equivir™/Equivir G Equivir/Equivir G technology is a novel blend of FDA Generally Recognized as Safe (GRAS) eligible polyphenols (e.g. Myricetin, Hesperetin, Piperine) which have demonstrated antiviral effects with additional potential application as health supplements or medication. Polyphenols are substances found in many nuts, vegetables, and berries. Myricetin is a member of the flavonoid class of polyphenolic compounds with antioxidant properties. Hesperitin is a flavanone and Piperine is an alkaloid, commonly found in black pepper. Equivir/Equivir G is licensed to ProPhase Laboratories for development and commercialization worldwide Emerging Technology IBO continually evaluates additional technologies that are in various phases of development which can be advanced to patent filings and allowances. These include, and are not limited to biopharmaceuticals, indoor air quality products, preservatives, bioplastics, personalized medicine (e.g., genomics, diagnostics), nanotechnology, cannabis products and technology, pain management, and others. These activities include discussions with inventors, scientists, universities, research foundations, and other parties, which, subject to completion of diligence, and approval of the respective management, could potentially expand the offerings of IBO. As of the date of this report, we have not generated significant revenues from operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including possible delays in our research, testing and marketing efforts or wider economic downturns.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation – The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include all accounts of the Company and its majority owned and controlled subsidiaries. The Company consolidates entities in which it owns more than <span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--SweetSenseIncMember_zVuoiXguFlRg" title="Minority interest ownership percentage">50% of the voting common stock and controls operations. All intercompany transactions and balances among consolidated subsidiaries have been eliminated. Non–controlling interest represents the minority equity investment in the Company’s subsidiaries, plus the minority investors’ share of the net operating results and other components of equity relating to the non–controlling interest. The consolidated financial statements include all accounts of the entities as of the reporting period ending dates and for the reporting periods as follows: SCHEDULE OF CONSOLIDATED FINANCIAL STATEMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: center">Name of consolidated subsidiary</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">State or other jurisdiction of incorporation or organization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Date of incorporation or formation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Attributable interest as of December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Attributable interest as of December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Global BioMedical, Inc.</td><td style="width: 2%"> </td> <td style="width: 12%; text-align: center"><span id="xdx_901_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zVvBlPMO2G28" title="State or other jurisdiction of incorporation or organization">Nevada</td><td style="width: 2%"> </td> <td style="width: 16%; text-align: center">April 18, 2017</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right"><span id="xdx_90C_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zNDRIOgeGCB9" title="Attributable interest percentage">90.9</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zq28dWAn1Zl5" title="Attributable interest percentage">90.9</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global BioLife, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_907_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--GlobalBioLifeIncMember_z1hovPMQQhJ9" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 14, 2017</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">BioLife Sugar, Inc</td><td> </td> <td style="text-align: center"><span id="xdx_900_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--BioLifeSugarIncMember_zHSxJCDtHXK2" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 23, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Happy Sugar Inc</td><td> </td> <td style="text-align: center"><span id="xdx_902_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--HappySugarIncMember_zyQi8tKlZcAd" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">August 17, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sweet Sense Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_908_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--SweetSenseIncMember_zgL9Dkxikoz3" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 30, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global Sugar Solutions Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_902_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zZwg1WNZ892" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">November 7, 2019</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zV08xl33QLWg" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zROh2ddMdqdd" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Impact Biolife Science, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_903_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_z5J9MbhyG4V" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 13, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zRgJF6q3pSX9" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zgmNzRaG3do4" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">DSS Biomedical International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_907_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zx6Ge16jQiTh" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center"><span id="xdx_909_edei--EntityIncorporationDateOfIncorporation_dd_c20250101__20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zj1i74S1nip3" title="Date of incorporation or formation">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zd3iSjWgGOTi" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zHWSIZGRNNJ7" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">DSS Biolife International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90F_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z68gUskgzt17" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_zi5fzhPAnUn1" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z4p0ZbnY0y13" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> </table> As of December 31, 2025, and December 31, 2024, the aggregate noncontrolling interest was equity of $2,946,000 and $2,978,000, respectively, which are separately disclosed on the Consolidated Balance Sheets. Use of Estimates – The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the balance sheets and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Reclassifications - Costs in the amount of $397,000 associated with research and development have been reclassed from Professional fees to Research and development expenses for year ended December 31, 2024 on the accompanying Consolidated statements of operations to conform with current period presentation. Accrued interest on notes payable, related party year ended December 31, 2024 in the amount of $1,065,000 was reclassed from Borrowings on notes payable, related party on the accompanying Statement of cash flows to conform with current period presentation. Also, $399,000 was reclassed from Accounts payable to Due to related party for year ended December 31, 2024 on the accompanying Consolidated balance sheet to conform with current period presentation. Earnings (Loss) per Share - Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to the common stockholders by weighted average number of shares of common stock outstanding during the period. Fully diluted earnings (loss) per share is computed like basic income (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Dilutive financial instruments issued or outstanding for the years ended December 31, 2024 include <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesConversionOfUnits_c20240101__20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zaPEjs6wNUa7" title="Convertible preferred shares">60,496,041 shares of Series A Convertible Preferred Shares, <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20240101__20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zvuc1vIe8spf" title="Stock options">880,000 options priced at $<span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20240101__20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zeDPdlE8IUjk" title="Options price, per share">3.00 per share expiring on <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20240101__20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zHdrt6s3HDm8" title="Expiration date">October 31, 2031 and 75,000 warrants priced at $<span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20241231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z6SGmyPpX7nl" title="Warrant price per share">3.75 per share which expired on <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zXKWm6tGXEh6" title="Expiration date">June 13, 2025. The of Series A Convertible Preferred Shares, were converted into common shares in October of 2025 and the <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20250101__20251231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zdIyzSc2VKL8" title="Stock options">880,000 options priced at $<span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20250101__20251231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zPWyl5yEHm7i" title="Options price, per share">3.00 per share were forfeited in November 2025 in exchange for stock grants which where distributed in January 2026. There were no dilutive financial instruments issued or outstanding for the year ended December 31, 2025. Fair Value of Financial Instruments – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair Value Measurement Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets. ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amounts reported in the balance sheet of cash, other receivables, accounts payable and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. The fair value of notes receivable approximates their carrying value as the stated or discounted rates of the notes do reflect recent market conditions. Notes payable, related party are recorded at fair value based on several factors (see Note 9). <p id="xdx_848_ecustom--NotesReceivableUnearnedInterestAndRelatedRecognitionPolicyPolicyTextBlock_zuH8aO1D35jf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Notes receivable, unearned interest, and related recognition – The Company records all future payments of principal and interest on notes as notes receivable, which are then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports the net investment in the notes receivable on the consolidated balance sheet as current or long-term based on the maturity date of the underlying notes. Such net investment is comprised of the amount advanced on the loans, adjusting for net deferred loan fees or costs incurred at origination, amounts allocated to warrants received upon origination, and any payments received in advance, if applicable. The unearned interest is recognized over the term of the notes and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. If applicable, any net deferred loan fees or costs, together with discounts recognized in connection with warrants acquired at origination, are accreted as an adjustment to yield over the term of the loan. (Note 4) Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives or lease period of the assets whichever is shorter. Expenditures for renewals and betterments are capitalized. Expenditures for minor items, repairs and maintenance are charged to operations as incurred. Any gain or loss upon sale or retirement due to obsolescence is reflected in the operating results in the period the event takes place. Research and Development - Research and development costs are expensed as incurred. Total research and development costs were $340,000 for the year ended December 31, 2025, and $278,000 for year ended December 31, 2024. Goodwill – Goodwill is the excess of cost of an acquired entity over the fair value of amounts assigned to assets acquired and liabilities assumed in a business combination. FASB ASC Topic 350 provides an entity with the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Some of the qualitative factors considered in applying this test include consideration of macroeconomic conditions, industry and market conditions, cost factors affecting the business, and overall financial performance of the business. If, after completing the assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company will proceed to a quantitative test. If qualitative factors are not deemed sufficient to conclude that the fair value of the reporting unit more likely than not exceeds its carrying value, then a one-step approach is applied in making an evaluation. The evaluation utilizes an income approach (discounted cash flow analysis). The computations require management to make significant estimates and assumptions, including, among other things, selection of comparable publicly traded companies, the discount rate applied to future earnings reflecting a weighted average cost of capital, and earnings growth assumptions. The Company believes the estimates and assumptions used in our impairment assessments are reasonable and based on available market information, but variations in any of the assumptions could result in materially different calculations of fair value and determinations of whether or not an impairment is indicated. A discounted cash flow analysis requires management to make various assumptions about future sales, operating margins, capital expenditures, working capital, and growth rates. Cash flow projections are derived from one-year budgeted amounts plus an estimate of later period cash flows, all of which are determined by management. Subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur. Impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized and unrecognized assets and liabilities of the reporting unit. Projected cash flows, evaluated using a 26.3% discount rate and 3.0% terminal growth, indicated equity fair value far below the carrying amount, driven by limited historical revenues and sustained operating losses. Additional working-capital and related-party debt balance considerations further reduced equity value in the analysis. Taken together, these factors constituted triggering events and supported recording a goodwill impairment in the amount of $25,093,000 as of December 31, 202 representing the full goodwill balance. Goodwill is $0 as of December 31, 2025. Intangible Assets - The estimated fair values of acquired intangibles are generally determined based upon future economic benefits such as earnings and cash flows. Acquired identifiable intangible assets are recorded at fair value and are amortized over their estimated useful lives. Acquired intangible assets with an indefinite life are not amortized but are reviewed for impairment at least annually as of December 31st, or more frequently whenever events or changes in circumstances indicate that the carrying amounts of those assets are below their estimated fair values. Impairment is tested under ASC 350. No impairment was recognized as of year ended December 31, 2025 or the year ended December 31, 2024 (Note 7). Recoverability of Long-Lived Assets - We evaluate long-lived assets such as property, equipment and definite lived intangible assets, such as patents, for impairment whenever events or circumstances indicate that the carrying value of the assets recognized in our financial statements may not be recoverable. Factors that we consider include whether there has been a significant decrease in the market value of an asset, a significant change in the way an asset is being utilized, or a significant change, delay or departure in our strategy for that asset, or a significant change in the macroeconomic environment, such as the impact of the COVID-19 pandemic. Our assessment of the recoverability of long-lived assets involves significant judgment and estimation. These assessments reflect our assumptions, which, we believe, are consistent with the assumptions hypothetical marketplace participants use. Factors that we must estimate when performing recoverability and impairment tests include, among others, forecasted revenue, margin costs and the economic life of the asset. If impairment is indicated, we determine if the total estimated future cash flows on an undiscounted basis are less than the carrying amounts of the asset or assets. If so, an impairment loss is measured and recognized. Our impairment loss calculations require that we apply judgment in identifying asset groups, estimating future cash flows, determining asset fair values, and estimating asset’s useful lives. The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. Based on the uncertainty of forecasts inherent with a new product, events such as the failure to generate forecasted revenue from new products could result in a non-cash impairment in future periods. Due to related party - The Company has amounts due to DSS, a related party, resulting from funding advances and shared expenses in the ordinary course of business. As of December 31, 2025, and December 31, 2024, amounts due to the related party totaled $ 621,000 and $399,000, respectively. The amounts are non-interest bearing. and are due upon demand. Revenue - The Company has adopted ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The Company enters into licensing and development agreements with collaborators for the development of its technologies. The terms of these agreements contain multiple performance obligations which may include (i) licenses, or options to obtain licenses, to the Company’s technology, (ii) rights to future technological improvements, and/or (iii) research activities to be performed on behalf of the collaborative partner. Payments to the Company under these agreements may include upfront fees, option fees, exercise fees, payments based upon the achievement of certain milestones, and royalties on product sales. Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under the agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when or as the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when or as the performance obligation is satisfied at a specific point in time. The Company recognizes its revenue on the sale of its Celios technology based on when the product is shipped to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for shipped product. Sales and other taxes billed and collected from customers are excluded from revenue. Provision for Credit Losses - The Company adopted amended accounting guidance ASC Topic 326 which requires an allowance for credit losses to be deducted from the amortized cost basis of financial assets to present the net carrying value at the amount that is expected to be collected over the contractual term of the asset considering relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In estimating expected losses in the loan and lease portfolio, borrower-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period. Assumptions and judgment are applied to measure amounts and timing of expected future cash flows, collateral values and other factors used to determine the borrowers’ abilities to repay obligations. After the forecast period, the Company utilizes longer-term historical loss experience to estimate losses over the remaining contractual life of the loans. As of December 31, 2025 and 2024 the Company has deemed that no reserve on credit losses were necessary. Acquisitions - Acquisition of assets are recorded at their relative fair value based on total accumulated costs of the acquisition. Direct acquisition-related costs are expensed as incurred. This includes all costs related to finding, analyzing and negotiating a transaction. The allocation of the purchase price is an area that requires judgment and significant estimates. Tangible and intangible assets include land, building and improvements, furniture, fixtures and equipment, acquired above market and below market leases, in-place lease value (if applicable). Acquisition-date fair values of assets and assumed liabilities are determined based on replacement costs, appraised values, and estimated fair values using methods like those used by independent appraisers and that use appropriate discount and/or capitalization rates and available market information. On February 25, 2025, the Company completed the acquisition of certain assets owned by DSS Pure Air, Inc. (DSS PureAir”), a related party, for $1,150,000 to be paid by 545,024 shares of the Company’s common stock calculated on a 10-day VWAP. Assets acquired included accounts receivable, inventory and intellectual property of the Celios air purification system. Assets acquired included accounts receivable valued at approximately $<span id="xdx_905_eus-gaap--AccountsReceivableNetCurrent_iI_c20250225__us-gaap--FairValueByAssetClassAxis__us-gaap--AccountsReceivableMember__us-gaap--BusinessAcquisitionAxis__custom--DSSPureAirINCMember_zf77LQsixxkg" title="Accounts receivable">4,000, prepaid assets of approximately $<span id="xdx_906_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20250225__us-gaap--FairValueByAssetClassAxis__us-gaap--AccountsReceivableMember__us-gaap--BusinessAcquisitionAxis__custom--DSSPureAirINCMember_zOVbGwdfIO55" title="Prepaid assets">2,000, inventory valued at approximately $<span id="xdx_901_eus-gaap--InventoryNet_iI_c20250225__us-gaap--BalanceSheetLocationAxis__us-gaap--InventoriesMember__us-gaap--BusinessAcquisitionAxis__custom--DSSPureAirINCMember_zINmNTc26Luj" title="Inventory">489,000, and intellectual property of the Celios air purification system of approximately $<span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zLbfIB5yaMBh" title="Assets acquired gross">325,000, inclusive of a $<span id="xdx_903_ecustom--PremiumPaidForAssetsAcquired_c20250225__20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_ztlan0A1hBEg" title="Premium paid for assets acquired">330,000 premium paid for the assets acquired. This premium of $<span id="xdx_90E_eus-gaap--TransfersAccountedForAsSecuredBorrowingsAssetsCarryingAmount_iI_c20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zIUeZ155cQqc" title="Accounted for accordance amount">330,000 is accounted for in accordance with ASC 805-50, when assets are transferred between entities under common control, the premium should not be recorded as an asset or as part of the transaction price. Continuing Operations and Going Concern - The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. As reflected in the accompanying financial statements the Company has incurred operating losses as well as negative cash flows from operating activities over the past two years. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. These consolidated financial statements do not include any adjustments to the specific amounts and classifications of assets and liabilities, which might be necessary should we be unable to continue as a going concern. To continue as a going concern the Company is exploring several options to raise capital including but not limited to, capital raises via its listing on the NYSE American under the ticker symbol IBO as well as debt financing. Although there is no certainty that management plans will be able to satisfy the requirements to continue operating as a going concern, management intends to take additional actions necessary to continue as a going concern. Management’s plans concerning these matters include, among other things, monetization of its intellectual properties, and tightly controlling operating costs. Segment Reporting - In November 2023, the FASB issued ASC 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced segment disclosures, including expanded information about significant segment expenses, other segment items, and the chief operating decision maker’s use of reported segment information. The amendments also apply to public entities with a single reportable segment and do not change how the Company identifies its operating segments, aggregates operating segments, or determines its reportable segments. The amendments are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-07 effective January 1, 2024. Adoption of the standard did not affect the Company’s consolidated financial position, results of operations, or cash flows, but did require expanded disclosures in the notes to the consolidated financial statements related to its 1single reportable segment. Income Taxes - In December 2023, the FASB issued ASC 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhanced annual income tax disclosures, including additional disaggregation of rate reconciliation information and income taxes paid. The Company adopted ASU 2023-09 effective January 1, 2025. Adoption of the standard did not impact the Company’s consolidated financial position, results of operations, or cash flows, but did require expanded income tax disclosures in the notes to the consolidated financial statements Recent Accounting Standards - The Financial Accounting Standards Board (FASB) issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. There are several new accounting pronouncements issued by FASB which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. As of December 31, 2025, none of these pronouncements is expected to have a material effect on the financial position, results of operations or cash flows of the Company. In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Disaggregation of Income Statement Expenses (“DISE”). ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. As revised by ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, the provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. With the exception of expanding disclosures to include more granular income statement expense categories, we do not expect the adoption of ASU 2024-03 to have a material effect on our consolidated financial statements taken as a whole. In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which amends the guidance related to the measurement of credit losses for accounts receivable and contract assets. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently reviewing the provisions of this guidance, has not yet adopted the standard, and does not currently expect adoption of ASU 2025-05 to have a material effect on its consolidated financial statements.

Principles of Consolidation – The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include all accounts of the Company and its majority owned and controlled subsidiaries. The Company consolidates entities in which it owns more than <span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByNoncontrollingOwners_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--SweetSenseIncMember_zVuoiXguFlRg" title="Minority interest ownership percentage">50% of the voting common stock and controls operations. All intercompany transactions and balances among consolidated subsidiaries have been eliminated. Non–controlling interest represents the minority equity investment in the Company’s subsidiaries, plus the minority investors’ share of the net operating results and other components of equity relating to the non–controlling interest. The consolidated financial statements include all accounts of the entities as of the reporting period ending dates and for the reporting periods as follows: SCHEDULE OF CONSOLIDATED FINANCIAL STATEMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: center">Name of consolidated subsidiary</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">State or other jurisdiction of incorporation or organization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Date of incorporation or formation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Attributable interest as of December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Attributable interest as of December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Global BioMedical, Inc.</td><td style="width: 2%"> </td> <td style="width: 12%; text-align: center"><span id="xdx_901_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zVvBlPMO2G28" title="State or other jurisdiction of incorporation or organization">Nevada</td><td style="width: 2%"> </td> <td style="width: 16%; text-align: center">April 18, 2017</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right"><span id="xdx_90C_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zNDRIOgeGCB9" title="Attributable interest percentage">90.9</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zq28dWAn1Zl5" title="Attributable interest percentage">90.9</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global BioLife, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_907_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--GlobalBioLifeIncMember_z1hovPMQQhJ9" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 14, 2017</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">BioLife Sugar, Inc</td><td> </td> <td style="text-align: center"><span id="xdx_900_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--BioLifeSugarIncMember_zHSxJCDtHXK2" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 23, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Happy Sugar Inc</td><td> </td> <td style="text-align: center"><span id="xdx_902_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--HappySugarIncMember_zyQi8tKlZcAd" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">August 17, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sweet Sense Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_908_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--SweetSenseIncMember_zgL9Dkxikoz3" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 30, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global Sugar Solutions Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_902_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zZwg1WNZ892" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">November 7, 2019</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zV08xl33QLWg" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zROh2ddMdqdd" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Impact Biolife Science, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_903_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_z5J9MbhyG4V" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 13, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zRgJF6q3pSX9" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zgmNzRaG3do4" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">DSS Biomedical International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_907_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zx6Ge16jQiTh" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center"><span id="xdx_909_edei--EntityIncorporationDateOfIncorporation_dd_c20250101__20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zj1i74S1nip3" title="Date of incorporation or formation">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zd3iSjWgGOTi" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zHWSIZGRNNJ7" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">DSS Biolife International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90F_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z68gUskgzt17" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_zi5fzhPAnUn1" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z4p0ZbnY0y13" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> </table> As of December 31, 2025, and December 31, 2024, the aggregate noncontrolling interest was equity of $2,946,000 and $2,978,000, respectively, which are separately disclosed on the Consolidated Balance Sheets.

0.50

The consolidated financial statements include all accounts of the entities as of the reporting period ending dates and for the reporting periods as follows: SCHEDULE OF CONSOLIDATED FINANCIAL STATEMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: center">Name of consolidated subsidiary</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">State or other jurisdiction of incorporation or organization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Date of incorporation or formation</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Attributable interest as of December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Attributable interest as of December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Global BioMedical, Inc.</td><td style="width: 2%"> </td> <td style="width: 12%; text-align: center"><span id="xdx_901_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zVvBlPMO2G28" title="State or other jurisdiction of incorporation or organization">Nevada</td><td style="width: 2%"> </td> <td style="width: 16%; text-align: center">April 18, 2017</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right"><span id="xdx_90C_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zNDRIOgeGCB9" title="Attributable interest percentage">90.9</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 10%; text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zq28dWAn1Zl5" title="Attributable interest percentage">90.9</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global BioLife, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_907_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--GlobalBioLifeIncMember_z1hovPMQQhJ9" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 14, 2017</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">BioLife Sugar, Inc</td><td> </td> <td style="text-align: center"><span id="xdx_900_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--BioLifeSugarIncMember_zHSxJCDtHXK2" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 23, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Happy Sugar Inc</td><td> </td> <td style="text-align: center"><span id="xdx_902_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--HappySugarIncMember_zyQi8tKlZcAd" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">August 17, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sweet Sense Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_908_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--SweetSenseIncMember_zgL9Dkxikoz3" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 30, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global Sugar Solutions Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_902_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zZwg1WNZ892" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">November 7, 2019</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zV08xl33QLWg" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zROh2ddMdqdd" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Impact Biolife Science, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_903_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_z5J9MbhyG4V" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 13, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zRgJF6q3pSX9" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zgmNzRaG3do4" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">DSS Biomedical International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_907_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zx6Ge16jQiTh" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center"><span id="xdx_909_edei--EntityIncorporationDateOfIncorporation_dd_c20250101__20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zj1i74S1nip3" title="Date of incorporation or formation">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zd3iSjWgGOTi" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zHWSIZGRNNJ7" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">DSS Biolife International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90F_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20250101__20251231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z68gUskgzt17" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_zi5fzhPAnUn1" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90C_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20241231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z4p0ZbnY0y13" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> </table> Nevada 2017-04-18

0.909

Nevada 2017-04-14

0.818

Nevada 2018-04-23

0.909

Nevada 2018-08-17

0.818

Nevada 2018-04-30

0.955

Nevada 2019-11-07

Nevada 2021-04-13

Nevada 2021-04-09

2946000

2978000

Use of Estimates – The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the balance sheets and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

Reclassifications - Costs in the amount of $397,000 associated with research and development have been reclassed from Professional fees to Research and development expenses for year ended December 31, 2024 on the accompanying Consolidated statements of operations to conform with current period presentation. Accrued interest on notes payable, related party year ended December 31, 2024 in the amount of $1,065,000 was reclassed from Borrowings on notes payable, related party on the accompanying Statement of cash flows to conform with current period presentation. Also, $399,000 was reclassed from Accounts payable to Due to related party for year ended December 31, 2024 on the accompanying Consolidated balance sheet to conform with current period presentation.

397000

1065000

399000

Earnings (Loss) per Share - Basic earnings (loss) per share is computed by dividing the net income (loss) attributable to the common stockholders by weighted average number of shares of common stock outstanding during the period. Fully diluted earnings (loss) per share is computed like basic income (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Dilutive financial instruments issued or outstanding for the years ended December 31, 2024 include <span id="xdx_908_eus-gaap--StockIssuedDuringPeriodSharesConversionOfUnits_c20240101__20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zaPEjs6wNUa7" title="Convertible preferred shares">60,496,041 shares of Series A Convertible Preferred Shares, <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20240101__20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zvuc1vIe8spf" title="Stock options">880,000 options priced at $<span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20240101__20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zeDPdlE8IUjk" title="Options price, per share">3.00 per share expiring on <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_dd_c20240101__20241231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zHdrt6s3HDm8" title="Expiration date">October 31, 2031 and 75,000 warrants priced at $<span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20241231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z6SGmyPpX7nl" title="Warrant price per share">3.75 per share which expired on <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_c20240101__20241231__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zXKWm6tGXEh6" title="Expiration date">June 13, 2025. The of Series A Convertible Preferred Shares, were converted into common shares in October of 2025 and the <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20250101__20251231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zdIyzSc2VKL8" title="Stock options">880,000 options priced at $<span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20250101__20251231__us-gaap--StatementClassOfStockAxis__custom--SeriesAConvertiblePreferredSharesMember_zPWyl5yEHm7i" title="Options price, per share">3.00 per share were forfeited in November 2025 in exchange for stock grants which where distributed in January 2026. There were no dilutive financial instruments issued or outstanding for the year ended December 31, 2025.

60496041

880000

3.00

2031-10-31

75000

3.75

2025-06-13

880000

3.00

Fair Value of Financial Instruments – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair Value Measurement Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets. ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amounts reported in the balance sheet of cash, other receivables, accounts payable and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. The fair value of notes receivable approximates their carrying value as the stated or discounted rates of the notes do reflect recent market conditions. Notes payable, related party are recorded at fair value based on several factors (see Note 9).

<p id="xdx_848_ecustom--NotesReceivableUnearnedInterestAndRelatedRecognitionPolicyPolicyTextBlock_zuH8aO1D35jf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Notes receivable, unearned interest, and related recognition – The Company records all future payments of principal and interest on notes as notes receivable, which are then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports the net investment in the notes receivable on the consolidated balance sheet as current or long-term based on the maturity date of the underlying notes. Such net investment is comprised of the amount advanced on the loans, adjusting for net deferred loan fees or costs incurred at origination, amounts allocated to warrants received upon origination, and any payments received in advance, if applicable. The unearned interest is recognized over the term of the notes and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. If applicable, any net deferred loan fees or costs, together with discounts recognized in connection with warrants acquired at origination, are accreted as an adjustment to yield over the term of the loan. (Note 4)

Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives or lease period of the assets whichever is shorter. Expenditures for renewals and betterments are capitalized. Expenditures for minor items, repairs and maintenance are charged to operations as incurred. Any gain or loss upon sale or retirement due to obsolescence is reflected in the operating results in the period the event takes place.

Research and Development - Research and development costs are expensed as incurred. Total research and development costs were $340,000 for the year ended December 31, 2025, and $278,000 for year ended December 31, 2024.

340000

278000

Goodwill – Goodwill is the excess of cost of an acquired entity over the fair value of amounts assigned to assets acquired and liabilities assumed in a business combination. FASB ASC Topic 350 provides an entity with the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Some of the qualitative factors considered in applying this test include consideration of macroeconomic conditions, industry and market conditions, cost factors affecting the business, and overall financial performance of the business. If, after completing the assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company will proceed to a quantitative test. If qualitative factors are not deemed sufficient to conclude that the fair value of the reporting unit more likely than not exceeds its carrying value, then a one-step approach is applied in making an evaluation. The evaluation utilizes an income approach (discounted cash flow analysis). The computations require management to make significant estimates and assumptions, including, among other things, selection of comparable publicly traded companies, the discount rate applied to future earnings reflecting a weighted average cost of capital, and earnings growth assumptions. The Company believes the estimates and assumptions used in our impairment assessments are reasonable and based on available market information, but variations in any of the assumptions could result in materially different calculations of fair value and determinations of whether or not an impairment is indicated. A discounted cash flow analysis requires management to make various assumptions about future sales, operating margins, capital expenditures, working capital, and growth rates. Cash flow projections are derived from one-year budgeted amounts plus an estimate of later period cash flows, all of which are determined by management. Subsequent period cash flows are developed for each reporting unit using growth rates that management believes are reasonably likely to occur. Impairment of goodwill is measured as the excess of the carrying amount of goodwill over the fair values of recognized and unrecognized assets and liabilities of the reporting unit. Projected cash flows, evaluated using a 26.3% discount rate and 3.0% terminal growth, indicated equity fair value far below the carrying amount, driven by limited historical revenues and sustained operating losses. Additional working-capital and related-party debt balance considerations further reduced equity value in the analysis. Taken together, these factors constituted triggering events and supported recording a goodwill impairment in the amount of $25,093,000 as of December 31, 202 representing the full goodwill balance. Goodwill is $0 as of December 31, 2025.

evaluated using a 26.3% discount rate and 3.0% terminal growth, indicated equity fair value far below the carrying amount, driven by limited historical revenues and sustained operating losses.

25093000

Intangible Assets - The estimated fair values of acquired intangibles are generally determined based upon future economic benefits such as earnings and cash flows. Acquired identifiable intangible assets are recorded at fair value and are amortized over their estimated useful lives. Acquired intangible assets with an indefinite life are not amortized but are reviewed for impairment at least annually as of December 31st, or more frequently whenever events or changes in circumstances indicate that the carrying amounts of those assets are below their estimated fair values. Impairment is tested under ASC 350. No impairment was recognized as of year ended December 31, 2025 or the year ended December 31, 2024 (Note 7).

Recoverability of Long-Lived Assets - We evaluate long-lived assets such as property, equipment and definite lived intangible assets, such as patents, for impairment whenever events or circumstances indicate that the carrying value of the assets recognized in our financial statements may not be recoverable. Factors that we consider include whether there has been a significant decrease in the market value of an asset, a significant change in the way an asset is being utilized, or a significant change, delay or departure in our strategy for that asset, or a significant change in the macroeconomic environment, such as the impact of the COVID-19 pandemic. Our assessment of the recoverability of long-lived assets involves significant judgment and estimation. These assessments reflect our assumptions, which, we believe, are consistent with the assumptions hypothetical marketplace participants use. Factors that we must estimate when performing recoverability and impairment tests include, among others, forecasted revenue, margin costs and the economic life of the asset. If impairment is indicated, we determine if the total estimated future cash flows on an undiscounted basis are less than the carrying amounts of the asset or assets. If so, an impairment loss is measured and recognized. Our impairment loss calculations require that we apply judgment in identifying asset groups, estimating future cash flows, determining asset fair values, and estimating asset’s useful lives. The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. Based on the uncertainty of forecasts inherent with a new product, events such as the failure to generate forecasted revenue from new products could result in a non-cash impairment in future periods. Due to related party - The Company has amounts due to DSS, a related party, resulting from funding advances and shared expenses in the ordinary course of business. As of December 31, 2025, and December 31, 2024, amounts due to the related party totaled $ 621,000 and $399,000, respectively. The amounts are non-interest bearing. and are due upon demand.

621000

399000

Revenue - The Company has adopted ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The Company enters into licensing and development agreements with collaborators for the development of its technologies. The terms of these agreements contain multiple performance obligations which may include (i) licenses, or options to obtain licenses, to the Company’s technology, (ii) rights to future technological improvements, and/or (iii) research activities to be performed on behalf of the collaborative partner. Payments to the Company under these agreements may include upfront fees, option fees, exercise fees, payments based upon the achievement of certain milestones, and royalties on product sales. Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under the agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when or as the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when or as the performance obligation is satisfied at a specific point in time. The Company recognizes its revenue on the sale of its Celios technology based on when the product is shipped to the customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for shipped product. Sales and other taxes billed and collected from customers are excluded from revenue.

Provision for Credit Losses - The Company adopted amended accounting guidance ASC Topic 326 which requires an allowance for credit losses to be deducted from the amortized cost basis of financial assets to present the net carrying value at the amount that is expected to be collected over the contractual term of the asset considering relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In estimating expected losses in the loan and lease portfolio, borrower-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period. Assumptions and judgment are applied to measure amounts and timing of expected future cash flows, collateral values and other factors used to determine the borrowers’ abilities to repay obligations. After the forecast period, the Company utilizes longer-term historical loss experience to estimate losses over the remaining contractual life of the loans. As of December 31, 2025 and 2024 the Company has deemed that no reserve on credit losses were necessary.

Acquisitions - Acquisition of assets are recorded at their relative fair value based on total accumulated costs of the acquisition. Direct acquisition-related costs are expensed as incurred. This includes all costs related to finding, analyzing and negotiating a transaction. The allocation of the purchase price is an area that requires judgment and significant estimates. Tangible and intangible assets include land, building and improvements, furniture, fixtures and equipment, acquired above market and below market leases, in-place lease value (if applicable). Acquisition-date fair values of assets and assumed liabilities are determined based on replacement costs, appraised values, and estimated fair values using methods like those used by independent appraisers and that use appropriate discount and/or capitalization rates and available market information. On February 25, 2025, the Company completed the acquisition of certain assets owned by DSS Pure Air, Inc. (DSS PureAir”), a related party, for $1,150,000 to be paid by 545,024 shares of the Company’s common stock calculated on a 10-day VWAP. Assets acquired included accounts receivable, inventory and intellectual property of the Celios air purification system. Assets acquired included accounts receivable valued at approximately $<span id="xdx_905_eus-gaap--AccountsReceivableNetCurrent_iI_c20250225__us-gaap--FairValueByAssetClassAxis__us-gaap--AccountsReceivableMember__us-gaap--BusinessAcquisitionAxis__custom--DSSPureAirINCMember_zf77LQsixxkg" title="Accounts receivable">4,000, prepaid assets of approximately $<span id="xdx_906_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20250225__us-gaap--FairValueByAssetClassAxis__us-gaap--AccountsReceivableMember__us-gaap--BusinessAcquisitionAxis__custom--DSSPureAirINCMember_zOVbGwdfIO55" title="Prepaid assets">2,000, inventory valued at approximately $<span id="xdx_901_eus-gaap--InventoryNet_iI_c20250225__us-gaap--BalanceSheetLocationAxis__us-gaap--InventoriesMember__us-gaap--BusinessAcquisitionAxis__custom--DSSPureAirINCMember_zINmNTc26Luj" title="Inventory">489,000, and intellectual property of the Celios air purification system of approximately $<span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zLbfIB5yaMBh" title="Assets acquired gross">325,000, inclusive of a $<span id="xdx_903_ecustom--PremiumPaidForAssetsAcquired_c20250225__20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_ztlan0A1hBEg" title="Premium paid for assets acquired">330,000 premium paid for the assets acquired. This premium of $<span id="xdx_90E_eus-gaap--TransfersAccountedForAsSecuredBorrowingsAssetsCarryingAmount_iI_c20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zIUeZ155cQqc" title="Accounted for accordance amount">330,000 is accounted for in accordance with ASC 805-50, when assets are transferred between entities under common control, the premium should not be recorded as an asset or as part of the transaction price.

1150000

545024

4000

2000

489000

325000

330000

Continuing Operations and Going Concern - The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. As reflected in the accompanying financial statements the Company has incurred operating losses as well as negative cash flows from operating activities over the past two years. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. These consolidated financial statements do not include any adjustments to the specific amounts and classifications of assets and liabilities, which might be necessary should we be unable to continue as a going concern. To continue as a going concern the Company is exploring several options to raise capital including but not limited to, capital raises via its listing on the NYSE American under the ticker symbol IBO as well as debt financing. Although there is no certainty that management plans will be able to satisfy the requirements to continue operating as a going concern, management intends to take additional actions necessary to continue as a going concern. Management’s plans concerning these matters include, among other things, monetization of its intellectual properties, and tightly controlling operating costs.

Segment Reporting - In November 2023, the FASB issued ASC 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced segment disclosures, including expanded information about significant segment expenses, other segment items, and the chief operating decision maker’s use of reported segment information. The amendments also apply to public entities with a single reportable segment and do not change how the Company identifies its operating segments, aggregates operating segments, or determines its reportable segments. The amendments are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-07 effective January 1, 2024. Adoption of the standard did not affect the Company’s consolidated financial position, results of operations, or cash flows, but did require expanded disclosures in the notes to the consolidated financial statements related to its 1single reportable segment.

Income Taxes - In December 2023, the FASB issued ASC 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhanced annual income tax disclosures, including additional disaggregation of rate reconciliation information and income taxes paid. The Company adopted ASU 2023-09 effective January 1, 2025. Adoption of the standard did not impact the Company’s consolidated financial position, results of operations, or cash flows, but did require expanded income tax disclosures in the notes to the consolidated financial statements

Recent Accounting Standards - The Financial Accounting Standards Board (FASB) issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. There are several new accounting pronouncements issued by FASB which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. As of December 31, 2025, none of these pronouncements is expected to have a material effect on the financial position, results of operations or cash flows of the Company. In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Disaggregation of Income Statement Expenses (“DISE”). ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. As revised by ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, the provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. With the exception of expanding disclosures to include more granular income statement expense categories, we do not expect the adoption of ASU 2024-03 to have a material effect on our consolidated financial statements taken as a whole. In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which amends the guidance related to the measurement of credit losses for accounts receivable and contract assets. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently reviewing the provisions of this guidance, has not yet adopted the standard, and does not currently expect adoption of ASU 2025-05 to have a material effect on its consolidated financial statements.

3. FINANCIAL INSTRUMENTS Cash, Note payable, related party The following tables show the Company’s cash, cash equivalents, and note payable, related party by significant investment category as of: SCHEDULE OF CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND NOTE PAYABLE RELATED PARTY BY SIGNIFICANT INVESTMENT CATEGORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="18" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid">Adjusted Cost</td><td style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Unrealized (Gain)/Loss</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Fair Value</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Cash and Cash Equivalents</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Note Payable, Related Party</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 30%">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zleaYBW2WPS2" style="width: 10%; text-align: right" title="Adjusted cost, Cash">3,000</td><td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z1wH57bwToge" style="width: 10%; text-align: right" title="Fair value, Cash">3,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z474OsjWb2De" style="width: 10%; text-align: right" title="Cash and cash Equivalents, Cash">3,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 20pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_ecustom--CashCashEquivalentsAndMarketableSecuritiesAmortizedCostBasis_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zPxV9jqLQkKk" style="border-bottom: Black 2.5pt double; text-align: right" title="Adjusted cost">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zhSbTylKQdB7" style="border-bottom: Black 2.5pt double; text-align: right" title="Unrealized Gain/(Loss)">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_ecustom--FairValueOfCashCashEquivalentsAndMarketableSecurities_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zp6Yoef6zE9l" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_ecustom--CashCashEquivalentsAndMarketableSecurities_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zbjm7opAkER1" style="border-bottom: Black 2.5pt double; text-align: right" title="Cash and Cash Equivalents">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--NotesPayable_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zPc557FBm2xd" style="border-bottom: Black 2.5pt double; text-align: right" title="Note payable, related party">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="18" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Adjusted Cost</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Unrealized (Gain)/Loss</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Fair Value</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Cash and Cash Equivalents</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Note Payable, Related Party</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 30%">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zuHrBOsofQXe" style="width: 10%; text-align: right" title="Adjusted cost, Cash">1,999,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zk1MeCBU1884" style="width: 10%; text-align: right" title="Fair value, Cash">1,999,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zEAKdvkdG1Z3" style="width: 10%; text-align: right" title="Cash and cash Equivalents, Cash">1,999,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Level 2</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Adjusted cost, Cash"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Fair value, Cash"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Cash and cash Equivalents, Cash"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1pt; text-align: left">Note payable, related party</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_c20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z5YaaxVAkTx3" style="border-bottom: Black 1pt solid; text-align: right" title="Adjusted cost, Note payable, related party">13,946,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_c20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zi0oK9nHkClg" style="border-bottom: Black 1pt solid; text-align: right" title="Unrealized Gain/(Loss), Note payable, related party">(5,068,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_c20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zv8TFFYTlBL5" style="border-bottom: Black 1pt solid; text-align: right" title="Fair Value, Note payable, related party">8,878,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--LongTermNotesPayable_iI_c20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zBGGW0hJIAJ5" style="border-bottom: Black 1pt solid; text-align: right" title="Cash and Cash Equivalents, Note payable, related party">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--NotesPayable_iI_c20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zRm7kmtP5gGa" style="border-bottom: Black 1pt solid; text-align: right" title="Note payable, related party">8,878,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_ecustom--CashCashEquivalentsAndMarketableSecuritiesAmortizedCostBasis_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zWpWqhuococ3" style="border-bottom: Black 2.5pt double; text-align: right" title="Adjusted cost">15,945,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zYo8woPP9Lrh" style="border-bottom: Black 2.5pt double; text-align: right" title="Unrealized Gain/(Loss)">(5,068,000</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_ecustom--FairValueOfCashCashEquivalentsAndMarketableSecurities_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zme7Y1rFsjrg" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">10,877,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_ecustom--CashCashEquivalentsAndMarketableSecurities_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zNNt6FfDOYr4" style="border-bottom: Black 2.5pt double; text-align: right" title="Cash and Cash Equivalents">1,999,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--NotesPayable_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_z5HppYymUL7b" style="border-bottom: Black 2.5pt double; text-align: right" title="Note payable, related party">8,878,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

The following tables show the Company’s cash, cash equivalents, and note payable, related party by significant investment category as of: SCHEDULE OF CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND NOTE PAYABLE RELATED PARTY BY SIGNIFICANT INVESTMENT CATEGORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="18" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid">Adjusted Cost</td><td style="padding-bottom: 1pt; text-align: center"> </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Unrealized (Gain)/Loss</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Fair Value</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Cash and Cash Equivalents</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Note Payable, Related Party</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 30%">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zleaYBW2WPS2" style="width: 10%; text-align: right" title="Adjusted cost, Cash">3,000</td><td style="width: 1%; text-align: left"> </td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z1wH57bwToge" style="width: 10%; text-align: right" title="Fair value, Cash">3,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z474OsjWb2De" style="width: 10%; text-align: right" title="Cash and cash Equivalents, Cash">3,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right"> -</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 20pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_ecustom--CashCashEquivalentsAndMarketableSecuritiesAmortizedCostBasis_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zPxV9jqLQkKk" style="border-bottom: Black 2.5pt double; text-align: right" title="Adjusted cost">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zhSbTylKQdB7" style="border-bottom: Black 2.5pt double; text-align: right" title="Unrealized Gain/(Loss)">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_ecustom--FairValueOfCashCashEquivalentsAndMarketableSecurities_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zp6Yoef6zE9l" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_ecustom--CashCashEquivalentsAndMarketableSecurities_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zbjm7opAkER1" style="border-bottom: Black 2.5pt double; text-align: right" title="Cash and Cash Equivalents">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--NotesPayable_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zPc557FBm2xd" style="border-bottom: Black 2.5pt double; text-align: right" title="Note payable, related party">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="18" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Adjusted Cost</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Unrealized (Gain)/Loss</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Fair Value</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Cash and Cash Equivalents</td><td style="padding-bottom: 1pt; text-align: center"> </td><td style="padding-bottom: 1pt; text-align: center; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Note Payable, Related Party</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 30%">Cash</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zuHrBOsofQXe" style="width: 10%; text-align: right" title="Adjusted cost, Cash">1,999,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zk1MeCBU1884" style="width: 10%; text-align: right" title="Fair value, Cash">1,999,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zEAKdvkdG1Z3" style="width: 10%; text-align: right" title="Cash and cash Equivalents, Cash">1,999,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Level 2</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Adjusted cost, Cash"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Fair value, Cash"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Cash and cash Equivalents, Cash"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1pt; text-align: left">Note payable, related party</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--AvailableForSaleDebtSecuritiesAmortizedCostBasis_iI_c20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_z5YaaxVAkTx3" style="border-bottom: Black 1pt solid; text-align: right" title="Adjusted cost, Note payable, related party">13,946,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_c20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zi0oK9nHkClg" style="border-bottom: Black 1pt solid; text-align: right" title="Unrealized Gain/(Loss), Note payable, related party">(5,068,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_c20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zv8TFFYTlBL5" style="border-bottom: Black 1pt solid; text-align: right" title="Fair Value, Note payable, related party">8,878,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--LongTermNotesPayable_iI_c20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zBGGW0hJIAJ5" style="border-bottom: Black 1pt solid; text-align: right" title="Cash and Cash Equivalents, Note payable, related party">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--NotesPayable_iI_c20241231__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zRm7kmtP5gGa" style="border-bottom: Black 1pt solid; text-align: right" title="Note payable, related party">8,878,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_ecustom--CashCashEquivalentsAndMarketableSecuritiesAmortizedCostBasis_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zWpWqhuococ3" style="border-bottom: Black 2.5pt double; text-align: right" title="Adjusted cost">15,945,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--DebtSecuritiesAvailableForSaleAccumulatedGrossUnrealizedGainLossBeforeTax_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zYo8woPP9Lrh" style="border-bottom: Black 2.5pt double; text-align: right" title="Unrealized Gain/(Loss)">(5,068,000</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_ecustom--FairValueOfCashCashEquivalentsAndMarketableSecurities_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zme7Y1rFsjrg" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">10,877,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_ecustom--CashCashEquivalentsAndMarketableSecurities_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zNNt6FfDOYr4" style="border-bottom: Black 2.5pt double; text-align: right" title="Cash and Cash Equivalents">1,999,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--NotesPayable_iI_c20241231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_z5HppYymUL7b" style="border-bottom: Black 2.5pt double; text-align: right" title="Note payable, related party">8,878,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

3000

3000 3000 3000

1999000

13946000

-5068000

8878000

15945000

-5068000

10877000 1999000

8878000

4. NOTES RECEIVABLE On February 19, 2021, Impact BioMedical, Inc, entered into a promissory note with an individual. The Company loaned the principal sum of $206,000, with interest at a rate of 6.5%, and maturity date of August 19, 2022 later amended to February 19, 2026. Monthly payments are due on the twenty-first day of each month and continuing each month thereafter until February 19, 2026. This note is secured by certain real property situated in Collier County, Florida. The outstanding principal and interest as of December 31, 2025 is approximately $198,000 and is classified in Current portion of notes receivable on the accompanying consolidated balance sheet. The outstanding principal and interest as of December 31, 2024, approximately $201,000 with $184,000 classified in Current portion of notes receivable and $17,000 classified as Notes receivable on the accompanying consolidated balance sheet. The maturity date of this note is currently being renegotiated.

206000

0.065

August 19, 2022 later amended to February 19, 2026.

198000

201000

184000

17000

5. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses at December 31, 2025 of $142,000 driven by $140,000 of prepaid insurance. Prepaid expenses at December 31, 2024 of $265,000 driven by $263,000 of prepaid insurance.

142000

140000

265000

263000

6. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following as of: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center">Estimated</td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49A_20251231_zNR1WqdDZTDj" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20241231_zuuDKPr2U9d6" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zZnC7AZQq1b9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; text-align: left">Machinery and equipment</td><td style="width: 2%"> </td> <td style="width: 14%; text-align: center"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_z4yzpYRT9hMe" title="Estimated useful life">5-<span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zE4PPRDJy6z6" title="Estimated useful life">10 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">30,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzm9U_zuVCPDvJ25jg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total Cost</td><td> </td> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> -</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iI_msPPAENzm9U_zJP1I78vUM7f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: right; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">13,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzm9U_zpcr076NJ6Rj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property, plant and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">17,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Depreciation expense for the years ended December 31, 2025 and 2024 were approximately $6,000 and $7,000, respectively. As of December 31, 2025 the company disposed of its machinery and equipment and recorded a loss of $12,000.

Property, plant and equipment consisted of the following as of: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: center">Estimated</td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49A_20251231_zNR1WqdDZTDj" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td><td style="font-weight: bold"> </td> <td colspan="2" id="xdx_49E_20241231_zuuDKPr2U9d6" style="font-weight: bold; text-align: center">December 31,</td><td style="font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Useful Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zZnC7AZQq1b9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; text-align: left">Machinery and equipment</td><td style="width: 2%"> </td> <td style="width: 14%; text-align: center"><span id="xdx_90A_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_z4yzpYRT9hMe" title="Estimated useful life">5-<span id="xdx_903_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20251231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zE4PPRDJy6z6" title="Estimated useful life">10 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">30,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzm9U_zuVCPDvJ25jg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total Cost</td><td> </td> <td style="text-align: right"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> -</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">30,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iI_msPPAENzm9U_zJP1I78vUM7f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: right; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">13,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzm9U_zpcr076NJ6Rj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property, plant and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">17,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

P5Y

P10Y

30000

13000

17000

6000

7000

-12000

7. INTANGIBLE ASSETS The definite-lived intangible assets, to be amortized over 20 years, balances, and activity for the year ended December 31, 2025 and year ended December 31, 2024 consisted of the following: SCHEDULE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Useful Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Accumulated Amortization</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Accumulated Amortization</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 11%; text-align: left">Developed technology assets</td><td style="width: 2%"> </td> <td style="width: 11%; text-align: center"><span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zwSlV4OHPY0b" title="Useful life">20 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zqEegSuC8e9h" style="width: 9%; text-align: right" title="Gross carrying amount">22,260,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zkaEXYuohMn9" style="width: 9%; text-align: right" title="Accumulated amortization">5,566,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zqq84vTKh1E4" style="width: 9%; text-align: right" title="Net carrying amount">16,694,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zsFTGhUD6bHa" style="width: 9%; text-align: right" title="Gross carrying amount">22,260,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zrtHgPJYnge2" style="width: 8%; text-align: right" title="Accumulated amortization">4,452,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zG1wOEuCjgfd" style="width: 8%; text-align: right" title="Net carrying amount">17,808,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Acquired assets</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"><span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember__srt--RangeAxis__srt--MinimumMember_zsGEBhlVIF3b" title="Useful life">1 -<span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember__srt--RangeAxis__srt--MaximumMember_zAt87e3AEvY9" title="Useful life">17 years</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zxZuZXhZIIH9" style="border-bottom: Black 1pt solid; text-align: right" title="Gross carrying amount">325,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zxSDde5OrC37" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated amortization">25,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zdQt1jOzyQBh" style="border-bottom: Black 1pt solid; text-align: right" title="Net carrying amount">300,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zsqbLcfyFMYf" style="border-bottom: Black 1pt solid; text-align: right" title="Gross carrying amount">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zF7kfLJtMJO1" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated amortization">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zKEmSSrP71zc" style="border-bottom: Black 1pt solid; text-align: right" title="Net carrying amount">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231_zp5srqFnKS1g" style="border-bottom: Black 2.5pt double; text-align: right" title="Gross carrying amount">22,585,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231_ztQr04IbQJ14" style="border-bottom: Black 2.5pt double; text-align: right" title="Accumulated amortization">5,591,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231_zKHqge7uwr23" style="border-bottom: Black 2.5pt double; text-align: right" title="Net carrying amount">16,994,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231_zQUWdmTRnsz7" style="border-bottom: Black 2.5pt double; text-align: right" title="Gross carrying amount">22,260,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231_zKOKvY6wjMMc" style="border-bottom: Black 2.5pt double; text-align: right" title="Accumulated amortization">4,452,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231_z67GpYZfnuL4" style="border-bottom: Black 2.5pt double; text-align: right" title="Net carrying amount">17,808,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_890_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zPEn5vbE3Hlf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table represents future amortization of developed technologies for the years ending December 31: SCHEDULE OF FUTURE AMORTIZATION OF DEVELOPED TECHNOLOGIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_494_20251231_zbzMSqHSwzc8" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_zA5g6jy7sZAa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: center">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,138,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_zyf9mSmcFJj4" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">2027</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,137,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_zSVepsMXPty1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">2028</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_zTiraX8ulez" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">2029</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_zH7BFPTdOE5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">2030</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_zxLdroC6ruJj" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">thereafter</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">11,329,000</td><td style="text-align: left"> </td></tr> </table>

The definite-lived intangible assets, to be amortized over 20 years, balances, and activity for the year ended December 31, 2025 and year ended December 31, 2024 consisted of the following: SCHEDULE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Useful Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Accumulated Amortization</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font-weight: bold">Accumulated Amortization</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 11%; text-align: left">Developed technology assets</td><td style="width: 2%"> </td> <td style="width: 11%; text-align: center"><span id="xdx_905_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zwSlV4OHPY0b" title="Useful life">20 years</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zqEegSuC8e9h" style="width: 9%; text-align: right" title="Gross carrying amount">22,260,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zkaEXYuohMn9" style="width: 9%; text-align: right" title="Accumulated amortization">5,566,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zqq84vTKh1E4" style="width: 9%; text-align: right" title="Net carrying amount">16,694,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zsFTGhUD6bHa" style="width: 9%; text-align: right" title="Gross carrying amount">22,260,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zrtHgPJYnge2" style="width: 8%; text-align: right" title="Accumulated amortization">4,452,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zG1wOEuCjgfd" style="width: 8%; text-align: right" title="Net carrying amount">17,808,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Acquired assets</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"><span id="xdx_908_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember__srt--RangeAxis__srt--MinimumMember_zsGEBhlVIF3b" title="Useful life">1 -<span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember__srt--RangeAxis__srt--MaximumMember_zAt87e3AEvY9" title="Useful life">17 years</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zxZuZXhZIIH9" style="border-bottom: Black 1pt solid; text-align: right" title="Gross carrying amount">325,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zxSDde5OrC37" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated amortization">25,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zdQt1jOzyQBh" style="border-bottom: Black 1pt solid; text-align: right" title="Net carrying amount">300,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zsqbLcfyFMYf" style="border-bottom: Black 1pt solid; text-align: right" title="Gross carrying amount">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zF7kfLJtMJO1" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated amortization">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zKEmSSrP71zc" style="border-bottom: Black 1pt solid; text-align: right" title="Net carrying amount">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231_zp5srqFnKS1g" style="border-bottom: Black 2.5pt double; text-align: right" title="Gross carrying amount">22,585,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231_ztQr04IbQJ14" style="border-bottom: Black 2.5pt double; text-align: right" title="Accumulated amortization">5,591,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231_zKHqge7uwr23" style="border-bottom: Black 2.5pt double; text-align: right" title="Net carrying amount">16,994,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20241231_zQUWdmTRnsz7" style="border-bottom: Black 2.5pt double; text-align: right" title="Gross carrying amount">22,260,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20241231_zKOKvY6wjMMc" style="border-bottom: Black 2.5pt double; text-align: right" title="Accumulated amortization">4,452,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20241231_z67GpYZfnuL4" style="border-bottom: Black 2.5pt double; text-align: right" title="Net carrying amount">17,808,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

P20Y

22260000

5566000

16694000

22260000

4452000

17808000

P1Y

P17Y

325000

25000

300000

22585000

5591000

16994000

22260000

4452000

17808000

<p id="xdx_890_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zPEn5vbE3Hlf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table represents future amortization of developed technologies for the years ending December 31: SCHEDULE OF FUTURE AMORTIZATION OF DEVELOPED TECHNOLOGIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_494_20251231_zbzMSqHSwzc8" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_zA5g6jy7sZAa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: center">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,138,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_zyf9mSmcFJj4" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">2027</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,137,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_zSVepsMXPty1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">2028</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_zTiraX8ulez" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">2029</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_zH7BFPTdOE5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">2030</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_zxLdroC6ruJj" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">thereafter</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">11,329,000</td><td style="text-align: left"> </td></tr> </table>

1138000

1137000

1130000

11329000

8. INVENTORY Inventory consisted of the following as of December 31: SCHEDULE OF INVENTORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20251231_zolOBak4TVa8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20241231_zLYV2TW6vEWb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--InventoryFinishedGoods_iI_maIGzxwE_zHVk9u6fjES9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; width: 60%; text-align: left">Finished Goods</td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">63,000</td><td style="padding-bottom: 1pt; width: 1%; text-align: left"> </td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right"> -</td><td style="padding-bottom: 1pt; width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--InventoryGross_iTI_maINzBDG_mtIGzxwE_z8IahbCjKZT" style="vertical-align: bottom; background-color: White"> <td>Inventory, gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">63,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--InventoryValuationReserves_iI_msINzBDG_zlupYdDdHBCk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less allowance for obsolescence</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--InventoryNet_iTI_mtINzBDG_zMIeP5Cxff2j" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Inventory, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">63,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Inventory consisted of the following as of December 31: SCHEDULE OF INVENTORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20251231_zolOBak4TVa8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20241231_zLYV2TW6vEWb" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--InventoryFinishedGoods_iI_maIGzxwE_zHVk9u6fjES9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; width: 60%; text-align: left">Finished Goods</td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">63,000</td><td style="padding-bottom: 1pt; width: 1%; text-align: left"> </td><td style="padding-bottom: 1pt; width: 2%"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right"> -</td><td style="padding-bottom: 1pt; width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--InventoryGross_iTI_maINzBDG_mtIGzxwE_z8IahbCjKZT" style="vertical-align: bottom; background-color: White"> <td>Inventory, gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">63,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--InventoryValuationReserves_iI_msINzBDG_zlupYdDdHBCk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less allowance for obsolescence</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--InventoryNet_iTI_mtINzBDG_zMIeP5Cxff2j" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Inventory, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">63,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

63000

9. NOTE PAYABLE, RELATED PARTY On December 31, 2020, and later amended, the Company executed a Revolving Promissory Note (“Note”) with DSS, a related party, which accrues interest at a rate of 4.25% and is due in full at the maturity date of September 30, 2030. The Note was further amended on July 24, 2024 with an effective date of September 16, 2024 to i) allow the Company to pay certain principal and/or interest payments owing under the repayment terms in an exchange for potential of equity in the Company, ii) change the quarterly interest due dates to the last day of each calendar quarter (i.e. December 31, March 31, June 30 and September 30), iii) to adjust the On Demand feature so that it starts after the 24th month, iv) continue the planned repayment program commencing on the 37th month and on the last day of each month thereafter through August 31, 2030 to pay a fixed monthly payment of $126,381, v) to continue the scheduled maturity date of September 30, 2030, and vi) adjusts the interest rate to be the WSJ Prime Rate plus 0.50%. This Note is secured by the assets of the Company. As of December 31, 2024 the outstanding balance, inclusive of interest was $8,878,000 (net of change in fair value of the Note of $5,068,000) The $8,878,000 is recorded in Note payable, related party at December 31, 2024. On October 16, 2025, the Company converted its Note payable, related party to <span id="xdx_901_eus-gaap--DebtConversionConvertedInstrumentSharesIssued1_c20251016__20251016__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--RelatedPartyMember_zE9GIh6vGM7" title="Conversion of debt to shares">31,939,778 shares common stock as agreed upon by the Company and DSS (lender) which represents a calculation of the outstanding principal and interest approximating $15 million and a stock price utilizing a 10-day Vwap as of June 18, 2025. There are no restrictions placed on the disposition of these shares. As a result of the conversion, the Company recorded a Change in fair value of the note payable, related party of $9,388,000 which is included on the accompanying statement of consolidated operations. The Company accounts for this Note as a liability under ASC 480, Distinguishing Liabilities form Equity (“ASC 480”). In accordance with ASC 825-10, the carrying value of the Note will be recorded at fair value and will be remeasured at each reporting period with the changes in fair value recognized in earnings.

0.0425

2030-09-30

126381

0.0050

8878000

-5068000

8878000

31939778

15000000

9388000

10. STOCKHOLDERS’ EQUITY On October 31, 2023, the Company effected a reverse stock split of 1 for 55. As of December 31, 2024 there were 3,877,282,251 shares of our Common Stock issued and outstanding which was converted to 70,496,041 shares. Also on October 31, 2023, DSS BioHealth Securities, Inc., the Company’s largest shareholder converted 60,496,041 shares of Common Stock into 60,496,041 shares of Series A Convertible Preferred Shares, reducing its ownership of the Company’s Common Stock from approximately 88% to approximately 12%. On October 16, 2025, DSS BioHealth Security, Inc., elected to convert its <span id="xdx_903_eus-gaap--StockIssuedDuringPeriodSharesConversionOfUnits_c20251016__20251016__us-gaap--StatementClassOfStockAxis__us-gaap--SeriesAPreferredStockMember_zsIfneEjReY4" title="Conversion of shares">60,496,041 shares of Series A Convertible Preferred Stock into 60,496,041 shares of Impact’s Common Stock. This conversion was approved by Impact’s Board of Directors and Audit Committee. On September 16, 2024, Impact Biomedical Inc., entered into an underwriting agreement (the “Underwriting Agreement”) with Revere Securities, LLC., as representative (the “Representative”) of the underwriters named therein (the “Underwriters”), pursuant to which the Company agreed to sell to the Underwriters in a firm commitment initial public offering (the “Offering”) an aggregate of 1,500,000 of the Company’s shares of common stock, par value $0.001 per share at a public offering price of $3.00 per share. On September 17, 2024, the Company closed the Offering. The total net proceeds to the Company from the Offering, after deducting discounts, expenses allowance and expenses, was approximately $<span id="xdx_90E_eus-gaap--ProceedsFromIssuanceInitialPublicOffering_c20240917__20240917__us-gaap--TypeOfArrangementAxis__custom--UnderwritingAgreementMember_z1Ep1GMn4IG6" title="Proceeds from issuance initial public offering">3,726,000. A final prospectus relating to this Offering was filed with the Commission on September 16, 2024. The shares of Common Stock were approved to list on the NYSE American under the symbol “IBO” and began trading there on September 16, 2024. The Company also issued warrants to the Representative and its affiliates (the “Representative’s Warrants”) warrants to purchase the number of shares of Common Stock in the aggregate equal to 5% of the Common Stock to be issued and sold in this offering (including any Shares of Common Stock sold upon exercise of the over-allotment option, if applicable). The Representative’s Warrants are exercisable for a price per share equal to 125% of the public offering price. The warrants are exercisable at any time, in whole or in part, commencing nine (9) months from the date of commencement of sales of the offering and ending on the third anniversary thereof. As of December 31, 2024 only the 1,500,000 shares included in the Offering are freely tradable on the NYSE. The remaining 9,997,703 are restricted from trading for 180 days from the Offering date. As December 31, 2025, all shares are free from restriction for trading. On February 25, 2025, the Company completed the acquisition of certain assets owned by DSS Pure Air, Inc. (DSS PureAir”), a related party, for $1,150,000 to be paid by 545,024 shares of the Company’s common stock calculated on a 10-day VWAP. On February 26, 2025, the Company issued 36,433 shares of the Company’s common stock as payment of legal fees incurred associated with the Company’s initial public offering (“IPO”), registration of shares associated with its equity incentive plan as well as other related services. On September 23, 2025, the Company issued 100,000 shares of the Company’s common stock as payment of legal fees incurred associated with the Company’s merger and share exchange agreement with Dr. Ashleys Limited. On October 16, 2025, the Company converted its Note payable, related party (Note 9) to <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesConversionOfUnits_c20251016__20251016__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DSSIncMember_zfl0DFOBP1K9" title="Conversion of shares">31,939,778 shares common stock as agreed upon by the Company and DSS (lender). Equity Incentive Plan – During 2023, the Company’s shareholders adopted the 2023 Employee, Director and Consultant Equity Incentive Plan (the “2023 Plan”). The 2023 Plan provides for the issuance of an initial 18,762,000 shares of common stock authorized to be issued for grants of options, restricted stock and other forms of equity to employees, directors and consultants. In addition, on the first day of each calendar year, for a period of not more than ten (10) years, commencing January 1, 2025, or the first business day of the calendar year if the first day of the calendar year falls on a Saturday or Sunday, the shares available under this plan will automatically increase in an amount equal to the lesser of (i) two percent (2%) of the total number of shares of Common Stock outstanding as of December 31 of the preceding fiscal year or (ii) such number of shares of Common Stock as determined by the Board of Directors. Under the terms of the 2023 Plan, options granted thereunder may be designated as options which qualify for incentive stock option treatment (“ISOs”) under Section 422A of the Internal Revenue Code, or options which do not qualify (“NQSOs”). As of December 31, 2025, there are 18,037,079 shares available under this plan. As of December 31, 2024, there are 18,037,079 shares available under this plan. Stock-Based Compensation – The Company records stock-based payment expense related to options and warrants based on the grant date fair value in accordance with FASB ASC 718. Stock-based compensation includes expense charges for all stock-based awards to employees, directors and consultants. Such awards include option grants, warrant grants, and restricted stock awards. On October 1, 2024, <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20241001__20241001__srt--TitleOfIndividualAxis__custom--EmployeesDirectorsAndConsultantsMember_zgsAc4fGAsj">880,000 option grants with a purchase price of $3.00 per share were awarded to certain officers, directors and consultants of the Company. These options have various vesting periods, and all expire on October 31, 2031. These options were forfeited in December 2025. The Company recorded stock-based compensation expense of approximately $13,000 and $19,000 for the year ended December 31, 2025 and 2024, respectively, and is included in Sales, general and administrative compensation (inclusive of stock based compensation) on the accompanying Statement of Operations.

1 for 55

3877282251

70496041

60496041

Series A Convertible Preferred Shares, reducing its ownership of the Company’s Common Stock from approximately 88% to approximately 12%.

60496041

1500000

0.001

3.00

3726000

0.05

1.25

1500000

9997703

1150000

545024

36433

100000

31939778

18762000

18037079

880000

3.00

13000

19000

11. INCOME TAXES The Company accounts for income taxes in accordance with Accounting Standards Codification (“ASC”) Topic 740, Income Taxes, using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to reverse or such carryforwards are expected to be utilized. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets are reduced, if deemed necessary, by a valuation allowance for the amount of tax benefits which are not expected to be realized. The components of income tax benefit for the years ended December 31, 2025, and 2024 are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Income Tax Expense (Benefit)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250101__20251231_zGGgo4tSuQ2h" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Year Ended December 31, 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20240101__20241231_zUQ6U3b74njc" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Year Ended December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_409_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefitAbstract_iB_zrBoj3A9OLVh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current tax payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--CurrentFederalTaxExpenseBenefit_maCFSALzIyd_zOG3HfCOTt6j" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt">Federal</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_maCFSALzIyd_z7hnhGujV5oi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 20pt">State</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefit_iT_mtCFSALzIyd_maITEBzF9l_zRLDYIZU40ll" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Total current tax payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredFederalStateAndLocalTaxExpenseBenefitAbstract_iB_zhGVikM1WLZa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_maDFSALzfKe_zadZ9T8vFft1" style="vertical-align: bottom; background-color: White"> <td style="width: 64%; padding-left: 20pt">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">(1,998,000</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">30,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_maDFSALzfKe_zNG8pdjfnLnf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 20pt">State</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(264,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredFederalStateAndLocalTaxExpenseBenefit_iT_mtDFSALzfKe_maITEBzF9l_zESjfMYtKIc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Total deferred tax</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,262,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ValuationAllowanceDeferredTaxAssetChangeInAmount_iN_di_msITEBzF9l_zOUnN7cCHms7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less increase in valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(318,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredIncomeTaxExpenseBenefit_iT_mtITEBzF9l_zpqoYsznSsF3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total income tax (benefit) expense</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(2,580,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">33,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> Individual components of deferred tax assets and liabilities are approximately as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Deferred Tax Assets & Liabilities:</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20251231_zV9Knm8G4dOb"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20241231_zjZkzwkkM659"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsGrossAbstract_iB_ztKPnEe4X4ld" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred Tax assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsImpairmentLosses_iI_maDTAGzjXH_zb6L4MhzUfTi" style="vertical-align: bottom; background-color: White"> <td style="width: 64%; padding-left: 10pt">Impairment of investment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,050,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">929,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_iI_maDTAGzjXH_z8rf6FBmYjY6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Research & development cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">519,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefits_iI_maDTAGzjXH_zS9dqU4GoE6b" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_maDTAGzjXH_zwbSfnds74U8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Net Operating loss</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,344,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,950,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGzjXH_msDTLzSRQ_zHLjn2Ejrlwd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Gross deferred tax assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,430,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,416,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxLiabilitiesAbstract_iB_zHMbJ1QDLSgi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred tax liability:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--DeferredTaxLiabilitiesNotePayableRelatedPartyFMVAdjustment_iNI_di_maDITLzkZB_zxfyF3qNaGM1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Note payable, related party FMV adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,148,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxLiabilitiesGoodwillAndIntangibleAssetsIntangibleAssets_iNI_di_maDITLzkZB_zeuRmNXOSQ89" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Intangible assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,744,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,912,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--DeferredIncomeTaxLiabilities_iNTI_di_mtDITLzkZB_maDTLzSRQ_zqnPUHWhreo5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Gross deferred tax liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,744,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,060,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--DeferredTaxLiabilitiesValuationAllowance_iNI_di_maDTLzSRQ_znfS62pyKk51" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,374,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,625,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxLiabilities_iNTI_di_mtDTLzSRQ_zbzhdRbd9xbb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Net deferred tax liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(688,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(3,269,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> </table> SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"></td><td> </td> <td>$</td> <td id="xdx_493_20250101__20251231_zCUA2Z6z5IN" style="text-align: right"> -</td> <td></td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"></td><td style="text-align: left"></td><td> </td> <td>$</td> <td id="xdx_495_20240101__20241231_zalBWfL0NXz5" style="text-align: right">-</td> <td></td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"></td><td style="text-align: left"></td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_maERC_zvxmWUiks5yj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; text-align: left">Statutory United States federal rate</td><td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="text-align: right; width: 10%"> (3,028,000</td> <td style="width: 1%">)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_maERCP_c20250101__20251231_zXS7xxfVms7i" style="width: 10%; text-align: right" title="Statutory United States federal rate, percentage">21.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="text-align: right; width: 10%">(5,240,000</td> <td style="width: 1%">)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_maERCP_c20240101__20241231_zX7jGlJ9mwxe" style="width: 10%; text-align: right" title="Statutory United States federal rate, percentage">21.0</td><td style="width: 1%; text-align: left">%</td></tr> <tr id="xdx_402_ecustom--IncomeTaxReconciliationStateIncomeTaxesEffectiveRateChange_maERC_zQyFeaGjEzE" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State income taxes effective rate change</td><td> </td> <td>$</td> <td style="text-align: right">66,000</td> <td> </td> <td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--EffectiveIncomeTaxRateReconciliationStateIncomeTaxesEffectiveRateChange_pid_dp_uPure_maERCP_c20250101__20251231_zwMmZgFE27C8" style="text-align: right" title="State income taxes effective rate change, percentage">-0.5</td><td style="text-align: left">%</td><td> </td> <td>$</td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"><p id="xdx_98A_ecustom--EffectiveIncomeTaxRateReconciliationStateIncomeTaxesEffectiveRateChange_pid_dp_uPure_maERCP_c20240101__20241231_z3RbiXSNeikk" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0" title="State income taxes effective rate change, percentage">0.0</td><td style="text-align: left">%</td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_maERC_zuHjCljRKjLb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">State income taxes net of federal benefit</td><td> </td> <td>$</td> <td style="text-align: right">(208,000</td> <td>)</td> <td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_maERCP_c20250101__20251231_z2FN3Ov1BJfc" style="text-align: right" title="State income taxes net of federal benefit, percentage">1.4</td><td style="text-align: left">%</td><td> </td> <td>$</td> <td style="text-align: right">3,000</td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"><p id="xdx_98E_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_maERCP_c20240101__20241231_zRvK8DFcLDPc" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0" title="State income taxes net of federal benefit, percentage">0.0</td><td style="text-align: left">%</td></tr> <tr id="xdx_407_ecustom--IncomeTaxReconciliationPermanentDifferences_maERC_zaiVR9JlV8Dd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Permanent differences</td><td> </td> <td>$</td> <td style="text-align: right">908,000</td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"><p id="xdx_98D_ecustom--EffectiveIncomeTaxRateReconciliationPermanentDifferences_pid_dp_uPure_maERCP_c20250101__20251231_zTK76x8Ce1s5" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0" title="Permanent differences, percentage">-6.3</td><td style="text-align: left">%</td><td> </td> <td>$</td> <td style="text-align: right">5,270,000</td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"><p id="xdx_983_ecustom--EffectiveIncomeTaxRateReconciliationPermanentDifferences_pid_dp_uPure_maERCP_c20240101__20241231_zMWimO35y2r7" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0" title="Permanent differences, percentage">-21.1</td><td style="text-align: left">%</td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_maERC_z7hrScDvIqSc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Change in valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid">$</td> <td style="border-bottom: Black 1pt solid; text-align: right">(318,000</td> <td style="padding-bottom: 1pt">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_maERCP_c20250101__20251231_z8neb9er0Q71" style="border-bottom: Black 1pt solid; text-align: right" title="Change in valuation allowance, percentage">2.2</td><td style="padding-bottom: 1pt; text-align: left">%</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid">$</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><p id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_maERCP_c20240101__20241231_zhWV4gNk7Wme" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0" title="Change in valuation allowance, percentage">0.0</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td></td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxExpenseBenefit_iT_mtERC_zvIJ96cNzyh5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left">Effective rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right">(2,580,000</td> <td style="padding-bottom: 2.5pt">)</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_mtERCP_c20250101__20251231_zb8JoWuzGHLl" style="border-bottom: Black 2.5pt double; text-align: right" title="Effective rate, percentage">17.9</td><td style="padding-bottom: 2.5pt; text-align: left">%</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 33,000</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_mtERCP_c20240101__20241231_zccCkphFXP9e" style="border-bottom: Black 2.5pt double; text-align: right" title="Effective rate, percentage">-0.1</td><td style="padding-bottom: 2.5pt; text-align: left">%</td></tr> </table> As of December 31, 2025, and 2024, the Company has net operating loss carry forwards of approximately $18,702,000 and $13,020,000 respectively. The Company does not have other temporary differences associated with the amortization of intangible assets. As of December 31, 2025, and 2024, the total deferred tax assets carry-forward were $5,430,000 and $4,416,000, respectively. The deferred tax assets could be carried forward indefinitely. The full utilization of the deferred tax assets in the future is dependent upon the Company’s ability to generate taxable income. Considering the development stage of the Company, management believed that it was probable that the Company would not use the entirety of its tax assets in the near future. Accordingly, a valuation allowance of approximately $2,374,000 has been established. The Company recognizes interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2025 and 2024 the Company recognized no interest and penalties.

The components of income tax benefit for the years ended December 31, 2025, and 2024 are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Income Tax Expense (Benefit)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250101__20251231_zGGgo4tSuQ2h" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Year Ended December 31, 2025</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20240101__20241231_zUQ6U3b74njc" style="border-bottom: Black 1pt solid; white-space: nowrap; text-align: center">Year Ended December 31, 2024</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_409_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefitAbstract_iB_zrBoj3A9OLVh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current tax payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--CurrentFederalTaxExpenseBenefit_maCFSALzIyd_zOG3HfCOTt6j" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 20pt">Federal</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_maCFSALzIyd_z7hnhGujV5oi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 20pt">State</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--CurrentFederalStateAndLocalTaxExpenseBenefit_iT_mtCFSALzIyd_maITEBzF9l_zRLDYIZU40ll" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Total current tax payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredFederalStateAndLocalTaxExpenseBenefitAbstract_iB_zhGVikM1WLZa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_maDFSALzfKe_zadZ9T8vFft1" style="vertical-align: bottom; background-color: White"> <td style="width: 64%; padding-left: 20pt">Federal</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">(1,998,000</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">30,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_maDFSALzfKe_zNG8pdjfnLnf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 20pt">State</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(264,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredFederalStateAndLocalTaxExpenseBenefit_iT_mtDFSALzfKe_maITEBzF9l_zESjfMYtKIc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Total deferred tax</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,262,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ValuationAllowanceDeferredTaxAssetChangeInAmount_iN_di_msITEBzF9l_zOUnN7cCHms7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less increase in valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(318,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredIncomeTaxExpenseBenefit_iT_mtITEBzF9l_zpqoYsznSsF3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Total income tax (benefit) expense</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(2,580,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">33,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>

-1998000

30000

-264000

3000

-2262000

33000

318000

-2580000

33000

Individual components of deferred tax assets and liabilities are approximately as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Deferred Tax Assets & Liabilities:</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20251231_zV9Knm8G4dOb"> </td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20241231_zjZkzwkkM659"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsGrossAbstract_iB_ztKPnEe4X4ld" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred Tax assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsImpairmentLosses_iI_maDTAGzjXH_zb6L4MhzUfTi" style="vertical-align: bottom; background-color: White"> <td style="width: 64%; padding-left: 10pt">Impairment of investment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,050,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">929,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_iI_maDTAGzjXH_z8rf6FBmYjY6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Research & development cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">519,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseCompensationAndBenefits_iI_maDTAGzjXH_zS9dqU4GoE6b" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_iI_maDTAGzjXH_zwbSfnds74U8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Net Operating loss</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,344,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,950,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGzjXH_msDTLzSRQ_zHLjn2Ejrlwd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Gross deferred tax assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,430,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,416,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--DeferredTaxLiabilitiesAbstract_iB_zHMbJ1QDLSgi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred tax liability:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_ecustom--DeferredTaxLiabilitiesNotePayableRelatedPartyFMVAdjustment_iNI_di_maDITLzkZB_zxfyF3qNaGM1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Note payable, related party FMV adjustment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,148,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxLiabilitiesGoodwillAndIntangibleAssetsIntangibleAssets_iNI_di_maDITLzkZB_zeuRmNXOSQ89" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Intangible assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,744,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,912,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--DeferredIncomeTaxLiabilities_iNTI_di_mtDITLzkZB_maDTLzSRQ_zqnPUHWhreo5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Gross deferred tax liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(3,744,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(5,060,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_ecustom--DeferredTaxLiabilitiesValuationAllowance_iNI_di_maDTLzSRQ_znfS62pyKk51" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,374,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,625,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxLiabilities_iNTI_di_mtDTLzSRQ_zbzhdRbd9xbb" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Net deferred tax liability</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(688,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(3,269,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> </table>

1050000

929000

519000

36000

18000

4344000

2950000

5430000

4416000

1148000

3744000

3912000

3744000

5060000

2374000 2625000

688000

3269000

SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 90%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"></td><td> </td> <td>$</td> <td id="xdx_493_20250101__20251231_zCUA2Z6z5IN" style="text-align: right"> -</td> <td></td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"></td><td style="text-align: left"></td><td> </td> <td>$</td> <td id="xdx_495_20240101__20241231_zalBWfL0NXz5" style="text-align: right">-</td> <td></td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"></td><td style="text-align: left"></td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_maERC_zvxmWUiks5yj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; text-align: left">Statutory United States federal rate</td><td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="text-align: right; width: 10%"> (3,028,000</td> <td style="width: 1%">)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_maERCP_c20250101__20251231_zXS7xxfVms7i" style="width: 10%; text-align: right" title="Statutory United States federal rate, percentage">21.0</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%">$</td> <td style="text-align: right; width: 10%">(5,240,000</td> <td style="width: 1%">)</td> <td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_uPure_maERCP_c20240101__20241231_zX7jGlJ9mwxe" style="width: 10%; text-align: right" title="Statutory United States federal rate, percentage">21.0</td><td style="width: 1%; text-align: left">%</td></tr> <tr id="xdx_402_ecustom--IncomeTaxReconciliationStateIncomeTaxesEffectiveRateChange_maERC_zQyFeaGjEzE" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State income taxes effective rate change</td><td> </td> <td>$</td> <td style="text-align: right">66,000</td> <td> </td> <td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--EffectiveIncomeTaxRateReconciliationStateIncomeTaxesEffectiveRateChange_pid_dp_uPure_maERCP_c20250101__20251231_zwMmZgFE27C8" style="text-align: right" title="State income taxes effective rate change, percentage">-0.5</td><td style="text-align: left">%</td><td> </td> <td>$</td> <td style="text-align: right">-</td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"><p id="xdx_98A_ecustom--EffectiveIncomeTaxRateReconciliationStateIncomeTaxesEffectiveRateChange_pid_dp_uPure_maERCP_c20240101__20241231_z3RbiXSNeikk" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0" title="State income taxes effective rate change, percentage">0.0</td><td style="text-align: left">%</td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_maERC_zuHjCljRKjLb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">State income taxes net of federal benefit</td><td> </td> <td>$</td> <td style="text-align: right">(208,000</td> <td>)</td> <td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_maERCP_c20250101__20251231_z2FN3Ov1BJfc" style="text-align: right" title="State income taxes net of federal benefit, percentage">1.4</td><td style="text-align: left">%</td><td> </td> <td>$</td> <td style="text-align: right">3,000</td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"><p id="xdx_98E_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_uPure_maERCP_c20240101__20241231_zRvK8DFcLDPc" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0" title="State income taxes net of federal benefit, percentage">0.0</td><td style="text-align: left">%</td></tr> <tr id="xdx_407_ecustom--IncomeTaxReconciliationPermanentDifferences_maERC_zaiVR9JlV8Dd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Permanent differences</td><td> </td> <td>$</td> <td style="text-align: right">908,000</td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"><p id="xdx_98D_ecustom--EffectiveIncomeTaxRateReconciliationPermanentDifferences_pid_dp_uPure_maERCP_c20250101__20251231_zTK76x8Ce1s5" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0" title="Permanent differences, percentage">-6.3</td><td style="text-align: left">%</td><td> </td> <td>$</td> <td style="text-align: right">5,270,000</td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"><p id="xdx_983_ecustom--EffectiveIncomeTaxRateReconciliationPermanentDifferences_pid_dp_uPure_maERCP_c20240101__20241231_zMWimO35y2r7" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0" title="Permanent differences, percentage">-21.1</td><td style="text-align: left">%</td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_maERC_z7hrScDvIqSc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Change in valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid">$</td> <td style="border-bottom: Black 1pt solid; text-align: right">(318,000</td> <td style="padding-bottom: 1pt">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_maERCP_c20250101__20251231_z8neb9er0Q71" style="border-bottom: Black 1pt solid; text-align: right" title="Change in valuation allowance, percentage">2.2</td><td style="padding-bottom: 1pt; text-align: left">%</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid">$</td> <td style="border-bottom: Black 1pt solid; text-align: right">-</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><p id="xdx_982_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_uPure_maERCP_c20240101__20241231_zhWV4gNk7Wme" style="font: 10pt/115% Times New Roman, Times, Serif; margin: 0" title="Change in valuation allowance, percentage">0.0</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td></td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td> </td> <td style="text-align: right"> </td> <td> </td> <td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxExpenseBenefit_iT_mtERC_zvIJ96cNzyh5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left">Effective rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right">(2,580,000</td> <td style="padding-bottom: 2.5pt">)</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_mtERCP_c20250101__20251231_zb8JoWuzGHLl" style="border-bottom: Black 2.5pt double; text-align: right" title="Effective rate, percentage">17.9</td><td style="padding-bottom: 2.5pt; text-align: left">%</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 33,000</td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_pid_dp_uPure_mtERCP_c20240101__20241231_zccCkphFXP9e" style="border-bottom: Black 2.5pt double; text-align: right" title="Effective rate, percentage">-0.1</td><td style="padding-bottom: 2.5pt; text-align: left">%</td></tr> </table>

-3028000

0.210

-5240000

0.210

66000 -0.005 0.000

-208000

0.014

3000

0.000

908000 -0.063 5270000 -0.211

-318000

0.022

0.000

-2580000

0.179

33000

-0.001

18702000

13020000

5430000

4416000

2374000

12. COMMITMENTS AND CONTINGENCIES On August 15, 2018, the Company entered into Royalty Agreement with Chemia Corporation (“Chemia”) pursuant to which Chemia transferred to the Company all of its right to 3F (Functional Fragrance Formulation). This agreement has a 20-year term and auto renews for a period of 1 year unless mutually agreed upon by both parties. 3F consists of 3F Mosquito Repellant and 3F Anti-Viral formulations. Based on the Royalty Agreement, the Company should cover all the costs to prepare and finalize necessary patent application and other intellectual property related to 3F. Chemia agreed to support the Company in efforts leading to development of 3F intellectual property and it is licensing. Based on Royalty Agreement any payments received from development, sales, licensing or transfer of 3F technology will be paid 50% to the Company and <span id="xdx_909_ecustom--RoyaltyPercentage_dp_uPure_c20180814__20180815__us-gaap--TypeOfArrangementAxis__custom--RoyaltyAgreementMember__dei--LegalEntityAxis__custom--ChemiaCorporationMember_zktEfgtSC4ce" title="Royalty percentage">50% to Chemia. On November 27, 2018, Company and Chemia signed an Addendum to Royalty Agreement (“Addendum”), according to which the Company granted Chemia a royalty-based limited license for purposes of making and selling fragrances embodying the 3F technology. Based on the Addendum, Chemia should pay the Company <span id="xdx_90A_ecustom--SaleOfRoyaltyPercentage_dp_uPure_c20181126__20181127__us-gaap--TypeOfArrangementAxis__custom--RoyaltyAgreementMember__dei--LegalEntityAxis__custom--ChemiaCorporationMember_zH5cMph6uio3" title="Net sales royalty">5% of net sales in royalty. On November 8, 2019, both companies entered into Amendment no.1 to Royalty Agreement, based on which certain expenses borne by the Company towards patent application and licensing should be reimbursed to the Company before any royalty payments are made. For the years ended December 31, 2025 and 2024, there were no reimbursements or royalties paid to the Company and the Company cannot be assured that Chemia’s efforts will end up in any future sales of the technology. On March 19, 2022, Impact BioMedical entered into a License Agreement (“Equivir License”) with a third-party (“Licensee”) where the Licensor is granted the right, amongst other things, to develop, commercialize, and sell the Company’s Equivir technology. In exchange, the Licensee shall pay the Company a royalty of 5.5% of net sales. Under the terms of the Equivir Agreement, the Company shall reimburse the Licensee for 50% of the development costs provided that the development costs shall not exceed $1,250,000. As of December 31, 2025 and December 31, 2024, a liability of $0 has been recorded in relation to the Equivir License. Employment Agreements – Impact BioMedical has an employment agreement with it CEO Frank Heuszel in which Mr. Heuszel’s agreement contains a mandatory bonus clause of $<span id="xdx_908_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20251231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__us-gaap--AwardTypeAxis__custom--FirstYearOfEmploymentTermMember_zbQpQClPUEqe" title="Bonuses">150,000 for the first year of the employment term, $<span id="xdx_903_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20251231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__us-gaap--AwardTypeAxis__custom--SecondYearOfEmploymentTermMember_zkWNmrjMgBE5" title="Bonuses">100,000 for the second year of the employment term, and $<span id="xdx_909_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20251231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__us-gaap--AwardTypeAxis__custom--ThirdYearOfEmploymentTermMember_zx0oAcSwjTyb" title="Bonuses">100,000 for the third year of the employment term. As of December 31, 2024, approximately $<span id="xdx_902_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20241231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__srt--TitleOfIndividualAxis__custom--MrHeuszelMember_zm1g30lCyM15" title="Bonuses">38,000 is accrued for year one of Mr. Heuszel’s bonus. As of December 31, 2025, approximately $<span id="xdx_90C_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20251231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__srt--TitleOfIndividualAxis__custom--MrHeuszelMember_zf6UYHH3aeJk" title="Bonuses">96,000 is accrued for year one of Mr. Heuszel’s bonus and $<span id="xdx_907_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20251231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__srt--TitleOfIndividualAxis__custom--TwoMrHeuszelMember_zEcpaitGjJrb" title="Bonuses">25,000 for the second year of Mr. Heuszel’s bonus. Contingent Litigation Payments – The Company retains the services of professional service providers, including law firms that specialize in intellectual property licensing, enforcement and patent law. These service providers are often retained on an hourly, monthly, project, contingent or a blended fee basis. In contingency fee arrangements, a portion of the legal fee is based on predetermined milestones or the Company’s actual collection of funds. The Company accrues contingent fees when it is probable that the milestones will be achieved, and the fees can be reasonably estimated. As of December 31, 2025, the Company had not accrued any contingent legal fees pursuant to these arrangements. Contingent Payments – The Company is not party to any agreements with funding partners who have rights to portions of intellectual property monetization proceeds that the Company receives.

0.50 0.50 0.05 0 0 0.055 0.50

1250000

150000

100000

38000

96000

25000

13. RELATED PARTY TRANSACTIONS General and Administrative Costs There are certain general and administrative costs incurred by DSS, a related party, on behalf of the Company which are passed through to the Company on a monthly basis. These costs consist of primarily payroll costs for certain DSS employees and are allocated based on estimated time spent on behalf of the Company. Beginning in January 2024 and through September 2024, these costs are approximately $31,000 per month. Beginning October 2024, these costs are approximately $26,000 per month. As of December 31, 2025, the Company incurred approximately $<span id="xdx_907_eus-gaap--GeneralAndAdministrativeExpense_c20250101__20251231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DSSIncMember_zvcbRI7u5e01" title="General and administrative expense">312,000 in related expenses. As of December 31, 2024, the Company incurred approximately $<span id="xdx_902_eus-gaap--GeneralAndAdministrativeExpense_c20240101__20241231__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DSSIncMember_zvGDW704qGHg" title="General and administrative expense">357,000 in related expenses. Note payable, related party On December 31, 2020, and later amended, the Company executed a Revolving Promissory Note (“Note”) with DSS, a related party, which accrues interest at a rate of 4.25% and is due in full at the maturity date of September 30, 2030. The Note was further amended on July 24, 2024 with an effective date of September 16, 2024 to i) allow the Company to pay certain principal and/or interest payments owing under the repayment terms in an exchange for potential of equity in the Company, ii) change the quarterly interest due dates to the last day of each calendar quarter (i.e. December 31, March 31, June 30 and September 30), iii) to adjust the On Demand feature so that it starts after the 24th month, iv) continue the planned repayment program commencing on the 37th month and on the last day of each month thereafter through August 31, 2030 to pay a fixed monthly payment of $126,381, v) to continue the scheduled maturity date of September 30, 2030, and vi) adjusts the interest rate to be the WSJ Prime Rate plus 0.50%. This Note is secured by the assets of the Company. As of December 31, 2024 the outstanding balance, inclusive of interest was $8,878,000 (net of change in fair value of the Note of $5,068,000) The $8,878,000 is recorded in Note payable, related party at December 31, 2024 (Note 9). On October 16, 2025, the Company converted its Note payable, related party to 31,939,778 shares common stock as agreed upon by the Company and DSS (lender), which represents a calculation of the outstanding principal and interest approximating $15 million and a stock price utilizing a 10-day Vwap as of June 18, 2025. There are no restrictions placed on the disposition of these shares. As a result of the conversion, the Company recorded a Change in fair value of the note payable, related party of $9,388,000 which is included on the accompanying statement of consolidated operations. On February 25, 2025, the Company completed the acquisition of certain assets owned by DSS Pure Air, Inc. (DSS PureAir”), a related party, for $<span id="xdx_905_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20250225__20250225__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DSSIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zftaSCk9Zr57" title="Paid shares of common stock">1,150,000 to be paid by <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20250225__20250225__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DSSIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zXbknqAxxan8" title="Shares paid of common stock">545,024 shares of the Company’s common stock calculated on a 10-day VWAP. Assets acquired included accounts receivable, inventory and intellectual property of the Celios air purification system. Due to related party Impact BioMedical Inc. from time to time receives funding from DSS to cover its capital needs. DSS, Inc., beneficially owns approximately <span id="xdx_90D_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_pid_dp_uPure_c20251231__us-gaap--BusinessAcquisitionAxis__custom--DSSIncMember_zQoqG8wWbsy6" title="Voting shares, percentage">86% of the Company’s voting shares. As of December 31, 2025 and 2024, amounts due to DSS approximate $621,000 and $399,000, respectively. These balances relate to noninterest-bearing funding provided by DSS, and are unsecured,

31000

26000

312000

357000

0.0425

2030-09-30

126381

0.0050

8878000

-5068000

8878000

31939778

15000000

9388000

1150000

545024

0.86

621000

399000

14. SUPPLEMENTAL CASH FLOW INFORMATION <p id="xdx_895_eus-gaap--ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock_z8g565wUiA6h" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-right: 0pt; margin-bottom: 0pt">Supplemental cash flow information for the years ended December 31: SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250101__20251231_zMJvr7Nd9sof" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20240101__20241231_z02Q7gOHesxe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--InterestPaidNet_zOV2npEYuYgk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Cash paid for interest</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract_iB_zXXqvfunV4L5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Non-cash investing and financing activities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--StockIssued1_i01_zcAko8HAtkKa" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; padding-left: 10pt">Shares issued for the acquisition of DSS PureAir, Inc. assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,150,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_ecustom--SharesIssuedForProfessionalServicesReceived_i01_zSFDVwGUAb5d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Shares issued for the professional services received</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">190,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--StockBasedCompensation_i01_zzAwUb7uq7nd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Stock based compensation</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">13,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--ConversionOfDebtToEquityNotePayableRelatedParty_i01_z9EarsXOI7j4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Conversion of debt to equity note payable, related party</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">19,165,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_ecustom--ConversionOfPreferredSharesToCommonStock_i01_z4eUnHS2c7oj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Conversion of preferred shares to common stock</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> </table>

<p id="xdx_895_eus-gaap--ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock_z8g565wUiA6h" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-right: 0pt; margin-bottom: 0pt">Supplemental cash flow information for the years ended December 31: SCHEDULE OF SUPPLEMENTAL CASH FLOW INFORMATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250101__20251231_zMJvr7Nd9sof" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20240101__20241231_z02Q7gOHesxe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2024</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--InterestPaidNet_zOV2npEYuYgk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Cash paid for interest</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract_iB_zXXqvfunV4L5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Non-cash investing and financing activities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--StockIssued1_i01_zcAko8HAtkKa" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; padding-left: 10pt">Shares issued for the acquisition of DSS PureAir, Inc. assets</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">1,150,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_ecustom--SharesIssuedForProfessionalServicesReceived_i01_zSFDVwGUAb5d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Shares issued for the professional services received</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">190,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--StockBasedCompensation_i01_zzAwUb7uq7nd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Stock based compensation</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">13,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--ConversionOfDebtToEquityNotePayableRelatedParty_i01_z9EarsXOI7j4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Conversion of debt to equity note payable, related party</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">19,165,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_ecustom--ConversionOfPreferredSharesToCommonStock_i01_z4eUnHS2c7oj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt">Conversion of preferred shares to common stock</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">60,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr> </table>

1150000

190000 13000 19165000 60000

15. SUBSEQUENT EVENTS The Company has evaluated all subsequent events and transactions through March 11, 2026, the date that the condensed consolidated financial statements were available to be issued and noted no subsequent events requiring financial statement recognition or disclosure other than noted below: In January 2026, the Company granted and issued <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedInPeriod_c20260101__20260131__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zpyxyCiMck6l" title="Coomon stock issued">3,200,000 shares of Common Stock to various individuals including executives, board members, audit committee members, etc. Agreement included the individuals rescinding and cancelling any and all unexercised stock options previously granted.

3200000

true