NOTE 11 — CONVERTIBLE NOTES PAYABLE

During the year ended December 31, 2025, the Company issued twenty-five convertible notes payable and received proceeds of $3,450,000. As of December 31, 2025, the Company had thirty-one convertible notes payable outstanding. The convertible notes payable bear interest at a rate of 10% per annum, with maturity dates ranging between the first anniversary and the sixth anniversary of their respective issuances.

The balance of each convertible notes payable and any accrued interest may be converted at the noteholder’s option at any time at the following conversion prices:

 As of December 31, 2025 the principal balance of $1,250,000 and $6,460,000 related to the convertible notes payable was recorded in current and noncurrent liabilities, respectively, on its consolidated balance sheet under the caption convertible notes payable. As of December 31, 2024 the total principal balance of $5,100,000 related to the convertible notes payable was recorded in noncurrent liabilities on the Company’s consolidated balance sheet under the caption convertible notes payable.

The Company recorded interest expense related to these convertible notes payable of $672,290 and $510,250 during the year ended December 31, 2025 and 2024, respectively. In addition, the Company made cash interest payments amounting to $650,540 and $510,250 during the year ended December 31, 2025 and 2024, respectively, related to the convertible notes payable.

During the year ended December 31, 2025, four holders of convertible notes payable converted four convertible notes payable with an aggregate principal balance of $840,000 into 794,615 shares of the Company’s common stock. There was no convertible note payable cash repayment made during the year ended December 31, 2025.

On January 26, 2026, March 9, 2026 and March 18, 2026, three holders of three convertible notes payable with an aggregate principal balance of $310,000 converted the full principal amount of each of the convertible promissory notes payable into an aggregate of 291,672 shares of the Company’s common stock, pursuant to the provisions of their respective convertible notes payable. On January 8, 2026, the Company issued a convertible note payable in the amount of $50,000 and received proceeds of $50,000. The note bears interest at a rate of 10% per annum, may be converted at a price of $1.60 per share and matures on the fourth anniversary of its issuance date.

During the year ended December 31, 2024, there were no convertible note payable cash repayments made or convertible notes converted.