NOTE 6 – WARRANTS

The table below summarizes the activity of warrants exercisable for shares of common stock during the year ended December 31, 2025 and year ended December 31, 2024:

During the year ended December 31, 2025 and 2024, the Company issued 69,166 shares and 15,792 shares of common stock for the exercise of 103,750 units and 20,441 units of share purchase warrants, respectively.

During the year ended December 31, 2025 and 2024, the Company granted warrants to purchase 1,000,444 shares and 174,500 shares of common stock issued in conjunction with convertible notes issued during the same period, respectively.

During the year ended December 31, 2025, 30,000 units of share purchase warrants with exercise price of $20 granted from a promissory note originally issued on March 4, 2021 were adjusted to 6,600,000 units at exercise price of $1 due to the full-ratchet anti-dilution provision. The adjusted warrant units were 570,000.

The fair value of each warrant on the date of grant is estimated using the Black-Scholes option valuation model. The following weighted-average assumptions were used for warrants granted during the years ended December 31, 2025 and 2024:

The following table summarizes information relating to outstanding and exercisable warrants as of December 31, 2025:

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of the Company’s stock exceeded the exercise price of the warrants at December 31, 2025 for those warrants for which the quoted market price was in excess of the exercise price (“in-the-money” warrants). As of December 31, 2025, the aggregate intrinsic value of warrants outstanding was approximately $0 based on the closing market price of $0.0001 on December 31, 2025.

The Company determined that the warrants qualify for derivative accounting as a result of the related issuance of the convertible notes. As of December 31, 2025 and December 31, 2024, the Company valued the fair value on the 2,180,224 and 713,530 units of common stock purchase warrants granted at $1,765,062 and $1,445,732 based on Black-Scholes option valuation model, respectively, which is included within derivative liabilities on the balance sheets.