v3.26.1
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Financial Instruments [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 13 – DERIVATIVE FINANCIAL INSTRUMENTS

 

Derivative financial instruments are comprised of the fair value of conversion features embedded in convertible promissory notes for which the conversion rate is not fixed, but instead is adjusted based on a discount to the market price of the Company’s common stock. The fair market value of the derivative liabilities was calculated at inception of each convertible promissory notes for which the conversion rate is not fixed and allocated to the respective convertible notes, with any excess recorded as a charge to “Financing cost.” The derivative financial instruments are then revalued at the end of each period, with the change in value recorded to “Change in fair value of on derivative financial instruments.”

Derivative financial instruments and changes thereto recorded in the years ended December 31, 2025 and 2024 include the following:

 

   Year Ended December 31, 
   2025   2024 
         
Balance, beginning of period  $
–
   $
–
 
Inception of derivative financial instruments   90,350    
–
 
Change in fair value of derivative financial instruments   (8,644)   
–
 
Conversion or extinguishment of derivative financial instruments   (57,860)   
–
 
           
Balance, end of period  $23,846   $
–
 

 

Fair market value of the derivative financial instruments is measured using the following range of assumptions:

 

   Year Ended December 31, 
   2025   2024 
         
Pricing model utilized   Binomial Lattice    – 
Risk free rate range   3.59% to 4.29%    
–
 
Expected life range (in years)   0.13 to 0.87    
–
 
Volatility range   164.80% to 297.56%    
–
 
Dividend yield   0.00%    
–
 

 

The entire amount of derivative instrument liabilities is classified as current due to the fact that settlement of the derivative instruments could be required within twelve months of the balance sheet date. The Company had no derivative financial instruments in the year ended December 31, 2024.