Note 9 — Derivative Valuation

During the year ended December 31, 2024, the Company issued a convertible note (see Footnote 8). The conversion terms of the convertible note are based on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Due to the exercise terms of the conversion feature becoming available on November 28, 2025, the conversion features in the note met the definition of a derivative and required bifurcation and liability classification at fair value. At the end of the fiscal year ended November 30, 2025, the derivative liability was $381,439. At the end of the transition period ended December 31, 2025, there was an increase in the derivative liability of $126,294 consisting of $57,259 in settlements and a change in the fair value of the derivative of $183,553. The Company estimates the fair value of convertible note using the Monte Carlo simulation.

During the transition period ended December 31, 2025, the Company had the following activity in the derivative liability account:

Schedule of Activity in the Derivative Liability Account

A summary of quantitative information with respect to valuation methodology and significant unobservable income used for the Company’s derivative liability that are categorized within Level 3 of fair value hierarchy for the transition period ended December 31, 2025 is as follows:

Schedule of Valuation Methodology and Significant Unobservable Income Used for the Company’s Derivative Liability