NOTE 2 – GOING CONCERN AND LIQUIDITY

The accompanying condensed consolidated financial statements have been prepared on the basis that the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. As of February 28, 2026, the Company had a significant accumulated deficit of $66,835,274 and a working capital deficit of $1,439,631. For the three months ended February 28, 2026, the Company had a loss from operations of $231,102 and negative cash flows from operations of $271,484. The Company’s operating activities consume the majority of its cash resources. The Company anticipates that it will continue to incur operating losses at least into its second quarter of 2026 as it executes its development plans for 2026. In addition, the Company has had and expects to have negative cash flows from operations, at least into its second quarter of 2026. The Company has previously funded these losses primarily with infusions of cash from advances from USMC and the issuance of equity and convertible notes. The Company recently funded operations from notes payable in July 2025 and a note payable in September 2025. The accompanying condensed consolidated financial statements do not include any adjustments that may be necessary should the Company be unable to continue as a going concern.

The Company’s plan, through the continued promotion of its products to existing and potential customers, is to generate sufficient revenues to cover its anticipated expenses. The Company is currently exploring several other options to meet its short-term cash requirements, including bridge loans and issuances of equity securities or equity-linked securities to third parties. The Company will no longer be funded by infusions of cash from advances from USMC. The Company entered into a $1,000,000 line of credit on February 27, 2026 with CoreTer LLC, a related party. The Company has received $771,302 in funds on the line of credit as of the date of this filing.

Although no assurances can be given as to the Company’s ability to deliver on its revenue plans or that unforeseen expenses may arise, management currently believes that the revenue to be generated from operations together with bridge loans and equity and debt financing, will provide the necessary funding for the Company to continue as a going concern for the next twelve months.

Management cannot guarantee any other potential debt of equity financing will be available, or if available, on favorable terms. As such, these matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issuance date of this report. If adequate funds are not available on acceptable terms, or at all, the Company will need to curtail operations or cease operations completely.