As of March 31, 2026 and December 31, 2025, the Company has classified certain long-lived assets as held for sale in accordance with ASC 360-10-45-9. These assets met the criteria for classification as held for sale, including management’s commitment to a plan to sell, active marketing at a price reasonable in relation to fair value, and the expectation that the sale will be completed within one year. The asset held for sale consists of a cultivation and processing cannabis license located in Clark County, Nevada, with a carrying value of $400,000 as of March 31, 2026. These licenses are not currently being utilized in the Company’s operations, and management is actively pursuing a sale to a third party.

During the year ended December 31, 2025, the Company management determined that a $1,045,483 impairment was deemed necessary, leaving a balance outstanding as of March 31, 2026 and December 31, 2025 of $400,000.