NOTE 7 – DERIVATIVE LIABILITY

The Company evaluated the conversion features associated with certain convertible promissory notes in accordance with ASC 815, Derivatives and Hedging. Based on the terms of the agreements, the Company determined that the conversion features required separate accounting treatment as derivative instruments.

The fair value of the derivative liability associated with the convertible instruments was determined using the Black-Scholes option pricing model using the following inputs: volatility of 230.29%; risk-free interest rate of 3.68%; expected term of 0.25 years; and 0% dividend yield. Changes in the fair value of the derivative liability are recognized in the statements of operations as gain or loss in change in derivative liabilities.

For the three month periods ended March 31, 2026 and 2025, the Company recognized a loss in change in derivative liabilities of $365,427 and $-0-, respectively.