Note 9 – Notes Receivable

Nanuva Note Receivable

On February 4, 2021, the Company entered into a Manufacturing and Distributorship Agreement (the “MDA”) with Natural Nutrition SpA, a Chilean company (“Nanuva”). In connection with the MDA, the Company advanced $500,000 to Nanuva to finance the purchase of two EnWave REV™ 10 machines used to produce products for the Company. The advance was evidenced by a promissory note bearing interest at 3% per annum and secured by a second lien on the related equipment.

During 2025, the Company determined that it no longer expected to utilize Nanuva for third-party manufacturing as production transitioned to the Company’s manufacturing facility in Pisco, Peru. Based on this change in operating strategy, lack of recent manufacturing activity, and uncertainty regarding collectability following Nanuva’s bankruptcy filing, management recorded a full allowance for credit losses and wrote off the note receivable as of December 31, 2025.

Accordingly, the net carrying value of the note receivable was $0 as of March 31, 2026 and December 31, 2025.

The Company continues to hold a second lien on the EnWave REV™ 10 machines that previously collateralized the note receivable and is in discussions to recover the equipment and terminate the MDA. The Company currently expects to receive the equipment during the second quarter of 2026. Any recovery of collateral will be recognized when realized.