NOTE 9 – INVESTMENTS

In August 2024, the Company satisfied $5.7 million of subscription receivables and related interest receivable in the form of shares of common stock in two privately held companies. During the year ended December 31, 2025, the Company received 1.25 million shares of common stock in five privately held companies in connection with master services agreements for access to the NexGenAI Affiliates Network platform. Additionally, to satisfy outstanding accounts receivables related to webinar services rendered in the master services agreements, the Company received 82,500 shares of common stock in three of these privately held companies. The shares of common stock are carried as investments on the Company’s condensed consolidated balance sheets at its initial cost basis of $1.00 per share. As the investments are in privately held companies, the Company will assess the investments for impairment on an annual basis. As of December 31, 2025, the Company recognized a $163,500 unrealized loss due to impairment of one of these investments. As of March 31, 2026, no further impairment has been recognized.

In November 2025, the Company issued 66,837 shares of common stock valued at $1,000,000, in exchange for 667,000 shares of a privately held company. The shares of common stock are carried as investments on the Company’s condensed consolidated balance sheets at its initial cost basis of $1.50 per share. As the investments are in privately held companies, the Company will assess the investments for impairment on an annual basis. As of March 31, 2026 and December 31, 2025, no impairment has been recorded related to this investment.

During the year ended December 31, 2025, the Company entered into a one-year agreement with a customer to provide access to the NexGenAI Affiliates Network platform. The contract fee paid by the customer consisted of 4,255,319 shares in the customer’s publicly traded stock, or $600,000, which the Company recorded as marketable securities on the condensed consolidated balance sheets. The Company classified this marketable security as a short-term asset as it is expected to be converted into cash within one year. During the year ended December 31, 2025, the Company recorded an unrealized gain on marketable securities in the amount of $76,596. In January 2026, the Company sold 2,830,189 shares of this marketable security and realized a gain on sale in the amount of $94,667. During the three months ended March 31, 2026, the Company recorded an unrealized loss in the amount of $176,045 on the remaining shares.

During the three months ended March 31, 2026, the Company accepted 1,663,580 shares of privately held companies and 200,401 shares of a third-party marketable security, valued at $1,663,580 and $56,112 respectively, as consideration for exercising stock options. Please see Note 7 – Capital Structure – Stock Based Compensation. The marketable securities were sold for $46,852, realizing a loss of $9,260 on the sale. No impairment was recognized on the privately held investments.

In March 2026, the Company exchanged 330,775 shares of its common stock, valued at $3,658,372, for 11,550,000 shares of a privately held company. As of March 31, 2026, the Company recorded a $22,688 unrealized loss due to impairment on this investment. This represents an approximate 35% stake in this privately held company.