v3.26.1
CONVERTIBLE NOTES (Tables)
3 Months Ended
Mar. 31, 2026
Convertible Notes  
Schedule of convertible notes payable
                      
   Conversion price
per share
  Interest
rate
  Effective
rate(1)
  Due date  March 31, 2026   December 31,
2025
 
Convertible promissory notes issued to JGB entities  85% of 3-day VWAP  13%  32%  December 30, 2027  $12,768,000   $12,768,000 
SJC Lending, LLC (“SJC”) convertible promissory note  75% of 5-day VWAP  15%  15%  June 30, 2026   2,786,000    2,786,000 
ROI senior secured convertible note, in default  $0.11 (ROI stock)  OID Only  15%  April 27, 2024   631,000    1,981,000 
TurnOnGreen convertible promissory note  80% of 10-day
VWAP
(TurnOnGreen stock)
  12%  21%  Various dates through March 27, 2027   1,320,000    440,000 
Fair value of embedded conversion options               252,000    1,576,000 
Total convertible notes payable               17,757,000    19,551,000 
Less: unamortized debt discounts               (4,387,000)   (4,958,000)
Total convertible notes payable, net of financing cost, long-term              $13,370,000   $14,593,000 
Less: current portion               (4,899,000)   (6,750,000)
Convertible notes payable, net of financing cost – long-term portion              $8,471,000   $7,843,000 

 

(1)Includes forbearance and extension fees and OID costs that are amortized to interest expense over the life of the notes.
Schedule of valuation of the embedded derivatives
      
Assumption  Weighted Average at
Inception
  Weighted Average at
March 31, 2026
Valuation technique  Monte Carlo Simulation  Monte Carlo Simulation
Risk-free interest rate  3.6%  3.7%
Expected volatility  108%  130%
Credit-risk adjusted rate  27%  41%
Time to maturity (years)  1.7  1.0
Stock price at valuation date  $0.81  $0.15
Dividend yield  0%  0%
Schedule of contractual maturities
     
Year  Principal 
2026 (remainder)  $4,737,000 
2027   12,768,000 
   $17,505,000