NOTE 6 – WARRANTS

The table below summarizes the activity of warrants exercisable for shares of common stock during the three months ended March 31, 2026 and year ended December 31, 2025:

During the three months ended March 31, 2026 and 2025, the Company issued 43,000 shares and 10,000 shares of common stock for the exercise of 66,445 units and 15,000 units of share purchase warrants, respectively.

During the three months ended March 31, 2026 and 2025, the Company granted warrants to purchase 0 shares and 1,000,444 shares of common stock issued in conjunction with convertible notes issued during the same period, respectively.

During the three months ended March 31, 2026, 10,000 units of share purchase warrants with exercise price of $1 granted from a promissory note originally issued on December 6, 2021 were adjusted to 400,000 units at exercise price of $1 due to the full-ratchet anti-dilution provision. The adjusted warrant units were 390,000.

The fair value of each warrant on the date of grant is estimated using the Black-Scholes option valuation model. The following weighted-average assumptions were used for warrants granted during the three months ended March 31, 2026 and 2025:

The following table summarizes information relating to outstanding and exercisable warrants as of March 31, 2026:

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of the Company’s stock exceeded the exercise price of the warrants at March 31, 2026 for those warrants for which the quoted market price was in excess of the exercise price (“in-the-money” warrants). As of March 31, 2026, the aggregate intrinsic value of warrants outstanding was approximately $0 based on the closing market price of $0.0775 on March 31, 2026.

The Company determined that the warrants qualify for derivative accounting as a result of the related issuance of the convertible notes. As of March 31, 2026 and December 31, 2025, the Company valued the fair value on the 2,503,779 and 2,180,224 units of common stock purchase warrants granted at $561,612 and $1,765,062 based on Black-Scholes option valuation model, respectively, which is included within derivative liabilities on the balance sheets.