NOTE 14 – FINANCING INCENTIVE

During the year ended December 31, 2024, the Company issued 17,940,000 shares of common stock as financing incentives to lenders to encourage these lenders to enter note agreements and also for a related party lender to agree to a standby letter of credit required under the Company’s agreement with its contract manufacturer. During the year ended December 31, 2025, the Company issued an additional 1,328,840 shares of common stock as financing incentives. The Company recognizes the financing incentive shares as an expense rather than a debt issuance cost because the shares are granted as consideration for entering into the agreements rather than a direct cost of the debt arrangements. These shares were valued at the market price of the Company’s common stock on the date of each agreement. The Company recognized a financing incentive expense of $418,058 and $4,524,200 during the years ended December 31, 2025 and 2024. The financing incentive expense is comprised of the following at December 31, 2025: