NOTE 16 - SAFE Liabilities

In June 2024, December 2024, June 2025, July 2025, September 2025 and October 2025, the Company entered into eight Simple Agreement for Future Equity (“SAFE”) agreements with Hsiao Chia-Sung, Liu Ya Ting, Luk Fook Securities (HK) Ltd., and G-Tech Optoelectronics Corp. for a total of $8,997,200. The SAFE Agreements convert upon closing of the merger at $12.20 (“redemption price”) per share of common stock of IXAQ and the SAFE investors are eligible for additional incentive shares that will be issued by the merged company if following performance metrics are met in the five years following the closing of the Merger.

Under each SAFE, if the Merger has not occurred within two years from the issuance date of the SAFE, then upon a vote of a majority (based on the face amounts of the SAFEs) of the holders of SAFEs, the SAFEs will convert into equity of the Company at a price of $5.00 per share. If the Company experiences a dissolution event before conversion of the SAFEs, the holders of SAFEs will be treated like holders of standard non-participating preferred stock.

As of December 31, 2025 and 2024, based on the Fair Value Analysis of SAFE prepared by an independent valuation specialist, the fair value of the SAFEs was estimated at $10,020,000 and $5,410,000, respectively. The valuation was determined using a Monte Carlo simulation reflecting a probability-weighted outcome of multiple scenarios, including equity financing, optional conversion, and dissolution. Key assumptions used in the simulation as of December 31, 2025 and 2024, included an IXAQ stock price of $12.20 and $11.55, a risk-free rate of 3.77% and 4.43%, and an annualized volatility of 50.2% and 48.1%, respectively. The Company has received aggregate proceeds of $8,997,200 from SAFE holders on the respective issuance dates. The resulting change in fair value of the derivative liability recognized for the years ended December 31, 2025 and 2024, were $610,000 and $412,800, respectively.