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<p id="xdx_80D_eus-gaap--OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureAndSignificantAccountingPoliciesTextBlock_zrtKpv2ZvBJa" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">NOTE 1 – ORGANIZATION Laser Photonics Corporation (the “Company”) was formed under the laws of Wyoming on November 8, 2019, and changed its domicile to Delaware on March 5, 2020. The Company, located in central Florida, is a vertically integrated manufacturing company for photonics-based industrial products and solutions, primarily disruptive laser cleaning technologies. In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses which includes amendments that require disclosure in the notes to financial statements of specified information about certain costs and expenses, including purchases of inventory; employee compensation; and depreciation, amortization and depletion expenses for each caption on the income statement where such expenses are included. The amendments are effective for the Company’s annual periods beginning January 1, 2027, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is evaluating this ASU to determine its impact on the Company’s disclosures. Other recent accounting pronouncements issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements. Going Concern The accompanying condensed consolidated financial statements have been prepared under the assumption that the Company will continue as a going concern. In accordance with FASB Accounting Standards Codification (“ASC”) 205-40, Going Concern, the Company’s management has evaluated whether there are conditions or events that raise substantial doubt about its ability to continue as a going concern within one year after the date these financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on the Company’s consolidated financial statements for the year ended December 31, 2025, included an explanatory paragraph regarding there being substantial doubt about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments that might result from this uncertainty. The Company has incurred recurring operating losses and experienced negative operating cash flows. For the three months ended March 31, 2026, the Company reported a net loss of $2,946,284 and net cash used in operating activities of $1,842,774. As of March 31, 2026 and December 31, 2025, the Company had negative working capital of approximately $4.0 million and $7.3 million, respectively. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date these condensed consolidated financial statements are issued. The improvement in working capital during the quarter was primarily attributable to financing activities completed during the period, including a February 2026 public offering, warrant exercises, and repayment of outstanding obligations. The Company’s ability to continue as a going concern depends on its ability to raise additional debt or equity capital to fund its business activities and ultimately achieve sustainable operating revenues and profitability. The Company has financed its working capital requirements through borrowing from various sources and the sale of its equity securities. Management’s plans to address these conditions include continued capital raising initiatives, including warrant exercise and inducement transactions completed subsequent to quarter-end that generated approximately $3.6 million of net proceeds in April 2026, active management of working capital, reduction of discretionary expenditures, and initiatives intended to increase equipment sales and improve operating cash flows. While management believes these actions may improve liquidity and support ongoing operations, there can be no assurance that such plans will be successfully implemented or that sufficient financing will be available on acceptable terms, as market conditions present uncertainty regarding the Company’s ability to secure additional funds. Accordingly, management concluded that substantial doubt regarding the Company’s ability to continue as a going concern continues to exist. The accompanying condensed consolidated financial statements do not include any adjustments that may result from the outcome of this uncertainty. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements and accompanying notes of Laser Photonics Corporation (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and include the financial statements of the Company’s wholly owned operating subsidiary, Control Micro Systems, Inc. (“CMS”). Intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements and accompanying notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements, notes and significant accounting policies included in our Annual Report on Form 10-K for the year ended December 31, 2025.

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NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES & USE OF ESTIMATES. ASC-280 Segment Reporting The Company operates as a single reportable segment, as determined by the chief operating decision maker, who evaluates financial performance on a consolidated basis. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at dates of the financial statements and the reported amounts of revenue and expenses during the periods. Estimates and assumptions include valuation of financial instruments, valuation of intangibles, stock-based compensation, revenue recognition, inventory valuation, depreciable lives, and deferred tax valuation allowances. Actual results could differ from these estimates. Accounts Receivable Trade accounts receivable are recorded net of allowance for expected credit losses. The Company extends credit to its customers in the normal course of business and performs on-going credit evaluations of its customers. The allowance is based upon an estimate of expected credit losses over the life of outstanding receivables and involves an assessment of customer creditworthiness, historical payment experience, an assumption of future expected credit losses, and the age of outstanding receivables. As of March 31, 2026 and December 31, 2025, the Company’s allowance for expected credit losses was $43,799 and $0, respectively. Inventories Inventories are stated at a lower cost or net realizable value using the first-in-first-out (FIFO) method. The Company has four principal categories of inventory: Equipment parts inventory - This inventory represents components and raw materials that are currently in the process of being converted to a certifiable lot of saleable products through the manufacturing and/or equipment assembly process. Inventories include parts and components that may be specialized in nature and subject to rapid obsolescence. The Company periodically reviews the quantities and carrying values of inventories to assess whether the inventories are recoverable. Because of the Company’s vertical integration, a significant or sudden decrease in sales activity could result in a significant change in the estimates of excess or obsolete inventory valuation. The costs associated with provisions for excess quantities, technological obsolescence, or component rejections are charged to the cost of sales as incurred. Work in process inventory - Work in process inventory consists of inventory that is partially manufactured or not fully assembled as of the date of these financial statements. This equipment, machines, parts, frames, lasers and assemblies are items not ready for use or resale. Costs are accumulated as work in process until sales ready items are compete when it is moved to finished goods inventory. Amounts in this account represent items at various stages of completion at the date of these financial statements. Finished goods inventory - Finished goods inventory consists of inventory that is complete and ready for commercial application without further cost other than delivery and setup. Finished goods inventory includes items that have been purchased in finished form as well as units that have been fully manufactured or assembled by the Company through its production process. Finished goods inventory includes demo and other equipment, lasers, software, machines, parts or assemblies.. Consignment inventory – Consignment inventory held at third-party locations is included in inventories on the accompanying balance sheets and is stated at the lower of cost or net realizable value. The Company retains title to consignment inventory until the inventory is sold to an end customer. On March 31, 2026, and December 31, 2025, respectively, our inventories consisted of the following: SCHEDULE OF INVENTORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_495_20260331_zyNVd3lAsHX1" style="text-align: center">As of March 31,</td><td> </td><td> </td> <td colspan="2" id="xdx_490_20251231_zteLHstip0D3" style="text-align: center">As of December 31,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">(Unaudited)</td><td> </td><td> </td> <td colspan="2" style="text-align: center">(Audited)</td><td> </td></tr> <tr id="xdx_400_eus-gaap--InventoryRawMaterialsAndSupplies_iI_maINzy0T_z8hEna2hihNh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Equipment parts</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,141,032</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,098,427</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--InventoryFinishedGoods_iI_maINzy0T_zLzEESIhmHd4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Finished goods</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">416,496</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">460,676</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--InventoryWorkInProcess_iI_maINzy0T_z690bDiULOd7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Work in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">152,782</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">193,498</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--InventoryConsignment_iI_maINzy0T_z9FgfwOULGe3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Consignment inventory</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,361</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,361</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--InventoryValuationReserves_iNI_di_msINzy0T_z7yTeeGWwT1c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Inventory reserve</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(503,835</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(503,835</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--InventoryNet_iTI_mtINzy0T_zmQ6F9F5EDCa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total inventory, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,244,836</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,287,127</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Property, Plant, and Equipment Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. Depreciation expense for the periods ended March 31, 2026 and 2025 was $92,315 and $129,390, respectively. The estimated useful lives for significant property and equipment categories are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES FOR SIGNIFICANT PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: white"> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%">Category</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: center">Economic Useful Life</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Machinery and equipment</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_904_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zSyamfF4bKx1" title="Useful life">5-<span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zppxg2Mw5Gz6" title="Useful life">7 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Sales demonstration units</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">7 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Office furniture and computer equipment</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zrBvaHeOLl1d">3-<span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_zQT8LhDl7YWh">5 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Vehicles </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">2 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Leasehold improvements </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentDepreciationMethodExtensibleEnumeration_iI_dxL_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_z0YIFXFqQAC6" title="::XDX::http%3A%2F%2Ffasb.org%2Fus-gaap%2F2026%23UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember">Shorter of the estimated useful life or the lease term</td></tr> </table> Property, plant and equipment are comprised of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20260331_z2j6cdZVXwfh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20251231_z4VHrWrdFwFa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">(Unaudited)</td><td> </td><td> </td> <td colspan="2" style="text-align: center">(Audited)</td><td> </td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zLYwvdXASf8d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Machinery and equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,990,867</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,000,867</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--SalesDemonstrationUnitsMember_zOKabCkMp5ta" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales demonstration units</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,040,545</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,040,545</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndComputerEquipmentMember_zLAb8CgCvea6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office furniture and computer equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,257</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,257</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_zcGgcYkn8XBe" style="vertical-align: bottom; background-color: White"> <td>Vehicles</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">122,276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">112,276</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zJGC7IdXAsBl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Leasehold improvements</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">366,539</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">268,565</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzUvR_zUZyBTacL6H" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,909,484</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,811,510</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzUvR_zN4mwzLKe9O9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,778,631</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,686,316</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iI_mtPPAENzUvR_zi9UmNHX2Dcj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property, plant and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,130,853</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,125,194</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Long-Lived Assets Long-lived assets, other than goodwill and indefinite-lived assets, are reviewed for impairment whenever events or changes in circumstances (“triggering events”) indicate that their carrying value may not be recoverable. Impairment is measured by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from use of the assets and their ultimate disposition. An impairment loss, equal to the difference between the asset’s fair value and its carrying value, is recognized when the estimated future undiscounted cash flows are less than its carrying amount. No impairment indicators were identified as of March 31, 2026 and 2025. Intangible Assets The Company has certain intangible assets that were initially recorded at their fair value at the time of acquisition. The finite-lived intangible assets consist of trademarks and operational software and website. Intangible assets with finite useful lives are amortized using the straight-line method over their estimated useful life of ten years. The Company reviews all finite-lived intangible assets for impairment when circumstances indicate that their carrying values may not be recoverable. If the carrying value of an asset group is not recoverable, the Company recognizes an impairment loss for the excess carrying value over the fair value in our consolidated statements of operations. During the three-month periods ended March 31, 2026 and 2025, no indicators of impairment were identified and no impairment was recorded, related to the Company’s intangible assets. Amortization expenses for the period ended March 31, 2026 and 2025 amounted to $24,064 and $107,621, respectively. Warrants The Company issues warrants in conjunction with its capital raise activities. The fair value of a warrant is calculated on the grant date using the Black-Scholes option-pricing model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect as of the grant date. The expected dividend yield assumption is based on the Company’s expectation of dividend payouts and is assumed to be zero. The expected volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. The expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). The fair market value of the common stock is determined by reference to the quoted market price of the common stock on the grant date. The expected term represents the weighted-average period of time that warrants are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future; and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award. Management evaluates warrants under ASC 815, Derivatives and Hedging, including ASC 815-40 applicable to contracts in an entity’s own equity. Revenue Recognition Under ASC Topic 606, Revenue from Contracts with Customers, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company also earns revenue through affiliate arrangements. These contracts are evaluated under ASC 606 using the same five-step model. Affiliate revenue is recognized when the Company satisfies its performance obligations under the affiliate agreement, which typically occurs when the affiliate completes a qualifying transaction or when the Company provides agreed-upon services. The transaction price is determined based on the contractual terms with the affiliate, and revenue is recorded in the amount the Company expects to receive. Revenue is then recognized for the transaction price allocated to each respective performance obligation when (or as) the performance obligation is satisfied. For our products, revenue is generally recognized upon shipment or pickup by the customer. At this stage, the title on the manufactured equipment is transferred to the customer, and the customer is responsible for transportation expenses, insurance, and any transport-related damage to the equipment in transit. We do not have any obligation to deliver beyond the collection warehouse, and it is the customers’ contractual responsibility to ensure their goods reach their destination. Revenue is recognized when control transfers in accordance with contractual terms. For certain CMS projects that are customized in nature and expected to extend beyond six months, the Company recognizes revenue over time using a percentage-of-completion method. Under this method, revenue is recognized based on progress toward completion, which is generally measured based on costs incurred relative to total estimated project costs. Refunds and returns, which are minimal, are recorded as a reduction of revenue. Payments received from customers before satisfying the above criteria are recorded as unearned income on the combined balance sheets. Payments received as deposits for specific purchase orders or future laser equipment sales to customers are recognized as customer deposits and included in liabilities on the balance sheet. Customer deposits are recognized as revenue when control over the ordered equipment is transferred to the customer. All revenues are reported net of any sales discounts or taxes. Deferred revenue primarily consists of customer deposits received for orders not yet initiated or for advance billing arrangements not yet recognized under ASC 606. Contract liabilities primarily represent billings and cash collections related to performance obligations for which revenue recognition criteria have not yet been satisfied. Management evaluates balances each reporting period to ensure classification remains appropriate. Contract Assets and Liabilities Given the nature of the revenue recognition process, the Company generates contract liabilities (to the extent that a customer pays on project progress before the Company fulfills its performance obligations under a contract) or contract assets (to the extent that the Company has earned by satisfying performance obligations but has not yet billed the customer). Contract assets represent a right to receive payment in the future once certain conditions are met per the terms of the contract. The balance of contract assets and liabilities as of March 31, 2026 were $64,009 and $2,874,427, respectively, and as of December 31, 2025 were $258,037 and $1,205,007, respectively. Revenue recognized for the three months ended March 31, 2026 and 2025 related to the contract liability balance as of December 31, 2025 and 2024 was $220,672 and $437,444, respectively. Other Revenue Recognition Matters related to Distributors. Distributors generally have no right to return unsold equipment. However, in limited circumstances, if the Company determines that distributor stock is commercially obsolete beyond the Company’s new model releases, it may accept returns and provide the distributor with credit against their trading account at the Company’s discretion under its warranty policy. This revenue is recognized on a consignment basis and transfer of control is when an item is sold to end customer at which time the Company recognizes revenue, except where contractual terms require transfer upon end-customer sale. Share Based Compensation The Company periodically issues share-based awards to employees, non-employees, and consultants for services rendered. Stock options vest and expire according to the terms established at the grant’s issuance date. Stock grants are measured at the grant date fair value. Stock-based compensation cost is measured at fair value on the grant date and is generally recognized as an expense in the statement of operations ratably over the requisite service period or vesting period. Recognition of compensation expense for non-employees occurs in the same period and in the same manner as if the Company had paid cash for the services. The Company values its equity awards using the Black-Scholes option-pricing model, and accounts for forfeitures when they occur. Use of the Black-Scholes option pricing model requires the input of subjective assumptions, including expected volatility, expected term, and a risk-free interest rate. The expected volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. The expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). The risk-free interest rate is estimated using comparable published federal funds rates. Derivatives and Liability-Classified Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. The Company uses Level 3 inputs for its valuation methodology for the derivative liabilities as their fair values were determined by using a Binomial pricing model. The Company’s derivative liabilities are adjusted to reflect fair value at each reporting date, with any increase or decrease in the fair value being recorded in the statement of operations. To determine the number of authorized but unissued shares available to satisfy outstanding convertible securities, the Company uses a sequencing method to prioritize its convertible securities as prescribed by ASC 815-40-35, Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40-35). At each reporting date, the Company reviews its convertible securities to determine their classification is appropriate. Lease The Company leases certain corporate office space under lease agreements. The Company determines whether a contract contains a lease at contract inception. A contract is a lease if it conveys the right to control the use of the identified asset for a period in exchange for consideration. Control is determined based on the right to obtain all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. Operating lease right-of-use assets (“ROU”) represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments. Lease liabilities are recognized at the present value of the future minimum lease payments over the lease term at the commencement date. Operating lease expense is recognized on a straight-line basis over the lease term and is included in the general and administrative line in the Company’s consolidated statements of operations. The Company’s operating lease arrangements did not materially change during the three months ended March 31, 2026. Accordingly, the disclosures required under ASC 842 should be read in conjunction with the lease disclosures included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Income Taxes The Company accounts for income taxes using the asset and liability method and establishes a valuation allowance when it is more likely than not that deferred tax assets will not be realized. The Company did not recognize an income tax benefit for the three months ended March 31, 2026 or March 31, 2025. Net operating losses generated during the three months ended March 31, 2026 resulted in a material increase in the gross deferred tax asset and corresponding valuation allowance from December 31, 2025. Following reassessment of all available evidence, management concluded that a full valuation allowance remains appropriate as of March 31, 2026. The effective tax rate was 0% for both periods presented. Earnings (Loss)Per Share Basic earnings (loss) per share is calculated by dividing the earnings (loss) attributable to stockholders by the weighted-average number of shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings (loss) of the Company. Diluted earnings (loss) per share is computed by dividing the earnings (loss) available to stockholders by the weighted average number of shares outstanding for the period and dilutive potential shares outstanding unless such dilutive potential shares would result in anti-dilution. For the three months ended March 31, 2026, the Company excluded outstanding warrants to purchase shares of common stock from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. No such potentially dilutive securities were outstanding during the three months ended March 31, 2025. Reclassifications Certain prior period amounts have been reclassified to align with the current-period presentation.

ASC-280 Segment Reporting The Company operates as a single reportable segment, as determined by the chief operating decision maker, who evaluates financial performance on a consolidated basis.

Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at dates of the financial statements and the reported amounts of revenue and expenses during the periods. Estimates and assumptions include valuation of financial instruments, valuation of intangibles, stock-based compensation, revenue recognition, inventory valuation, depreciable lives, and deferred tax valuation allowances. Actual results could differ from these estimates.

Accounts Receivable Trade accounts receivable are recorded net of allowance for expected credit losses. The Company extends credit to its customers in the normal course of business and performs on-going credit evaluations of its customers. The allowance is based upon an estimate of expected credit losses over the life of outstanding receivables and involves an assessment of customer creditworthiness, historical payment experience, an assumption of future expected credit losses, and the age of outstanding receivables. As of March 31, 2026 and December 31, 2025, the Company’s allowance for expected credit losses was $43,799 and $0, respectively.

43799

Inventories Inventories are stated at a lower cost or net realizable value using the first-in-first-out (FIFO) method. The Company has four principal categories of inventory: Equipment parts inventory - This inventory represents components and raw materials that are currently in the process of being converted to a certifiable lot of saleable products through the manufacturing and/or equipment assembly process. Inventories include parts and components that may be specialized in nature and subject to rapid obsolescence. The Company periodically reviews the quantities and carrying values of inventories to assess whether the inventories are recoverable. Because of the Company’s vertical integration, a significant or sudden decrease in sales activity could result in a significant change in the estimates of excess or obsolete inventory valuation. The costs associated with provisions for excess quantities, technological obsolescence, or component rejections are charged to the cost of sales as incurred. Work in process inventory - Work in process inventory consists of inventory that is partially manufactured or not fully assembled as of the date of these financial statements. This equipment, machines, parts, frames, lasers and assemblies are items not ready for use or resale. Costs are accumulated as work in process until sales ready items are compete when it is moved to finished goods inventory. Amounts in this account represent items at various stages of completion at the date of these financial statements. Finished goods inventory - Finished goods inventory consists of inventory that is complete and ready for commercial application without further cost other than delivery and setup. Finished goods inventory includes items that have been purchased in finished form as well as units that have been fully manufactured or assembled by the Company through its production process. Finished goods inventory includes demo and other equipment, lasers, software, machines, parts or assemblies.. Consignment inventory – Consignment inventory held at third-party locations is included in inventories on the accompanying balance sheets and is stated at the lower of cost or net realizable value. The Company retains title to consignment inventory until the inventory is sold to an end customer. On March 31, 2026, and December 31, 2025, respectively, our inventories consisted of the following: SCHEDULE OF INVENTORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_495_20260331_zyNVd3lAsHX1" style="text-align: center">As of March 31,</td><td> </td><td> </td> <td colspan="2" id="xdx_490_20251231_zteLHstip0D3" style="text-align: center">As of December 31,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">(Unaudited)</td><td> </td><td> </td> <td colspan="2" style="text-align: center">(Audited)</td><td> </td></tr> <tr id="xdx_400_eus-gaap--InventoryRawMaterialsAndSupplies_iI_maINzy0T_z8hEna2hihNh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Equipment parts</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,141,032</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,098,427</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--InventoryFinishedGoods_iI_maINzy0T_zLzEESIhmHd4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Finished goods</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">416,496</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">460,676</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--InventoryWorkInProcess_iI_maINzy0T_z690bDiULOd7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Work in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">152,782</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">193,498</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--InventoryConsignment_iI_maINzy0T_z9FgfwOULGe3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Consignment inventory</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,361</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,361</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--InventoryValuationReserves_iNI_di_msINzy0T_z7yTeeGWwT1c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Inventory reserve</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(503,835</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(503,835</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--InventoryNet_iTI_mtINzy0T_zmQ6F9F5EDCa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total inventory, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,244,836</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,287,127</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

On March 31, 2026, and December 31, 2025, respectively, our inventories consisted of the following: SCHEDULE OF INVENTORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_495_20260331_zyNVd3lAsHX1" style="text-align: center">As of March 31,</td><td> </td><td> </td> <td colspan="2" id="xdx_490_20251231_zteLHstip0D3" style="text-align: center">As of December 31,</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">(Unaudited)</td><td> </td><td> </td> <td colspan="2" style="text-align: center">(Audited)</td><td> </td></tr> <tr id="xdx_400_eus-gaap--InventoryRawMaterialsAndSupplies_iI_maINzy0T_z8hEna2hihNh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Equipment parts</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,141,032</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,098,427</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--InventoryFinishedGoods_iI_maINzy0T_zLzEESIhmHd4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Finished goods</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">416,496</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">460,676</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--InventoryWorkInProcess_iI_maINzy0T_z690bDiULOd7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Work in process</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">152,782</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">193,498</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--InventoryConsignment_iI_maINzy0T_z9FgfwOULGe3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Consignment inventory</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,361</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">38,361</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--InventoryValuationReserves_iNI_di_msINzy0T_z7yTeeGWwT1c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Inventory reserve</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(503,835</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(503,835</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--InventoryNet_iTI_mtINzy0T_zmQ6F9F5EDCa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total inventory, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,244,836</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,287,127</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1141032

1098427

416496

460676

152782

193498

38361 38361

503835

1244836

1287127

Property, Plant, and Equipment Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. Depreciation expense for the periods ended March 31, 2026 and 2025 was $92,315 and $129,390, respectively. The estimated useful lives for significant property and equipment categories are as follows: SCHEDULE OF ESTIMATED USEFUL LIVES FOR SIGNIFICANT PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: white"> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%">Category</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: center">Economic Useful Life</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Machinery and equipment</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_904_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zSyamfF4bKx1" title="Useful life">5-<span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zppxg2Mw5Gz6" title="Useful life">7 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Sales demonstration units</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">7 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Office furniture and computer equipment</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zrBvaHeOLl1d">3-<span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_zQT8LhDl7YWh">5 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Vehicles </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">2 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Leasehold improvements </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentDepreciationMethodExtensibleEnumeration_iI_dxL_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_z0YIFXFqQAC6" title="::XDX::http%3A%2F%2Ffasb.org%2Fus-gaap%2F2026%23UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember">Shorter of the estimated useful life or the lease term</td></tr> </table> Property, plant and equipment are comprised of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20260331_z2j6cdZVXwfh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20251231_z4VHrWrdFwFa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">(Unaudited)</td><td> </td><td> </td> <td colspan="2" style="text-align: center">(Audited)</td><td> </td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zLYwvdXASf8d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Machinery and equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,990,867</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,000,867</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--SalesDemonstrationUnitsMember_zOKabCkMp5ta" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales demonstration units</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,040,545</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,040,545</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndComputerEquipmentMember_zLAb8CgCvea6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office furniture and computer equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,257</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,257</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_zcGgcYkn8XBe" style="vertical-align: bottom; background-color: White"> <td>Vehicles</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">122,276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">112,276</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zJGC7IdXAsBl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Leasehold improvements</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">366,539</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">268,565</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzUvR_zUZyBTacL6H" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,909,484</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,811,510</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzUvR_zN4mwzLKe9O9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,778,631</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,686,316</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iI_mtPPAENzUvR_zi9UmNHX2Dcj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property, plant and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,130,853</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,125,194</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

92315

129390

SCHEDULE OF ESTIMATED USEFUL LIVES FOR SIGNIFICANT PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: white"> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%">Category</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="border-bottom: black 1pt solid; font: 10pt Times New Roman, Times, Serif; width: 49%; text-align: center">Economic Useful Life</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Machinery and equipment</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_904_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MinimumMember_zSyamfF4bKx1" title="Useful life">5-<span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember__srt--RangeAxis__srt--MaximumMember_zppxg2Mw5Gz6" title="Useful life">7 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Sales demonstration units</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">7 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Office furniture and computer equipment</td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_907_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndComputerEquipmentMember__srt--RangeAxis__srt--MinimumMember_zrBvaHeOLl1d">3-<span id="xdx_901_eus-gaap--PropertyPlantAndEquipmentUsefulLife_iI_dtY_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndComputerEquipmentMember__srt--RangeAxis__srt--MaximumMember_zQT8LhDl7YWh">5 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif">Vehicles </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center">2 years</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif">Leasehold improvements </td> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center"><span id="xdx_90E_eus-gaap--PropertyPlantAndEquipmentDepreciationMethodExtensibleEnumeration_iI_dxL_c20260331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_z0YIFXFqQAC6" title="::XDX::http%3A%2F%2Ffasb.org%2Fus-gaap%2F2026%23UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember">Shorter of the estimated useful life or the lease term</td></tr> </table>

P5Y

P7Y

P3Y

P5Y

P2Y

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_490_20260331_z2j6cdZVXwfh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20251231_z4VHrWrdFwFa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">(Unaudited)</td><td> </td><td> </td> <td colspan="2" style="text-align: center">(Audited)</td><td> </td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zLYwvdXASf8d" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Machinery and equipment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,990,867</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,000,867</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--SalesDemonstrationUnitsMember_zOKabCkMp5ta" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales demonstration units</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,040,545</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,040,545</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeFurnitureAndComputerEquipmentMember_zLAb8CgCvea6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office furniture and computer equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,257</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">389,257</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--VehiclesMember_zcGgcYkn8XBe" style="vertical-align: bottom; background-color: White"> <td>Vehicles</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">122,276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">112,276</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LeaseholdImprovementsMember_zJGC7IdXAsBl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Leasehold improvements</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">366,539</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">268,565</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzUvR_zUZyBTacL6H" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,909,484</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,811,510</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzUvR_zN4mwzLKe9O9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,778,631</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,686,316</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--PropertyPlantAndEquipmentNet_iI_mtPPAENzUvR_zi9UmNHX2Dcj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property, plant and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,130,853</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,125,194</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1990867

2000867

1040545

389257

122276

112276

366539

268565

3909484

3811510

2778631

2686316

1130853

1125194

Long-Lived Assets Long-lived assets, other than goodwill and indefinite-lived assets, are reviewed for impairment whenever events or changes in circumstances (“triggering events”) indicate that their carrying value may not be recoverable. Impairment is measured by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from use of the assets and their ultimate disposition. An impairment loss, equal to the difference between the asset’s fair value and its carrying value, is recognized when the estimated future undiscounted cash flows are less than its carrying amount. No impairment indicators were identified as of March 31, 2026 and 2025.

Intangible Assets The Company has certain intangible assets that were initially recorded at their fair value at the time of acquisition. The finite-lived intangible assets consist of trademarks and operational software and website. Intangible assets with finite useful lives are amortized using the straight-line method over their estimated useful life of ten years. The Company reviews all finite-lived intangible assets for impairment when circumstances indicate that their carrying values may not be recoverable. If the carrying value of an asset group is not recoverable, the Company recognizes an impairment loss for the excess carrying value over the fair value in our consolidated statements of operations. During the three-month periods ended March 31, 2026 and 2025, no indicators of impairment were identified and no impairment was recorded, related to the Company’s intangible assets. Amortization expenses for the period ended March 31, 2026 and 2025 amounted to $24,064 and $107,621, respectively.

24064 107621 Warrants The Company issues warrants in conjunction with its capital raise activities. The fair value of a warrant is calculated on the grant date using the Black-Scholes option-pricing model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect as of the grant date. The expected dividend yield assumption is based on the Company’s expectation of dividend payouts and is assumed to be zero. The expected volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. The expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). The fair market value of the common stock is determined by reference to the quoted market price of the common stock on the grant date. The expected term represents the weighted-average period of time that warrants are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future; and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award. Management evaluates warrants under ASC 815, Derivatives and Hedging, including ASC 815-40 applicable to contracts in an entity’s own equity.

Revenue Recognition Under ASC Topic 606, Revenue from Contracts with Customers, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The Company also earns revenue through affiliate arrangements. These contracts are evaluated under ASC 606 using the same five-step model. Affiliate revenue is recognized when the Company satisfies its performance obligations under the affiliate agreement, which typically occurs when the affiliate completes a qualifying transaction or when the Company provides agreed-upon services. The transaction price is determined based on the contractual terms with the affiliate, and revenue is recorded in the amount the Company expects to receive. Revenue is then recognized for the transaction price allocated to each respective performance obligation when (or as) the performance obligation is satisfied. For our products, revenue is generally recognized upon shipment or pickup by the customer. At this stage, the title on the manufactured equipment is transferred to the customer, and the customer is responsible for transportation expenses, insurance, and any transport-related damage to the equipment in transit. We do not have any obligation to deliver beyond the collection warehouse, and it is the customers’ contractual responsibility to ensure their goods reach their destination. Revenue is recognized when control transfers in accordance with contractual terms. For certain CMS projects that are customized in nature and expected to extend beyond six months, the Company recognizes revenue over time using a percentage-of-completion method. Under this method, revenue is recognized based on progress toward completion, which is generally measured based on costs incurred relative to total estimated project costs. Refunds and returns, which are minimal, are recorded as a reduction of revenue. Payments received from customers before satisfying the above criteria are recorded as unearned income on the combined balance sheets. Payments received as deposits for specific purchase orders or future laser equipment sales to customers are recognized as customer deposits and included in liabilities on the balance sheet. Customer deposits are recognized as revenue when control over the ordered equipment is transferred to the customer. All revenues are reported net of any sales discounts or taxes. Deferred revenue primarily consists of customer deposits received for orders not yet initiated or for advance billing arrangements not yet recognized under ASC 606. Contract liabilities primarily represent billings and cash collections related to performance obligations for which revenue recognition criteria have not yet been satisfied. Management evaluates balances each reporting period to ensure classification remains appropriate.

Contract Assets and Liabilities Given the nature of the revenue recognition process, the Company generates contract liabilities (to the extent that a customer pays on project progress before the Company fulfills its performance obligations under a contract) or contract assets (to the extent that the Company has earned by satisfying performance obligations but has not yet billed the customer). Contract assets represent a right to receive payment in the future once certain conditions are met per the terms of the contract. The balance of contract assets and liabilities as of March 31, 2026 were $64,009 and $2,874,427, respectively, and as of December 31, 2025 were $258,037 and $1,205,007, respectively. Revenue recognized for the three months ended March 31, 2026 and 2025 related to the contract liability balance as of December 31, 2025 and 2024 was $220,672 and $437,444, respectively. 64009

2874427

258037

1205007

220672

437444

Other Revenue Recognition Matters related to Distributors. Distributors generally have no right to return unsold equipment. However, in limited circumstances, if the Company determines that distributor stock is commercially obsolete beyond the Company’s new model releases, it may accept returns and provide the distributor with credit against their trading account at the Company’s discretion under its warranty policy. This revenue is recognized on a consignment basis and transfer of control is when an item is sold to end customer at which time the Company recognizes revenue, except where contractual terms require transfer upon end-customer sale.

Share Based Compensation The Company periodically issues share-based awards to employees, non-employees, and consultants for services rendered. Stock options vest and expire according to the terms established at the grant’s issuance date. Stock grants are measured at the grant date fair value. Stock-based compensation cost is measured at fair value on the grant date and is generally recognized as an expense in the statement of operations ratably over the requisite service period or vesting period. Recognition of compensation expense for non-employees occurs in the same period and in the same manner as if the Company had paid cash for the services. The Company values its equity awards using the Black-Scholes option-pricing model, and accounts for forfeitures when they occur. Use of the Black-Scholes option pricing model requires the input of subjective assumptions, including expected volatility, expected term, and a risk-free interest rate. The expected volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the contractual life of the stock option being granted. The expected life of the stock option is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”). The risk-free interest rate is estimated using comparable published federal funds rates.

Derivatives and Liability-Classified Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. The Company uses Level 3 inputs for its valuation methodology for the derivative liabilities as their fair values were determined by using a Binomial pricing model. The Company’s derivative liabilities are adjusted to reflect fair value at each reporting date, with any increase or decrease in the fair value being recorded in the statement of operations. To determine the number of authorized but unissued shares available to satisfy outstanding convertible securities, the Company uses a sequencing method to prioritize its convertible securities as prescribed by ASC 815-40-35, Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40-35). At each reporting date, the Company reviews its convertible securities to determine their classification is appropriate.

Lease The Company leases certain corporate office space under lease agreements. The Company determines whether a contract contains a lease at contract inception. A contract is a lease if it conveys the right to control the use of the identified asset for a period in exchange for consideration. Control is determined based on the right to obtain all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. Operating lease right-of-use assets (“ROU”) represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments. Lease liabilities are recognized at the present value of the future minimum lease payments over the lease term at the commencement date. Operating lease expense is recognized on a straight-line basis over the lease term and is included in the general and administrative line in the Company’s consolidated statements of operations. The Company’s operating lease arrangements did not materially change during the three months ended March 31, 2026. Accordingly, the disclosures required under ASC 842 should be read in conjunction with the lease disclosures included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Income Taxes The Company accounts for income taxes using the asset and liability method and establishes a valuation allowance when it is more likely than not that deferred tax assets will not be realized. The Company did not recognize an income tax benefit for the three months ended March 31, 2026 or March 31, 2025. Net operating losses generated during the three months ended March 31, 2026 resulted in a material increase in the gross deferred tax asset and corresponding valuation allowance from December 31, 2025. Following reassessment of all available evidence, management concluded that a full valuation allowance remains appropriate as of March 31, 2026. The effective tax rate was 0% for both periods presented.

Earnings (Loss)Per Share Basic earnings (loss) per share is calculated by dividing the earnings (loss) attributable to stockholders by the weighted-average number of shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that shared in the earnings (loss) of the Company. Diluted earnings (loss) per share is computed by dividing the earnings (loss) available to stockholders by the weighted average number of shares outstanding for the period and dilutive potential shares outstanding unless such dilutive potential shares would result in anti-dilution. For the three months ended March 31, 2026, the Company excluded outstanding warrants to purchase shares of common stock from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. No such potentially dilutive securities were outstanding during the three months ended March 31, 2025.

Reclassifications Certain prior period amounts have been reclassified to align with the current-period presentation.

NOTE 3 – ASSET ACQUISITION FROM COMMON CONTROLLED ENTITY On March 31, 2025, ICT Investments, LLC (“ICT”), an affiliated company under common control, acquired inventories and machinery and equipment from ARCH Cutting Tools – Flushing, LLC (“ARCH”), related to their Beamer Laser Marking Systems (“Beamer”) product line, for total cash consideration of $255,824. The transaction was accounted for as an asset acquisition rather than a business combination, as the assets acquired did not meet the definition of a business. The purchase price was allocated to the acquired assets based on their relative cost, which resulted in recording of $<span id="xdx_900_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedInventory_iI_c20250331__srt--ConsolidatedEntitiesAxis__custom--ICTInvestmentsMember_zvHaTmHDo46j" title="Allocated to acquired inventory">238,054 of inventories and $<span id="xdx_90C_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment_iI_c20250331__srt--ConsolidatedEntitiesAxis__custom--ICTInvestmentsMember_zA02NROkgVAk" title="Allocated to acquired machinery and equipment">17,770 of machinery and equipment, as of the date of acquisition. The purchased assets were subsequently transferred to Fonon Quantum Technologies, Inc. (“FQTI”), an affiliate of both ICT and the Company. On August 5, 2025, the Company acquired inventories and machinery and equipment associated with the Beamer Laser Marking Systems product line from FQTI. Because the transaction was between entities under common control, the acquisition was accounted for in accordance with ASC 805-50, Transactions Between Entities Under Common Control. The acquired assets are recognized at their historical carrying amounts rather than at fair value, and no goodwill was recorded. The results of operations attributable to the acquired Beamer assets are included in the Company’s consolidated results for the three months ended March 31, 2026. Comparative prior-period financial statements were not restated.

255824

238054

17770

NOTE 4 – NOTES PAYABLE Notes payable consist of the following at March 31, 2026 and December 31, 2025: SCHEDULE OF NOTES PAYABLE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20260331_zrPSWsYCeoj8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20251231_zv28ruVddZEa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">(Unaudited)</td><td> </td><td> </td> <td colspan="2" style="text-align: center">(Audited)</td><td> </td></tr> <tr id="xdx_408_eus-gaap--NotesPayableCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--DistrictTwoCapitalFundorMember_zK25MYNsQ93f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">District 2 Capital Fundor (past due at 12/31/25)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">362,500</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--NotesPayableCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--AgileCapitalFundingAndAgileLendingMember_z85ywpud8Az4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Agile Capital Funding and Agile Lending</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,541,567</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">613,985</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--NotesPayableCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--NPANoteHoldersMember_zveE0ap1JjQj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">NPA Note Holders (in default at 12/31/25)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,850,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--NotesPayableCurrent_iI_di_hus-gaap--DebtInstrumentAxis__custom--DebtDiscountMember_zxEk4DDD2UXi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Debt discount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(69,335</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(21,875</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--NotesPayableCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--NonrelatedPartyMember_zxYIrudc9fq7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total notes payable, net of debt discount</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,472,232</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,804,610</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> District 2 Capital Fundor On May 6, 2025, the Company issued a Promissory Note (the “District 2 Note”) in favor of District 2 Capital Fundor. The Company promises to pay to the order of District 2 Capital Fundor not later than six months from date of the Note, the principal amount of $362,500. This Note was issued in connection with extinguishment of Holder’s outstanding warrant dated August 19, 2024 (125,000 warrants). As of December 31, 2025, the Note had an outstanding principal balance of $362,500 and accrued interest of $19,618 and was past due. The District 2 Note and accrued interest were paid off during the three months ended March 31, 2026. Agile Capital Funding and Agile Lending During the year ended December 31, 2025, the Company entered into three separate business loan and security agreements (the “2025 Term Loans”) with a lender for short-term loans to be provided by the lender, or the lender’s assignees (collectively, the “Lenders”) and mature seven months from the date the amounts are borrowed. The loans are secured by a blanket lien on the Company’s assets. The loans may be prepaid, subject to payment of a prepayment fee equal to the aggregate and actual amount of interest (at the contract rate of interest) that would be paid through the maturity date. The Company borrowed under three short-term borrowing arrangements during the year ended December 31, 2025, borrowing a gross amount of $4,650,000, net of fees of $225,000, which was recorded as a debt discount and is being amortized over the term of the agreements. During the year ended December 31, 2025, the Company made total repayments of $4,036,015. During the year ended December 31, 2025, the Company amortized $<span id="xdx_905_eus-gaap--AmortizationOfDebtDiscountPremium_c20250101__20251231__us-gaap--DebtInstrumentAxis__custom--BusinessLoanAndSecurityAgreementMember_z6Ga3TrvMYc8" title="Amortization of debt discount">203,125 of the debt discount to interest expense, resulting in unamortized debt discount of $21,875 as of the year then ended. As of December 31, 2025, the Company had outstanding borrowings of $613,985, and unamortized debt discount of $21,875, resulting in net balance of $592,110. The 2025 Term Loans and accrued interest were paid off during the three months ended March 31, 2026. On February 22, 2026, the Company entered into a separate business loan and security agreement (the “2026 Term Loan”) with the same lender as the 2025 Term Loans for an additional short-term borrowing. The 2026 Term Loan, together with any assignments thereof, is provided by the lender and its assignees (collectively, the “Lenders”) and matures thirty-two weeks from the date the amounts are borrowed. The loans are secured by a blanket lien on the Company’s assets. The loans may be prepaid, subject to a prepayment fee equal to the aggregate amount of interest that would otherwise be payable through the maturity date at the contractual interest rate. During the three-month period ended March 31, 2026, the Company borrowed an aggregate gross amount of $<span id="xdx_90D_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20260101__20260331__us-gaap--DebtInstrumentAxis__custom--BusinessLoanAndSecurityAgreementMember_zvx73SrCjyv4" title="Aggregate gross amount">1,775,000 under three short-term borrowing arrangements and incurred an administrative agent fee of $88,750, which was paid at closing from the proceeds of the 2026 Term Loan and recorded as a debt discount. During the three-month period ended March 31, 2026, the Company made total repayments of $233,433. As of March 31, 2026, the Company had outstanding borrowings of $1,541,567, and unamortized debt discount of $69,335, resulting in a net balance of $1,472,232. NPA Note Holders On September 12, 2025, the Company entered into a Note Purchase Agreement (the “NPA”) with four holders pursuant to which it issued to such holders certain unsecured promissory notes (the “Notes”). The Notes are (i) in the total principal amount of $2,111,111 with an Original Issuance Discount (“OID”) equal to 10% that resulted in the Company receiving net proceeds of $1,129,400 following deductions for expenses, including an 8% placement agency fee and 1% non-accountable allowance paid to RBW Capital Partners LLC (“RBW”), a division of Dawson James Securities, Inc., under the terms of a Placement Agency Agreement dated September 5, 2025, between the Company and RBW, and repayment of principal and accrued and unpaid interest of $<span id="xdx_90D_eus-gaap--DebtInstrumentIncreaseAccruedInterest_c20250912__20250912__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HudsonGlobalVenturesLLCMember_zzrZ8QiNOOpb" title="Accrued and unpaid interest">509,600 owed to Hudson Global Ventures, LLC (“Hudson Global”) under a convertible note in the principal amount of $455,000 issued under the term of a Securities Purchase Agreement dated August 27, 2025, (ii) due the earlier of three (3) months from the dates of the Notes which are all September 12, 2025, or in the event of a prior subsequent financing by the Company, the Notes at the option of the holder must be repaid in full or, if applicable, are exchangeable into the consideration in the subsequent offering, (iii) <span id="xdx_90E_eus-gaap--DebtInstrumentDescription_c20250912__20250912__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HudsonGlobalVenturesLLCMember_zwHTeagYZbUl" title="Debt instrument, description">subject to a payment in the event of a default of 120% of the unpaid principal amount, accrued interest and all other amounts owing under the Notes, which amount increases by 5% every 30 days following the date of the event of default until the Notes are paid in full (the “Mandatory Default Amount”) and (iv) limited to prepayment only upon a change of control of the Company subject to payment of the Mandatory Default Amount. The Company was deemed to be in default and recorded an additional <span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20250912__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--HudsonGlobalVenturesLLCMember_zemp4lwNpfVh" title="Unpaid principal percentage">120% of the unpaid principal amount, or $738,889. As of December 31, 2025, the loan reflects an outstanding principal balance of $2,850,000, and accrued interest of $158,175. During the three months ended March 31, 2026, the Company satisfied and extinguished the NPA obligations in full. Settlement payments included repayment of outstanding principal of $2,850,000, accrued interest of $158,175, and other contractual amounts. The Company evaluated the extinguishment under ASC 470-50, Debt — Modifications and Extinguishments, and determined that the settlement amounts did not exceed the carrying value of the obligations as recorded at December 31, 2025. Accordingly, no gain or loss on extinguishment was recognized in the condensed consolidated statement of operations. During the three months ended March 31, 2026, the Company amortized $41,289 of deferred financing costs to interest expense related to the remaining debt obligations. Notes payable – related party On April 3, 2025, April 16, 2025, June 20, 2025, July 8, 2025, and July 12, 2025, the Company received from ICT Investments, the owner of the majority of outstanding shares of the Company’s common stock, unsecured loans in the principal amount of $200,000, $400,000, $20,000, $101,000, and $30,000 respectively (the “ICT Loans”). Laser Photonics issued promissory notes, with interest at $20,000, $40,000, $2,000, $10,000 and $3,000, respectively, and a maturity date of May 31, 2025, June 30, 2025, August 30, 2025, September 8, 2025, and September 12, 2025, respectively. On September 12, 2025, the Company amended the promissory notes to include a default provision that upon default, the loans bear an annual interest rate of 10% and are due on demand. The unpaid principal balance of the ICT loans as of December 31, 2025, was $751,000. The unpaid interest balance as of December 31, 2025, was $111,623, which included in the balance of accrued expenses in the accompanying consolidated balance sheets as of the year then ended. These promissory notes and accrued interest were paid off during the three months ended March 31, 2026.

Notes payable consist of the following at March 31, 2026 and December 31, 2025: SCHEDULE OF NOTES PAYABLE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_494_20260331_zrPSWsYCeoj8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20251231_zv28ruVddZEa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">(Unaudited)</td><td> </td><td> </td> <td colspan="2" style="text-align: center">(Audited)</td><td> </td></tr> <tr id="xdx_408_eus-gaap--NotesPayableCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--DistrictTwoCapitalFundorMember_zK25MYNsQ93f" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">District 2 Capital Fundor (past due at 12/31/25)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">362,500</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--NotesPayableCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--AgileCapitalFundingAndAgileLendingMember_z85ywpud8Az4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Agile Capital Funding and Agile Lending</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,541,567</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">613,985</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--NotesPayableCurrent_iI_hus-gaap--DebtInstrumentAxis__custom--NPANoteHoldersMember_zveE0ap1JjQj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">NPA Note Holders (in default at 12/31/25)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,850,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--NotesPayableCurrent_iI_di_hus-gaap--DebtInstrumentAxis__custom--DebtDiscountMember_zxEk4DDD2UXi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Debt discount</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(69,335</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(21,875</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_400_eus-gaap--NotesPayableCurrent_iI_hus-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--NonrelatedPartyMember_zxYIrudc9fq7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total notes payable, net of debt discount</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,472,232</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,804,610</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

362500

1541567

613985

2850000

69335

21875

1472232

3804610

362500

125000

362500

19618

4650000

225000

4036015

203125

21875

613985

21875

592110

1775000

88750

233433

1541567

69335

1472232

2111111

equal to 10% that resulted in the Company receiving net proceeds of $1,129,400 following deductions for expenses, including an 8% placement agency fee and 1% non-accountable allowance paid to RBW Capital Partners LLC (“RBW”), a division of Dawson James Securities, Inc

1129400

509600

455000

subject to a payment in the event of a default of 120% of the unpaid principal amount, accrued interest and all other amounts owing under the Notes, which amount increases by 5% every 30 days

1.20

738889

2850000

158175

2850000

158175

41289

200000

400000

20000

101000

30000

20000

40000

2000

10000

3000

2025-05-31

2025-06-30

2025-08-30

2025-09-08

2025-09-12

751000

111623

NOTE 5 – DERIVATIVE LIABILITY On August 27, 2025, pursuant to the NPA (see Note 4), the Company granted Hudson Global the right to convert 157,258 warrants, whereby such number may be adjusted from time to time pursuant to the terms and conditions of this Warrant. The Company analyzed the conversion option for derivative accounting consideration under ASC 815, Derivatives and Hedging, and determined that the conversion option should be classified as a derivative liability since it does not have an explicit limit to the number of shares to be delivered upon settlement of the conversion option. The derivative liability is remeasured to fair value at each reporting period, and the change in the fair value is recognized in earnings in the accompanying statements of operations. The Company estimated the fair value of the conversion option derivative liability using a Black-Scholes option pricing model. The fair value of the derivative liability as of March 31, 2026 was $124,516 and as of December 31, 2025 was $338,902. During the three months ended March 31, 2026, the Company recognized a gain from changes in fair value of derivative liabilities of $214,386. The following tables summarize the derivative liability: SCHEDULE OF DERIVATIVE LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20260331_zIZoEyDstzy8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20251231_zjmTBXoXFk7f" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_409_eus-gaap--DerivativeLiabilityMeasurementInput_iI_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zPCIGWTAb6k2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">0.96</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2.57</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DerivativeLiabilityMeasurementInput_iI_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zK7k8e7Iwddg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.55</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.55</td><td style="text-align: left">%</td></tr> <tr id="xdx_409_eus-gaap--DerivativeLiabilityMeasurementInput_iI_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zjcrVRE13e68" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150</td><td style="text-align: left">%</td></tr> <tr id="xdx_40C_eus-gaap--DerivativeLiabilityMeasurementInput_iI_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_z6Ie7VUA9BIf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life in years</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.41</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.66</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DerivativeLiabilityMeasurementInput_iI_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_z2BBNSBAIzLa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Number of warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">157,258</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">157,258</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Fair value of derivative liability</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">124,516</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">338,902</td><td style="text-align: left"> </td></tr> </table> The following table summarizes activity related to derivative liabilities for the three months ended March 31, 2026: SCHEDULE OF DERIVATIVE LIABILITY MEASURED AT FAIR VALUE ON A RECURRING BASIS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Description</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20260101__20260331_zr7JpUufTSvd" style="border-bottom: Black 1pt solid; text-align: center">Amount</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">(Unaudited)</td><td> </td></tr> <tr id="xdx_404_eus-gaap--DerivativeLiabilitiesCurrent_iS_zcmm2rqccY75" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%">Fair value of derivative liabilities at December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">338,902</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_zot9lHEqsp5i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in fair value of derivative liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(214,386</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--DerivativeLiabilitiesCurrent_iE_zK0CfUnQNpsj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Fair value of derivative liabilities at March 31, 2026</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">124,516</td><td style="text-align: left"> </td></tr> </table>

157258

124516

338902

214386

The following tables summarize the derivative liability: SCHEDULE OF DERIVATIVE LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49C_20260331_zIZoEyDstzy8" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20251231_zjmTBXoXFk7f" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_409_eus-gaap--DerivativeLiabilityMeasurementInput_iI_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zPCIGWTAb6k2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Stock price</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">0.96</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2.57</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DerivativeLiabilityMeasurementInput_iI_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zK7k8e7Iwddg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Risk free interest rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.55</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.55</td><td style="text-align: left">%</td></tr> <tr id="xdx_409_eus-gaap--DerivativeLiabilityMeasurementInput_iI_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zjcrVRE13e68" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">150</td><td style="text-align: left">%</td></tr> <tr id="xdx_40C_eus-gaap--DerivativeLiabilityMeasurementInput_iI_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedTermMember_z6Ie7VUA9BIf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Expected life in years</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.41</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">4.66</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--DerivativeLiabilityMeasurementInput_iI_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_z2BBNSBAIzLa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected dividend yield</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Number of warrants</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">157,258</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">157,258</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Fair value of derivative liability</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">124,516</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">338,902</td><td style="text-align: left"> </td></tr> </table>

0.96

2.57

3.55

150

4.41

4.66

157258

124516

338902

The following table summarizes activity related to derivative liabilities for the three months ended March 31, 2026: SCHEDULE OF DERIVATIVE LIABILITY MEASURED AT FAIR VALUE ON A RECURRING BASIS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 80%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Description</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20260101__20260331_zr7JpUufTSvd" style="border-bottom: Black 1pt solid; text-align: center">Amount</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: center">(Unaudited)</td><td> </td></tr> <tr id="xdx_404_eus-gaap--DerivativeLiabilitiesCurrent_iS_zcmm2rqccY75" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%">Fair value of derivative liabilities at December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">338,902</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_zot9lHEqsp5i" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in fair value of derivative liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(214,386</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--DerivativeLiabilitiesCurrent_iE_zK0CfUnQNpsj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Fair value of derivative liabilities at March 31, 2026</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">124,516</td><td style="text-align: left"> </td></tr> </table>

338902

214386

124516

NOTE 6 – STOCKHOLDERS’ DEFICIT General The following description of the Company’s capital stock and certain provisions of its amended and restated certificate of incorporation and amended and restated bylaws are summaries and are qualified in their entirety by reference to such documents, copies of which have been previously filed with the Securities and Exchange Commission. The summary below should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Preferred Stock <table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Par value: $0.001</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Authorized: 10,000,000 shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Issued: There were no preferred shares issued and outstanding as of March 31, 2026 and December 31, 2025</td></tr> </table> Common Stock <table cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; width: 0.25in; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Par value: $0.001</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Authorized: 100,000,000 shares</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Issued: 32,604,703 and 22,852,723 as of March 31, 2026 and December 31, 2025, respectively</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">●</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Outstanding: 32,597,325 and 22,845,345 as of March 31, 2026 and December 31, 2025, respectively</td></tr> </table> Common shares transactions February 2026 public offering On February 9, 2026, the Company completed a public offering of 7,142,858 shares of common stock together with Series A-1 warrants to purchase <span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20260209__us-gaap--StatementClassOfStockAxis__custom--SeriesAOneWarrantsMember_zD6TJN4cL9Wb" title="Warrants to purchase shares">7,142,858 shares and Series A-2 warrants to purchase <span id="xdx_906_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20260209__us-gaap--StatementClassOfStockAxis__custom--SeriesATwoWarrantsMember_zP6X0qc2eH72" title="Warrants to purchase shares">7,142,858 shares of common stock, each at an exercise price of $0.70 per share. In connection with the offering, the Company also issued to the placement agent warrants to purchase an aggregate of <span id="xdx_901_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20260209__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zdCe3IGoQPpc" title="Issuance of warrants">557,058 shares of common stock with a 5five-year term at exercise prices of $0.875 and $3.2375 per share, with an aggregate fair value of $381,374. Gross proceeds from the offering were $5,000,001. The Company received net proceeds of approximately $4,121,272 after deducting placement agent fees, commissions, and other offering-related expenses totaling $878,728. The Company evaluated the Series A-1, A-2, and placement agent warrants under ASC 815, Derivatives and Hedging, including ASC 815-40 related to contracts in an entity’s own equity, and concluded that such warrants qualify for equity classification. Accordingly, the fair value assigned to the warrants was recorded within stockholders’ equity at issuance and is not subsequently remeasured through earnings. Offering costs and selling concessions associated with the offering were recorded as reductions of additional paid-in capital. Common stock issued upon exercise of warrants During the three months ended March 31, 2026, holders exercised an aggregate of <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20260101__20260331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesAOneAndTwoWarrantsMember_z54vhggylhab" title="Issuance of shares">1,075,844 previously issued Series A-1 and Series A-2 warrants associated with the Company’s February 2026 public offering at an exercise price of $<span id="xdx_90D_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260331__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesAOneAndTwoWarrantsMember_zD1pbFQiHOS8" title="Exercise price">0.70 per share, resulting in the issuance of 1,075,844 shares of common stock and aggregate proceeds of $753,091. Because such warrants were classified within stockholders’ equity, no gain or loss was recognized upon exercise and the Company recorded the issuance of common stock and the related additional paid-in capital. Warrant Inducement Offering On March 15, 2026, the Company entered into inducement agreements with certain holders of existing warrants originally issued in September 2025 at an exercise price of $<span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--ExistingWarrantsMember_zzM7a6x6Gvpd" title="Exercise price">3.40 per share (collectively, the “Existing Warrants”), pursuant to which such holders agreed to exercise an aggregate of <span id="xdx_908_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--ExistingWarrantsMember_zdoRPWLKNIRi" title="Warrant issued">1,373,630 Existing Warrants at a reduced exercise price of $<span id="xdx_90D_ecustom--ClassOfWarrantOrRightExercisePriceReducedOfWarrantsOrRights1_iI_pid_c20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--ExistingWarrantsMember_zabRM7QZAqB5" title="Reduced exercise price">1.08 per share, resulting in gross proceeds of $<span id="xdx_900_eus-gaap--ProceedsFromIssuanceOfWarrants_c20260315__20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--ExistingWarrantsMember_zAYZveglO4tj" title="Proceeds from issuance of warrants">1,483,520. The Company received net proceeds of $<span id="xdx_907_ecustom--ProceedsFromExerciseOfWarrantsNet_c20260315__20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--ExistingWarrantsMember_zhorvbFdE6sl" title="Proceeds from issuance of warrants net">1,273,724 after deducting placement agent fees, legal expenses, and other transaction costs of $<span id="xdx_900_eus-gaap--OtherExpenses_c20260315__20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--ExistingWarrantsMember_zetx6it3YR0j" title="Other transaction costs">209,796, which were recorded as reductions of additional paid-in capital. In connection with the inducement transactions, the Company issued to the exercising holders (i) Series A-3 Common Stock purchase warrants to purchase an aggregate of <span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesAThreeWarrantsMember_z22zU3fuAP8c">1,373,630 shares of Common Stock at an exercise price of $<span id="xdx_900_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesAThreeWarrantsMember_ztmi3IvGElB">1.08 per share, with a term of five years, and (ii) Series A-4 Common Stock purchase warrants to purchase an aggregate of <span id="xdx_903_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesAFourWarrantsMember_zNNntvD4smUc">1,373,630 shares of Common Stock at an exercise price of $<span id="xdx_90D_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesAFourWarrantsMember_zC0rn64a3Gm4">1.08 per share, with a term of eighteen months (collectively, the “New Warrants”). The Company also issued to the placement agent warrants to purchase an aggregate of 96,154 shares of Common Stock at an exercise price of $1.35 per share, with a 5five-year term. The Company evaluated the New Warrants and placement agent warrants under ASC 815, Derivatives and Hedging, including ASC 815-40 related to contracts in an entity’s own equity, and concluded that such warrants qualify for equity classification. Accordingly, the fair value of the New Warrants was recorded within stockholders’ equity at issuance and will not be subsequently remeasured through earnings. The fair value of the New Warrants of $2,439,159 was recognized within stockholders’ equity. The Existing Warrants exercised in connection with the inducement were previously classified within stockholders’ equity. Accordingly, no gain or loss was recognized upon exercise. The deemed dividend of $<span id="xdx_90B_eus-gaap--Dividends_c20260315__20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--ExistingWarrantsMember_zDLQpXRxs48k" title="Dividends">1,512,480 represents the excess of the fair value of the consideration received by the exercising holders — consisting of the Series A-3 and A-4 warrants with an aggregate fair value of $<span id="xdx_909_eus-gaap--FairValueAdjustmentOfWarrants_c20260315__20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesAThreeWarrantsMember_zdh9pb0rRMd7" title="Fair value of warrants"><span id="xdx_909_eus-gaap--FairValueAdjustmentOfWarrants_c20260315__20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesAFourWarrantsMember_zXyT4NnjeyQa" title="Fair value of warrants">2,439,159 — over the fair value of the Existing Warrants surrendered of $<span id="xdx_904_eus-gaap--FairValueAdjustmentOfWarrants_c20260315__20260315__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--ExistingWarrantsMember_ziei9OTAajwd" title="Fair value of warrants">926,679, measured at the inducement date in accordance with ASC 260-10-45. Shares issued upon exercise of warrants During the three months ended March 31, 2026, the Company received aggregate proceeds of $753,091 from the exercise of 1,075,844 warrants into an equal number of shares of common stock at an exercise price of $0.70 per share. Shares issued for services On February 24, 2026, <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20260224__20260224__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__dei--LegalEntityAxis__custom--IHubIncMember_zitnzPFezje8" title="Shares issued for services">88,235 shares of common stock with an aggregate fair value of $<span id="xdx_909_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_pid_c20260224__20260224__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__dei--LegalEntityAxis__custom--IHubIncMember_zWfO0joNLlef" title="Shares issued for services, value">75,000 were issued to iHub Inc. d/b/a The Market Link under an investor relations services agreement. On March 13, 2026, the Company issued <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20260313__20260313__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__dei--LegalEntityAxis__custom--HudsonGlobalVenturesLLCMember_zEawwY5DxCj2" title="Shares issued for services">11,413 shares of common stock to Hudson Global Ventures LLC pursuant to anti-dilution provisions contained in a consulting agreement dated July 8, 2025. Shares issued for directors’ compensation On March 26, 2026, the Company granted <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_c20260326__20260326__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z0ddmfzXVb4h" title="Common stock, shares issued">60,000 shares of restricted common stock to directors with an aggregate grant-date fair value of $<span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pid_c20260326__20260326__srt--TitleOfIndividualAxis__srt--DirectorMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zkAw8zkaPmQ" title="Common stock, value issued">59,460, or $0.99 per share, as compensation for services. A summary of equity-classified warrants activity for the three months ended March 31, 2026 is presented below: SCHEDULE OF WARRANTS ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of Options</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price Range</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Warrants outstanding at December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20260101__20260331_zHODJHOOySm8" style="width: 16%; text-align: right" title="Number of warrants outstanding, beginning balance">2,274,727</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span id="xdx_90E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iI_c20260101__20260331__srt--RangeAxis__srt--MinimumMember_zEnm1W0plCDi" title="Weighted average exercise price, warrants outstanding, beginning balance">3.50 to $<span id="xdx_90C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iI_c20260101__20260331__srt--RangeAxis__srt--MaximumMember_zkl9H5KHMTqa" title="Weighted average exercise price, warrants outstanding, beginning balance">5.03</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20260101__20260331_zXesKA8PPL29" style="text-align: right" title="Number of warrants outstanding, granted">17,686,188</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20260101__20260331__srt--RangeAxis__srt--MinimumMember_z3CNeVgUBpxe" title="Weighted average exercise price, granted">0.70 to $<span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20260101__20260331__srt--RangeAxis__srt--MaximumMember_zdQrVAkkMIRh" title="Weighted average exercise price, granted">3.24</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20260101__20260331_zQXNf0CDHpCh" style="text-align: right" title="Number of warrants outstanding, exercised">(2,449,474</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20260101__20260331__srt--RangeAxis__srt--MinimumMember_zCwFr1wzs17d" title="Weighted average exercise price, exercised">0.70 to $<span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20260101__20260331__srt--RangeAxis__srt--MaximumMember_zwPvhrmtm6G7" title="Weighted average exercise price, exercised">3.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Expired or forfeited</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeituresAndExpirations_c20260101__20260331_z2NEeQccz8l9" style="border-bottom: Black 1pt solid; text-align: right" title="Number of warrants outstanding, expired or forfeited">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20260101__20260331_zS1pOvgpfiFc" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average exercise price, expired or forfeited">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Warrants outstanding at March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20260101__20260331_zxg6TwdkxD68" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants outstanding, ending balance">17,511,441</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20260331_zvcURBXsfvh" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, warrants outstanding, ending balance">3.50</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Warrants exercisable at March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableNumber_iI_c20260331_z2plUxXUMF54" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants exercisable">2,431,985</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableWeightedAverageExercisePrice_iI_c20260331__srt--RangeAxis__srt--MinimumMember_zgpM4mthROPl" title="Weighted average exercise price, warrants exercisable">0.70 to $<span id="xdx_901_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableWeightedAverageExercisePrice_iI_c20260331__srt--RangeAxis__srt--MaximumMember_zEe4HcapCTIe" title="Weighted average exercise price, warrants exercisable">5.03</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The outstanding equity-classified warrants had intrinsic value of approximately $4,025,000 at March 31, 2026. Options Pursuant to an employment agreement entered into in January 2026, the Company agreed to grant an employee up to <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20260101__20260131__us-gaap--PlanNameAxis__custom--TwoThousandNineteenStockIncentivePlanMember_zJvHUyoSiQ69" title="Options granted">40,000 stock options under the Company’s 2019 Stock Incentive Plan, subject to Board approval and vesting conditions. As of the date of this report, the stock option grant had not yet been approved by the Board of Directors and, accordingly, no stock-based compensation expense was recognized related to the arrangement.

0.001

10000000

0.001

100000000

32604703

22852723

32597325

22845345

7142858

0.70

557058

P5Y

0.875

3.2375

381374

5000001

4121272

878728

1075844

0.70

1075844

753091

3.40

1373630

1.08

1483520

1273724

209796

1373630

1.08

1373630

1.08

96154

1.35

P5Y

2439159

1512480

2439159

926679

753091

1075844

0.70

88235

75000

11413

60000

59460

0.99

A summary of equity-classified warrants activity for the three months ended March 31, 2026 is presented below: SCHEDULE OF WARRANTS ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 80%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Number of Options</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price Range</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Warrants outstanding at December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20260101__20260331_zHODJHOOySm8" style="width: 16%; text-align: right" title="Number of warrants outstanding, beginning balance">2,274,727</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right"><span id="xdx_90E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iI_c20260101__20260331__srt--RangeAxis__srt--MinimumMember_zEnm1W0plCDi" title="Weighted average exercise price, warrants outstanding, beginning balance">3.50 to $<span id="xdx_90C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsOutstandingWeightedAverageExercisePrice_iI_c20260101__20260331__srt--RangeAxis__srt--MaximumMember_zkl9H5KHMTqa" title="Weighted average exercise price, warrants outstanding, beginning balance">5.03</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20260101__20260331_zXesKA8PPL29" style="text-align: right" title="Number of warrants outstanding, granted">17,686,188</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20260101__20260331__srt--RangeAxis__srt--MinimumMember_z3CNeVgUBpxe" title="Weighted average exercise price, granted">0.70 to $<span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20260101__20260331__srt--RangeAxis__srt--MaximumMember_zdQrVAkkMIRh" title="Weighted average exercise price, granted">3.24</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20260101__20260331_zQXNf0CDHpCh" style="text-align: right" title="Number of warrants outstanding, exercised">(2,449,474</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right"><span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20260101__20260331__srt--RangeAxis__srt--MinimumMember_zCwFr1wzs17d" title="Weighted average exercise price, exercised">0.70 to $<span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20260101__20260331__srt--RangeAxis__srt--MaximumMember_zwPvhrmtm6G7" title="Weighted average exercise price, exercised">3.40</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Expired or forfeited</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsForfeituresAndExpirations_c20260101__20260331_z2NEeQccz8l9" style="border-bottom: Black 1pt solid; text-align: right" title="Number of warrants outstanding, expired or forfeited">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20260101__20260331_zS1pOvgpfiFc" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average exercise price, expired or forfeited">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Warrants outstanding at March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20260101__20260331_zxg6TwdkxD68" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants outstanding, ending balance">17,511,441</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20260331_zvcURBXsfvh" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, warrants outstanding, ending balance">3.50</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Warrants exercisable at March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableNumber_iI_c20260331_z2plUxXUMF54" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants exercisable">2,431,985</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableWeightedAverageExercisePrice_iI_c20260331__srt--RangeAxis__srt--MinimumMember_zgpM4mthROPl" title="Weighted average exercise price, warrants exercisable">0.70 to $<span id="xdx_901_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionsExercisableWeightedAverageExercisePrice_iI_c20260331__srt--RangeAxis__srt--MaximumMember_zEe4HcapCTIe" title="Weighted average exercise price, warrants exercisable">5.03</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2274727

3.50 5.03

17686188

0.70

3.24

2449474

0.70

3.40

17511441

3.50

2431985 0.70 5.03

40000

NOTE 7 – RELATED PARTY TRANSACTIONS At March 31, 2026, ICT Investments (“ICT”), its Managing Partner Dmitriy Nikitin, and its affiliates Fonon Corporation and Fonon Technology, Inc., owns <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20260101__20260331__dei--LegalEntityAxis__custom--FononTechnologyIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ICTInvestmentsMember_zzVRWHMMY8I7" title="New shares issued">11,373,695 shares of the Company’s common shares, or <span id="xdx_905_ecustom--CommonStockSharesOutstandingPercentage_iI_dp_c20260331__dei--LegalEntityAxis__custom--FononTechnologyIncMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ICTInvestmentsMember_zeDRipYk2uah" title="Common stock shares outstanding percentage">34.89 % of the Company’s shares outstanding. ICT Investments provides the Company accounting services and various management services on an as needed basis. During the three months ended March 31, 2026, and 2025, the Company incurred approximately $<span id="xdx_90F_ecustom--RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty_c20260101__20260331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ICTInvestmentsMember_zl3RiSHiAAk4" title="Incurred expenses">17,880 and $<span id="xdx_903_ecustom--RelatedPartyTransactionExpensesFromTransactionsWithRelatedParty_c20250101__20250331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--ICTInvestmentsMember_z5e9JYQYAYra" title="Incurred expenses">17,880, respectively, to ICT for accounting services. During the three months ended March 31, 2026 and 2025, the Company paid $45,000 and $45,000, respectively, to Dmitriy Nikitin, Managing Partner of ICT Investments, for strategic advisory and business development services. Management believes the fees paid are reasonable and substantially consistent with rates that would be paid to unaffiliated third parties for comparable services. Related-party transactions are conducted on terms management believes are no less favorable to the Company than those available from unaffiliated parties. For the three months ended March 31, 2026, and 2025, affiliate revenue totaled $0 and $420,089, respectively. Affiliate revenue is included within net sales in the accompanying condensed consolidated statements of operations Accounts payable due to ICT, and its affiliates, as of March 31, 2026, and December 31, 2025 were $336,427 and $349,461 respectively. During the three months ended March 31, 2026, the Company repaid the outstanding principal and accrued interest owed to ICT Investments, an entity controlled by the holder of a majority of the Company’s outstanding common stock. As of March 31, 2026, the only remaining amount payable to ICT Investments related to these borrowings was approximately $50,615 of unpaid default fees, which are included in accrued expenses in the condensed consolidated balance sheet.

11373695

0.3489 17880 17880

45000

0 420089

336427

349461

50615

NOTE 8 – SUBSEQUENT EVENTS On April 28, 2026, the Company entered into additional warrant exercise inducement agreements with certain holders of warrants originally issued in connection with the Company’s February 2026 public offering. Pursuant to these agreements, holders exercised existing warrants to purchase an aggregate of <span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20260428__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_znSSsYBmOM9k" title="Warrant issued">5,715,085 shares of common stock at an exercise price of $<span id="xdx_90D_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260428__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zTxBhyLn5e45" title="Exercise price">0.70 per share, resulting in aggregate gross proceeds of approximately $<span id="xdx_907_eus-gaap--ProceedsFromIssuanceOfWarrants_pn5n6_c20260428__20260428__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zXU6gJSwzZRa" title="Gross proceeds">4.0 million. In connection with the exercises, the Company issued unregistered Series A-5 warrants to purchase up to <span id="xdx_902_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20260428__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesAFiveWarrantsMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zAdPb4hPCqdf" title="Warrant issued">4,742,860 shares of common stock and unregistered Series A-6 warrants to purchase up to <span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_pid_c20260428__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesASixWarrantsMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zTaj2eXRBqsb" title="Warrant issued">6,687,310 shares of common stock, each with an exercise price of $<span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260428__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesAFiveWarrantsMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zcCmP5Wbd5A7" title="Exercise price"><span id="xdx_909_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260428__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--ClassOfWarrantOrRightAxis__custom--SeriesASixWarrantsMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zSo8APf3LOzg" title="Exercise price">0.975 per share. The Company received net proceeds of approximately $<span id="xdx_903_ecustom--ProceedsFromIssuanceOfSharesAndWarrantsNet_pn5n6_c20260428__20260428__us-gaap--TypeOfArrangementAxis__custom--InducementAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zTBBJgwwYev5" title="Net proceeds">3.6 million after placement agent fees and offering-related expenses. On May 7, 2026, the Company entered into an agreement for Chief Financial Officer support services. In connection with this arrangement, Roman Franklin was appointed to serve as the Company’s Principal Financial Officer. The Company previously disclosed the appointment in its Current Report on Form 8-K filed with the Securities and Exchange Commission on May 12, 2026. On May 21, 2026, the Company received a notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC indicating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) due to the delayed filing of this Quarterly Report. The notice has no immediate effect on the listing or trading of the Company’s common stock on Nasdaq. As of the filing date of this Quarterly Report, the Company believes it has regained compliance with the Listing Rule. Between June 1st, 2026 and the filing date, holders of the Company’s outstanding warrants exercised Series A-1 and A-2 warrants to acquire <span id="xdx_904_eus-gaap--NoncashOrPartNoncashAcquisitionNoncashFinancialOrEquityInstrumentConsiderationWarrantsIssued1_c20260601__20260611__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zOFkRQUIzMKb" title="Number of share acquire">5,613,586 shares of the Company’s common stock. Of these exercises, approximately <span id="xdx_90B_ecustom--StockIssuedDuringPeriodSharesIssuanceOfCommonStockUponExerciseOfWarrants_c20260601__20260611__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z2KVZu9rKQNg" title="Number of share exercise of warrant">274,726 warrants were exercised for cash, resulting in aggregate proceeds to the Company of approximately $296,704. In addition, <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_c20260601__20260611__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zdruLIeO81rb" title="Number of warrant exercise">6,550,778 warrants were exercised pursuant to the cashless exercise provisions of the applicable warrant agreements, resulting in the issuance of approximately <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20260601__20260611__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zTuGxlgJxAKh" title="Number of common stock issuance">5,338,860 shares of common stock. No cash proceeds were received from the cashless exercises. Management evaluated subsequent events through June 11, 2026, the date these condensed consolidated financial statements were issued.

5715085

0.70

4000000.0

4742860

6687310

0.975

3600000

5613586

274726

296704

6550778

5338860