| SUBSEQUENT EVENTS |
NOTE
11 - SUBSEQUENT EVENTS
Beginning
on January 15, 2026, the Company executed subscription agreements with certain institutional and other accredited investors: White Dwarf
LLC, Ryan Crownholm, and Scott Averitt pursuant to which the Company agreed to sell and issue to these investors an aggregate of 90,000,000
shares of the Company’s common stock for an aggregate purchase price of $100,000.
Beginning
on January 23, 2026, the Company executed subscription agreement with certain institutional and other accredited investors: The New VC,
LLC, E&M Family Trust, Tristan Bordallo, and Jeffrey L. Dayton pursuant to which the Company agreed to sell and issue to these investors
an aggregate of 86,666,667 shares of the Company’s common stock for an aggregate purchase price of $105,000 and 0.2659574468 BTC.
On
February 9, 2026, the Company entered into a subscription agreement with an accredited investor, Pierre Valldejuli pursuant to which
the Company agreed to sell and issue to the investor 16,666,667 shares of the Company’s common stock for an aggregate purchase
price of $25,000.
On
February 27, 2026, the entered into a subscription agreement with an accredited investor, Juan Betancourt pursuant to which the Company
agreed to sell and issue to the investor 34,782,609 shares of the Company’s common stock for an aggregate purchase price of $40,000.
On
March 11, 2026, the Board of Directors of the Company approved the dismissal of Bush & Associates CPA LLC (“Bush”) as
the Company’s independent registered public accounting firm, effective March 12, 2026. Bush’s reports on the Company’s
financial statements as of and for the years ended December 31, 2024 and 2023 contained no adverse opinion or disclaimer of opinion,
and were not qualified or modified as to uncertainty, audit scope, or accounting principles, except that the audit reports of Bush on
the financial statements of the Company as of and for the years ended December 31, 2024 and 2023 included an explanatory paragraph that
described factors that raised substantial doubt about the Company’s ability to continue as a going concern.
During
the fiscal years ended December 31, 2024 and 2023, and in the subsequent interim period through March 11, 2026, (i) there were no disagreements
with Bush (within the meaning of Item 304(a)(1)(iv) of Regulation S-K (“Regulation S-K”) of the rules and regulations
of the U.S. Securities and Exchange Commission (the “SEC”)) on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure that if not resolved to Bush’s satisfaction, would have caused Bush to make
reference to the subject matter of the disagreements in connection with its reports; and (ii) there were no reportable events (as defined
by Item 304(a)(1)(v) of Regulation S-K), except for the material weaknesses in the Company’s disclosure control and control over
financial reporting previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
On
March 13, 2026, the Company appointed Beckles & Co. Inc., as its new auditors.
On
March 19, 2026 the Company entered into a Mutual Transfer and Release Agreement (the “Agreement”)
with Starchive.io, Inc., a Delaware corporation (the “Starchive”), Peter Agelasto
IV, Richard G. Averitt, and Digital Relab LLC (collectively, the “Sellers”),
and Richard Averitt, solely in his capacity as the Sellers’ representative.
The
Agreement provides for the rescission, ab initio, of that certain Securities Purchase Agreement dated October 8, 2025 (the
“SPA”), pursuant to which the Company had acquired 50.1% of the outstanding capital stock of Starchive. The Agreement
unwinds and reverses the transactions contemplated by the SPA as if such transactions had never occurred.
Pursuant
to the Agreement, effective as of October 16, 2025 (the “Effective Date”), the Company transferred all of its right,
title, and interest in the shares of Starchive acquired under the SPA back to the Sellers. In exchange, the Sellers surrendered to
the Company for cancellation an aggregate of 433,633,691 shares of the Company’s Common Stock previously issued to the Sellers
under the SPA. All convertible promissory notes issued by the Company to the Sellers in connection with the SPA were surrendered
and cancelled, with no principal or interest remaining outstanding.
The
Company agreed to issue 151,748,756 shares of its Common Stock to Starchive as consideration for the rescission, settlement, and
mutual release of claims arising from the SPA and the transactions contemplated thereby.
The
Agreement also includes mutual general releases among the parties with respect to claims arising out of or relating to the SPA and
the transactions contemplated thereby, subject to certain limited survival and indemnification provisions; provided, that the maximum
aggregate liability of the Company under the Agreement shall not exceed $500,000.
On
March 23, 2026, the Company approved and authorized the execution of an Asset Purchase Agreement, dated as of March 20, 2026 (the
“Asset Purchase Agreement”), by and among the Company, its wholly-owned subsidiary, Frame Intelligence, LLC, a Nevada
limited liability company (“Frame Intelligence”), Frame Holdings Ltd, an exempted Cayman Islands company (“Frame
Holdings”), and Sean Docherty.
Pursuant
to the Asset Purchase Agreement, Frame Intelligence acquired all of the assets comprising the “Frame” blockchain business,
including related intellectual property, source code, software repositories, validator and infrastructure access, credentials, documentation,
and associated goodwill (collectively, the “Frame Assets”).
As
consideration for the transfer of the Frame Assets, the Company agreed to issue shares of its common stock, par value $0.001 per
share (“Common Stock”), to Frame Holdings via a series of contingent milestone-based issuances tied to specified Company
market capitalization and Frame business valuation thresholds. These include (i) an issuance equal to 2.5% of the Company’s
outstanding Common Stock, measured on a pre-issuance basis, upon the achievement of both a $100 million market capitalization of
the Company and a $100 million fully diluted valuation of the Frame business, with such milestone figures sustained for at least
30 consecutive days, and (ii) additional issuances of Common Stock with an aggregate potential value of up to approximately $50.5
million, payable in tranches upon the achievement of additional escalating market capitalization and valuation milestones, culminating
in a milestone requiring both a $1.0 billion market capitalization of the Company and a $1.0 billion fully diluted valuation of the
Frame business, in each case sustained for at least 30 consecutive days.
Each
such issuance of shares of Common Stock, if and when earned, will be calculated based on the 10-trading-day volume-weighted average
price of the Company’s Common Stock immediately preceding the applicable issuance date and will be subject to customary securities
law restrictions, transfer limitations, and the execution of definitive stock issuance documentation.
The
Asset Purchase Agreement also requires the Company to fund Frame Intelligence with at least $2.0 million in the aggregate (the “Funding
Requirement”) on or before the date that is 120 days after closing, subject to extension at the Company’s option for
another 120 days in exchange for a $100,000 payment to Frame Holdings.
The
Asset Purchase Agreement further contains a buy-sell provision that may be triggered upon the occurrence of certain specified termination
events, subject to applicable notice and cure periods and an overall five-year sunset following the closing of the transaction. These
termination events include, unless waived by Frame Holdings, among other things: (i) the failure to provide Frame Holdings or its
designee with a voting seat on the Company’s board of directors within six months following satisfaction of the Funding Requirement;
(ii) the failure to make required payments under the Consulting Agreement; (iii) a change of control event involving the Company
or Frame Intelligence without Frame Holdings’ participation or consent; (iv) certain prohibited transfers, encumbrances, guarantees,
or indebtedness; and (v) the Company’s termination of Frame Holdings under the Consulting Agreement without cause (each a “Qualifying
Termination Event”).
Upon
the occurrence of a Qualifying Termination Event, Frame Holdings has the right, for sixty days following the expiration of the applicable
cure period, to deliver an offer (including all relevant terms) to purchase either (a) Frame Intelligence from the Company or (b)
specified Frame Assets, including the live blockchain and related infrastructure. Following receipt of such offer, the Company has
sixty days to elect to match Frame Holdings’ offer. If the Company does not timely match Frame Holdings’ offer, or if
the Company elects to match that offer but then fails to timely deliver the required consideration to Frame Holdings, Frame Holdings
has a 60-day option to require the Company to consummate the sale on the terms set forth in Frame Holdings’ original offer.
Any
purchase of assets pursuant to the foregoing buy-sell provision would include the transfer of all repositories, domains, credentials,
signing keys, validator access, and other infrastructure necessary to operate the Frame blockchain. In addition, all remaining milestone-based
equity issuances otherwise payable under the Asset Purchase Agreement would be forfeited upon consummation of any such purchase by
Frame Holdings. |
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