NOTE 12 — COMMITMENTS AND CONTINGENCIES

On July 19, 2026, a special committee of the Board of Directors approved an initial advance of $250,000 to Faraday Future Intelligent Electric Inc. (“FFAI”), subject to execution of definitive documentation and satisfaction of specified conditions, which the Company funded on July 20, 2026. A second advance of $250,000 was funded on July 30, 2026 under the same approval. The advances bear interest at 10% per annum, with a default rate of 15% per annum, are unsecured, and rank pari passu with FFAI’s other unsecured indebtedness. Proceeds are restricted to funding a payment in connection with a sponsorship arrangement involving an affiliate of FFAI.

As of the date of these financial statements, $500,000 was outstanding and no definitive agreement has been executed because the Company and FFAI are negotiating an uncommitted, non-revolving delayed draw credit facility providing for advances of up to $2,000,000 in the aggregate, with each advance subject to separate approval by the special committee. The amounts already advanced would be subsumed within this credit facility. There can be no assurance that a definitive agreement will be executed or that its final terms will be consistent with those described above.

On July 29, 2026, the Company entered into a consulting agreement with Aibot US Operation Inc. (“Aibot”), effective July 16, 2026, pursuant to which Aibot will provide finance, capital markets, and human resources/legal coordination support services. The agreement has a one-year term ending July 15, 2027 and requires monthly consulting payments of $50,000, plus reimbursement of certain approved out-of-pocket expenses. The aggregate contractual commitment under the agreement is approximately $600,000 over the initial term, excluding reimbursable expenses.