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Note 1. Nature of Operations and Basis of Presentation Nature of Operations Impact BioMedical, Inc., incorporated in the State of Nevada on October 16, 2018 (the “Company”, “Impact BioMedical”, “We”, “IBO”), discovers, confirms, and patents unique science and technologies which can be developed into new offerings in human healthcare and wellness in collaboration with external partners through licensing, co-development, joint ventures, and other relationships. By leveraging technology and new science with strategic partnerships, we provide advances in biopharmaceuticals, over the counter direct to consumer wellness offerings, and drug discovery for the prevention, inhibition, and treatment of neurological, oncologic, and inflammatory diseases. In addition to our existing efforts, we continually search for, and evaluate, other potential new offerings to add to our portfolio. Our business model includes partnering and potentially direct sales for commercialization and distribution. Potential licensors and development partners include pharmaceutical, consumer packaged goods companies and others, who would commercialize IBO technologies in exchange for milestone, and royalty payments. Currently, our operations are conducted, and our assets are owned through our principal subsidiaries: (i) Global BioLife, Inc. (“Global BioLife”), which was incorporated on April 14, 2017, (ii) Impact BioLife Science, Inc. (“Impact BioLife”), which was incorporated on August 28, 2020, (iii) Global BioMedical, Inc. (“Global BioMedical”), which was incorporated on April 18, 2017, and (iv) Sweet Sense, Inc. (“Sweet Sense”), which was incorporated on April 30, 2018. Impact has several unique and proprietary technologies that are in continuing development: Linebacker™ Linebacker is a platform of small molecule electrophilically enhanced polyphenol compounds with potential application in oncology (solid tumors), inflammatory disorders, and neurology. Polyphenols are substances found in many nuts, vegetables, and berries. Linebacker compounds are modified Myricetin, which is a common plant-derived flavonoid. Myricetin exhibits a wide range of activities that include strong antioxidant and anti-inflammatory activities (source: NIH). Linebacker can potentially be developed as monotherapy or co-therapy to down-regulate PIM (proviral integration site for Moloney murine leukemia virus) kinase which plays a key role as an oncogene in various cancers (e.g. colon, lung, prostate, breast). Additional potential applications include inflammatory disorders and neurology. Linebacker-1 and Linebacker-2 compounds have been licensed to ProPhase Laboratories (NASDAQ: PRPH) for development and commercialization worldwide, from which Impact Biomedical could receive future milestone and royalty payments. Laetose™ Laetose™ technology demonstrates compelling potential in reducing caloric intake and glycemic index in foods, while also inhibiting tumor necrosis factor alpha (TNF-α), a cytokine associated with inflammatory chronic diseases (data on file with IBO). The patented formulation has potential to inhibit the inflammatory and metabolic response of sugar alone and has potential applications in therapeutic administration to reduce or limit inflammatory or metabolic diseases (e.g., diabetes). Use of Laetose in a daily diet, compared to sugar, could result in 30% lower sugar consumption and lower caloric and glycemic index/load. Functional Fragrance Formulation (“3F”) 3F is a suite of “functional fragrances” containing specialized botanical ingredients (e.g., terpenes) with potential application as an antimicrobial, or as an additive in insect repellents, detergents, lotions, shampoo, fabrics and other substances to increase effectiveness. Global BioLife is seeking to commercialize this product. Together with Chemia, we are attempting to license 3F. Any potential profits from the 3F project will be split between Global BioLife and Chemia pursuant to the terms of the 20- year Royalty Agreement. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div> Equivir™/Equivir G Equivir/Equivir G technology is a novel blend of FDA Generally Recognized as Safe (GRAS) eligible polyphenols (e.g. Myricetin, Hesperetin, Piperine) which have demonstrated antiviral effects with additional potential application as health supplements or medication. Polyphenols are substances found in many nuts, vegetables, and berries. Myricetin is a member of the flavonoid class of polyphenolic compounds with antioxidant properties. Hesperitin is a flavanone and Piperine is an alkaloid, commonly found in black pepper. Equivir/Equivir G is licensed to ProPhase Laboratories for development and commercialization worldwide Emerging Technology IBO continually evaluates additional technologies that are in various phases of development which can be advanced to patent filings and allowances. These include, and are not limited to biopharmaceuticals, indoor air quality products, preservatives, bioplastics, personalized medicine (e.g., genomics, diagnostics), nanotechnology, cannabis products and technology, pain management, and others. These activities include discussions with inventors, scientists, universities, research foundations, and other parties, which, subject to completion of diligence, and approval of the respective management, could potentially expand the offerings of IBO. Reporting Operating Segment The Company reports its segment information to reflect the manner in which the Company’s Chief Operating Decision Maker (“CODM”) reviews and assesses performance. The Company’s Chief Executive Officer and Chief Operating Officer have joint responsibilities as the CODM and review and assess the performance of the Company as a whole. The primary financial measures used by the CODM to evaluate performance and allocate resources are net income (loss) and operating income (loss). As of the date of this report, we have not generated significant revenues from operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including possible delays in our research, testing and marketing efforts or wider economic downturns.

NV 2018-10-16

Note 2. Summary of Significant Accounting and Reporting Policies Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments, unless otherwise indicated) necessary to present fairly our consolidated financial position as of June 30, 2026 and December 31, 2025, and the results of our consolidated operations for the interim periods presented. We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the consolidated financial statements and the notes included in our latest annual report on Form 10-K, for the fiscal year ended December 31, 2025 (“Form 10-K”), and our other reports on file with the Securities and Exchange Commission (the “SEC”). The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include all accounts of the Company and its majority owned and controlled subsidiaries. The Company consolidates entities in which it owns more than 50% of the voting common stock and controls operations. All intercompany transactions and balances among condensed consolidated subsidiaries have been eliminated. Non–controlling interest represents the minority equity investment in the Company’s subsidiaries, plus the minority investors’ share of the net operating results and other components of equity relating to the non–controlling interest. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div> The consolidated financial statements include all accounts of the entities as of the reporting period ending dates and for the reporting periods as follows: Schedule of Condensed Financial Statements <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="border-bottom: Black 1pt solid; text-align: center">Name of consolidated subsidiary</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">State or other jurisdiction of incorporation or organization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Date of incorporation or formation</td><td style="font-weight: bold; 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text-align: center">April 18, 2017</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"><span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zCqvUclztYUi" title="Attributable interest percentage">90.9</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">90.9</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global BioLife, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_901_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--GlobalBioLifeIncMember_z9UiwCTESrs" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 14, 2017</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">BioLife Sugar, Inc</td><td> </td> <td style="text-align: center"><span id="xdx_90E_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--BioLifeSugarIncMember_zB0tLnfg356g" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 23, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Happy Sugar Inc</td><td> </td> <td style="text-align: center"><span id="xdx_90E_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--HappySugarIncMember_zxogsxBfDTwk" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">August 17, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sweet Sense Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_900_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--SweetSenseIncMember_zPAInuXA5GAk" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 30, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global Sugar Solutions Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90B_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zymcgtzFAh9" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">November 7, 2019</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_z3DxLXI2gQt2" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zok9bNnk2Iba" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Impact Biolife Science, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_906_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_za6eh3AMRqsc" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 13, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zNeXKtDoEds2" title="Attributable interest percentage">100</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--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zEqlG4ATH55f" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">DSS Biomedical International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90D_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_z2T0tyorYtPi" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center"><span id="xdx_907_edei--EntityIncorporationDateOfIncorporation_dd_c20260101__20260630__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zFZPguQowDWi" title="Date of incorporation or formation">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zesLUCcYsVB" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_z9hTz2hgpT4j" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">DSS Biolife International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90F_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_zP4SlsxPTf8b" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z5Yale7Edekb" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z4fNCfCpbWBk" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> </table> As of June 30, 2026, and December 31, 2025, the aggregate noncontrolling interest was equity of $3,246,000 and $3,244,000, respectively, which are separately disclosed on the Consolidated Balance Sheets. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the balance sheets and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. Reclassifications Costs in the amount of $10,000 associated with third-party logistics services for the three and six months ended June 30, 2025 were reclassed from Cost of revenue to Other operating expenses on the accompanying Condensed Consolidated statements of operations to conform with current period presentation. Revision of prior period financial statements The Company identified and corrected immaterial classification errors in our previously reported Consolidated balance sheet as of December 31, 2025 and 2024. The correction of this error resulted in a reclassified $298,000 from additional paid-in capital to noncontrolling interests within equity to correct an immaterial prior-period classification error. Loss per Share Basic loss per share is computed by dividing the net loss attributable to the common stockholders by weighted average number of shares of common stock outstanding during the period. Fully diluted earnings per share is computed like basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no dilutive financial instruments issued or outstanding for the six months ended June 30, 2026, and the year ended December 31, 2025 Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair Value Measurement Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets, ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amounts reported in the balance sheet of cash, other receivables, accounts payable and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. The fair value of notes receivable approximates their carrying value as the stated or discounted rates of the notes do reflect recent market conditions. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div> Cash and cash equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of acquisition to be cash equivalents. There were no cash equivalents as of June 30, 2026 and December 31, 2025. Accounts receivable The Company extends credit to its customers in the normal course of business. The Company performs ongoing credit evaluations and generally does not require collateral. Payment terms are generally 30 days. The Company carries its trade accounts receivable at invoice amounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for credit losses based upon management’s estimates that include a review of the history of past write-offs and collections and an analysis of current credit conditions. In estimating expected losses in the accounts receivable portfolio, customer-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period. Assumptions and judgment are applied to measure amounts and timing of expected future cash flows, collateral values and other factors used to determine the customers’ abilities to pay. Accounts receivable at June 30, 2026, and December 31, 2025, was $0, and $5,000, respectively. At June 30, 2026, and December 31, 2025, the Company had not established a reserve for credit losses. The Company does not accrue interest on past due accounts receivable. <p id="xdx_846_ecustom--NotesReceivableUnearnedInterestAndRelatedRecognitionPolicyPolicyTextBlock_ztqEZc1uWsi5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Notes receivable, unearned interest, and related recognition The Company records all future payments of principal and interest on notes as notes receivable, which are then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports the net investment in the notes receivable on the consolidated balance sheet as current or long-term based on the maturity date of the underlying notes. Such net investment is comprised of the amount advanced on the loans, adjusting for net deferred loan fees or costs incurred at origination, amounts allocated to warrants received upon origination, and any payments received in advance, if applicable. The unearned interest is recognized over the term of the notes and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. If applicable, any net deferred loan fees or costs, together with discounts recognized in connection with warrants acquired at origination, are accreted as an adjustment to yield over the term of the loan. (Note 4) Inventory Inventories consist of filtration systems, which and are stated at the lower of cost or net realizable value on the first-in, first-out (“FIFO”) method. At the closing of each reporting period, the Company evaluates its inventory in order to adjust the inventory balance for obsolete and slow-moving items. No allowance for obsolescence was deemed necessary as of June 30, 2026, and December 31, 2025. Intangible Assets The estimated fair values of acquired intangibles are generally determined based upon future economic benefits such as earnings and cash flows. Acquired identifiable intangible assets are recorded at fair value and are amortized over their estimated useful lives. Acquired intangible assets with an indefinite life are not amortized but are reviewed for impairment at least annually as of December 31st, or more frequently whenever events or changes in circumstances indicate that the carrying amounts of those assets are below their estimated fair values. Impairment is tested under ASC 350. No impairment was recognized for the six months ended June 30, 2026, and 2025 (Note 6). Recoverability of Long-Lived Assets We evaluate long-lived assets such as property, equipment and definite lived intangible assets, such as patents, for impairment whenever events or circumstances indicate that the carrying value of the assets recognized in our financial statements may not be recoverable. Factors that we consider include whether there has been a significant decrease in the market value of an asset, a significant change in the way an asset is being utilized, or a significant change, delay or departure in our strategy for that asset, or a significant change in the macroeconomic environment. Our assessment of the recoverability of long-lived assets involves significant judgment and estimation. These assessments reflect our assumptions, which, we believe, are consistent with the assumptions hypothetical marketplace participants use. Factors that we must estimate when performing recoverability and impairment tests include, among others, forecasted revenue, margin costs and the economic life of the asset. If impairment is indicated, we determine if the total estimated future cash flows on an undiscounted basis are less than the carrying amounts of the asset or assets. If so, an impairment loss is measured and recognized. Our impairment loss calculations require that we apply judgment in identifying asset groups, estimating future cash flows, determining asset fair values, and estimating asset’s useful lives. The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. Based on the uncertainty of forecasts inherent with a new product, events such as the failure to generate forecasted revenue from new products could result in a non-cash impairment in future periods. Due to related party The Company has amounts due to DSS, a related party, resulting from funding advances and shared expenses in the ordinary course of business. As of June 30, 2026, and December 31, 2025, amounts due to the related party totaled $1,330,000 and $621,000, respectively. The amounts are non-interest bearing. and are due upon demand. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div> Revenue Recognition The Company has adopted ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The Company enters into licensing and development agreements with collaborators for the development of its technologies. The terms of these agreements contain multiple performance obligations which may include (i) licenses, or options to obtain licenses, to the Company’s technology, (ii) rights to future technological improvements, and/or (iii) research activities to be performed on behalf of the collaborative partner. Payments to the Company under these agreements may include upfront fees, option fees, exercise fees, payments based upon the achievement of certain milestones, and royalties on product sales. Revenue is recognized when a 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. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under the agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when or as the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration to which it is entitled 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 ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses 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 at a specific point in time. The Company recognizes its revenue on the sale of its Celios technology when control of the Company’s Celios technology products is transferred to the customer in an amount that reflects the consideration the Company expects to receive in exchange for the product, generally when the product is shipped. The Company’s Celios sales are retail product sales. Customer contracts generally consist of purchase orders, sales confirmations, or similar arrangements. The Company’s primary performance obligation is the delivery of the product to the customer. Revenue is recognized at a point in time, generally upon shipment or delivery, depending on the applicable terms of sale, when control, title, and risk of loss have transferred to the customer and the Company has a right to payment. The transaction price is generally fixed at the stated retail sales price, net of any applicable discounts, returns, credits, or allowances. The Company estimates variable consideration, including returns and allowances, if applicable, and includes such amounts in revenue only to the extent it is probable that a significant reversal of revenue will not occur. Sales, use, and other taxes billed to and collected from customers are excluded from revenue. Shipping and handling activities, if any, are treated as fulfillment activities. Payment terms are generally short-term, and the Company does not have significant financing components, contract assets, or contract liabilities related to its retail sales. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div> Share-Based Payments Compensation cost for stock awards are measured at fair value and the Company recognizes compensation expense over the service period for which awards are expected to vest. The Company uses the Black-Scholes option pricing model for determining the estimated fair value for stock-based awards. The Black-Scholes model requires the use of subjective assumptions which determine the fair value of stock-based awards, including the option’s expected term and the price volatility of the underlying stock. For equity instruments issued to consultants and vendors in exchange for goods and services the Company determines the measurement date for the fair value of the equity instruments issued at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. The Company record stock-based compensation for the three months ended June 30, 2026 and June 30, 2025 approximated $0 and $2,000, respectively. The Company record stock-based compensation expense of approximately $<span id="xdx_900_eus-gaap--AllocatedShareBasedCompensationExpense_c20260101__20260630__us-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--SellingGeneralAndAdministrativeExpense_ziQaBiRurj7f" title="Stock based compensation expense">1,440,000 and $<span id="xdx_900_eus-gaap--AllocatedShareBasedCompensationExpense_c20250101__20250630__us-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--SellingGeneralAndAdministrativeExpense_zWhxdCa9yGmc" title="Stock based compensation expense">3,000 for the six months ended June 30, 2026 and 2025, respectively. These cost included in Sales, general and administrative compensation (inclusive of stock-based compensation) on the accompanying Condensed Consolidated Statement of Operations. Research and Development Research and development costs are expensed as incurred. The Company recorded research and development cost for the three months ended June 30, 2026 and June 30, 2025 approximated $76,000 and $75,000, respectively. The Company recorded research and development cost for the six months ended June 30, 2026 and June 30, 2025 approximated $123,000 and $178,000, respectively. Provision for Credit Losses The Company adopted amended accounting guidance ASC Topic 326 which requires an allowance for credit losses to be deducted from the amortized cost basis of financial assets to present the net carrying value at the amount that is expected to be collected over the contractual term of the asset considering relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In estimating expected losses in the loan and lease portfolio, borrower-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period. Assumptions and judgment are applied to measure amounts and timing of expected future cash flows, collateral values and other factors used to determine the borrowers’ abilities to repay obligations. After the forecast period, the Company utilizes longer-term historical loss experience to estimate losses over the remaining contractual life of the loans. As of June 30, 2026 and December 31, 2025 the Company has deemed that no reserve on credit losses were necessary. Acquisitions Acquisition of assets are recorded at their relative fair value based on total accumulated costs of the acquisition. Direct acquisition-related costs are expensed as incurred. This includes all costs related to finding, analyzing and negotiating a transaction. The allocation of the purchase price is an area that requires judgment and significant estimates. Tangible and intangible assets include land, building and improvements, furniture, fixtures and equipment, acquired above market and below market leases, in-place lease value (if applicable). Acquisition-date fair values of assets and assumed liabilities are determined based on replacement costs, appraised values, and estimated fair values using methods like those used by independent appraisers and that use appropriate discount and/or capitalization rates and available market information. On February 25, 2025, the Company completed the acquisition of certain assets owned by DSS Pure Air, Inc. (DSS PureAir”), a related party, for $1,150,000 to be paid by 545,024 shares of the Company’s common stock calculated on a 10-day VWAP. Assets acquired included accounts receivable, inventory and intellectual property of the Celios air purification system. Assets acquired included accounts receivable valued at approximately $<span id="xdx_906_eus-gaap--AccountsReceivableNetCurrent_iI_c20250225__us-gaap--FairValueByAssetClassAxis__us-gaap--AccountsReceivableMember__us-gaap--BusinessAcquisitionAxis__custom--DSSPureAirINCMember_z862li6lL3cc" title="Accounts receivable">4,000, prepaid assets of approximately $<span id="xdx_906_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20250225__us-gaap--FairValueByAssetClassAxis__us-gaap--AccountsReceivableMember__us-gaap--BusinessAcquisitionAxis__custom--DSSPureAirINCMember_zmKIjRIlxym5" title="Prepaid assets">2,000, inventory valued at approximately $489,000, and intellectual property of the Celios air purification system of approximately $<span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zSQJfu36FDrg" title="Assets acquired gross">325,000, inclusive of a $<span id="xdx_903_ecustom--PremiumPaidForAssetsAcquired_c20250225__20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zCN4iZpkU0X5" title="Premium paid for assets acquired">330,000 premium paid for the assets acquired. This premium of $<span id="xdx_90E_eus-gaap--TransfersAccountedForAsSecuredBorrowingsAssetsCarryingAmount_iI_c20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zPwhNmbqe8W3" title="Accounted for accordance amount">330,000 is accounted for in accordance with ASC 805-50, when assets are transferred between entities under common control, the premium should not be recorded as an asset or as part of the transaction price. Continuing Operations and Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. As reflected in the accompanying financial statements the Company has incurred operating losses as well as negative cash flows from operating activities over the past two years. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. These consolidated financial statements do not include any adjustments to the specific amounts and classifications of assets and liabilities, which might be necessary should we be unable to continue as a going concern. To continue as a going concern the Company is exploring several options to raise capital including but not limited to, capital raises via its listing on the NYSE American under the ticker symbol IBO as well as debt financing. Although there is no certainty that management plans will be able to satisfy the requirements to continue operating as a going concern, management intends to take additional actions necessary to continue as a going concern. Management’s plans concerning these matters include, among other things, monetization of its intellectual properties, and tightly controlling operating costs. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div> Recent Accounting Standards The Financial Accounting Standards Board (FASB) issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. There are several new accounting pronouncements issued by FASB which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. As of June 30, 2026, none of these pronouncements are expected to have a material effect on the financial position, results of operations or cash flows of the Company. In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Disaggregation of Income Statement Expenses (“DISE”). ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. As revised by ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, the provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. With the exception of expanding disclosures to include more granular income statement expense categories, we do not expect the adoption of ASU 2024-03 to have a material effect on our consolidated financial statements taken as a whole. In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which amends the guidance related to the measurement of credit losses for accounts receivable and contract assets. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company has adopted this standard and no material effect on its consolidated financial statements has resulted. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements

Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments, unless otherwise indicated) necessary to present fairly our consolidated financial position as of June 30, 2026 and December 31, 2025, and the results of our consolidated operations for the interim periods presented. We follow the same accounting policies when preparing quarterly financial data as we use for preparing annual data. These statements should be read in conjunction with the consolidated financial statements and the notes included in our latest annual report on Form 10-K, for the fiscal year ended December 31, 2025 (“Form 10-K”), and our other reports on file with the Securities and Exchange Commission (the “SEC”). The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The condensed consolidated financial statements include all accounts of the Company and its majority owned and controlled subsidiaries. The Company consolidates entities in which it owns more than 50% of the voting common stock and controls operations. All intercompany transactions and balances among condensed consolidated subsidiaries have been eliminated. Non–controlling interest represents the minority equity investment in the Company’s subsidiaries, plus the minority investors’ share of the net operating results and other components of equity relating to the non–controlling interest. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div> The consolidated financial statements include all accounts of the entities as of the reporting period ending dates and for the reporting periods as follows: Schedule of Condensed Financial Statements <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="border-bottom: Black 1pt solid; text-align: center">Name of consolidated subsidiary</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">State or other jurisdiction of incorporation or organization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Date of incorporation or formation</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">Attributable interest as of June 30, 2026</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">Attributable interest as of December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </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: 24%; text-align: left">Global BioMedical, Inc.</td><td style="width: 2%"> </td> <td style="width: 20%; text-align: center"><span id="xdx_909_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_z2il2KxBc1Gl" title="State or other jurisdiction of incorporation or organization">Nevada</td><td style="width: 2%"> </td> <td style="width: 16%; text-align: center">April 18, 2017</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"><span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zCqvUclztYUi" title="Attributable interest percentage">90.9</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">90.9</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global BioLife, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_901_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--GlobalBioLifeIncMember_z9UiwCTESrs" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 14, 2017</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">BioLife Sugar, Inc</td><td> </td> <td style="text-align: center"><span id="xdx_90E_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--BioLifeSugarIncMember_zB0tLnfg356g" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 23, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Happy Sugar Inc</td><td> </td> <td style="text-align: center"><span id="xdx_90E_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--HappySugarIncMember_zxogsxBfDTwk" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">August 17, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sweet Sense Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_900_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--SweetSenseIncMember_zPAInuXA5GAk" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 30, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global Sugar Solutions Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90B_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zymcgtzFAh9" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">November 7, 2019</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_z3DxLXI2gQt2" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zok9bNnk2Iba" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Impact Biolife Science, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_906_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_za6eh3AMRqsc" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 13, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zNeXKtDoEds2" title="Attributable interest percentage">100</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--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zEqlG4ATH55f" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">DSS Biomedical International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90D_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_z2T0tyorYtPi" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center"><span id="xdx_907_edei--EntityIncorporationDateOfIncorporation_dd_c20260101__20260630__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zFZPguQowDWi" title="Date of incorporation or formation">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zesLUCcYsVB" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_z9hTz2hgpT4j" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">DSS Biolife International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90F_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_zP4SlsxPTf8b" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z5Yale7Edekb" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z4fNCfCpbWBk" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> </table> As of June 30, 2026, and December 31, 2025, the aggregate noncontrolling interest was equity of $3,246,000 and $3,244,000, respectively, which are separately disclosed on the Consolidated Balance Sheets.

The Company consolidates entities in which it owns more than 50% of the voting common stock and controls operations.

The consolidated financial statements include all accounts of the entities as of the reporting period ending dates and for the reporting periods as follows: Schedule of Condensed Financial Statements <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="border-bottom: Black 1pt solid; text-align: center">Name of consolidated subsidiary</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">State or other jurisdiction of incorporation or organization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center">Date of incorporation or formation</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">Attributable interest as of June 30, 2026</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">Attributable interest as of December 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td style="text-align: center"> </td><td> </td> <td style="text-align: center"> </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: 24%; text-align: left">Global BioMedical, Inc.</td><td style="width: 2%"> </td> <td style="width: 20%; text-align: center"><span id="xdx_909_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_z2il2KxBc1Gl" title="State or other jurisdiction of incorporation or organization">Nevada</td><td style="width: 2%"> </td> <td style="width: 16%; text-align: center">April 18, 2017</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right"><span id="xdx_900_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--GlobalBioMedicalIncMember_zCqvUclztYUi" title="Attributable interest percentage">90.9</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">90.9</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global BioLife, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_901_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--GlobalBioLifeIncMember_z9UiwCTESrs" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 14, 2017</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">BioLife Sugar, Inc</td><td> </td> <td style="text-align: center"><span id="xdx_90E_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--BioLifeSugarIncMember_zB0tLnfg356g" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 23, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">90.9</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Happy Sugar Inc</td><td> </td> <td style="text-align: center"><span id="xdx_90E_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--HappySugarIncMember_zxogsxBfDTwk" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">August 17, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">81.8</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sweet Sense Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_900_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--SweetSenseIncMember_zPAInuXA5GAk" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 30, 2018</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">95.5</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Global Sugar Solutions Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90B_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zymcgtzFAh9" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">November 7, 2019</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_905_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_z3DxLXI2gQt2" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--GlobalSugarSolutionsIncMember_zok9bNnk2Iba" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Impact Biolife Science, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_906_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_za6eh3AMRqsc" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 13, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_902_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zNeXKtDoEds2" title="Attributable interest percentage">100</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--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--ImpactBiolifeScienceIncMember_zEqlG4ATH55f" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">DSS Biomedical International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90D_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_z2T0tyorYtPi" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center"><span id="xdx_907_edei--EntityIncorporationDateOfIncorporation_dd_c20260101__20260630__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zFZPguQowDWi" title="Date of incorporation or formation">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_zesLUCcYsVB" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_906_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiomedicalInternationalIncMember_z9hTz2hgpT4j" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">DSS Biolife International, Inc.</td><td> </td> <td style="text-align: center"><span id="xdx_90F_ecustom--StateOrOtherJurisdictionOfIncorporationOrOrganization_c20260101__20260630__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_zP4SlsxPTf8b" title="State or other jurisdiction of incorporation or organization">Nevada</td><td> </td> <td style="text-align: center">April 9, 2021</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20260630__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z5Yale7Edekb" title="Attributable interest percentage">100</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--MinorityInterestOwnershipPercentageByParent_iI_pid_dp_uPure_c20251231__srt--OwnershipAxis__custom--DSSBiolifeInternationalIncMember_z4fNCfCpbWBk" title="Attributable interest percentage">100</td><td style="text-align: left">%</td></tr> </table> Nevada 2017-04-18

0.909

Nevada 2017-04-14

0.818

Nevada 2018-04-23

0.909

Nevada 2018-08-17

0.818

Nevada 2018-04-30

0.955

Nevada 2019-11-07

Nevada 2021-04-13

Nevada 2021-04-09

3246000

3244000

Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the balance sheets and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates.

Reclassifications Costs in the amount of $10,000 associated with third-party logistics services for the three and six months ended June 30, 2025 were reclassed from Cost of revenue to Other operating expenses on the accompanying Condensed Consolidated statements of operations to conform with current period presentation.

10000 10000 Revision of prior period financial statements The Company identified and corrected immaterial classification errors in our previously reported Consolidated balance sheet as of December 31, 2025 and 2024. The correction of this error resulted in a reclassified $298,000 from additional paid-in capital to noncontrolling interests within equity to correct an immaterial prior-period classification error.

298000

Loss per Share Basic loss per share is computed by dividing the net loss attributable to the common stockholders by weighted average number of shares of common stock outstanding during the period. Fully diluted earnings per share is computed like basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. There were no dilutive financial instruments issued or outstanding for the six months ended June 30, 2026, and the year ended December 31, 2025

Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Fair Value Measurement Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets, ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amounts reported in the balance sheet of cash, other receivables, accounts payable and accrued expenses approximate fair value because of the immediate or short-term maturity of these financial instruments. The fair value of notes receivable approximates their carrying value as the stated or discounted rates of the notes do reflect recent market conditions. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div>

Cash and cash equivalents The Company considers all highly liquid investments with a maturity of three months or less at the date of acquisition to be cash equivalents. There were no cash equivalents as of June 30, 2026 and December 31, 2025.

Accounts receivable The Company extends credit to its customers in the normal course of business. The Company performs ongoing credit evaluations and generally does not require collateral. Payment terms are generally 30 days. The Company carries its trade accounts receivable at invoice amounts. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for credit losses based upon management’s estimates that include a review of the history of past write-offs and collections and an analysis of current credit conditions. In estimating expected losses in the accounts receivable portfolio, customer-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period. Assumptions and judgment are applied to measure amounts and timing of expected future cash flows, collateral values and other factors used to determine the customers’ abilities to pay. Accounts receivable at June 30, 2026, and December 31, 2025, was $0, and $5,000, respectively. At June 30, 2026, and December 31, 2025, the Company had not established a reserve for credit losses. The Company does not accrue interest on past due accounts receivable.

5000

<p id="xdx_846_ecustom--NotesReceivableUnearnedInterestAndRelatedRecognitionPolicyPolicyTextBlock_ztqEZc1uWsi5" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">Notes receivable, unearned interest, and related recognition The Company records all future payments of principal and interest on notes as notes receivable, which are then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports the net investment in the notes receivable on the consolidated balance sheet as current or long-term based on the maturity date of the underlying notes. Such net investment is comprised of the amount advanced on the loans, adjusting for net deferred loan fees or costs incurred at origination, amounts allocated to warrants received upon origination, and any payments received in advance, if applicable. The unearned interest is recognized over the term of the notes and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. If applicable, any net deferred loan fees or costs, together with discounts recognized in connection with warrants acquired at origination, are accreted as an adjustment to yield over the term of the loan. (Note 4)

Inventory Inventories consist of filtration systems, which and are stated at the lower of cost or net realizable value on the first-in, first-out (“FIFO”) method. At the closing of each reporting period, the Company evaluates its inventory in order to adjust the inventory balance for obsolete and slow-moving items. No allowance for obsolescence was deemed necessary as of June 30, 2026, and December 31, 2025.

Intangible Assets The estimated fair values of acquired intangibles are generally determined based upon future economic benefits such as earnings and cash flows. Acquired identifiable intangible assets are recorded at fair value and are amortized over their estimated useful lives. Acquired intangible assets with an indefinite life are not amortized but are reviewed for impairment at least annually as of December 31st, or more frequently whenever events or changes in circumstances indicate that the carrying amounts of those assets are below their estimated fair values. Impairment is tested under ASC 350. No impairment was recognized for the six months ended June 30, 2026, and 2025 (Note 6).

Recoverability of Long-Lived Assets We evaluate long-lived assets such as property, equipment and definite lived intangible assets, such as patents, for impairment whenever events or circumstances indicate that the carrying value of the assets recognized in our financial statements may not be recoverable. Factors that we consider include whether there has been a significant decrease in the market value of an asset, a significant change in the way an asset is being utilized, or a significant change, delay or departure in our strategy for that asset, or a significant change in the macroeconomic environment. Our assessment of the recoverability of long-lived assets involves significant judgment and estimation. These assessments reflect our assumptions, which, we believe, are consistent with the assumptions hypothetical marketplace participants use. Factors that we must estimate when performing recoverability and impairment tests include, among others, forecasted revenue, margin costs and the economic life of the asset. If impairment is indicated, we determine if the total estimated future cash flows on an undiscounted basis are less than the carrying amounts of the asset or assets. If so, an impairment loss is measured and recognized. Our impairment loss calculations require that we apply judgment in identifying asset groups, estimating future cash flows, determining asset fair values, and estimating asset’s useful lives. The Company reviews identifiable amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Determination of recoverability is based on the lowest level of identifiable estimated undiscounted cash flows resulting from use of the asset and its eventual disposition. Measurement of any impairment loss is based on the excess of the carrying value of the asset over its fair value. Based on the uncertainty of forecasts inherent with a new product, events such as the failure to generate forecasted revenue from new products could result in a non-cash impairment in future periods. Due to related party The Company has amounts due to DSS, a related party, resulting from funding advances and shared expenses in the ordinary course of business. As of June 30, 2026, and December 31, 2025, amounts due to the related party totaled $1,330,000 and $621,000, respectively. The amounts are non-interest bearing. and are due upon demand. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div>

1330000

621000

Revenue Recognition The Company has adopted ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”). The Company enters into licensing and development agreements with collaborators for the development of its technologies. The terms of these agreements contain multiple performance obligations which may include (i) licenses, or options to obtain licenses, to the Company’s technology, (ii) rights to future technological improvements, and/or (iii) research activities to be performed on behalf of the collaborative partner. Payments to the Company under these agreements may include upfront fees, option fees, exercise fees, payments based upon the achievement of certain milestones, and royalties on product sales. Revenue is recognized when a 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. In determining the appropriate amount of revenue to be recognized as it fulfills its obligations under the agreements, the Company performs the following steps: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when or as the Company satisfies each performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration to which it is entitled 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 ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses 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 at a specific point in time. The Company recognizes its revenue on the sale of its Celios technology when control of the Company’s Celios technology products is transferred to the customer in an amount that reflects the consideration the Company expects to receive in exchange for the product, generally when the product is shipped. The Company’s Celios sales are retail product sales. Customer contracts generally consist of purchase orders, sales confirmations, or similar arrangements. The Company’s primary performance obligation is the delivery of the product to the customer. Revenue is recognized at a point in time, generally upon shipment or delivery, depending on the applicable terms of sale, when control, title, and risk of loss have transferred to the customer and the Company has a right to payment. The transaction price is generally fixed at the stated retail sales price, net of any applicable discounts, returns, credits, or allowances. The Company estimates variable consideration, including returns and allowances, if applicable, and includes such amounts in revenue only to the extent it is probable that a significant reversal of revenue will not occur. Sales, use, and other taxes billed to and collected from customers are excluded from revenue. Shipping and handling activities, if any, are treated as fulfillment activities. Payment terms are generally short-term, and the Company does not have significant financing components, contract assets, or contract liabilities related to its retail sales. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div>

Share-Based Payments Compensation cost for stock awards are measured at fair value and the Company recognizes compensation expense over the service period for which awards are expected to vest. The Company uses the Black-Scholes option pricing model for determining the estimated fair value for stock-based awards. The Black-Scholes model requires the use of subjective assumptions which determine the fair value of stock-based awards, including the option’s expected term and the price volatility of the underlying stock. For equity instruments issued to consultants and vendors in exchange for goods and services the Company determines the measurement date for the fair value of the equity instruments issued at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. The Company record stock-based compensation for the three months ended June 30, 2026 and June 30, 2025 approximated $0 and $2,000, respectively. The Company record stock-based compensation expense of approximately $<span id="xdx_900_eus-gaap--AllocatedShareBasedCompensationExpense_c20260101__20260630__us-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--SellingGeneralAndAdministrativeExpense_ziQaBiRurj7f" title="Stock based compensation expense">1,440,000 and $<span id="xdx_900_eus-gaap--AllocatedShareBasedCompensationExpense_c20250101__20250630__us-gaap--StatementOfIncomeLocationBalanceAxis__us-gaap--SellingGeneralAndAdministrativeExpense_zWhxdCa9yGmc" title="Stock based compensation expense">3,000 for the six months ended June 30, 2026 and 2025, respectively. These cost included in Sales, general and administrative compensation (inclusive of stock-based compensation) on the accompanying Condensed Consolidated Statement of Operations.

2000

1440000

3000

Research and Development Research and development costs are expensed as incurred. The Company recorded research and development cost for the three months ended June 30, 2026 and June 30, 2025 approximated $76,000 and $75,000, respectively. The Company recorded research and development cost for the six months ended June 30, 2026 and June 30, 2025 approximated $123,000 and $178,000, respectively.

76000

75000

123000

178000

Provision for Credit Losses The Company adopted amended accounting guidance ASC Topic 326 which requires an allowance for credit losses to be deducted from the amortized cost basis of financial assets to present the net carrying value at the amount that is expected to be collected over the contractual term of the asset considering relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. In estimating expected losses in the loan and lease portfolio, borrower-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period. Assumptions and judgment are applied to measure amounts and timing of expected future cash flows, collateral values and other factors used to determine the borrowers’ abilities to repay obligations. After the forecast period, the Company utilizes longer-term historical loss experience to estimate losses over the remaining contractual life of the loans. As of June 30, 2026 and December 31, 2025 the Company has deemed that no reserve on credit losses were necessary.

Acquisitions Acquisition of assets are recorded at their relative fair value based on total accumulated costs of the acquisition. Direct acquisition-related costs are expensed as incurred. This includes all costs related to finding, analyzing and negotiating a transaction. The allocation of the purchase price is an area that requires judgment and significant estimates. Tangible and intangible assets include land, building and improvements, furniture, fixtures and equipment, acquired above market and below market leases, in-place lease value (if applicable). Acquisition-date fair values of assets and assumed liabilities are determined based on replacement costs, appraised values, and estimated fair values using methods like those used by independent appraisers and that use appropriate discount and/or capitalization rates and available market information. On February 25, 2025, the Company completed the acquisition of certain assets owned by DSS Pure Air, Inc. (DSS PureAir”), a related party, for $1,150,000 to be paid by 545,024 shares of the Company’s common stock calculated on a 10-day VWAP. Assets acquired included accounts receivable, inventory and intellectual property of the Celios air purification system. Assets acquired included accounts receivable valued at approximately $<span id="xdx_906_eus-gaap--AccountsReceivableNetCurrent_iI_c20250225__us-gaap--FairValueByAssetClassAxis__us-gaap--AccountsReceivableMember__us-gaap--BusinessAcquisitionAxis__custom--DSSPureAirINCMember_z862li6lL3cc" title="Accounts receivable">4,000, prepaid assets of approximately $<span id="xdx_906_eus-gaap--PrepaidExpenseAndOtherAssets_iI_c20250225__us-gaap--FairValueByAssetClassAxis__us-gaap--AccountsReceivableMember__us-gaap--BusinessAcquisitionAxis__custom--DSSPureAirINCMember_zmKIjRIlxym5" title="Prepaid assets">2,000, inventory valued at approximately $489,000, and intellectual property of the Celios air purification system of approximately $<span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zSQJfu36FDrg" title="Assets acquired gross">325,000, inclusive of a $<span id="xdx_903_ecustom--PremiumPaidForAssetsAcquired_c20250225__20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zCN4iZpkU0X5" title="Premium paid for assets acquired">330,000 premium paid for the assets acquired. This premium of $<span id="xdx_90E_eus-gaap--TransfersAccountedForAsSecuredBorrowingsAssetsCarryingAmount_iI_c20250225__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zPwhNmbqe8W3" title="Accounted for accordance amount">330,000 is accounted for in accordance with ASC 805-50, when assets are transferred between entities under common control, the premium should not be recorded as an asset or as part of the transaction price.

1150000

545024

4000

2000

489000

325000

330000

Continuing Operations and Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. As reflected in the accompanying financial statements the Company has incurred operating losses as well as negative cash flows from operating activities over the past two years. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. These consolidated financial statements do not include any adjustments to the specific amounts and classifications of assets and liabilities, which might be necessary should we be unable to continue as a going concern. To continue as a going concern the Company is exploring several options to raise capital including but not limited to, capital raises via its listing on the NYSE American under the ticker symbol IBO as well as debt financing. Although there is no certainty that management plans will be able to satisfy the requirements to continue operating as a going concern, management intends to take additional actions necessary to continue as a going concern. Management’s plans concerning these matters include, among other things, monetization of its intellectual properties, and tightly controlling operating costs. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1pt solid; font-size: 1pt"> </div></div>

Recent Accounting Standards The Financial Accounting Standards Board (FASB) issues various Accounting Standards Updates relating to the treatment and recording of certain accounting transactions. There are several new accounting pronouncements issued by FASB which are not yet effective. Each of these pronouncements, as applicable, has been or will be adopted by the Company. As of June 30, 2026, none of these pronouncements are expected to have a material effect on the financial position, results of operations or cash flows of the Company. In November 2024, the FASB issued ASU No. 2024-03 (“ASU 2024-03”), Disaggregation of Income Statement Expenses (“DISE”). ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. As revised by ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, the provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. With the exception of expanding disclosures to include more granular income statement expense categories, we do not expect the adoption of ASU 2024-03 to have a material effect on our consolidated financial statements taken as a whole. In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which amends the guidance related to the measurement of credit losses for accounts receivable and contract assets. The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company has adopted this standard and no material effect on its consolidated financial statements has resulted.

Note 3. Inventory Inventory consisted of the following as of: Schedule of Inventory <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20260630_zbE2fi1dP4Va" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20251231_zuuiSUIcdLD1" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40D_eus-gaap--InventoryFinishedGoods_iI_maINzBDG_zVN5Eo0Dxx6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Finished Goods</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">62,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">63,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--InventoryValuationReserves_iI_msINzBDG_zqAzOXnx7XPk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less allowance for obsolescence</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">-</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">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--InventoryNet_iTI_mtINzBDG_zxtSdSwXMF1i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Inventory, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">62,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">63,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Inventory consisted of the following as of: Schedule of Inventory <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 70%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49B_20260630_zbE2fi1dP4Va" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20251231_zuuiSUIcdLD1" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40D_eus-gaap--InventoryFinishedGoods_iI_maINzBDG_zVN5Eo0Dxx6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Finished Goods</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">62,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">63,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--InventoryValuationReserves_iI_msINzBDG_zqAzOXnx7XPk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less allowance for obsolescence</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">-</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">-</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--InventoryNet_iTI_mtINzBDG_zxtSdSwXMF1i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Inventory, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">62,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">63,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

62000

63000

62000

63000

Note 4. Notes Receivable On February 19, 2021, Impact BioMedical, Inc, entered into a promissory note with an individual. The Company loaned the principal sum of $206,000, with interest at a rate of 6.5%, and maturity date of August 19, 2022 later amended to February 19, 2026. Monthly payments are due on the twenty-first day of each month and continuing each month thereafter until February 19, 2026. This note is secured by certain real property situated in Collier County, Florida. The outstanding principal and interest as of June 30, 2026, and December 31, 2025 was approximately $197,000 and $198,000, respectively. As of June 30, 2026, approximately $197,000 is classified in Current notes receivable. As of December 31, 2025, $198,000 is classified in Current notes receivable on the accompanying consolidated balance sheet. The maturity date of this note is currently being renegotiated.

206000

0.065

August 19, 2022

197000

198000

197000

198000

Note 5. Financial Instruments Cash The following tables show the Company’s cash by significant investment category as of: Schedule of Cash, Cash Equivalents, Restricted Cash, and Note Payable, Related Party by Significant Investment <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="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Adjusted Cost</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Unrealized (Gain)/Loss</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Fair Value</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Cash and Cash Equivalents</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: justify; padding-bottom: 1pt">Cash</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DebtSecuritiesAvailableForSaleAmortizedCostCurrent_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zleZ9n4KXepd" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Adjusted cost, Cash">10,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--DebtSecuritiesAvailableForSaleUnrealizedGainLoss_c20260101__20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zJV6GNkaHsEa" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Unrealized Gain/(Loss)">-</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zRGi9M2eQMAa" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Fair value, Cash">10,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--CashAndCashEquivalentsFairValueDisclosure_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zj4MjAm5zh4h" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Cash and Cash Equivalents">10,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--DebtSecuritiesAvailableForSaleAmortizedCostCurrent_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zw0U6Bk7b9na" style="border-bottom: Black 2.5pt double; text-align: right" title="Adjusted cost">10,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--DebtSecuritiesAvailableForSaleUnrealizedGainLoss_c20260101__20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zxxf5u8Foike" style="border-bottom: Black 2.5pt double; text-align: right" title="Unrealized Gain/(Loss)">-</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">$</td><td id="xdx_981_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zOQMBoT1AFjh" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">10,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--CashAndCashEquivalentsFairValueDisclosure_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_ziZETisIIiNg" style="border-bottom: Black 2.5pt double; text-align: right" title="Cash and Cash Equivalents">10,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <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="padding-bottom: 1pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Adjusted Cost</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Unrealized (Gain)/Loss</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Fair Value</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Cash and Cash Equivalents</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: justify; padding-bottom: 1pt">Cash</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--DebtSecuritiesAvailableForSaleAmortizedCostCurrent_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zVCJCsZnmtXh" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Adjusted cost, Cash">3,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--DebtSecuritiesAvailableForSaleUnrealizedGainLoss_c20250101__20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zYPhnvWrb0K4" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Unrealized Gain/(Loss)">-</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zipN1KfiNLec" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Fair value, Cash">3,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--CashAndCashEquivalentsFairValueDisclosure_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zZDjQkQx6GU3" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Fair value, Cash">3,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--DebtSecuritiesAvailableForSaleAmortizedCostCurrent_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_znjolaUAvu9d" style="border-bottom: Black 2.5pt double; text-align: right" title="Adjusted cost">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--DebtSecuritiesAvailableForSaleUnrealizedGainLoss_c20250101__20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zXJYA5XlG3cl" style="border-bottom: Black 2.5pt double; text-align: right" title="Unrealized Gain/(Loss)">-</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">$</td><td id="xdx_980_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zuZakmzJGISg" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--CashAndCashEquivalentsFairValueDisclosure_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zEhusV4hppKj" style="border-bottom: Black 2.5pt double; text-align: right" title="Cash and Cash Equivalents">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

The following tables show the Company’s cash by significant investment category as of: Schedule of Cash, Cash Equivalents, Restricted Cash, and Note Payable, Related Party by Significant Investment <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="text-align: center"> </td><td style="text-align: center; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">June 30, 2026</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Adjusted Cost</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Unrealized (Gain)/Loss</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Fair Value</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Cash and Cash Equivalents</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: justify; padding-bottom: 1pt">Cash</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--DebtSecuritiesAvailableForSaleAmortizedCostCurrent_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zleZ9n4KXepd" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Adjusted cost, Cash">10,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--DebtSecuritiesAvailableForSaleUnrealizedGainLoss_c20260101__20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zJV6GNkaHsEa" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Unrealized Gain/(Loss)">-</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zRGi9M2eQMAa" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Fair value, Cash">10,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--CashAndCashEquivalentsFairValueDisclosure_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zj4MjAm5zh4h" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Cash and Cash Equivalents">10,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--DebtSecuritiesAvailableForSaleAmortizedCostCurrent_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zw0U6Bk7b9na" style="border-bottom: Black 2.5pt double; text-align: right" title="Adjusted cost">10,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_988_eus-gaap--DebtSecuritiesAvailableForSaleUnrealizedGainLoss_c20260101__20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zxxf5u8Foike" style="border-bottom: Black 2.5pt double; text-align: right" title="Unrealized Gain/(Loss)">-</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">$</td><td id="xdx_981_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zOQMBoT1AFjh" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">10,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--CashAndCashEquivalentsFairValueDisclosure_iI_c20260630__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_ziZETisIIiNg" style="border-bottom: Black 2.5pt double; text-align: right" title="Cash and Cash Equivalents">10,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <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="padding-bottom: 1pt; text-align: center"> </td><td style="text-align: center; padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2025</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Adjusted Cost</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Unrealized (Gain)/Loss</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Fair Value</td><td style="text-align: center; padding-bottom: 1pt"> </td><td style="text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Cash and Cash Equivalents</td><td style="text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 36%; text-align: justify; padding-bottom: 1pt">Cash</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--DebtSecuritiesAvailableForSaleAmortizedCostCurrent_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zVCJCsZnmtXh" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Adjusted cost, Cash">3,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--DebtSecuritiesAvailableForSaleUnrealizedGainLoss_c20250101__20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zYPhnvWrb0K4" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Unrealized Gain/(Loss)">-</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zipN1KfiNLec" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Fair value, Cash">3,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--CashAndCashEquivalentsFairValueDisclosure_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember__us-gaap--CashAndCashEquivalentsAxis__us-gaap--CashMember_zZDjQkQx6GU3" style="border-bottom: Black 1pt solid; width: 12%; text-align: right" title="Fair value, Cash">3,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--DebtSecuritiesAvailableForSaleAmortizedCostCurrent_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_znjolaUAvu9d" style="border-bottom: Black 2.5pt double; text-align: right" title="Adjusted cost">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--DebtSecuritiesAvailableForSaleUnrealizedGainLoss_c20250101__20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zXJYA5XlG3cl" style="border-bottom: Black 2.5pt double; text-align: right" title="Unrealized Gain/(Loss)">-</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">$</td><td id="xdx_980_eus-gaap--AvailableForSaleSecuritiesDebtSecurities_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zuZakmzJGISg" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--CashAndCashEquivalentsFairValueDisclosure_iI_c20251231__us-gaap--FairValueByMeasurementFrequencyAxis__us-gaap--FairValueMeasurementsRecurringMember_zEhusV4hppKj" style="border-bottom: Black 2.5pt double; text-align: right" title="Cash and Cash Equivalents">3,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

10000

3000

Note 6. Intangible Assets The definite-lived intangible assets, to be amortized between 1 and 20 years, balances, and activity for the six months ended June 30, 2026 and year ended December 31, 2025 consisted of the following: Schedule of Intangible Assets <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">June 30, 2026 (unaudited)</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif">Useful Life</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Gross Carrying Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif">Accumulated Amortization</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Net Carrying Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Gross Carrying Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif">Accumulated Amortization</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Net Carrying Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 30%; text-align: left">Developed technology assets</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: center"><span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_z8zFkqDi3sxi" title="Useful life">20 years</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zjPjHpX8Y8E" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Gross carrying amount">22,260,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zJ75FtjX62D6" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Accumulated amortization">6,122,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zSal9tzhsggk" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Net carrying amount">16,138,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zRNxI1fIuRk9" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Gross carrying amount">22,260,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zCpvokoEbb17" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Accumulated amortization">5,566,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zIS2K8gyLW2k" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Net carrying amount">16,694,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Acquired assets</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"><span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember__srt--RangeAxis__srt--MinimumMember_zmYGhEOLukeh" title="Useful life">1 -<span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember__srt--RangeAxis__srt--MaximumMember_zftwkAWC8ls" title="Useful life">17 years</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zAnNgj0GKQNb" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Gross carrying amount">325,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zeWOeuXSDmig" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Accumulated amortization">38,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zZneniSTO3l8" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Net carrying amount">287,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zO8D9aoxEXj2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Gross carrying amount">325,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zXStYFH4S3fd" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Accumulated amortization">25,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zRN3IPY1vqC" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Net carrying amount">300,000</td><td style="font: 10pt Times New Roman, Times, Serif; 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"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260630_z7TegvwMx4tl" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Gross carrying amount">22,585,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260630_zK4frS4qhFLg" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Accumulated amortization">6,160,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260630_zBJ1XHT4eP47" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Net carrying amount">16,425,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231_zjdUxw5bXzTe" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Gross carrying amount">22,585,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231_zCgSpnGFtT58" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Accumulated amortization">5,591,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231_zT2Q9zyeyNJ6" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Net carrying amount">16,994,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements Amortization expense for the six months ended June 30, 2026 and 2025 was approximately $569,000 and $568,000, respectively. <p id="xdx_892_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zsGRfdJGYwEg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table represents future amortization of developed technologies for the years ending December 31: Schedule of Future Amortization of Developed Technologies <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20260630_zCR93qEbnek3" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_zwDrABNYx54" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: center">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">478,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_zvJMBir73t6e" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">2027</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,138,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_zkuTMFFSky91" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">2028</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_zNEeaE6zfe47" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">2029</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_ztMPW6ktFZVb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">2030</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_zAUH3VIHlFfg" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">thereafter</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">11,404,000</td><td style="text-align: left"> </td></tr> </table>

The definite-lived intangible assets, to be amortized between 1 and 20 years, balances, and activity for the six months ended June 30, 2026 and year ended December 31, 2025 consisted of the following: Schedule of Intangible Assets <table cellpadding="0" cellspacing="0" style="font: 12pt Arial, Helvetica, Sans-Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">June 30, 2026 (unaudited)</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td colspan="10" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">December 31, 2025</td><td style="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif">Useful Life</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Gross Carrying Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif">Accumulated Amortization</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Net Carrying Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Gross Carrying Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center; font: bold 10pt Times New Roman, Times, Serif">Accumulated Amortization</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: center">Net Carrying Amount</td><td style="font: bold 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font: 10pt Times New Roman, Times, Serif; width: 30%; text-align: left">Developed technology assets</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: center"><span id="xdx_907_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_z8zFkqDi3sxi" title="Useful life">20 years</td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zjPjHpX8Y8E" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Gross carrying amount">22,260,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zJ75FtjX62D6" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Accumulated amortization">6,122,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zSal9tzhsggk" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Net carrying amount">16,138,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zRNxI1fIuRk9" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Gross carrying amount">22,260,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zCpvokoEbb17" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Accumulated amortization">5,566,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; width: 2%"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--DevelopedTechnologyRightsMember_zIS2K8gyLW2k" style="font: 10pt Times New Roman, Times, Serif; width: 6%; text-align: right" title="Net carrying amount">16,694,000</td><td style="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Acquired assets</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt"><span id="xdx_90D_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember__srt--RangeAxis__srt--MinimumMember_zmYGhEOLukeh" title="Useful life">1 -<span id="xdx_90B_eus-gaap--FiniteLivedIntangibleAssetUsefulLife_iI_dtY_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember__srt--RangeAxis__srt--MaximumMember_zftwkAWC8ls" title="Useful life">17 years</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zAnNgj0GKQNb" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Gross carrying amount">325,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zeWOeuXSDmig" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Accumulated amortization">38,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zZneniSTO3l8" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Net carrying amount">287,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_981_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zO8D9aoxEXj2" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Gross carrying amount">325,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"></td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zXStYFH4S3fd" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Accumulated amortization">25,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"> </td><td id="xdx_985_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredAssetsMember_zRN3IPY1vqC" style="border-bottom: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Net carrying amount">300,000</td><td style="font: 10pt Times New Roman, Times, Serif; 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"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260630_z7TegvwMx4tl" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Gross carrying amount">22,585,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260630_zK4frS4qhFLg" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Accumulated amortization">6,160,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260630_zBJ1XHT4eP47" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Net carrying amount">16,425,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20251231_zjdUxw5bXzTe" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Gross carrying amount">22,585,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20251231_zCgSpnGFtT58" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Accumulated amortization">5,591,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20251231_zT2Q9zyeyNJ6" style="border-bottom: Black 2.5pt double; font: 10pt Times New Roman, Times, Serif; text-align: right" title="Net carrying amount">16,994,000</td><td style="font: 10pt Times New Roman, Times, Serif; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

P20Y

22260000

6122000

16138000

22260000

5566000

16694000

P1Y

P17Y

325000

38000

287000

325000

25000

300000

22585000

6160000

16425000

22585000

5591000

16994000

569000

568000

<p id="xdx_892_eus-gaap--ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock_zsGRfdJGYwEg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0; text-align: justify">The following table represents future amortization of developed technologies for the years ending December 31: Schedule of Future Amortization of Developed Technologies <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 60%"> <tr style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_496_20260630_zCR93qEbnek3" style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths_iI_zwDrABNYx54" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: center">2026</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 20%; text-align: right">478,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo_iI_zvJMBir73t6e" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">2027</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,138,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearThree_iI_zkuTMFFSky91" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">2028</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFour_iI_zNEeaE6zfe47" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">2029</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseYearFive_iI_ztMPW6ktFZVb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: center">2030</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,130,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive_iI_zAUH3VIHlFfg" style="vertical-align: bottom; background-color: White"> <td style="text-align: center">thereafter</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">11,404,000</td><td style="text-align: left"> </td></tr> </table>

478000

1138000

1130000

11404000

Note 7. Stockholders’ Equity On October 31, 2023, DSS BioHealth Securities, Inc., the Company’s largest shareholder converted 60,496,041 shares of Common Stock into 60,496,041 shares of Series A Convertible Preferred Shares, reducing its ownership of the Company’s Common Stock from approximately 88% to approximately 12%. On October 16, 2025, DSS BioHealth Security, Inc., elected to convert its 60,496,041 shares of Series A Convertible Preferred Stock into 60,496,041 shares of Impact’s Common Stock. This conversion was approved by Impact’s Board of Directors and Audit Committee. The Company records stock-based payment expense related to options and warrants based on the grant date fair value in accordance with FASB ASC 718. Stock-based compensation includes expense charges for all stock-based awards to employees, directors and consultants. Such awards include option grants, warrant grants, and restricted stock awards. On October 1, 2024, <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20241001__20241001__srt--TitleOfIndividualAxis__custom--EmployeesDirectorsAndConsultantsMember_zzkrFnwlech1">880,000 option grants with a purchase price of $3.00 per share were awarded to certain officers, directors and consultants of the Company. These options have various vesting periods, and all expire on October 31, 2031. Potential proceeds of these grants is $<span id="xdx_90C_eus-gaap--StockGrantedDuringPeriodValueSharebasedCompensation_c20241001__20241001__srt--TitleOfIndividualAxis__custom--CertainOfficersDirectorsAndConsultantsMember_zmCgcq7tZlCd" title="Shares granted">2,640,000 and are fair valued using a Black-Scholes model at approximately $<span id="xdx_90B_ecustom--FairValueOfStockBasedCompensation_c20241001__20241001__srt--TitleOfIndividualAxis__custom--CertainOfficersDirectorsAndConsultantsMember_zEDrbuAh5Tff" title="Fair value of compensation">50,000. The Company records stock-based compensation expense of approximately $<span id="xdx_90F_eus-gaap--AllocatedShareBasedCompensationExpense_c20260101__20260331__srt--TitleOfIndividualAxis__custom--CertainOfficersDirectorsAndConsultantsMember_zhGLfDvC3Dl3" title="Stock based compensation">2,000 for the three months ended March 31, 2025, and is included in Sales, general and administrative compensation (inclusive of stock-based compensation) on the accompanying Condensed Consolidated Statement of Operations. These options were forfeited during the fourth quarter of 2025. On February 25, 2025, the Company completed the acquisition of certain assets owned by DSS Pure Air, Inc. (DSS PureAir”), a related party, for $1,150,000 to be paid by 545,024 shares of the Company’s common stock calculated on a 10-day VWAP. Assets acquired included accounts receivable, inventory and intellectual property of the Celios air purification system. On February 26, 2025, the Company issued 36,433 shares of the Company’s common stock as payment of legal fees incurred associated with the Company’s initial public offering (“IPO”), registration of shares associated with its equity incentive plan as well as other related services. On June 23, 2025, the Company issued 100,000 shares of the Company’s common stock as payment of legal fees incurred associated with the Company’s merger and share exchange agreement with Dr. Ashleys Limited. On October 16, 2025, the Company converted its Note payable, related party to <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesConversionOfUnits_c20251016__20251016__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DSSIncMember_zr2wHLOqi9e7" title="Conversion of shares">31,939,778 shares common stock as agreed upon by the Company and DSS (lender). In January 2026, the Company granted and issued 3,200,000 shares of Common Stock to various individuals including executives, board members, audit committee members, etc. The agreement included the individuals rescinding and cancelling any and all unexercised stock options previously granted. The Company recorded stock-based compensation expense of approximately $1,440,000 for the six months ended June 30, 2026, and is included in Sales, general and administrative compensation (inclusive of stock-based compensation) on the accompanying Condensed Consolidated Statement of Operations

60496041

Series A Convertible Preferred Shares, reducing its ownership of the Company’s Common Stock from approximately 88% to approximately 12%.

60496041

880000

3.00

2640000

50000

2000

1150000

545024

36433

100000

31939778

3200000

1440000

Note 8. Related Party Transactions General and Administrative Costs There are certain general and administrative costs incurred by DSS, a related party, on behalf of the Company which are passed through to the Company on a monthly basis. These costs consist of primarily payroll costs for certain DSS employees and are allocated based on estimated time spent on behalf of the Company For the six months ended June 30, 2025, the Company incurred approximately $77,000 in related expenses. For the six months ended June 30, 2026, the Company incurred approximately $80,000 in related expenses. Impact Biomedical, Inc. and Subsidiaries Notes to Consolidated Financial Statements Note payable, related party On December 31, 2020, and later amended, the Company executed a Revolving Promissory Note (“Note”) with DSS, a related party, which accrues interest at a rate of 4.25% and is due in full at the maturity date of September 30, 2030. The Note was further amended on July 24, 2024 with an effective date of September 16, 2024 to i) allow the Company to pay certain principal and/or interest payments owing under the repayment terms in an exchange for potential of equity in the Company, ii) change the quarterly interest due dates to the last day of each calendar quarter (i.e. December 31, March 31, September 30 and September 30), iii) to adjust the On Demand feature so that it starts after the 24th month, iv) continue the planned repayment program commencing on the 37th month and on the last day of each month thereafter through August 31, 2030 to pay a fixed monthly payment of $126,381, v) to continue the scheduled maturity date of September 30, 2030, and vi) adjusts the interest rate to be the WSJ Prime Rate plus 0.50%. This Note is secured by the assets of the Company. As of June 30, 2025, the outstanding balance, inclusive of interest was $22,352,000 (net of change in fair value of the Note of $12,942,000). The $22,352,000 is recorded in Note payable, related party at June 30, 2025. On October 16, 2025, the Company converted its Note payable, related party to 31,939,778 shares common stock as agreed upon by the Company and DSS (lender), which represents a calculation of the outstanding principal and interest approximating $15 million and a stock price utilizing a 10-day Vwap as of June 18, 2025. There are no restrictions placed on the disposition of these shares. As a result of the conversion, the Company recorded a Change in fair value of the note payable, related party of $9,388,000 which is included on the accompanying statement of consolidated operations as of December 31, 2025. Acquisition of DSS PureAir Assets On February 25, 2025, the Company completed the acquisition of certain assets owned by DSS Pure Air, Inc. (DSS PureAir”), a related party, for $<span id="xdx_901_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20250225__20250225__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DSSIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zdJj00FLry3e" title="Paid shares of common stock">1,150,000 to be paid by <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20250225__20250225__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DSSIncMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zDM9Wqq0GQM3" title="Shares paid of common stock">545,024 shares of the Company’s common stock calculated on a 10-day VWAP. Assets acquired included accounts receivable, inventory and intellectual property of the Celios air purification system Due to related party Impact BioMedical Inc. from time to time receives funding from DSS to cover its capital needs. DSS, Inc., beneficially owns approximately <span id="xdx_90D_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_pid_dp_uPure_c20251231__us-gaap--BusinessAcquisitionAxis__custom--DSSIncMember_zQwylZCTkyBa" title="Voting shares, percentage">86% of the Company’s voting shares. As of June 30, 2026 and December 31, 2025, amounts due to DSS approximate $1,330,000 and $621,000, respectively. These balances relate to noninterest-bearing funding provided by DSS, and are unsecured.

77000

80000

0.0425

2030-09-30

126381

0.0050

22352000

12942000

22352000

31939778

15000000

9388000

1150000

545024

0.86

1330000

621000

Note 9. Commitments and Contingencies On August 15, 2018, the Company entered into Royalty Agreement with Chemia Corporation (“Chemia”) pursuant to which Chemia transferred to the Company all of its right to 3F (Functional Fragrance Formulation). This agreement has a 20-year term and auto renews for a period of 1 year unless mutually agreed upon by both parties. 3F consists of 3F Mosquito Repellant and 3F Anti-Viral formulations. Based on the Royalty Agreement, the Company should cover all the costs to prepare and finalize necessary patent application and other intellectual property related to 3F. Chemia agreed to support the Company in efforts leading to development of 3F intellectual property and it is licensing. Based on Royalty Agreement any payments received from development, sales, licensing or transfer of 3F technology will be paid 50% to the Company and <span id="xdx_904_ecustom--RoyaltyPercentage_pid_dp_uPure_c20180814__20180815__us-gaap--TypeOfArrangementAxis__custom--RoyaltyAgreementMember__dei--LegalEntityAxis__custom--ChemiaCorporationMember_zs0fYUKTSZV4" title="Royalty percentage">50% to Chemia. On November 27, 2018, Company and Chemia signed an Addendum to Royalty Agreement (“Addendum”), according to which the Company granted Chemia a royalty-based limited license for purposes of making and selling fragrances embodying the 3F technology. Based on the Addendum, Chemia should pay the Company <span id="xdx_906_ecustom--SaleOfRoyaltyPercentage_pid_dp_uPure_c20181126__20181127__us-gaap--TypeOfArrangementAxis__custom--RoyaltyAgreementMember__dei--LegalEntityAxis__custom--ChemiaCorporationMember_zFsWDT1jcF2e" title="Net sales royalty">5% of net sales in royalty. On November 8, 2019, both companies entered into Amendment no.1 to Royalty Agreement, based on which certain expenses borne by the Company towards patent application and licensing should be reimbursed to the Company before any royalty payments are made. For the six months ended June 30, 2026 and 2025, there were no reimbursements or royalties paid to the Company and the Company cannot be assured that Chemia’s efforts will end up in any future sales of the technology. On March 19, 2022, Impact BioMedical entered into a License Agreement (“Equivir License”) with a third-party (“Licensee”) where the Licensor is granted the right, amongst other things, to develop, commercialize, and sell the Company’s Equivir technology. In exchange, the Licensee shall pay the Company a royalty of 5.5% of net sales. Under the terms of the Equivir Agreement, the Company shall reimburse the Licensee for 50% of the development costs provided that the development costs shall not exceed $1,250,000. As of June 30, 2026 and December 31, 2025, a liability of $0 has been recorded in relation to the Equivir License. Employment Agreements – Impact BioMedical has an employment agreement with it CEO Frank Heuszel in which Mr. Heuszel’s agreement contains a mandatory bonus clause of $<span id="xdx_908_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20251231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__us-gaap--AwardTypeAxis__custom--FirstYearOfEmploymentTermMember_z2wNpiux7Xn1" title="Bonuses">150,000 for the first year of the employment term, $<span id="xdx_903_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20251231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__us-gaap--AwardTypeAxis__custom--SecondYearOfEmploymentTermMember_zfSCrU0XMe8b" title="Bonuses">100,000 for the second year of the employment term, and $<span id="xdx_909_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20251231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__us-gaap--AwardTypeAxis__custom--ThirdYearOfEmploymentTermMember_zMLKHLuIwbva" title="Bonuses">100,000 for the third year of the employment term. As of June 30, 2026, approximately $<span id="xdx_90A_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20260630__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__srt--TitleOfIndividualAxis__custom--MrHeuszelMember_zt53Loc7o6D1" title="Bonuses">96,000 and $<span id="xdx_907_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20260630__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__srt--TitleOfIndividualAxis__custom--TwoMrHeuszelMember_zVnbfAt5idG6" title="Bonuses">75,000 is accrued for year one and year two of Mr. Heuszel’s bonus, respectively. As of December 31, 2025, approximately $<span id="xdx_909_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20251231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__srt--TitleOfIndividualAxis__custom--MrHeuszelMember_zoqi7BU9EyB3" title="Bonuses">96,000 is accrued for year one of Mr. Heuszel’s bonus and $<span id="xdx_90D_eus-gaap--EmployeeRelatedLiabilitiesCurrent_iI_c20251231__us-gaap--TypeOfArrangementAxis__custom--EmploymentAgreementMember__srt--TitleOfIndividualAxis__custom--TwoMrHeuszelMember_zkl7Da0ozvi" title="Bonuses">25,000 for the second year of Mr. Heuszel’s bonus. Contingent Litigation Payments – The Company retains the services of professional service providers, including law firms that specialize in intellectual property licensing, enforcement and patent law. These service providers are often retained on an hourly, monthly, project, contingent or a blended fee basis. In contingency fee arrangements, a portion of the legal fee is based on predetermined milestones or the Company’s actual collection of funds. The Company accrues contingent fees when it is probable that the milestones will be achieved, and the fees can be reasonably estimated. As of June 30, 2026 and December 31, 2025, the Company had not accrued any contingent legal fees pursuant to these arrangements. Contingent Payments – The Company is not party to any agreements with funding partners who have rights to portions of intellectual property monetization proceeds that the Company receives.

0.50 0.50 0.05 0 0 0.055 0.50

1250000

150000

100000

96000

75000

96000

25000

Note 10. Supplemental Cash Flow Information The following table summarizes supplemental cash flows of noncash investing and financing activities for the six months ended June 30, 2026 and 2025: Schedule of Supplemental Cash Flows of Noncash Investing and Financing Activities <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_495_20260101__20260630_z4v4xfNLa8t6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">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_49F_20250101__20250630_zdwt5YvymRO6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_406_ecustom--SharesIssuedInLieuOfCashAsPaymentForLegalServices_zKVj6YJ6O4Xj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Shares issued in lieu of cash as payment for legal services</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">190,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--SharesIssuedForAcquisitionOfAssets_zkjp7hCs5dI7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Shares issued for acquisition of DSS PureAir assets</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">820,000</td><td style="text-align: left"> </td></tr> </table>

The following table summarizes supplemental cash flows of noncash investing and financing activities for the six months ended June 30, 2026 and 2025: Schedule of Supplemental Cash Flows of Noncash Investing and Financing Activities <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_495_20260101__20260630_z4v4xfNLa8t6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">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_49F_20250101__20250630_zdwt5YvymRO6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_406_ecustom--SharesIssuedInLieuOfCashAsPaymentForLegalServices_zKVj6YJ6O4Xj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Shares issued in lieu of cash as payment for legal services</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">190,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_ecustom--SharesIssuedForAcquisitionOfAssets_zkjp7hCs5dI7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Shares issued for acquisition of DSS PureAir assets</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">820,000</td><td style="text-align: left"> </td></tr> </table>

190000 820000

Note 11. Subsequent Events The Company has evaluated all subsequent events and transactions through August 7, 2026, the date that the consolidated financial statements were available to be issued and noted no subsequent events requiring financial statement recognition or disclosure.