NOTE 6. INVESTMENT IN PRIVATE EQUITY SECURITIES

On October 27, 2025, the Company became the beneficial owner of 1,000,000 shares of common stock of Nuvora Energy, Inc. (“Nuvora”), a privately held Delaware corporation, recorded as an Investment in private equity securities at an initial carrying amount of $2,000,000 ($2.00 per share). Nuvora is a related party of the Company by virtue of common management; Mr. Imran Firoz, a director of the Company, also serves as Co-Founder and Interim Chief Financial Officer of Nuvora. Nuvora and the Company also share the principal-office address of 200 Spectrum Center Drive, Irvine, California. See Note 4 to the audited consolidated financial statements for the year ended December 31, 2025, for additional information regarding the original recognition of the investment.

The Company has elected to apply the measurement alternative under ASC 321-10-35-2(c) for equity securities without a readily determinable fair value. At each reporting date, the Company performs a qualitative impairment assessment in accordance with ASC 321-10-35-3, considering, among other factors, deterioration in earnings performance, asset quality, business prospects, regulatory environment, market conditions, and Nuvora’s ability to continue as a going concern. As of June 30, 2026, no impairment indicators were identified, and no observable transaction events were identified during the three- and six-month periods that would require remeasurement of the carrying amount.

The carrying amount of the investment in Nuvora was $2,000,000 at June 30, 2026 (December 31, 2025: $2,000,000). The investment is not measured at fair value on a recurring basis. If the Company were to remeasure the investment to fair value, the inputs used would be classified within Level 3 of the fair value hierarchy in ASC 820, principally because Nuvora is a privately held company without publicly traded equity securities or other readily observable inputs. The carrying amount of the investment is supported by an independent IRC Section 409A valuation report dated January 19, 2026, prepared by Pratibha Chaurasia, CPA, CA, PhD (AICPA License No. CA-0014706), which supported a fair market value of $2.00 per share for Nuvora common stock as of December 31, 2025.