NOTE 15: PURCHASE OPTION AGREEMENT

On March 24, 2026, the Company entered into an Option to Purchase Agreement with Wasatch Springs Management Holdings, LLC (“Wasatch Springs”) for the potential purchase of the Zermatt Resort in Midway, Utah (the “Option Agreement”). Pursuant to the terms of the Option Agreement, the Company acquired a 60-day option to purchase the Zermatt Resort from Wasatch Springs. The Company paid $250,000 for the option, which is non-refundable, except in the event of a material breach of the agreement by the seller. During the 60-day option period, the Company will assume operational control of the resort, conduct due diligence related to the feasibility of the purchase, and negotiate with the resort’s creditors and debtholders regarding a potential purchase by the Company. If the Company elects to exercise the option and purchase the Zermatt Resort, the purchase price would be the appraised value of the property less any debt assumed by the Company or such other price as the parties mutually agree. The $250,000 option price would be applied toward the purchase price. On May 22, 2026, the Company entered into a First Addendum to the Option to Purchase Agreement, extending the option period for an additional 90 days. There were no other changes to that agreement.

Whether the Company elects to exercise the option depends on a number of factors, including, but not limited to successful completion of the following: (1) standard due diligence related to the property and resort operations; (2) restructuring negotiations with Wasatch Springs and the resort’s existing creditors and debtholders; (3) capital raising discussions and plans with the Company’s funding sources; and (4) completion of preliminary renovation plans. If any of the foregoing is not successfully completed, the Company would not elect to exercise the option. If the Company does elect to exercise the option, it would do so with the intention of operating the resort and completing a renovation of the property.

Management evaluated the option payment for impairment as of June 30, 2026 based on the continuing validity of the option, the status of due diligence and financing activities, and the Company’s intent and ability to pursue the transaction. As a result of this evaluation, the Company determined that no impairment was required as of June 30, 2026.