NOTE 9 - DEFERRED OFFERING COSTS

Upon completion of an equity offering, including all pre-paid advances under the Securities Purchase Agreement discussed in NOTE 10, such costs are recorded as a reduction of the related proceeds and reflected as a reduction of additional paid-in capital. The deferred offering costs related to the SPA are recorded pro rata based on the pre-paid advance compared to the maximum facility.

During the six months ended June 30, 2026, the Company raised gross proceeds of $10,000,000 under pre-paid purchase agreements.

The following summarizes the deferred offering balances as of and for the six months ended June 30, 2026:

SCHEDULE OF DEFERRED OFFERING COSTS  

During the six months ended June 30, 2026, the Company recorded $2,174,671 of deferred offering costs as a reduction of additional paid-in capital in connection with the convertible note financing transaction discussed in NOTE 10. As of June 30, 2026, the Company had remaining deferred offering costs of $3,475,514 related to equity financing transactions under the Securities Purchase Agreement discussed in NOTE 10, which are expected to be recorded as a reduction of additional paid-in capital upon completion of the related transactions.