| Schedule of Derivative Liability Using a Black-Scholes Method |
The Company valued the derivative liability using a Black-Scholes method using following assumptions: | | | Initial Valuation | | | Initial Valuation | | | Initial Valuation | | | Reporting Date | | | | | March 23,
2026 | | | April
2026 | | | June 17,
2026 | | | June 30,
2026 | | | Stock price | | $ | 2.50 | | | | $6.81 - $19.03 | | | $ | 2.61 | | | $ | 1.90 | | | Risk-free interest rate | | | 3.76% - 3.95 | % | | | 3.68% - 3.95 | % | | | 3.98 | % | | | 3.98% - 4.19 | % | | Expected term (in years) | | | 1.00 - 5.00 | | | | 1.00 - 5.00 | | | | 1.00 | | | | 0.77 - 4.77 | | | Expected volatility | | | 100.00 | % | | | 100.00 | % | | | 100.00 | % | | | 100.00 | % | | Expected dividend yield | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % | | | 0.00 | % |
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| Schedule of Summary of the Derivative Liability |
The following table summarizes the changes in the fair value of the Company’s Level 3 derivative liabilities: | | | Three Months
Ended
June 30,
2026 | | | Six Months
Ended
June 30,
2026 | | | Balance at beginning of period | | $ | 621,274 | | | $ | - | | | Issuances of derivative liabilities | | | 3,878,214 | | | | 4,501,872 | | | Change in fair value of derivative liabilities | | | (2,426,791 | ) | | | (2,429,175 | ) | | Balance at end of period | | $ | 2,072,697 | | | $ | 2,072,697 | | Derivative liabilities consist of the following bifurcated conversion features and warrants. The fair values of the April 2026 tranches at June 30, 2026 were separately determined using the assumptions set out above; the amount shown for the March 2026 issuance represents the balance of the total recorded fair value of the Company’s derivative liabilities at that date: | | | Date Issued | | Fair Value at
Issuance | | | Fair Value at
June 30,
2026 | | | | | | | | | | | | | Convertible note and warrants — March 2026 issuance | | March 23, 2026 | | $ | 623,658 | | | $ | 496,624 | | | Convertible note and warrants — First Tranche | | April 7, 2026 | | | 3,454,690 | | | | 1,212,677 | | | Convertible note — Second Tranche | | April 30, 2026 | | | 290,048 | | | | 272,779 | | | Convertible note — FirstFire | | June 17, 2026 | | | 133,476 | | | | 90,617 | | | Total derivative liabilities | | | | $ | 4,501,872 | | | $ | 2,072,697 | |
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