NOTE 6 — STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS

Options

The Company does not have an Incentive Stock Plan in place.

Restricted Stock Units (“RSU”)

All previously issued RSUs were terminated as part of the bankruptcy. No RSUs were issued after the bankruptcy. As such, there are no RSUs outstanding as of June 30, 2026, and December 31, 2025

Warrants

Warrants in connection with 10% OID Senior Secured Convertible Notes

In connection with the issuance of the 10% Senior Secured Convertible Notes the Company issued warrants. The warrants can only be exercised upon a qualified offering. The warrants have an exercise price equal to 93.75% of the price of the qualified offering, subject to a minimum exercise price of $1, coverage of 50% and a term of five years. Effective June 30, 2026, these warrants were exchanged for new Series C warrants.

Warrants in connection with 35% OID Super Priority Senior Secured Convertible Notes

In connection with the issuance of the 35% Senior Secured Convertible Notes the Company issued warrants. The warrants can only be exercised upon a qualified offering. The warrants have an exercise price equal to 93.75% of the price of the qualified offering, subject to a minimum exercise price of $1, coverage of 50% and a term of five years. Effective June 30, 2026, these warrants were exchanged for new Series C warrants.

Warrants in connection with 20% OID Unsecured Convertible Notes Payable

In connection with the issuance of the 20% Unsecured Convertible Notes the Company issued warrants. The warrants have an exercise price equal to 85% of the price of the qualified financing price (as defined under the warrant), coverage of 150% and a term of five years from the date of the warrant.

Warrants in connection with Series B Preferred Convertible Stock

In connection with the issuance of the Series B Preferred Convertible Stock the Company issued warrants. The warrants can only be exercised upon a qualified offering. The warrants have an exercise price equal to 93.75% of the price of the qualified offering, subject to a minimum exercise price of $1, coverage of 50% and a term of five years. Effective June 30, 2026, these warrants were exchanged for new Series C warrants.

Warrants in connection with Non-Convertible Notes

In connection with the issuance of the Non-Convertible Notes the Company issued warrants. The warrants have an exercise price equal to $0.05 and a term of 5 years.

Other Warrants issued to Service Providers

The Company issued 850,000 warrants to four holders in consideration provided by them to the Company during its restructuring and bankruptcy proceedings. Of these, 200,000 warrants issued to one holder have a term of 5 years and an exercise price of $0.05, 350,000 warrants issued to one holder have a term of 5 years and an exercise price of $0.25 and 300,000 warrants (150,000 each issued to two separate holders) have a term of 5 years and an exercise price of 93.75% of the next qualifying offering. In addition, the company issued 1,210,000 additional warrants.

Warrants in connection with Series C Preferred Stock

In connection with the issuance of the Series C Preferred Stock the Company issued warrants. 1,518,675 warrants from the 10% OID Senior Secured Convertible Promissory Note with Warrant, 2,692,423 warrants from the 35% OID Super Priority Convertible Promissory Note with Warrant, 528,000 from the Series B Preferred Convertible, 3,526,875 warrants from the 20% OID Unsecured Convertible Note Payable and 850,000 warrants from Other Non-Convertible Notes were exchanged for a total of 11,181,419 warrants.

Warrants in connection with Series E Preferred Stock

In connection with the issuance of the Series E Preferred Stock the Company issued warrants. 1,455,450 warrants from the 10% OID Senior Secured Convertible Promissory Note with Warrant, 2,531,199 warrants from the 35% OID Super Priority Convertible Promissory Note with Warrant and 466,875 warrants from the 20% OID Unsecured Convertible Note Payable were exchanged for a total of 7,347,476 warrants.

Warrants outstanding as of June 30, 2026, and December 31, 2025.

 SCHEDULE OF WARRANTS OUTSTANDING

Transactions involving stock warrants issued are summarized as follows:

 SCHEDULE OF STOCK WARRANT ISSUED