| SEGMENT INFORMATION |
NOTE 13 – SEGMENT INFORMATION
The Company operates as one operating segment. The
Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information
presented on a consolidated basis. The CODM uses consolidated operating margin and net income (loss) to assess financial performance and
allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the allocation of budget between
cost of revenues, sales and marketing, professional fees, and general and administrative expenses.
The following table presents selected financial information
with respect to the Company’s single operating segment for the three and six months ended June 30, 2026 and 2025:
SCHEDULE OF FINANCIAL INFORMATION
| | |
June 30, 2026 | | |
June 30, 2025 | |
| | |
For the Three Months Ended | |
| | |
June 30, 2026 | | |
June 30, 2025 | |
| Operating expenses | |
| | | |
| | |
| General and administrative expenses | |
$ | 1,010,441 | | |
$ | 623,155 | |
| Professional fees | |
| 1,549,769 | | |
| 525,655 | |
| Total operating expenses | |
| 2,560,210 | | |
| 1,148,810 | |
| Operating loss | |
| (2,560,210 | ) | |
| (1,148,810 | ) |
| Operating margin | |
| -100 | % | |
| -100 | % |
| | |
| | | |
| | |
| Other income (expenses) | |
| | | |
| | |
| Patent infringement income | |
| - | | |
| 13,096 | |
| Change in derivative liability | |
| (110,632 | ) | |
| - | |
| Change in fair value of earnout shares liability | |
| - | | |
| 12,633 | |
| Interest income | |
| - | | |
| - | |
| Shareholder settlement expense | |
| - | | |
| - | |
| Change in fair value of warrants liability | |
| 924,201 | | |
| (581,842 | ) |
| Loss on settlement of debt | |
| - | | |
| (598,324 | ) |
| Interest expense | |
| (402,419 | ) | |
| (483,815 | ) |
| Total other income (expense) | |
| 411,150 | | |
| (1,638,252 | ) |
| Income tax expense | |
| - | | |
| - | |
| Net loss | |
$ | (2,149,060 | ) | |
$ | (2,787,062 | ) |
| | |
June 30, 2026 | | |
June 30, 2025 | |
| | |
For the Six Months Ended | |
| | |
June 30, 2026 | | |
June 30, 2025 | |
| Operating expenses | |
| | | |
| | |
| General and administrative expenses | |
$ | 2,007,446 | | |
$ | 1,690,225 | |
| Professional fees | |
| 4,359,910 | | |
| 817,786 | |
| Total operating expenses | |
| 6,367,356 | | |
| 2,508,011 | |
| Operating loss | |
| (6,367,356 | ) | |
| (2,508,011 | ) |
| Operating margin | |
| -100 | % | |
| -100 | % |
| | |
| | | |
| | |
| Other income (expenses) | |
| | | |
| | |
| Patent infringement income | |
| 325,000 | | |
| 13,096 | |
| Interest income | |
| - | | |
| 6 | |
| Change in derivative liability | |
| (110,632 | ) | |
| - | |
| Change in fair value of earnout shares liability | |
| - | | |
| 1,051,915 | |
| Change in fair value of warrants liability | |
| 1,133,130 | | |
| (347,647 | ) |
| Shareholder settlement expense | |
| (150,000 | ) | |
| - | |
| Loss on settlement of debt | |
| (6,929 | ) | |
| (598,324 | ) |
| Interest expense | |
| (993,104 | ) | |
| (706,178 | ) |
| Total other income (expense) | |
| 197,465 | | |
| (587,132 | ) |
| Income tax expense | |
| - | | |
| - | |
| Net loss | |
$ | (6,169,891 | ) | |
$ | (3,095,143 | ) |
The Company had $127,847 and $8,050 in long-lived
tangible assets as of June 30, 2026 and December 31, 2025, respectively.
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