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NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS AppTech Payments Corp. (“AppTech” or the “Company”), a Delaware corporation, is a Fintech Company headquartered in Carlsbad, California. AppTech utilizes payment processing and digital banking technologies to complement its core merchant services capabilities. The Company’s software provides progressive and adaptable products that are available through a suite of synergistic offerings directly to merchants, banking institutions, and business enterprises. AppTech has a digital payments platform that we acquired and are further developing digital banking products to power commerce experiences for clients and their customers. Based upon industry standards for payment and banking protocols, we will offer standalone products and fully integrated solutions that deliver innovative, unparalleled payments, banking, and financial services experiences. Our processing technologies can be taken off-the-shelf or tapped into via our RESTful APIs to build fully branded and customizable experiences while supporting tokenized, multi-channel, and multi-method transactions. AppTech trades under the symbol “APCX” and its warrants trade under the symbol “APCXW”. Purchase of Infinitus Pay, Inc. On October 31, 2025 (the “Acquisition Date”), the Company acquired 100% of the outstanding equity interests of Infinitus Pay Inc. (“IP”), a provider of payment platform solutions, pursuant to a Stock Purchase and Share Exchange Agreement dated October 30, 2025. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations. The acquisition enhances the Company’s Banking-as-a-Service (BaaS) and digital commerce offerings by integrating IP’s technology platform and customer relationships. Total consideration transferred was $<span id="xdx_909_eus-gaap--BusinessCombinationConsiderationTransferred1_pn3n3_c20251030__20251031__us-gaap--BusinessAcquisitionAxis__custom--InfinitusPayIncMember_zFvcWwUdelK8" title="Acquisition, consideration transferred">3,555, consisting of $2,000 in cash, $<span id="xdx_90E_eus-gaap--BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable_pn3n3_c20251030__20251031__us-gaap--BusinessAcquisitionAxis__custom--InfinitusPayIncMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonStockMember_zDZ1fOCvx0Qk" title="Business acquisition, common stock issued">800 in common stock (valued at the closing market price on the acquisition date), $<span id="xdx_90F_eus-gaap--BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable_pn3n3_c20251030__20251031__us-gaap--BusinessAcquisitionAxis__custom--InfinitusPayIncMember__us-gaap--StatementClassOfStockAxis__custom--WarrantsMember_zcHF6MUzC9o4" title="Business acquisition, common stock issued">365 in equity-classified warrants (recorded in additional paid-in capital at fair value using an option pricing model), and $<span id="xdx_90D_eus-gaap--BusinessCombinationAssetsAndLiabilitiesArisingFromContingenciesAmountRecognized_iI_pn3n3_c20251031__us-gaap--BusinessAcquisitionAxis__custom--InfinitusPayIncMember_zSmMNGPW3xWk" title="Business acquisition, contingent consideration">390 related to contingent consideration. The purchase price was allocated to the identifiable assets acquired and liabilities assumed based on estimated fair values at the acquisition date. Identifiable intangible assets totaled $<span id="xdx_906_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibles_iI_pn3n3_c20251031__us-gaap--BusinessAcquisitionAxis__custom--InfinitusPayIncMember_zpHqoqc1aB8j" title="Business acquistion, intangible assets acquired">1,760, resulting in goodwill of $1,795. Net acquired assets totaled $<span id="xdx_905_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedAssets_iI_pn3n3_c20251031__us-gaap--BusinessAcquisitionAxis__custom--InfinitusPayIncMember_zU9aVCJQAIMh" title="Business acquisition, net assets acquired">3,504, including $<span id="xdx_90F_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIndefiniteLivedIntangibleAssets_iI_pn3n3_c20251031__us-gaap--BusinessAcquisitionAxis__custom--InfinitusPayIncMember_zl7k7hNrhBOk" title="Business acquisition, software acquired">1,387 related to software, which is being amortized on a straight-line basis over five years. Liquidity and Going Concern Considerations The Company has experienced recurring operating losses, primarily due to limited revenues and net cash used in operations. The Company's current financial conditions and recurring losses raise substantial doubt about its ability to continue as a going concern. In late 2024, we reorganized senior leadership and initiated actions to reduce indebtedness to improve the current financial condition. In addition, we are actively pursuing additional funding options and are confident that our revenue streams will begin generating cash, although no assurances can be made. Management continues to maintain adequate working capital and adhere to prudent financial forecasting.

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NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of the Company’s management, the accompanying financial statements reflect all adjustments, consisting of normal, recurring adjustments, considered necessary for a fair presentation of the results for the interim periods ended June 30, 2026 and June 30, 2025. Although management believes that the disclosures in these unaudited financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in unaudited condensed consolidated financial statements that have been prepared in accordance with U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and notes related thereto and included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The interim results for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the year ended December 31, 2026 or for any future interim periods. Basis of Consolidation The consolidated unaudited financial statements include the accounts of AppTech, and wholly owned subsidiaries of which the Company is the primary beneficiary. All significant inter-company accounts and transactions are eliminated in consolidation. Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Concentration of Credit Risk Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250,000 per institution that pays Federal Deposit Insurance Corporation (“FDIC”) insurance premiums. The Company has never experienced any losses related to these balances. As of June 30, 2026, the Company did <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dpo_c20260101__20260630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomersMember_zGG7MFwwMrmc" title="Concentration risk, percentage">not have an accounts receivable concentration risk. As of December 31, 2025, one customer accounted for <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomerMember_zBr62fPjEWce" title="Concentration risk, percentage">16% of the accounts receivable balance. For the six months ended June 30, 2026, <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomersMember_zw06XFLSO71d">15% of the Company’s revenue was generated from one customer. For the six months ended June 30, 2025, the top two customers represented <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomersMember_z3VBCKNmjbFb">66% of total revenues. Cash and Cash Equivalents The Company's cash consists of cash on deposit at its bank. Cash equivalents, if applicable, represents highly liquid investments with maturities of three months or less at the date of purchase. Management determines the appropriate classification. Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the invoiced amount and presented net of an allowance for credit losses, when applicable. The Company estimates the allowance for credit losses using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical loss experience is generally the starting point for estimating expected credit losses, which is then adjusted for current conditions and reasonable and supportable forecasts of future economic conditions, as applicable. The Company regularly monitors receivables for collectability and updates its estimate of expected credit losses at each reporting date. Historically, the Company has not experienced significant credit losses on its accounts receivable and, as a result, maintains an allowance for credit losses of $0 as of June 30, 2026 and December 31, 2025, respectively. The Company has not written off any material accounts receivable balances in the periods presented. Loan Receivables and Interest Income Loan receivable represents amounts due to the Company under contractual lending arrangements. Loans are recorded at their outstanding principal balance, net of any allowance for expected credit losses, when applicable. The Company evaluates loan receivables for collectability on a regular basis and considers relevant factors such as payment history, financial condition of the borrower, and current economic conditions. Interest income is recognized over the term of the loan using the effective interest method, based on the principal amount outstanding. Accrual of interest is discontinued when, in management’s opinion, the collectability of principal or interest becomes uncertain. Payments received on nonaccrual loans are applied to principal unless otherwise determined by management. Convertible Notes Convertible notes represent debt instruments that may be converted into the Company’s equity securities upon the occurrence of certain events or at the option of the holder, in accordance with the terms of the agreement. Convertible notes are recorded at their principal amount, net of any unamortized debt discount and issuance costs. The Company evaluates the terms of each convertible note to determine whether any embedded features, including conversion options, should be accounted for separately or as a component of the note. Debt discounts, including those arising from embedded derivative liabilities or other embedded elements, are amortized to interest expense over the term of the notes using the effective interest method. Upon conversion, the carrying value of the convertible note, including any unamortized discount, is reclassified to equity. Revenue Recognition The Company accounts for revenue under Accounting Standards Codification (“ASC”) 606 Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Setup Fees The Company provides one-time customer setup services that include gathering and validating required compliance documentation for its banking partners and performing the technical integration necessary to establish an operational merchant profile on the Company’s platform. As part of the setup, customers receive stand-alone value by receiving a named bank account with our banking partner that they can use independent of us. Setup services are satisfied at a point in time when the customer or subaccount is fully configured and enabled to transact on the platform. Revenue is recognized upon completion of setup, which generally coincides with month-end billing. Monthly Platform and Transaction-Based Fees Monthly recurring platform access fees and transaction-based fees represent consideration for continuous platform access and payment processing services and are recognized monthly as the services are performed. Transaction-based fees, which represent variable consideration, are recognized in the period in which the underlying transactions occur. Subaccount setup fees are recognized when the subaccount is established and made available for use. Customers are invoiced in arrears at month-end, and amounts billed but not yet collected are recorded as accounts receivable. Merchant Processing Services The Company provides merchant processing solutions for credit card and ACH transactions. We act as an intermediary between merchants, who initiate transactions and banks that process them. We collect either a flat fee, a fee for each transaction, and or a fee calculated as a percentage of its value, from both credit cards and ACHs. Revenue is recognized when transactions are processed by banks or at month-end based on the processing activity. Payments to channel partners are deducted from revenue. Accrued Residuals The Company pays commissions to independent agents who refer merchant accounts. The amounts payable to these independent agents are based upon a percentage of the amounts processed by these merchant accounts. Intangible Assets and Intellectual Property Intellectual Property The Company amortizes intellectual property based on the estimated period over which the economic benefits of the intangible assets are expected to be consumed. Typically, the Company amortizes its intellectual property, including patents and other identifiable intangible assets, on a straight-line basis. The amortization periods generally range from three years to fifteen years, depending on the nature of the asset and its expected useful life. Capitalized Software Development Cost The Company capitalizes certain costs related to the development of its digital payment and banking platform, including employee compensation and consulting fees for third-party developers, only when it is probable that the development will result in new or additional functionality. Costs incurred during the preliminary project planning phase and post-implementation phase are expensed as incurred. The capitalized software development costs are amortized on a straight-line basis over the estimated useful life of the asset. Goodwill The Company accounts for goodwill in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”). ASC 350 requires that goodwill and other intangibles with indefinite lives should be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. Goodwill represents the excess of the purchase price over the estimated fair values of the net tangible and intangible assets of acquired entities. The Company performs a goodwill impairment test annually and more frequently if an event or circumstance indicates that impairment may have occurred. Triggering events that may indicate a potential impairment include, but are not limited to, significant adverse changes in customer demand or business climate and related competitive considerations. The Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company performs a goodwill impairment test to calculate the fair value of the applicable reporting unit(s) and compares it to its carrying amount. We recognize an impairment on any amount of the carrying value over the fair value. If the Company determines that the implied fair value of a reporting unit is greater than its carrying amount, the goodwill impairment test is not required. Management performed the analysis and no impairment was deemed necessary. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset group. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair values less costs to sell and are not depreciated. Research and Development Research and Development (R&D) expenses include internal and outsourced service costs incurred to maintain the FinZeo and Infintus Pay, Inc platforms. Per ASC 730, R&D costs are expensed as incurred. Total R&D expenses for the six months ended June 30, 2026 and 2025 were approximately $707 and $1,690, respectively. Per Share Information Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year, increased by the potentially dilutive common shares that were outstanding during the year. Dilutive securities include stock options, warrants granted, and convertible preferred stock. The number of common stock equivalents not included in diluted income per share was <span id="xdx_905_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260101__20260630_z0TtErOypEYh" title="Antidilutive securities excluded from computation of earnings per share, amount">36,735,129 and <span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20250630_zAo1CyrUVzdd" title="Antidilutive securities excluded from computation of earnings per share, amount">26,560,392 for the six months ended June 30, 2026 and 2025, respectively. The weighted average number of common stock equivalents is not included in diluted income (loss) per share because the effects are anti-dilutive. <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z93mj4ExbK8j" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Antidilutive shares)"> <tr style="vertical-align: bottom"> <td>Schedule of weighted average number of common stock equivalents</td> <td> </td> <td colspan="2" id="xdx_490_20260101__20260630_zoqIAimj8aTj" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" id="xdx_497_20250101__20250630_zgxug7rMrj14" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">June 30, 2026</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">June 30, 2025</td> <td> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zyZsIXBR7227" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 68%">Series A preferred stock</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 13%; text-align: right">1,148</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 13%; text-align: right">1,148</td> <td style="width: 1%"> </td></tr> <tr id="xdx_407_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zXXPCiErYIH6" style="vertical-align: bottom; background-color: white"> <td>Warrants</td> <td> </td> <td> </td> <td style="text-align: right">29,781,627</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">21,031,627</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--OptionsMember_z7VGHnecOHv7" style="vertical-align: bottom; background-color: #EEEEEE"> <td>Options</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">6,952,354</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">5,527,617</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_zWQr1BnDTTba" style="vertical-align: bottom; background-color: white"> <td>Total</td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">36,735,129</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">26,560,392</td> <td> </td></tr> </table> Stock-Based Compensation Stock options are valued using the estimated grant-date fair value method of accounting in accordance with ASC Topic 718, Compensation – Stock Compensation. Fair value is determined based on the Black-Scholes Model using inputs reflecting our estimates of expected volatility, term and future dividends. We recognize forfeitures as they occur. The Company has several consulting agreements that have share-based payment awards based on performance. These agreements typically require the Company to issue common stock to the consultants on a monthly basis. The Company records the fair market value of the common stock issuable at each month end when the performance is complete based upon the closing market price of the Company’s common stock. Segment Reporting In accordance with ASC 280, Segment Reporting (“ASC 280”), we identify our operating segments according to how our business activities are managed and evaluated. ASC 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision makers (“CODMs”) in deciding how to allocate resources and assess performance. The CODMs have been identified as the Chief Executive Officer and Chief Financial Officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one operating and reportable segment. The key measures of segment profit or loss reviewed by our CODMs are revenue and operating expenses. Revenue is monitored by the CODMs to understand the performance of its verticals. Operating expenses are reviewed and monitored by the CODMs to manage and forecast cash. The CODMs also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and internal budgets. Fair Value Measurements The Company measures certain assets and liabilities at fair value in accordance with applicable accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the measurement date. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company categorizes fair value measurements within a three-level hierarchy based on the nature of the inputs used in the valuation, as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 31px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">Level 1 — Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.</td></tr> <tr style="vertical-align: top"> <td> </td> <td>·</td> <td style="text-align: justify">Level 2 — Inputs are observable for the asset or liability, either directly or indirectly, but do not include quoted prices for identical instruments in active markets. These inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, and other observable inputs such as interest rates and yield curves.</td></tr> <tr style="vertical-align: top"> <td> </td> <td>·</td> <td style="text-align: justify">Level 3 — Inputs are unobservable and reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available in the circumstances.</td></tr> </table> The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of the asset or liability. The Company may be obligated to pay contingent consideration of up to $1,000 associated with the Infinitus Pay, Inc. acquisition upon achievement of specified performance targets. This consideration was initially measured at fair value using a Monte Carlo simulation and is recorded as a liability, subject to remeasurement at each reporting date with changes recognized in earnings. This contingent consideration liability is classified as a Level 3 fair value measurement; it is remeasured at each reporting date with changes in fair value recognized in earnings. The following table presents a rollforward of the liability for the period: <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionContingentConsiderationTextBlock_pn3n3_zSDs3jsB7JN" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Rollforward of the liability)"> <tr style="vertical-align: bottom"> <td>Schedule of contingent consideration liability</td><td> </td> <td colspan="2" id="xdx_491_20260101__20260630_zgL8vKimedu4" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-style: italic; text-align: justify">$ in thousands</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40D_eus-gaap--BusinessCombinationContingentConsiderationLiability_iS_d0_zAXRkFjKfZbi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%">Balance at December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">564</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1_za71NWAD2HV8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Loss on change in fair value of contingent consideration</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">262</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--BusinessCombinationContingentConsiderationLiability_iE_zwjKGTzI6Led" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total contingent liability</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">826</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issues Accounting Standards Updates (“ASUs”) to amend the authoritative accounting guidance in the Accounting Standards Codification (“ASC”). On November 4, 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures. This ASU provides guidance to public companies regarding footnote disclosures of natural expense components (such as employee compensation, depreciation, and amortization) included within each relevant income statement expense caption. The guidance is effective for public companies for fiscal years beginning after December 15, 2026. The Company is currently assessing the impact of the new guidance on its financial statement disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (the “internal-use software update”). This ASU modernizes the accounting for internal-use software costs to better reflect agile development methods. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. Per the guidance, the effective date of the ASU is for annual reporting periods after December 15, 2027. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU clarifies the applicability of interim reporting guidance and reorganizes certain interim disclosure requirements within ASC 270 to improve consistency and usability. The guidance also introduces a disclosure principle requiring entities to disclose material events and changes occurring after the most recent annual reporting period. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. Per the guidance, the effective date of the ASU is for interim reporting periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Except as noted above, the Company believes that recent ASUs issued by the FASB either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company, or (iv) are not expected to have a material impact on the Company’s consolidated financial statements or related disclosures.

Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of the Company’s management, the accompanying financial statements reflect all adjustments, consisting of normal, recurring adjustments, considered necessary for a fair presentation of the results for the interim periods ended June 30, 2026 and June 30, 2025. Although management believes that the disclosures in these unaudited financial statements are adequate to make the information presented not misleading, certain information and footnote disclosures normally included in unaudited condensed consolidated financial statements that have been prepared in accordance with U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and notes related thereto and included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The interim results for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the year ended December 31, 2026 or for any future interim periods.

Basis of Consolidation The consolidated unaudited financial statements include the accounts of AppTech, and wholly owned subsidiaries of which the Company is the primary beneficiary. All significant inter-company accounts and transactions are eliminated in consolidation.

Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Concentration of Credit Risk Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits of $250,000 per institution that pays Federal Deposit Insurance Corporation (“FDIC”) insurance premiums. The Company has never experienced any losses related to these balances. As of June 30, 2026, the Company did <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dpo_c20260101__20260630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomersMember_zGG7MFwwMrmc" title="Concentration risk, percentage">not have an accounts receivable concentration risk. As of December 31, 2025, one customer accounted for <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20251231__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomerMember_zBr62fPjEWce" title="Concentration risk, percentage">16% of the accounts receivable balance. For the six months ended June 30, 2026, <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20260101__20260630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--OneCustomersMember_zw06XFLSO71d">15% of the Company’s revenue was generated from one customer. For the six months ended June 30, 2025, the top two customers represented <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pip0_dp_c20250101__20250630__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomersMember_z3VBCKNmjbFb">66% of total revenues.

0.16

0.15

0.66

Cash and Cash Equivalents The Company's cash consists of cash on deposit at its bank. Cash equivalents, if applicable, represents highly liquid investments with maturities of three months or less at the date of purchase. Management determines the appropriate classification.

Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at the invoiced amount and presented net of an allowance for credit losses, when applicable. The Company estimates the allowance for credit losses using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical loss experience is generally the starting point for estimating expected credit losses, which is then adjusted for current conditions and reasonable and supportable forecasts of future economic conditions, as applicable. The Company regularly monitors receivables for collectability and updates its estimate of expected credit losses at each reporting date. Historically, the Company has not experienced significant credit losses on its accounts receivable and, as a result, maintains an allowance for credit losses of $0 as of June 30, 2026 and December 31, 2025, respectively. The Company has not written off any material accounts receivable balances in the periods presented.

Loan Receivables and Interest Income Loan receivable represents amounts due to the Company under contractual lending arrangements. Loans are recorded at their outstanding principal balance, net of any allowance for expected credit losses, when applicable. The Company evaluates loan receivables for collectability on a regular basis and considers relevant factors such as payment history, financial condition of the borrower, and current economic conditions. Interest income is recognized over the term of the loan using the effective interest method, based on the principal amount outstanding. Accrual of interest is discontinued when, in management’s opinion, the collectability of principal or interest becomes uncertain. Payments received on nonaccrual loans are applied to principal unless otherwise determined by management.

Convertible Notes Convertible notes represent debt instruments that may be converted into the Company’s equity securities upon the occurrence of certain events or at the option of the holder, in accordance with the terms of the agreement. Convertible notes are recorded at their principal amount, net of any unamortized debt discount and issuance costs. The Company evaluates the terms of each convertible note to determine whether any embedded features, including conversion options, should be accounted for separately or as a component of the note. Debt discounts, including those arising from embedded derivative liabilities or other embedded elements, are amortized to interest expense over the term of the notes using the effective interest method. Upon conversion, the carrying value of the convertible note, including any unamortized discount, is reclassified to equity.

Revenue Recognition The Company accounts for revenue under Accounting Standards Codification (“ASC”) 606 Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers.

Setup Fees The Company provides one-time customer setup services that include gathering and validating required compliance documentation for its banking partners and performing the technical integration necessary to establish an operational merchant profile on the Company’s platform. As part of the setup, customers receive stand-alone value by receiving a named bank account with our banking partner that they can use independent of us. Setup services are satisfied at a point in time when the customer or subaccount is fully configured and enabled to transact on the platform. Revenue is recognized upon completion of setup, which generally coincides with month-end billing. Monthly Platform and Transaction-Based Fees Monthly recurring platform access fees and transaction-based fees represent consideration for continuous platform access and payment processing services and are recognized monthly as the services are performed. Transaction-based fees, which represent variable consideration, are recognized in the period in which the underlying transactions occur. Subaccount setup fees are recognized when the subaccount is established and made available for use. Customers are invoiced in arrears at month-end, and amounts billed but not yet collected are recorded as accounts receivable. Merchant Processing Services The Company provides merchant processing solutions for credit card and ACH transactions. We act as an intermediary between merchants, who initiate transactions and banks that process them. We collect either a flat fee, a fee for each transaction, and or a fee calculated as a percentage of its value, from both credit cards and ACHs. Revenue is recognized when transactions are processed by banks or at month-end based on the processing activity. Payments to channel partners are deducted from revenue. Accrued Residuals The Company pays commissions to independent agents who refer merchant accounts. The amounts payable to these independent agents are based upon a percentage of the amounts processed by these merchant accounts.

Intangible Assets and Intellectual Property Intellectual Property The Company amortizes intellectual property based on the estimated period over which the economic benefits of the intangible assets are expected to be consumed. Typically, the Company amortizes its intellectual property, including patents and other identifiable intangible assets, on a straight-line basis. The amortization periods generally range from three years to fifteen years, depending on the nature of the asset and its expected useful life. Capitalized Software Development Cost The Company capitalizes certain costs related to the development of its digital payment and banking platform, including employee compensation and consulting fees for third-party developers, only when it is probable that the development will result in new or additional functionality. Costs incurred during the preliminary project planning phase and post-implementation phase are expensed as incurred. The capitalized software development costs are amortized on a straight-line basis over the estimated useful life of the asset. Goodwill The Company accounts for goodwill in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”). ASC 350 requires that goodwill and other intangibles with indefinite lives should be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. Goodwill represents the excess of the purchase price over the estimated fair values of the net tangible and intangible assets of acquired entities. The Company performs a goodwill impairment test annually and more frequently if an event or circumstance indicates that impairment may have occurred. Triggering events that may indicate a potential impairment include, but are not limited to, significant adverse changes in customer demand or business climate and related competitive considerations. The Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company performs a goodwill impairment test to calculate the fair value of the applicable reporting unit(s) and compares it to its carrying amount. We recognize an impairment on any amount of the carrying value over the fair value. If the Company determines that the implied fair value of a reporting unit is greater than its carrying amount, the goodwill impairment test is not required. Management performed the analysis and no impairment was deemed necessary.

Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset or asset group exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset or asset group exceeds the estimated fair value of the asset or asset group. Long-lived assets to be disposed of by sale are reported at the lower of their carrying amounts or their estimated fair values less costs to sell and are not depreciated.

Research and Development Research and Development (R&D) expenses include internal and outsourced service costs incurred to maintain the FinZeo and Infintus Pay, Inc platforms. Per ASC 730, R&D costs are expensed as incurred. Total R&D expenses for the six months ended June 30, 2026 and 2025 were approximately $707 and $1,690, respectively.

707000

1690000

Per Share Information Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year, increased by the potentially dilutive common shares that were outstanding during the year. Dilutive securities include stock options, warrants granted, and convertible preferred stock. The number of common stock equivalents not included in diluted income per share was <span id="xdx_905_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20260101__20260630_z0TtErOypEYh" title="Antidilutive securities excluded from computation of earnings per share, amount">36,735,129 and <span id="xdx_90C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20250101__20250630_zAo1CyrUVzdd" title="Antidilutive securities excluded from computation of earnings per share, amount">26,560,392 for the six months ended June 30, 2026 and 2025, respectively. The weighted average number of common stock equivalents is not included in diluted income (loss) per share because the effects are anti-dilutive. <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z93mj4ExbK8j" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Antidilutive shares)"> <tr style="vertical-align: bottom"> <td>Schedule of weighted average number of common stock equivalents</td> <td> </td> <td colspan="2" id="xdx_490_20260101__20260630_zoqIAimj8aTj" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" id="xdx_497_20250101__20250630_zgxug7rMrj14" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">June 30, 2026</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">June 30, 2025</td> <td> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zyZsIXBR7227" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 68%">Series A preferred stock</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 13%; text-align: right">1,148</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 13%; text-align: right">1,148</td> <td style="width: 1%"> </td></tr> <tr id="xdx_407_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zXXPCiErYIH6" style="vertical-align: bottom; background-color: white"> <td>Warrants</td> <td> </td> <td> </td> <td style="text-align: right">29,781,627</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">21,031,627</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--OptionsMember_z7VGHnecOHv7" style="vertical-align: bottom; background-color: #EEEEEE"> <td>Options</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">6,952,354</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">5,527,617</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_zWQr1BnDTTba" style="vertical-align: bottom; background-color: white"> <td>Total</td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">36,735,129</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">26,560,392</td> <td> </td></tr> </table>

36735129

26560392

<table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z93mj4ExbK8j" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Antidilutive shares)"> <tr style="vertical-align: bottom"> <td>Schedule of weighted average number of common stock equivalents</td> <td> </td> <td colspan="2" id="xdx_490_20260101__20260630_zoqIAimj8aTj" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" id="xdx_497_20250101__20250630_zgxug7rMrj14" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">June 30, 2026</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">June 30, 2025</td> <td> </td></tr> <tr id="xdx_405_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--SeriesAPreferredStockMember_zyZsIXBR7227" style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 68%">Series A preferred stock</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 13%; text-align: right">1,148</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 13%; text-align: right">1,148</td> <td style="width: 1%"> </td></tr> <tr id="xdx_407_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zXXPCiErYIH6" style="vertical-align: bottom; background-color: white"> <td>Warrants</td> <td> </td> <td> </td> <td style="text-align: right">29,781,627</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">21,031,627</td> <td> </td></tr> <tr id="xdx_402_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_hus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--OptionsMember_z7VGHnecOHv7" style="vertical-align: bottom; background-color: #EEEEEE"> <td>Options</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">6,952,354</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">5,527,617</td> <td> </td></tr> <tr id="xdx_400_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pip0_zWQr1BnDTTba" style="vertical-align: bottom; background-color: white"> <td>Total</td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">36,735,129</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">26,560,392</td> <td> </td></tr> </table>

1148

29781627

21031627

6952354

5527617

36735129

26560392

Stock-Based Compensation Stock options are valued using the estimated grant-date fair value method of accounting in accordance with ASC Topic 718, Compensation – Stock Compensation. Fair value is determined based on the Black-Scholes Model using inputs reflecting our estimates of expected volatility, term and future dividends. We recognize forfeitures as they occur. The Company has several consulting agreements that have share-based payment awards based on performance. These agreements typically require the Company to issue common stock to the consultants on a monthly basis. The Company records the fair market value of the common stock issuable at each month end when the performance is complete based upon the closing market price of the Company’s common stock.

Segment Reporting In accordance with ASC 280, Segment Reporting (“ASC 280”), we identify our operating segments according to how our business activities are managed and evaluated. ASC 280 establishes standards for companies to report financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision makers (“CODMs”) in deciding how to allocate resources and assess performance. The CODMs have been identified as the Chief Executive Officer and Chief Financial Officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one operating and reportable segment. The key measures of segment profit or loss reviewed by our CODMs are revenue and operating expenses. Revenue is monitored by the CODMs to understand the performance of its verticals. Operating expenses are reviewed and monitored by the CODMs to manage and forecast cash. The CODMs also reviews operating costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and internal budgets.

Fair Value Measurements The Company measures certain assets and liabilities at fair value in accordance with applicable accounting guidance. Fair value is defined as the price that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the measurement date. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company categorizes fair value measurements within a three-level hierarchy based on the nature of the inputs used in the valuation, as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 31px"> </td> <td style="width: 24px">·</td> <td style="text-align: justify">Level 1 — Inputs are quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.</td></tr> <tr style="vertical-align: top"> <td> </td> <td>·</td> <td style="text-align: justify">Level 2 — Inputs are observable for the asset or liability, either directly or indirectly, but do not include quoted prices for identical instruments in active markets. These inputs may include quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, and other observable inputs such as interest rates and yield curves.</td></tr> <tr style="vertical-align: top"> <td> </td> <td>·</td> <td style="text-align: justify">Level 3 — Inputs are unobservable and reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available in the circumstances.</td></tr> </table> The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of the asset or liability. The Company may be obligated to pay contingent consideration of up to $1,000 associated with the Infinitus Pay, Inc. acquisition upon achievement of specified performance targets. This consideration was initially measured at fair value using a Monte Carlo simulation and is recorded as a liability, subject to remeasurement at each reporting date with changes recognized in earnings. This contingent consideration liability is classified as a Level 3 fair value measurement; it is remeasured at each reporting date with changes in fair value recognized in earnings. The following table presents a rollforward of the liability for the period: <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionContingentConsiderationTextBlock_pn3n3_zSDs3jsB7JN" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Rollforward of the liability)"> <tr style="vertical-align: bottom"> <td>Schedule of contingent consideration liability</td><td> </td> <td colspan="2" id="xdx_491_20260101__20260630_zgL8vKimedu4" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-style: italic; text-align: justify">$ in thousands</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40D_eus-gaap--BusinessCombinationContingentConsiderationLiability_iS_d0_zAXRkFjKfZbi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%">Balance at December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">564</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1_za71NWAD2HV8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Loss on change in fair value of contingent consideration</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">262</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--BusinessCombinationContingentConsiderationLiability_iE_zwjKGTzI6Led" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total contingent liability</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">826</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfBusinessAcquisitionsByAcquisitionContingentConsiderationTextBlock_pn3n3_zSDs3jsB7JN" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Rollforward of the liability)"> <tr style="vertical-align: bottom"> <td>Schedule of contingent consideration liability</td><td> </td> <td colspan="2" id="xdx_491_20260101__20260630_zgL8vKimedu4" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-style: italic; text-align: justify">$ in thousands</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40D_eus-gaap--BusinessCombinationContingentConsiderationLiability_iS_d0_zAXRkFjKfZbi" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 83%">Balance at December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">564</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--BusinessCombinationContingentConsiderationArrangementsChangeInAmountOfContingentConsiderationLiability1_za71NWAD2HV8" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Loss on change in fair value of contingent consideration</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">262</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--BusinessCombinationContingentConsiderationLiability_iE_zwjKGTzI6Led" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 2.5pt">Total contingent liability</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">826</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

564000

262000

826000

New Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issues Accounting Standards Updates (“ASUs”) to amend the authoritative accounting guidance in the Accounting Standards Codification (“ASC”). On November 4, 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures. This ASU provides guidance to public companies regarding footnote disclosures of natural expense components (such as employee compensation, depreciation, and amortization) included within each relevant income statement expense caption. The guidance is effective for public companies for fiscal years beginning after December 15, 2026. The Company is currently assessing the impact of the new guidance on its financial statement disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (the “internal-use software update”). This ASU modernizes the accounting for internal-use software costs to better reflect agile development methods. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. Per the guidance, the effective date of the ASU is for annual reporting periods after December 15, 2027. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU clarifies the applicability of interim reporting guidance and reorganizes certain interim disclosure requirements within ASC 270 to improve consistency and usability. The guidance also introduces a disclosure principle requiring entities to disclose material events and changes occurring after the most recent annual reporting period. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. Per the guidance, the effective date of the ASU is for interim reporting periods within fiscal years beginning after December 15, 2027, with early adoption permitted. Except as noted above, the Company believes that recent ASUs issued by the FASB either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to the Company, or (iv) are not expected to have a material impact on the Company’s consolidated financial statements or related disclosures.

NOTE 3 – OTHER CURRENT ASSETS On April 11, 2025, the Company entered a three-party agreement with one of its banking partners and software providers. Under the terms of the arrangement, AppTech agreed to pay a $<span id="xdx_904_eus-gaap--ContractualObligation_iI_pn3n3_c20250411__us-gaap--TransactionTypeAxis__custom--LicensingFeeMember__srt--CounterpartyNameAxis__custom--SoftwareProviderMember_zlrmRhWtALxf" title="Contractual obligation">103 licensing fee to the software provider. In addition, the banking partner held a $250 note receivable bearing 8% interest with the software provider, while the software provider held an offsetting liability to the banking partner. As part of this arrangement, AppTech assumed the note receivable and offsetting note payable to the software provider and banking partner, respectively. AppTech further paid the accumulated interest to the bank and established an interest receivable from the software provider, which became due in June 2026. As of June 30, 2026, the accrued interest on the note receivable was $56. Management expects to collect the principal and interest for the note receivable in August 2026. Regarding the note payable owed to our banking partner, we are finalizing an agreement that amends the repayment terms to provide for five monthly payments of $50 beginning in August 2026. The amendment reflecting the revised payment terms is pending execution.

103000

250000

56000

50000

NOTE 4 – INTANGIBLE ASSETS Intellectual Property As part of the Infintitus Pay, Inc transaction, the Company acquired intangible assets valued at $<span id="xdx_906_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIndefiniteLivedIntangibleAssets_iI_pn3n3_c20251031__us-gaap--BusinessAcquisitionAxis__custom--InfintitusPayIncMember_z9OeILXOJoMb" title="Acquired intangible assets">3,504, which includes $1,795 of goodwill. $<span id="xdx_907_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIndefiniteLivedIntangibleAssets_iI_pn3n3_c20251031__us-gaap--BusinessAcquisitionAxis__custom--InfintitusPayIncMember__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--TrademarksMember_zyFUgddPKB87" title="Acquired intangible assets">322 in trademarks will not be depreciated, however, the remaining $<span id="xdx_909_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIndefiniteLivedIntangibleAssets_iI_pn3n3_c20251031__us-gaap--BusinessAcquisitionAxis__custom--InfintitusPayIncMember__us-gaap--IndefiniteLivedIntangibleAssetsByMajorClassAxis__custom--AcquiredTechnologyMember_zod8u4izQ4d5" title="Acquired intangible assets">1,387 in acquired technology will be amortized on a straight-line basis over 60 months. As of June 30, 2026 and December 31, 2025, the gross value of acquired technology is $6,108 and accumulated amortization is approximately $<span id="xdx_90E_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_pn3n3_c20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zeDlbZhCf692" title="Accumulated amortization">2,536 and $<span id="xdx_90A_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_pn3n3_c20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zYdHCYmwUYy8" title="Accumulated amortization">1,957, respectively. <table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zDjmDaCqqzx1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INTANGIBLE ASSETS (Details - Intellectual property)"> <tr style="vertical-align: bottom"> <td>Schedule of capitalized development cost</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-style: italic; text-align: justify">Intellectual Property ($ in thousands)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Beginning balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iS_pn3n3_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zOVwF42yIkv7" style="width: 13%; text-align: right" title="Beginning balance">4,151</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsGross_iS_pn3n3_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_z46NgeVFQCa1" style="width: 13%; text-align: right" title="Beginning balance">3,410</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Acquisition of intangible assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--FinitelivedIntangibleAssetsAcquired1_pn3n3_d0_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_z5M4RDo2lWE4" style="text-align: right" title="Acquisition of intangible assets">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FinitelivedIntangibleAssetsAcquired1_pn3n3_d0_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_ztrtrRLYFL3l" style="text-align: right" title="Acquisition of intangible assets">1,709</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Amortization expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--AmortizationOfIntangibleAssets_iN_pn3n3_di_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zsPFcOSq1Dpa" style="border-bottom: Black 1pt solid; text-align: right" title="Amortization expenses">(579</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AmortizationOfIntangibleAssets_iN_pn3n3_di_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_znfks5bvHnJk" style="border-bottom: Black 1pt solid; text-align: right" title="Amortization expenses">(968</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iE_pn3n3_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zHCmpEJQzZ7f" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance">3,572</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iE_pn3n3_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zRqBPiZnWqGg" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance">4,151</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Capitalized Development Cost The Company capitalizes certain costs related to the development of its digital payment and banking platform. As of June 30, 2026, and December 31, 2025, the gross value of capitalized development cost is $2,647 and accumulated amortization is approximately $1,577 and $1,326, respectively. <table cellpadding="0" cellspacing="0" id="xdx_89B_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zvAnTSb6sfPi" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INTANGIBLE ASSETS (Details - Capitalized development cost)"> <tr style="vertical-align: bottom"> <td>Schedule of capitalized development cost</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-style: italic; text-align: justify">Capitalized Development Cost ($ in thousands)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Beginning balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsGross_iS_pn3n3_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_z68gKM6BH0Rg" style="width: 13%; text-align: right" title="Beginning balance">1,321</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsGross_iS_pn3n3_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zObgpJJO2yX6" style="width: 13%; text-align: right" title="Beginning balance">1,823</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Additions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--CapitalizedComputerSoftwareAdditions_pn3n3_d0_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zS6OVktedL0f" style="text-align: right" title="Additions">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--CapitalizedComputerSoftwareAdditions_pn3n3_d0_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zySwCn6Q8k7l" style="text-align: right" title="Additions">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Amortization expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--AmortizationOfIntangibleAssets_iN_pn3n3_di_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_z5LVSw23b1a8" style="border-bottom: Black 1pt solid; text-align: right" title="Amortization expenses">(251</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--AmortizationOfIntangibleAssets_iN_pn3n3_di_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zOEAP2nsZle" style="border-bottom: Black 1pt solid; text-align: right" title="Amortization expenses">(502</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsGross_iE_pn3n3_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zaKpOU99wXC6" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance">1,070</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsGross_iE_pn3n3_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zlgsEJqxPDAd" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance">1,321</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Goodwill On October 31, 2025, the Company completed the acquisition of Infinitus Pay, Inc. The difference between the fair value of the purchase price and the net assets acquired is recorded as goodwill. As of June 30, 2026 and December 31, 2025, the goodwill was approximately $2,956.

3504000

1795000

322000

1387000

6108000

2536000

1957000

<table cellpadding="0" cellspacing="0" id="xdx_89A_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zDjmDaCqqzx1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INTANGIBLE ASSETS (Details - Intellectual property)"> <tr style="vertical-align: bottom"> <td>Schedule of capitalized development cost</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-style: italic; text-align: justify">Intellectual Property ($ in thousands)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Beginning balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--FiniteLivedIntangibleAssetsGross_iS_pn3n3_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zOVwF42yIkv7" style="width: 13%; text-align: right" title="Beginning balance">4,151</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsGross_iS_pn3n3_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_z46NgeVFQCa1" style="width: 13%; text-align: right" title="Beginning balance">3,410</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Acquisition of intangible assets</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--FinitelivedIntangibleAssetsAcquired1_pn3n3_d0_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_z5M4RDo2lWE4" style="text-align: right" title="Acquisition of intangible assets">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--FinitelivedIntangibleAssetsAcquired1_pn3n3_d0_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_ztrtrRLYFL3l" style="text-align: right" title="Acquisition of intangible assets">1,709</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Amortization expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--AmortizationOfIntangibleAssets_iN_pn3n3_di_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zsPFcOSq1Dpa" style="border-bottom: Black 1pt solid; text-align: right" title="Amortization expenses">(579</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--AmortizationOfIntangibleAssets_iN_pn3n3_di_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_znfks5bvHnJk" style="border-bottom: Black 1pt solid; text-align: right" title="Amortization expenses">(968</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iE_pn3n3_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zHCmpEJQzZ7f" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance">3,572</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsGross_iE_pn3n3_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__us-gaap--IntellectualPropertyMember_zRqBPiZnWqGg" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance">4,151</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4151000

3410000

1709000

579000

968000

3572000

4151000

2647000

1577000

1326000

<table cellpadding="0" cellspacing="0" id="xdx_89B_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_hus-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zvAnTSb6sfPi" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - INTANGIBLE ASSETS (Details - Capitalized development cost)"> <tr style="vertical-align: bottom"> <td>Schedule of capitalized development cost</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-style: italic; text-align: justify">Capitalized Development Cost ($ in thousands)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Beginning balance</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsGross_iS_pn3n3_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_z68gKM6BH0Rg" style="width: 13%; text-align: right" title="Beginning balance">1,321</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsGross_iS_pn3n3_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zObgpJJO2yX6" style="width: 13%; text-align: right" title="Beginning balance">1,823</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Additions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--CapitalizedComputerSoftwareAdditions_pn3n3_d0_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zS6OVktedL0f" style="text-align: right" title="Additions">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--CapitalizedComputerSoftwareAdditions_pn3n3_d0_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zySwCn6Q8k7l" style="text-align: right" title="Additions">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="text-align: left; padding-bottom: 1pt">Amortization expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--AmortizationOfIntangibleAssets_iN_pn3n3_di_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_z5LVSw23b1a8" style="border-bottom: Black 1pt solid; text-align: right" title="Amortization expenses">(251</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--AmortizationOfIntangibleAssets_iN_pn3n3_di_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zOEAP2nsZle" style="border-bottom: Black 1pt solid; text-align: right" title="Amortization expenses">(502</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Ending balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsGross_iE_pn3n3_c20260101__20260630__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zaKpOU99wXC6" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance">1,070</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsGross_iE_pn3n3_c20250101__20251231__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--CapitalizedSoftwareDevelopmentCostMember_zlgsEJqxPDAd" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance">1,321</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1321000

1823000

251000

502000

1070000

1321000

2956000

NOTE 5 – ACCRUED LIABILITIES Accrued liabilities as of June 30, 2026 and December 31, 2025 are as follows: <table cellpadding="0" cellspacing="0" id="xdx_882_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_pn3n3_z250VM7CpHK9" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - ACCRUED LIABILITIES (Details - Due to related parties)"> <tr style="vertical-align: bottom"> <td>Schedule of accrued liabilities</td><td> </td> <td colspan="2" id="xdx_49C_20260630_z9VQejE3k92i" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49D_20251231_zZSc8f0yqhGl" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-style: italic">Accrued Liabilities ($ in thousands)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedLiabilitiesCurrent_iI_pn3n3_hus-gaap--TransactionTypeAxis__custom--PayablesDueToSellerForAcquisitionMember_zpp9548wqtr5" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Payables due to seller for acquisition</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,200</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,200</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AccruedLiabilitiesCurrent_iI_pn3n3_hus-gaap--TransactionTypeAxis__custom--AccruedPayrollMember_zIarF65OcFj4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued payroll</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">57</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">64</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AccruedLiabilitiesCurrent_iI_pn3n3_hus-gaap--TransactionTypeAxis__custom--OtherAccruedLiabilitiesMember_zRZ3JBFJKBB9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">57</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AccruedLiabilitiesCurrent_iI_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total accrued liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,290</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,321</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> In connection with the original Purchase of Alliance Partners, $1,200 remained outstanding as of June 30, 2026 and December 31, 2025. The payable amount is secured by substantially all the Company's assets.

<table cellpadding="0" cellspacing="0" id="xdx_882_eus-gaap--ScheduleOfAccruedLiabilitiesTableTextBlock_pn3n3_z250VM7CpHK9" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - ACCRUED LIABILITIES (Details - Due to related parties)"> <tr style="vertical-align: bottom"> <td>Schedule of accrued liabilities</td><td> </td> <td colspan="2" id="xdx_49C_20260630_z9VQejE3k92i" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" id="xdx_49D_20251231_zZSc8f0yqhGl" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-style: italic">Accrued Liabilities ($ in thousands)</td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2026</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">December 31, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr id="xdx_40D_eus-gaap--AccruedLiabilitiesCurrent_iI_pn3n3_hus-gaap--TransactionTypeAxis__custom--PayablesDueToSellerForAcquisitionMember_zpp9548wqtr5" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 66%; text-align: left">Payables due to seller for acquisition</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,200</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 13%; text-align: right">1,200</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--AccruedLiabilitiesCurrent_iI_pn3n3_hus-gaap--TransactionTypeAxis__custom--AccruedPayrollMember_zIarF65OcFj4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued payroll</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">57</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">64</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--AccruedLiabilitiesCurrent_iI_pn3n3_hus-gaap--TransactionTypeAxis__custom--OtherAccruedLiabilitiesMember_zRZ3JBFJKBB9" style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">57</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--AccruedLiabilitiesCurrent_iI_pn3n3" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Total accrued liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,290</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,321</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1200000

57000

64000

33000

57000

1290000

1321000

1200000

NOTE 6 – NOTES PAYABLE The Company has a 30-year unsecured note payable with the U.S. Small Business Administration. The note payable incurred a $<span id="xdx_907_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_c20260630__us-gaap--LongtermDebtTypeAxis__custom--USSmallBusinessAdministrationMember__us-gaap--DebtInstrumentAxis__custom--UnsecuredNotePayable30YearMember_zfAHG1pImVvc" title="Debt face value">100 fee upon issuance and incurs interest at <span id="xdx_908_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pip0_dp_c20260630__us-gaap--LongtermDebtTypeAxis__custom--USSmallBusinessAdministrationMember__us-gaap--DebtInstrumentAxis__custom--UnsecuredNotePayable30YearMember_z8C1o9JeVYZ7" title="Debt stated interest rate">3.75% per annum. Payments totaling $<span id="xdx_904_eus-gaap--DebtInstrumentAnnualPrincipalPayment_iI_pn3n3_c20260630__us-gaap--LongtermDebtTypeAxis__custom--USSmallBusinessAdministrationMember__us-gaap--DebtInstrumentAxis__custom--UnsecuredNotePayable30YearMember_zBa73q0DPBG7" title="Debt annual periodic payment">4 are due each year through the maturity date of <span id="xdx_90D_eus-gaap--DebtInstrumentMaturityDate_dd_c20260101__20260630__us-gaap--LongtermDebtTypeAxis__custom--USSmallBusinessAdministrationMember__us-gaap--DebtInstrumentAxis__custom--UnsecuredNotePayable30YearMember_z48sHJsWTWM5" title="Debt maturity date">July 1, 2050. As of June 30, 2026 and December 31, 2025, the balance of the note payable was $59 and $59, respectively. Convertible Notes In fiscal year 2025, the Company entered into three unsecured convertible note agreements with third-party lenders, with principal amounts ranging from approximately $300 to $360, bearing stated interest rates of 10%, and original issue discounts ranging from $50 to $60. The notes have terms of six to twelve months, with maturities between December 2025 and August 2026. As of June 30, 2026, one note was paid off and two others remained outstanding. Each note may be converted into shares of the Company’s common stock at a fixed conversion price of $2.00 per share, subject to adjustment in the event of default, at which point the conversion price may be reduced to the lower of $2.00 and 80% of the volume-weighted average price (VWAP) of the Company’s common stock for a specified period preceding conversion. Certain notes include provisions for fixed monthly payments beginning after a defined period, and others permit early conversion at the lender’s discretion. On April 3, 2026, AppTech Payments Corp. issued an aggregate of $1,000 principal amount of 18% convertible promissory notes to two lenders in a private placement. The notes were issued at a discount for aggregate proceeds of $<span id="xdx_901_eus-gaap--ProceedsFromConvertibleDebt_pn3n3_c20260402__20260403__us-gaap--DebtInstrumentAxis__custom--PrivatePlacementTwoLendersMember_zzKpzdFs1T28" title="Proceeds from convertible notes payable">877 and mature fourteen months from issuance, with amortization payments beginning May 2026. The notes are convertible into shares of the Company’s common stock at a fixed conversion price of $2.00 per share, subject to customary adjustments and a beneficial ownership limitation. In connection with the financing, the Company granted warrants to purchase an aggregate of <span id="xdx_903_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20260403__us-gaap--DebtInstrumentAxis__custom--PrivatePlacementTwoLendersMember_zrususDOYqE7" title="Warrants granted">1,000,000 shares of common stock at an exercise price of $1.00 per share, with a five-year term, subject to adjustment provisions for the exercise price. The relative fair value allocated to the warrants was approximately $270 and was recorded as a debt discount to the notes upon issuance. The debt discount is being amortized over the term of the notes. As of June 30, 2026 and December 31, 2025, the aggregate principal balance of these notes was approximately $1,184 and $783, respectively, and accrued interest totaled approximately $11 at June 30, 2026 and $31 at December 31, 2025. Related Party Liabilities On October 21, 2025, the Company entered into a revenue participation agreement with a related party for an initial $1,500 investment, which increased to $2,000 in February 2026. The holder is entitled to 1.75% of gross contract revenue (subject to increase up to 10%) and minimum monthly payments ranging from $4 to $73 through December 31, 2029, based on the greater of the revenue share or contractual minimums. The obligation is secured by a pledge of 10% of intellectual property-related revenues and 10% of the issued and outstanding equity of Infinitus Pay, Inc. The Company is required to repay the investment over the final 18 months of the term. The agreement includes (i) a participant put option, exercisable beginning December 31, 2027, requiring repayment at an amount that provides a 20% internal rate of return, and (ii) a Company call option permitting early termination subject to payment of a premium designed to provide a 28% internal rate of return. As of June 30, 2026, the balance of the participation liability was $2,181 and interest paid during the six months ended June 30, 2026 was $42 thousand. On October 29, 2025, we secured a $<span id="xdx_901_ecustom--NotesPayableRelatedParty_iI_pn3n3_c20251029__us-gaap--DebtInstrumentAxis__custom--Oct2025NotePayableMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--InvestorAndBoardMemberMember_z75VcKWOYf26" title="Notes payable">1,000 loan with an interest rate of <span id="xdx_904_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_dp_c20251029__us-gaap--DebtInstrumentAxis__custom--Oct2025NotePayableMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--InvestorAndBoardMemberMember_zAA7fcWF2FH8" title="Debt stated interest rate">24% with a current investor and board member. The note is interest-only through March 2026, and thereafter will be paid in full with ten equal payments of principal and interest ending on December 2026. The note is secured by our accounts receivable and 10% of the Infinitus Pay, Inc stock. As of June 30, 2026, the balance of the loan is $<span id="xdx_90E_ecustom--NotesPayableRelatedParty_iI_pn3n3_c20260630__us-gaap--DebtInstrumentAxis__custom--Oct2025NotePayableMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--InvestorAndBoardMemberMember_zZqKtrT38b41" title="Notes payable, related party">850 and interest of $<span id="xdx_90D_eus-gaap--InterestPaid_pn3n3_c20260101__20260630__us-gaap--DebtInstrumentAxis__custom--Oct2025NotePayableMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--InvestorAndBoardMemberMember_zVKWLhL95i1a" title="Interest Paid">114 had been paid. The former CEO is owed approximately $102 related to expense reimbursements. The payable was recorded in accounts payable at June 30, 2026, however, the full amount was paid in July 2026. On June 26, 2026, we entered into a $500 promissory note with a family member of a current board member. The note bears interest at 9% per annum, with no principal or interest payments due prior to maturity. The outstanding principal balance, together with all accrued and unpaid interest, is due in full ninety days from the issuance date. As of June 30, 2026, the outstanding principal balance was $500 and accrued interest was immaterial. See Note 9 – Subsequent Events for an update on the loan.

100000

0.0375

4000

2050-07-01

59000

1000000

0.18

877000

1000000

270

1184000

783000

11000

31000

2181000

42000

1000000

0.24

850000

114000

102000

500000

0.09

500000

NOTE 7 – RIGHT OF USE ASSET Lease Agreement In January 2020, the Company entered into a lease agreement commencing February 8, 2020 for its corporate office in Carlsbad, California, which was set to expire in 2025. In December 2024, the Company extended its lease for fourteen months through March 2026, with an option to extend for an additional 14 months. At inception of the lease, the Company recorded a right of use asset and liability. The Company used an incremental borrowing rate of 8.5% within the calculation. In April 2026, the Company entered into a new lease agreement for its corporate office located in Carlsbad, California. The lease commenced on June 1, 2026 and has an initial term of five years and three months, expiring on August 31, 2031. The lease provides for an initial monthly base rent of $3,798, subject to scheduled increases over the lease term, and includes an option to extend the lease pursuant to the terms of the agreement. At commencement of the lease, the Company recorded a right-of-use asset and lease liability. The Company used an incremental borrowing rate of 9.0% in the calculation. The rent expense was $37 and $37 for the six months ended June 30, 2026 and 2025, respectively.

37000

NOTE 8 – COMMITMENTS AND CONTINGENCIES The Company may be involved in various claims and legal actions arising in the ordinary course of business. The Company establishes an accrued liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. Lawsuit with Former Lawyers On March 13, 2025, Moses & Singer LLP filed a case against AppTech Payments Corp. for unpaid fees of approximately $445 with the American Arbitration Association. AppTech has brought a counterclaim of legal malpractice for $800 thousand. On June 29, 2026, the arbitrator issued a final award denying the Company's legal malpractice counterclaim and awarding Moses & Singer LLP approximately $274 thousand, payable pursuant to an established payment schedule. The Company has accrued the legal fees and award, including applicable interest, in its consolidated financial statements. Finzeo Seller Suit On October 30, 2025, AppTech Payments Corp. filed a lawsuit in the United States District Court, Southern District of California, against the former owner of Finzeo (“Seller”) with claims for trade secret misappropriation, fraud, misrepresentation, conversion, unfair business practices, violation of California Penal Code section 502, and breach of contract. The litigation relates to AppTech’s acquisition of membership interests in a company and the company’s related product. The defendant has made claims of an offset based on alleged outstanding payments as part of the acquisition. On November 4, 2025, the Court entered an order approving the parties’ Stipulation re AppTech’s Motion for Temporary Restraining Order and Order, which enjoins Seller, and those acting in concert with him, from (1) disabling the FinZeo URL, (2) foreclosing upon a security agreement, and (3) disclosing AppTech’s proprietary and confidential information, among other relief, until the order is amended or superseded by Court order. Seller has a motion for leave pending before the court which, if granted, would allow him to assert counterclaims against AppTech, its Board of Directors, and two AppTech employees. Seller’s proposed Counterclaim includes claims based on alleged outstanding payments due to him as part of the acquisition, as well as other related claims. As of July 28, 2026, Seller represents himself, in pro per. The case is currently in the discovery stage with fact discovery closing in August 2026, expert discovery closing in November 2026, and the final pretrial conference scheduled for April 15, 2027.

274000

NOTE 9 – STOCKHOLDERS’ EQUITY Series A Preferred Stock The Company is authorized to issue 100,000 shares of $0.001 par value Series A preferred stock (“Series A”). There were fourteen (14) shares of Series A preferred stock outstanding as of June 30, 2026 and December 31, 2025. Series A stockholders have one vote per share on an “as converted” basis for all matters submitted to a stockholder vote, without the right to cumulative voting in director elections. They are entitled to dividends, if declared by the Company’s board of directors (the “Board of Directors”) from legally available funds, distributed pro rata based on their Series A holdings on an as-converted basis. In the event of liquidation or dissolution, Series A stockholders share ratably in any remaining assets after liabilities are paid, with no liquidation preferences. Each Series A share is convertible into 82 shares of common stock at the stockholder’s discretion. Common Stock As of June 30, 2026 and December 31, 2025, the Company was authorized to issue 105,263,158 shares of common stock with a par value of $0.001 per share. The number of shares outstanding was 42,003,934 as of June 30, 2026 and 40,488,934 as of December 31, 2025. Common stockholders are entitled to one vote per share on all matters submitted to a stockholder vote, without the right to cumulative voting in director elections. They are eligible for dividends, if declared by the Board of Directors from legally available funds, subject to the prior rights of any outstanding preferred stock and any contractual restrictions on dividend payments. In the event of liquidation or dissolution, common stockholders share ratably in any assets remaining after payment of liabilities and satisfaction of liquidation preferences of any outstanding preferred stock. Common stock carries no preemptive or subscription rights and is not convertible into other securities. Stock Issued to Management On January 16, 2026, the Board approved <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_c20260115__20260116__us-gaap--StatementClassOfStockAxis__custom--RestrictedSharesMember__srt--CounterpartyNameAxis__custom--CertainExecutivesMember_zjPdtpLyQAVh" title="Stock issued for services, shares">1,500,000 fully vested restricted shares to certain executives with a lock up period that extends until December 31, 2027. The stock price on the date of issuance was $0.34 per share. During the six months ended June 30, 2026, the Company recorded an expense of $<span id="xdx_904_eus-gaap--ShareBasedCompensation_pn3n3_c20260101__20260630__us-gaap--StatementClassOfStockAxis__custom--RestrictedSharesMember__srt--CounterpartyNameAxis__custom--CertainExecutivesMember_zICloKn8Odi3" title="Share-based compensation expense">503 related to the issuance. Stock Issued to a Consultant On February 23, 2026, the Company issued a former consultant <span id="xdx_909_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pip0_c20260222__20260223__srt--CounterpartyNameAxis__custom--FormerConsultantMember_za52fnTwHJm1" title="Stock issued for services, shares">15,000 shares of restricted stock related to a previous arrangement. The stock price on the date of issuance was $0.35 per share and the Company recorded an expense of $5 related to the issuance. Stock Options The Company grants stock options as part of employee and board of director compensation and recognizes these options’ expense over the vesting period. If an employee does not meet certain conditions such as sales targets or leaves the Company before the options vest, these options are forfeited as they occur. On December 7, 2021, the Board of Directors authorized the Company’s Equity Incentive Plan in order to facilitate the grant of equity incentives to employees (including our named executive officers), directors, independent contractors, merchants, referral partners, channel partners and employees of the Company’s to enable the Company to attract, retain and motivate employees, directors, merchants, referral partners and channel partners, which is essential to its long-term success. On May 28, 2026, the Company's stockholders approved the 2026 Equity Incentive Plan, authorizing an additional <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized_iI_pip0_c20260528__us-gaap--PlanNameAxis__custom--EquityIncentivePlanMember_zAFhEPAwRHf7" title="Number of shares authorized">4,500,000 shares of common stock for issuance under the plan and cancelling the previous reserved shares. As of June 30, 2026, <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pip0_c20260630__us-gaap--PlanNameAxis__custom--EquityIncentivePlanMember_zrpNSdU1gPD4" title="Number of shares available for issuance">4,488,009 shares are available for issuance. On January 16, 2026, the Board ratified the acceleration of previously granted stock options for certain executive officers effective. As part of the resolution, <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_pip0_c20260115__20260116__srt--CounterpartyNameAxis__custom--CertainExecutiveOfficersMember_z7A944ZnK98d" title="Options granted">937,500 non-plan options, with a ten-year expiration term, a fair value on the grant date of $<span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pip0_c20260116__srt--CounterpartyNameAxis__custom--CertainExecutiveOfficersMember_zeerbJmwpo5g" title="Options granted, grant date price per share">0.86, and an exercise price of $<span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_pip0_c20260116__srt--CounterpartyNameAxis__custom--CertainExecutiveOfficersMember_zyDUHJkU4Or3" title="Options granted, exercise price per share">0.97 per share vested. The Company recorded an expense of $844 thousand. During the six months ended June 30, 2026, the Company granted 1,550,000 options to purchase common stock. The grants included: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px">1)</td> <td style="text-align: justify"><span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_pip0_c20260101__20260630__srt--CounterpartyNameAxis__custom--CurrentBoardOfDirectorsMember_zsjGIilftioh" title="Options granted, shares">700,000 options were awarded to the current board of directors. The fair value of these options, which are non-plan with a five-year expiration term, total $215 thousand. These options have an exercise price of $<span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iI_pip0_c20260630__srt--CounterpartyNameAxis__custom--CurrentBoardOfDirectorsMember__srt--RangeAxis__srt--MaximumMember_zmeNVos46HY3" title="Options granted, exercise price per share">0.34 per share and a weighted average fair value of $<span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pip0_c20260630__srt--CounterpartyNameAxis__custom--CurrentBoardOfDirectorsMember__srt--RangeAxis__srt--MinimumMember_zKyyZLkt1HYc" title="Options granted, grant date price per share">0.31 per share on the issuance date. They are fully vested.</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 24px">2)</td> <td style="text-align: justify">On January 16, 2026, the Company granted <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pip0_c20260115__20260116__srt--CounterpartyNameAxis__custom--CertainMembersOfManagementTeamMember_zWLJ7mTr52vg" title="Shares granted">850,000 options to certain members of the management team with an exercise price of $<span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_pip0_c20260116__srt--CounterpartyNameAxis__custom--CertainMembersOfManagementTeamMember_zM1LFoQGbx26" title="Option exercise price">0.34, a five-year expiration term, and a fair value on the grant date ranging from $<span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pip0_c20260115__20260116__srt--CounterpartyNameAxis__custom--CertainMembersOfManagementTeamMember__srt--RangeAxis__srt--MinimumMember_zt7odraYXGC5" title="Fair value granted, per share">0.26 to $<span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pip0_c20260115__20260116__srt--CounterpartyNameAxis__custom--CertainMembersOfManagementTeamMember__srt--RangeAxis__srt--MaximumMember_zUMlBFVBx5v8" title="Fair value granted, per share">0.31. Half of the options are fully vested upon the grant date and the others vest on December 31, 2027. </td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td></tr> </table> The following table summarizes option activity: <table cellpadding="0" cellspacing="0" id="xdx_891_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_pn3n3_z6Nfu4FPMP9e" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - STOCKHOLDERS' EQUITY (Details - Option activity)"> <tr style="vertical-align: bottom"> <td>Schedule of option activity</td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Number of shares</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average exercise price</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average remaining years</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 52%">Outstanding December 31, 2025</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zx0rZaRV7653" style="width: 13%; text-align: right" title="Options outstanding, Beginning balance">5,402,354</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zAUi9QNWDYE6" style="width: 13%; text-align: right" title="Weighted average exercise price, Beginning">0.83</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 13%; text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zIbpihziUJK8" title="Weighted average remaining years">7.25</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Issued</td> <td> </td> <td> </td> <td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zGudqrCjRxZ5" style="text-align: right" title="Options Issued">1,550,000</td> <td> </td> <td> </td> <td> </td> <td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zjc5VC7wRHz1" style="text-align: right" title="Weighted average exercise price, Issued">0.34</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Cancelled</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_pip0_di0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zDALcyQQziXd" style="border-bottom: black 1pt solid; text-align: right" title="Options Cancelled">–</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_z00YfdowavVc" style="border-bottom: black 1pt solid; text-align: right" title="Weighted average exercise price, Cancelled">–</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Outstanding as of June 30, 2026</td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zT27a5GoUXX9" style="border-bottom: black 2.25pt double; text-align: right" title="Options outstanding, Ending balance">6,952,354</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_z8iDG07aSa6k" style="border-bottom: black 2.25pt double; text-align: right" title="Weighted average exercise price, Ending">0.72</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zn0iHvp5ABf3" title="Weighted average remaining years">6.07</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Outstanding as of June 30, 2026, vested</td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zm0E6BonoKVl" style="border-bottom: black 2.25pt double; text-align: right" title="Options Vested">6,039,854</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zOVWiiQBuJYd" style="border-bottom: black 2.25pt double; text-align: right" title="Weighted average exercise price, Vested">0.70</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zQrzMemmqACh" title="Weighted average remaining years, Vested">6.58</td> <td> </td></tr> </table> During the six months ended June 30, 2026, the Company recorded $1,218 in option expenses. The Company expects to recognize an additional $<span id="xdx_90D_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_c20260630__us-gaap--AwardTypeAxis__custom--SalesMilestonesMember_znPXRMfg8NK5" title="Expects to recognize amount">83 through December 2027. The options vest in equal monthly installments ranging from immediately to 12 months. For the six months ended June 30, 2026, the fair value of the options were valued using a Black-Scholes option pricing model with the following assumptions: <table cellpadding="0" cellspacing="0" id="xdx_89E_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_pn3n3_zFvFIoWv6Iqf" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - STOCKHOLDERS' EQUITY (Details - Assumptions)"> <tr style="vertical-align: bottom"> <td>Schedule of fair value assumptions</td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 83%">Market value of common stock on issuance date</td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right">$<span id="xdx_904_eus-gaap--SharePrice_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--RangeAxis__srt--MinimumMember_zYNOs8xZvQHa" title="Market value of common stock on issuance date">0.34 - $<span id="xdx_900_eus-gaap--SharePrice_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--RangeAxis__srt--MaximumMember_z7lDoOTTQOjh" title="Market value of common stock on issuance date">1.01</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Exercise price</td> <td> </td> <td style="text-align: right">$<span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pip0_dp_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--RangeAxis__srt--MinimumMember_zGPk9YFep6af" title="Exercise price">0.34 - $<span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pip0_dp_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--RangeAxis__srt--MaximumMember_zFqz4yVVirCg" title="Exercise price">3.00</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Expected volatility</td> <td> </td> <td style="text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_pip0_dp_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zT3ETEh7xGO3" title="Expected volatility, minimum">138% - <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_pip0_dp_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z4SZW2acCJrc" title="Expected volatility, maximum">151%</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Expected term (in years)</td> <td> </td> <td style="text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedTermSimplifiedMethod_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zaOAAuBR711l" title="Expected term (in years)">5.0</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Risk-free interest rate</td> <td> </td> <td style="text-align: right"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_pip0_dp_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zbaUfHEcx8b2" title="Risk-free interest rate">3.99% </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Expected dividend yields</td> <td> </td> <td style="text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pip0_dp0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zfUVY4fmDal2" title="Expected dividend yields">–</td> <td> </td></tr> </table> Expected Volatility – The Company now has sufficient operating history and company-specific historical data to determine its expected volatility assumption directly from its own traded stock price. Rather than examining the historical volatilities of a group of industry peers, the Company calculates its volatility based on the fluctuations in its own share prices, which are publicly available. The Company expects to continue using this approach going forward, relying on its own historical stock price data to assess volatility. Expected Term – The expected term of stock options represents the weighted average period the stock options are expected to be outstanding. Given the limited historical exercise data of the Company’s stock options, the Company uses the simplified method for estimating the expected term, which calculates the expected term as the average time-to-vesting and the contractual life of the options for stock options issued to participants. Risk-Free Interest Rate – The risk-free rate assumption is based on U.S. Treasury instruments, the terms of which were consistent with the expected term of the Company’s stock options. Expected Dividend – The expected dividend assumption is based on the Company’s history and expectation of dividend payouts. The Company has not paid any dividends to date and does not intend to pay dividends. Forfeitures are recognized as they occur. Plan related forfeitures are added back to the equity incentive plan. Warrants As of June 30, 2026, the Company has 29,781,627 warrants outstanding. The following table summarizes warrant activity: <table cellpadding="0" cellspacing="0" id="xdx_891_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_pn3n3_zUSPW4uAgZX1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCKHOLDERS' EQUITY (Details - Warrant activity"> <tr style="vertical-align: bottom"> <td>Schedule of warrant activity</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average exercise price</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average remaining years</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%">Outstanding December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_pip0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zQ0Op7ryXpce" style="width: 13%; text-align: right" title="Warrants outstanding, beginning">28,781,627</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iS_pip0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zk1STu6xy77g" style="width: 13%; text-align: right" title="Weighted average exercise price, Outstanding at beginning">1.72</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20250101__20251231__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zBoKmWqM4Xv8" title="Weighted average remaining years">3.86</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_pip0_d0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zgiuVzSKtkl9" style="text-align: right" title="Warrants cancelled">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCancelledInPeriodWeightedAverageFairValuePerShare_pip0_d0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zYQproklRiBd" style="text-align: right" title="Weighted average exercise price, Cancelled">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt">Issued</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pip0_d0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zr3ansxtch5" style="border-bottom: Black 1pt solid; text-align: right" title="Warrants issued">1,000,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExerciseInPeriodWeightedAverageExercisePrice_pip0_d0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zoRYGytuukdg" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average exercise price, Issued">1.00</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Outstanding as of June 30, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_983_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_pip0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zZdoJ5hFeSk1" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants outstanding, ending">29,781,627</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iE_pip0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zIQj85NqSny3" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, Outstanding at ending">1.70</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zWabsD6x8qqa" title="Weighted average remaining years">3.41</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> See Note 6 for warrants issued with convertible note.

100000

0.001

Each Series A share is convertible into 82 shares of common stock at the stockholder’s discretion.

105263158

0.001

42003934

40488934

1500000

503000

15000

5000

4500000

4488009

937500

0.86

0.97

844000

1550000

700000

215000

0.34

0.31

850000

0.34

0.26

0.31

<table cellpadding="0" cellspacing="0" id="xdx_891_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_pn3n3_z6Nfu4FPMP9e" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - STOCKHOLDERS' EQUITY (Details - Option activity)"> <tr style="vertical-align: bottom"> <td>Schedule of option activity</td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Number of shares</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average exercise price</td> <td> </td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Weighted Average remaining years</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 52%">Outstanding December 31, 2025</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zx0rZaRV7653" style="width: 13%; text-align: right" title="Options outstanding, Beginning balance">5,402,354</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%">$</td> <td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zAUi9QNWDYE6" style="width: 13%; text-align: right" title="Weighted average exercise price, Beginning">0.83</td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 1%"> </td> <td style="width: 13%; text-align: right"><span id="xdx_90F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20250630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zIbpihziUJK8" title="Weighted average remaining years">7.25</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Issued</td> <td> </td> <td> </td> <td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zGudqrCjRxZ5" style="text-align: right" title="Options Issued">1,550,000</td> <td> </td> <td> </td> <td> </td> <td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zjc5VC7wRHz1" style="text-align: right" title="Weighted average exercise price, Issued">0.34</td> <td> </td> <td> </td> <td> </td> <td style="text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Cancelled</td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_pip0_di0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zDALcyQQziXd" style="border-bottom: black 1pt solid; text-align: right" title="Options Cancelled">–</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pip0_d0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_z00YfdowavVc" style="border-bottom: black 1pt solid; text-align: right" title="Weighted average exercise price, Cancelled">–</td> <td> </td> <td> </td> <td style="border-bottom: black 1pt solid"> </td> <td style="border-bottom: black 1pt solid; text-align: right">–</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Outstanding as of June 30, 2026</td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zT27a5GoUXX9" style="border-bottom: black 2.25pt double; text-align: right" title="Options outstanding, Ending balance">6,952,354</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_z8iDG07aSa6k" style="border-bottom: black 2.25pt double; text-align: right" title="Weighted average exercise price, Ending">0.72</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right"><span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zn0iHvp5ABf3" title="Weighted average remaining years">6.07</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Outstanding as of June 30, 2026, vested</td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zm0E6BonoKVl" style="border-bottom: black 2.25pt double; text-align: right" title="Options Vested">6,039,854</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double">$</td> <td id="xdx_98C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pip0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zOVWiiQBuJYd" style="border-bottom: black 2.25pt double; text-align: right" title="Weighted average exercise price, Vested">0.70</td> <td> </td> <td> </td> <td style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right"><span id="xdx_906_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestExercisableWeightedAverageRemainingContractualTerm1_dtY_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--StockOptionMember_zQrzMemmqACh" title="Weighted average remaining years, Vested">6.58</td> <td> </td></tr> </table>

5402354

0.83

P7Y3M

1550000

0.34

-0

6952354

0.72

P6Y25D

6039854

0.70

P6Y6M29D

1218

<table cellpadding="0" cellspacing="0" id="xdx_89E_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_pn3n3_zFvFIoWv6Iqf" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" summary="xdx: Disclosure - STOCKHOLDERS' EQUITY (Details - Assumptions)"> <tr style="vertical-align: bottom"> <td>Schedule of fair value assumptions</td> <td> </td> <td style="text-align: right"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td style="width: 83%">Market value of common stock on issuance date</td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: right">$<span id="xdx_904_eus-gaap--SharePrice_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--RangeAxis__srt--MinimumMember_zYNOs8xZvQHa" title="Market value of common stock on issuance date">0.34 - $<span id="xdx_900_eus-gaap--SharePrice_iI_pip0_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--RangeAxis__srt--MaximumMember_z7lDoOTTQOjh" title="Market value of common stock on issuance date">1.01</td> <td style="width: 1%"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Exercise price</td> <td> </td> <td style="text-align: right">$<span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pip0_dp_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--RangeAxis__srt--MinimumMember_zGPk9YFep6af" title="Exercise price">0.34 - $<span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pip0_dp_c20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember__srt--RangeAxis__srt--MaximumMember_zFqz4yVVirCg" title="Exercise price">3.00</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Expected volatility</td> <td> </td> <td style="text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum_pip0_dp_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zT3ETEh7xGO3" title="Expected volatility, minimum">138% - <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum_pip0_dp_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z4SZW2acCJrc" title="Expected volatility, maximum">151%</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Expected term (in years)</td> <td> </td> <td style="text-align: right"><span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedTermSimplifiedMethod_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zaOAAuBR711l" title="Expected term (in years)">5.0</td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: #EEEEEE"> <td>Risk-free interest rate</td> <td> </td> <td style="text-align: right"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum_pip0_dp_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zbaUfHEcx8b2" title="Risk-free interest rate">3.99% </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>Expected dividend yields</td> <td> </td> <td style="text-align: right"><span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pip0_dp0_c20260101__20260630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zfUVY4fmDal2" title="Expected dividend yields">–</td> <td> </td></tr> </table>

0.34

1.01

0.0034

0.0300

1.38

1.51

5.0

0.0399

29781627

<table cellpadding="0" cellspacing="0" id="xdx_891_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_pn3n3_zUSPW4uAgZX1" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - STOCKHOLDERS' EQUITY (Details - Warrant activity"> <tr style="vertical-align: bottom"> <td>Schedule of warrant activity</td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td><td> </td> <td colspan="2" style="text-align: center"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of Warrants</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average exercise price</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average remaining years</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="width: 49%">Outstanding December 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--ClassOfWarrantOrRightOutstanding_iS_pip0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zQ0Op7ryXpce" style="width: 13%; text-align: right" title="Warrants outstanding, beginning">28,781,627</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iS_pip0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zk1STu6xy77g" style="width: 13%; text-align: right" title="Weighted average exercise price, Outstanding at beginning">1.72</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 13%; text-align: right"><span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20250101__20251231__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zBoKmWqM4Xv8" title="Weighted average remaining years">3.86</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Cancelled</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_pip0_d0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zgiuVzSKtkl9" style="text-align: right" title="Warrants cancelled">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsCancelledInPeriodWeightedAverageFairValuePerShare_pip0_d0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zYQproklRiBd" style="text-align: right" title="Weighted average exercise price, Cancelled">–</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">–</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(238,238,238)"> <td style="padding-bottom: 1pt">Issued</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod_pip0_d0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zr3ansxtch5" style="border-bottom: Black 1pt solid; text-align: right" title="Warrants issued">1,000,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExerciseInPeriodWeightedAverageExercisePrice_pip0_d0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zoRYGytuukdg" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted average exercise price, Issued">1.00</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">–</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Outstanding as of June 30, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_983_eus-gaap--ClassOfWarrantOrRightOutstanding_iE_pip0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zZdoJ5hFeSk1" style="border-bottom: Black 2.5pt double; text-align: right" title="Warrants outstanding, ending">29,781,627</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iE_pip0_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zIQj85NqSny3" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, Outstanding at ending">1.70</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms_dtY_c20260101__20260630__us-gaap--DerivativeInstrumentRiskAxis__custom--WarrantsMember_zWabsD6x8qqa" title="Weighted average remaining years">3.41</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

28781627

1.72

P3Y10M9D

1000000

1.00

29781627

1.70

P3Y4M28D

NOTE 10 – SUBSEQUENT EVENTS On July 17, 2026, we entered into a second $500 promissory note with the same family member of a current board member. The note bears interest at 9% per annum, with no principal or interest payments due prior to maturity. The outstanding principal balance, together with all accrued and unpaid interest, is due in full ninety days from the issuance date. In July and August 2026, the Company has received claims from a former executive and a current executive alleging, among other things, breach of contract and employment-related claims. The Company disputes the allegations and is evaluating the claims with counsel. No legal proceeding relating to these matters has commenced as of the date of this report. At this time, the Company is unable to reasonably estimate the amount or range of any potential loss associated with these matters.

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