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(“REGO”) was incorporated in the state of Delaware on February 11, 2008.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">REGO Payment Architectures, Inc. and its subsidiaries (collectively, except where the context requires, the “Company”) is a provider of consumer software that delivers a mobile payment platform solution—Mazoola®- a family focused mobile banking solution. The Company maintains a portfolio of trade secrets and four US patent awards. REGO offers an all-digital financial payments platform (the “Platform”) to enable minors, particularly under 13 years old, to purchase goods and services, complete chores and learn in a secure online environment guided by parental permission, oversight, and control, while remaining Children’s Online Privacy Protection Act (“COPPA”) and General Data Protection Regulation (“GDPR”) compliant.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">Management believes that building on its COPPA advantage, the future of REGO Payment Architectures, Inc. will be based on the foundational architecture of the Platform that will allow its use across multiple financial markets where secure controlled payments are needed. The Company intends to license in each alternative field of use the ability for its partners, distributors and/or value-added resellers to private label each of the alternative markets. These partners would deploy, customize and support each implementation under their own label, but with acknowledgement of the Company’s proprietary intellectual assets as the base technology. Management believes this approach will enable the Company to reduce expenses while broadening its reach.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">Revenues generated from the Platform will come from multiple sources depending on the level of service and facilities requested by the parent. The Company’s model contemplates levels of subscription revenue paid monthly, service fees, transaction fees and revenue sharing and licensing with banking and distribution partners.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">The Company’s principal office is located in Blue Bell, Pennsylvania.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;"><i>Basis of Presentation</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). These statements include all adjustments (consisting only of normal recurring adjustments) which management believes necessary for a fair presentation of the financial statements and have been prepared on a consistent basis using the accounting policies described in the summary of accounting policies included in the Company’s 2025 Annual Report on Form 10-K (the “Form 10-K”). All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed, or omitted pursuant to such rules and regulations, although the Company believes that the accompanying disclosures are adequate to make the information presented not misleading. The accompanying unaudited financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC. Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional financing to commercialize the Company’s current technology before another company develops or markets similar technology to compete with the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="font-weight: bold;"><i>Recently Adopted Accounting Pronouncements</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities to disclose specific categories in the effective tax rate reconciliation, as well as expanded disclosures on income taxes paid by jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The adoption of ASU 2023-09 had no impact on the Company’s consolidated financial statement disclosures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;"><i>Recently Issued Accounting Pronouncements Not Yet Adopted</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Topic 220), which requires disclosure in the notes to financial statements about specific types of expenses included in the expense captions presented on the face of the statement of operations. The requirements of the ASU are effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact related to the adoption of ASU 2024-03 on its consolidated financial statement disclosures.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;"><i>Nature of the Business</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">REGO Payment Architectures, Inc. (“REGO”) was incorporated in the state of Delaware on February 11, 2008.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">REGO Payment Architectures, Inc. and its subsidiaries (collectively, except where the context requires, the “Company”) is a provider of consumer software that delivers a mobile payment platform solution—Mazoola®- a family focused mobile banking solution. The Company maintains a portfolio of trade secrets and four US patent awards. REGO offers an all-digital financial payments platform (the “Platform”) to enable minors, particularly under 13 years old, to purchase goods and services, complete chores and learn in a secure online environment guided by parental permission, oversight, and control, while remaining Children’s Online Privacy Protection Act (“COPPA”) and General Data Protection Regulation (“GDPR”) compliant.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">Management believes that building on its COPPA advantage, the future of REGO Payment Architectures, Inc. will be based on the foundational architecture of the Platform that will allow its use across multiple financial markets where secure controlled payments are needed. The Company intends to license in each alternative field of use the ability for its partners, distributors and/or value-added resellers to private label each of the alternative markets. These partners would deploy, customize and support each implementation under their own label, but with acknowledgement of the Company’s proprietary intellectual assets as the base technology. Management believes this approach will enable the Company to reduce expenses while broadening its reach.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">Revenues generated from the Platform will come from multiple sources depending on the level of service and facilities requested by the parent. The Company’s model contemplates levels of subscription revenue paid monthly, service fees, transaction fees and revenue sharing and licensing with banking and distribution partners.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">The Company’s principal office is located in Blue Bell, Pennsylvania.</span></p> 2008-02-11 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;"><i>Basis of Presentation</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). These statements include all adjustments (consisting only of normal recurring adjustments) which management believes necessary for a fair presentation of the financial statements and have been prepared on a consistent basis using the accounting policies described in the summary of accounting policies included in the Company’s 2025 Annual Report on Form 10-K (the “Form 10-K”). All significant intercompany transactions and balances have been eliminated in consolidation. Certain information and note disclosures normally included in the financial statements prepared in accordance with US GAAP have been condensed, or omitted pursuant to such rules and regulations, although the Company believes that the accompanying disclosures are adequate to make the information presented not misleading. The accompanying unaudited financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC. Operating results for the three and six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional financing to commercialize the Company’s current technology before another company develops or markets similar technology to compete with the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="font-weight: bold;"><i>Recently Adopted Accounting Pronouncements</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities to disclose specific categories in the effective tax rate reconciliation, as well as expanded disclosures on income taxes paid by jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The adoption of ASU 2023-09 had no impact on the Company’s consolidated financial statement disclosures.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;"><i>Recently Issued Accounting Pronouncements Not Yet Adopted</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Topic 220), which requires disclosure in the notes to financial statements about specific types of expenses included in the expense captions presented on the face of the statement of operations. The requirements of the ASU are effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact related to the adoption of ASU 2024-03 on its consolidated financial statement disclosures.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 2 – MANAGEMENT PLANS</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant losses and experienced negative cash flow from operations since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">Since inception, the Company has focused on developing and implementing its business plan. The Company believes that its existing cash resources will not be sufficient to sustain operations during the next twelve months. The Company currently needs to generate additional revenues in order to sustain its operations. In the event that the Company cannot generate sufficient revenue to sustain its operations, the Company will need to reduce expenses or obtain financing through the sale of debt and/or equity securities. The issuance of additional equity would result in dilution to existing shareholders. If the Company is unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms acceptable to the Company, the Company would be unable to execute upon the business plan or pay costs and expenses as they are incurred, which would have a material, adverse effect on the business, financial condition and results of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The Company’s current monetization model is to derive revenues from levels of service fees, transaction fees and in some cases, revenue sharing with banking and distribution partners. As these bases of revenues grow, the Company expects to generate additional revenue to support operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> As of August 14, 2026, the Company has a cash position of approximately $250,000. Based upon the current cash position and the Company’s planned expense run rate, management believes the Company has funds currently to finance its operations through September 2026. </p> 250000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 3 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES - RELATED PARTIES</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">As of June 30, 2026 and December 31, 2025, the Company owed the Chief Executive Officer, who is also a more than 5% beneficial owner, a total of $4,616 and $6,154 in unpaid salary.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">As of June 30, 2026 and December 31, 2025, the Company owed the Chief Financial Officer a total of $2,192 and $2,923 in unpaid salary.</span> </p> 0.05 0.05 4616 6154 2192 2923 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 4 – LOANS PAYABLE</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">Loans payable as of June 30, 2026 and December 31, 2025 were $42,600. Interest accrued on the loans at 6% and 10% was $17,133 and $15,664 as of June 30, 2026 and December 31, 2025. Interest expense related to these loans payable was $739 and $1,469 for the three and six months ended June 30, 2026 and $739 and $1,469 for the three and six months ended June 30, 2025. These loans are unsecured and do not have specified repayment terms.</span> </p> 42600 42600 0.06 0.10 17133 15664 739 1469 739 1469 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 5 – NOTES PAYABLE - OTHER</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> Notes Payable - Other as of June 30, 2026 and December 31, 2025, net of debt discount, were $1,273,022 and $<span style="-sec-ix-hidden:fc_789304149;">0</span>. Interest accrued on these notes payable ranges from 6% to 12%. As of June 30, 2026 and December 31, 2025 accrued interest on these notes was $7,478 and $0. Interest expense recognized for the three and six months ended June 30, 2026 was $6,366 and $7,478 and for the three and six months ended June 30, 2025 was $0 and $0. These loans are unsecured and have a repayment term of 30 days. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">During the three months ended June 30, 2026, the Company entered into agreements with noteholders to issue aggregate notes payable-other of $1,160,000 and issued two-year options to purchase 655,000 shares of the Company's common stock at an exercise price of $0.90 per share. The notes bore interest ranging from 7% to 12% per annum, were unsecured, and had contractual maturities between 10 to 30 days. The options were valued using the Black-Scholes option pricing model with the following assumptions: <span style="-sec-ix-hidden:fc_1477361819;">no</span> dividend yield, expected volatility ranging from 92.8% to 100.3%, risk-free interest rates ranging from 3.76% to 4.15%, and an expected term of two years. Based on the relative fair value allocation, $148,635 was allocated to the options and recorded as a debt discount on the related notes payable. The debt discount is amortized to interest expense over the contractual term of the notes using the effective interest method. During the three and six months ended June 30, 2026, the Company recognized $111,656 of debt discount amortization as interest expense. As of June 30, 2026, the remaining unamortized debt discount related to these notes was $36,978.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">As of June 30, 2026, notes with an aggregate principal balance of approximately $1,265,000 were outstanding beyond their contractual maturity dates. Management represented that the Company and the respective noteholders had verbally agreed to extend the repayment dates; however, no formal written amendments had been executed as of June 30, 2026. These notes remained classified as current liabilities.</p> 1273022 0.06 0.12 7478 0 6366 7478 0 0 P30D 1160000 655000 0.9 0.07 0.12 P10D P30D 0.928 1.003 0.0376 0.0415 2 148635 111656 111656 36978 1265000 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE <span>6</span> – <span>10</span>% SECURED CONVERTIBLE NOTES PAYABLE - STOCKHOLDERS</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">On March 6, 2015, the Company, pursuant to a Securities Purchase Agreement (the “Purchase Agreement”), issued $2,000,000 aggregate principal amount of its 10% Secured Convertible Promissory Notes due March 5, 2016 (the “Notes”) to certain stockholders. On May 11, 2015, the Company issued an additional $940,000 of Notes to stockholders. In 2025, an additional $3,305,000 of Notes were issued by the Company to stockholders. During the six months ended June 30, 2026, the Company issued an additional $925,000 of Notes to stockholders. The maturity dates of the Notes have been extended most recently from December 31, 2024 to April 30, 2025, with the consent of the Note holders. An additional extension was provided by the Note holders on April 30, 2025. This extended the maturity date until May 31, 2025, with a provision stipulating that unless previously repaid in full such date shall be automatically extended on a month-to-month basis thereafter unless the Note holder submits notification in writing to the contrary.</span> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">The Notes are convertible by the holders, at any time, into shares of the Company’s Series B Preferred Stock at a conversion price of $90.00 per share, subject to adjustment for stock splits, stock dividends and similar transactions with respect to the Series B Preferred Stock only. Each share of Series B Preferred Stock is currently convertible into 100 shares of the Company’s common stock at a current conversion price of $0.90 per share, subject to anti-dilution adjustment as described in the Certificate of Designation of the Series B Preferred Stock. In addition, pursuant to the terms of a Security Agreement entered into on May 11, 2015, as amended, by and among the Company, the Note holders and a collateral agent acting on behalf of the Note holders (the “Security Agreement”), the Notes are secured by a lien against substantially all of the Company’s business assets. Pursuant to the Purchase Agreement, the Company also granted piggyback registration rights to the holders of the Series B Preferred Stock upon a conversion of the Notes.</span> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">The Notes are recorded as a current liability as of June 30, 2026 and December 31, 2025 in the amount of $7,066,237 and $6,141,237, respectively. Interest accrued on the Notes was $3,642,522 and $3,306,659 as of June 30, 2026 and December 31, 2025. Interest expense related to these Notes payable was $176,160 and $355,862 for the three and six months ended June 30, 2026 and $84,947 and $160,853 for the three and six months ended June 30, 2025.</span> </p> 2000000 0.10 940000 3305000 925000 2025-04-30 2025-05-31 90 100 0.9 7066237 6141237 3642522 3306659 176160 355862 84947 160853 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 7 – NOTES PAYABLE – STOCKHOLDERS</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">These notes payable to stockholders are classified as current liabilities as of June 30, 2026 and December 31, 2025, totaling $595,000. The notes have no formal repayment terms. Of the total outstanding notes payable, $370,000 bears interest at 10% per annum, while the remaining $225,000 bears interest at 20% per annum.</span> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">Accrued interest on the notes was $567,662 and $526,652 as of June 30, 2026 and December 31, 2025, respectively. Interest expense related to these notes payable was $20,618 and $41,010 for the three and six months ended June 30, 2026 and for the three and six months ended June 30, 2025.</span> </p> 595000 595000 370000 0.10 225000 0.20 567662 526652 20618 20618 41010 41010 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 8 – 4% SECURED CONVERTIBLE NOTES PAYABLE - STOCKHOLDERS</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">On August 26, 2016, the Company, pursuant to a Securities Purchase Agreement, issued $600,000 aggregate principal amount of its 4.0% Secured Convertible Promissory Notes due June 30, 2019 (the “New Secured Notes”) to certain accredited investors (“investors”). The Company issued additional New Secured Notes during the years 2016 through 2022.</span> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">The New Secured Notes are convertible by the holders, at any time, into shares of the Company’s authorized Series C Cumulative Convertible Preferred Stock (“Series C Preferred Stock”) at a conversion price of $90.00 per share, subject to adjustment for stock splits, stock dividends and similar transactions with respect to the Series C Preferred Stock only. Each share of Series C Preferred Stock is currently convertible into 100 shares of the Company’s common stock at a current conversion price of $0.90 per share, subject to full ratchet anti-dilution adjustment for one year and weighted average anti-dilution adjustment thereafter, as described in the Certificate of Designation of the Series C Preferred Stock. Upon a liquidation event, the Company shall first pay to the holders of the Series C Preferred Stock, on a pari passu basis with the holders of the Company’s outstanding Series A Preferred Stock and Series B Preferred Stock, an amount per share equal to 700% of the conversion price (i.e., $630.00 per share of Series C Preferred Stock), plus all accrued and unpaid dividends on each share of Series C Preferred Stock (the “Series C Preference Amount”). The Series C Preference Amount shall be paid prior and in preference to payment of any amounts to the Common Stock. After the payment of all preferential amounts required to be paid to the holders of shares of Series C Preferred Stock, Series A Preferred Stock, Series B Preferred Stock and any additional senior preferred stock, the Series C Preferred Stock participates in further distributions subject to an aggregate cap of seven and one-half times (7.5x) the original issue price thereof, plus all accrued and unpaid dividends. </span>In addition, pursuant to an Amended and Restated Security Agreement by and among the Company, the investors, the holders of the Company’s outstanding Notes and a collateral agent acting on behalf of the investors and holders of the Notes, the New Secured Notes are secured, pari passu with the Notes, by a lien against substantially all of the Company’s business assets. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">The maturity dates of the New Secured Notes were extended by the investors most recently to April 30, 2025. An additional extension was provided by the New Secured Note holders on April 30, 2025. This extended the maturity date until May 31, 2025, with a provision stipulating that unless previously repaid in full such date shall be automatically extended on a month-to-month basis thereafter unless the New Secured Note holder submits notification in writing to the contrary.</span> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">The New Secured Notes are recorded as a current liability in the amount of $14,981,250 as of June 30, 2026 and December 31, 2025. Interest accrued on the New Secured Notes was $4,247,824 and $3,948,199, as of June 30, 2026 and December 31, 2025. Interest expense, including accretion of discounts related to these New Secured Notes was $149,813 and $299,625 for the three and six months ended June 30, 2026 and June 30, 2025.</span> </p> 600000 0.04 2019-06-30 90 100 0.9 7 630 2025-05-31 14981250 14981250 4247824 3948199 149813 149813 299625 299625 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 9 – INCOME TAXES</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> <span style="background-color: white;">Income tax expense was $<span style="-sec-ix-hidden:fc_1667601504;"><span style="-sec-ix-hidden:fc_1555066077;"><span style="-sec-ix-hidden:fc_679888365;"><span style="-sec-ix-hidden:fc_440038688;">0</span></span></span></span> for the three and six months ended June 30, 2026 and 2025.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">As of January 1, 2026, the Company had <span style="-sec-ix-hidden:fc_1506969518;">no</span> unrecognized tax benefits, and accordingly, the Company did not recognize interest or penalties during 2025 related to unrecognized tax benefits. There has been <span style="-sec-ix-hidden:fc_1704593179;"><span style="-sec-ix-hidden:fc_436397256;">no</span></span> change in unrecognized tax benefits during the three and six months ended June 30, 2026, and there was <span style="-sec-ix-hidden:fc_1771423759;">no</span> accrual for uncertain tax positions as of June 30, 2026. Tax years from 2022 through 2025 remain subject to examination by major tax jurisdictions.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">There is <span style="-sec-ix-hidden:fc_1507547150;"><span style="-sec-ix-hidden:fc_52051610;"><span style="-sec-ix-hidden:fc_1230966122;"><span style="-sec-ix-hidden:fc_1112954251;">no</span></span></span></span> income tax benefit for the losses for the three and six months ended June 30, 2026 and 2025, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 10 – CONVERTIBLE PREFERRED STOCK</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;"><i>Rego Payment Architectures, Inc. Series A Preferred Stock</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">The Series A Preferred Stock has a preference in liquidation equal to two times its original issue price, or $19,670,000, to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 2.5 times its original issue price. The Series A Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series A Preferred Stock can be converted. The Series A Preferred Stock also contains customary approval rights with respect to certain matters. The Series A Preferred Stock accrues dividends at the rate of 8% per annum or $8.00 per Series A Preferred Share.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">The conversion price of Series A Preferred Stock is currently $0.90 per share. The Series A Preferred Stock is subject to mandatory conversion if certain registration or related requirements are satisfied and the average closing price of the Rego’s common stock exceeds 2.5 times the conversion price over a period of <span><span><span>twenty</span></span></span> consecutive trading days.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;"><i>Rego Payment Architectures, Inc. Series B Preferred Stock</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">The Series B Preferred Stock is pari passu with the Series A Preferred Stock and has a preference in liquidation equal to two times its original issue price, or $50,410,440 as of June 30, 2026, to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 2.5 times its original issue price. The Series B Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series B Preferred Stock can be converted. The Series B Preferred Stock also contains customary approval rights with respect to certain matters. The Series B Preferred Stock accrues dividends at the rate of 8% per annum or $7.20 per Series B Preferred Share.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">The conversion price of the Series B Preferred Stock is currently $0.90 per share. The Series B Preferred Stock is subject to mandatory conversion if certain registration or related requirements are satisfied and the average closing price of the Company’s common stock exceeds 2.5 times the conversion price over a period of twenty consecutive trading days.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;">On May 22, 2026, the Company filed with the Delaware Secretary of State an Amendment to Certificate of Designation of Preferences, Rights and Limitations of Series B Cumulative Convertible Preferred Stock, pursuant to which the amount of authorized Series B Cumulative Convertible Preferred Stock was increased from 397,222 shares to 572,222 shares.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;"><i>Rego Payment Architectures, Inc. Series C Preferred Stock</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">In August 2016, Rego authorized 150,000 shares of Rego’s Series C Cumulative Convertible Preferred Stock (“Series C Preferred Stock”). On August 23, 2021, Rego filed with the Delaware Secretary of State an Amendment to Certificate of Designation of Preferences, Rights and Limitations of Series C Cumulative Convertible Preferred Stock, pursuant to which the amount of authorized Series C Preferred Stock was increased from 150,000 shares to 300,000 shares. As of June 30, 2026, none of the Series C Preferred Stock was issued or outstanding. After the date of issuance of Series C Preferred Stock, dividends at the rate of $7.20 per share will begin accruing and will be cumulative. The Series C Preferred Stock is pari passu with the Series A Preferred Stock and Series B Preferred Stock and has a preference in liquidation equal to seven times its original issue price to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 7.5 times its original issue price. The Series C Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series C Preferred Stock can be converted. The Series C Preferred Stock also contains customary approval rights with respect to certain matters. There are no outstanding Series C Preferred Shares, therefore the current per annum dividend per share is $0.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">As of June 30, 2026, the value of the cumulative 8% dividends for all Rego preferred stock was $18,175,217. Such dividends will be paid when and if declared payable by Rego’s Board of Directors or upon the occurrence of certain liquidation events. In accordance with FASB ASC 260-10-45-11, the Company has recorded these accrued dividends as a current liability.</span> </p> 19670000 0.08 8 0.9 50410440 0.08 7.2 0.9 397222 572222 150000 150000 300000 0 0 7.2 0 0.08 18175217 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE <span>11</span> – STOCKHOLDERS’ EQUITY</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">On <span>May 7, 2025</span>, the Company engaged a new investment banker to advise on capital funding and strategic alternatives which include the prospective sale of the Company. The Company agreed to pay a fee equal to 1.75% or 2.00% of the transaction value upon closing, which is dependent upon the aggregate consideration received. There is a minimum fee threshold amount of $1,000,000. <span style="-sec-ix-hidden:fc_1229357974;">No</span> fees were paid to this new investment banker during the six months ended <span>June 30, 2026</span>.</span> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;"><span style="font-weight: bold;"><i>Option Amendments and Adjustments</i></span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">On <span>January 9, 2026</span>, the Board of Directors approved amendments extending the term of certain outstanding options to purchase in the aggregate 400,000 shares of common stock of the Company at an exercise price of $0.90 per share. These options were scheduled to expire on January 15, 2026 and the expiration date was extended to <span>December 31, 2030</span>. The increase in fair value of this term extension was $65,392 which was expensed during the six months ended <span>June 30, 2026</span>. The Company used the Black-Scholes option pricing model to calculate the increase in fair value, with the following assumptions for the extended options: <span style="-sec-ix-hidden:fc_1749527403;">no</span> dividend yield, expected volatility of 75.9%, risk free interest rate of 3.77%, and expected option life of 5.0 years.</span> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">On <span>May 11, 2026</span>, the Board of Directors approved amendments extending the term of certain outstanding options to purchase in the aggregate 391,950 shares of common stock of the Company at exercise prices ranging from $0.94 to $1.06 per share. These options were scheduled to expire in May and June 2026 and the expiration dates were extended to dates ranging from <span>December 31, 2028</span>, through <span>June 3, 2031</span>. The increase in fair value of these term extensions was $185,935 which was expensed during the six months ended <span>June 30, 2026</span>. The Company used the Black-Scholes option pricing model to calculate the increase in fair value, with the following assumptions for the extended options: <span style="-sec-ix-hidden:fc_575596668;">no</span> dividend yield, expected volatility ranging between 89.8% and 91.8%, risk free interest rate ranging between 3.98% and 4.13%, and expected option life ranging between 2.7 and 4.7 years.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;"><i>Issuance of Restricted Shares</i></span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">A restricted stock award (“RSA”) is an award of common shares that is subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the shares before the restricted shares vest. Shares of nonvested restricted stock have the same voting rights as common stock, are entitled to receive dividends and other distributions thereon and are considered to be currently issued and outstanding. The Company’s restricted stock awards generally vest over a period of one year. The Company expenses the cost of the restricted stock awards, which is determined to be the fair market value of the shares at the date of grant, straight-line over the period during which the restrictions lapse. For these purposes, the fair market value of the restricted stock is determined based on the closing price of the Company’s common stock on the grant date. There were <span style="-sec-ix-hidden:fc_1265150643;">no</span> RSAs granted during the three and six months ended <span>June 30, 2026</span>.</span> </p> 0.0175 0.02 1000000 400000 0.9 65392 0.759 0.0377 P5Y 391950 0.94 1.06 185935 0.898 0.918 0.0398 0.0413 P2Y8M12D P4Y8M12D P1Y <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 12 – STOCK OPTIONS</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">During 2008, the Board of Directors (“Board”) of the Company adopted the 2008 Equity Incentive Plan (“2008 Plan”) that was approved by the stockholders. Under the 2008 Plan, the Company was authorized to grant options to purchase up to 25,000,000 shares of common stock to any officer, other employee or director of, or any consultant or other independent contractor who provides services to the Company. The 2008 Plan was intended to permit stock options granted to employees under the 2008 Plan to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended (“Incentive Stock Options”). All options granted under the 2008 Plan, which are not intended to qualify as Incentive Stock Options are deemed to be non-qualified options (“Non-Statutory Stock Options”). As of June 30, 2026, options to purchase 200,000 shares of common stock were outstanding and unexercised under the 2008 Plan. No shares remain available for grants under the 2008 Plan. The 2008 Plan expired on March 3, 2019.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">During 2013, the Board adopted the 2013 Equity Incentive Plan (“2013 Plan”), which was approved by stockholders at the 2013 annual meeting of stockholders. Under the 2013 Plan, the Company was authorized to grant awards of stock options, restricted stock, restricted stock units and other stock-based awards of up to an aggregate of 5,000,000 shares of common stock to any officer, employee, director or consultant. The 2013 Plan was intended to permit stock options granted to employees under the 2013 Plan to qualify as Incentive Stock Options. All options granted under the 2013 Plan, which are not intended to qualify as Incentive Stock Options are deemed to be Non-Qualified Stock Options. The 2013 Plan expired on November 18, 2023, and no additional awards may be granted under the plan. However, awards granted prior to the expiration date remain outstanding in accordance with their respective terms. As of June 30, 2026, an aggregate of 150,000 shares of common stock were outstanding under the 2013 Plan, consisting of 150,000 shares underlying stock options and 0 shares of nonvested restricted stock or restricted stock units.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;">The Company also grants stock options outside the option plans on terms determined by the Board.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">In connection with Incentive Stock Options, the exercise price of each option may not be less than 100% of the fair market value of the common stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company).</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">Prior to January 1, 2014, volatility in all instances presented is the Company’s estimate of volatility that is based on the volatility of other public companies that are in closely related industries to the Company. Beginning January 1, 2014, volatility in all instances presented is the Company’s estimate of volatility that is based on the historical volatility of the Company’s common stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted by the Company during the six months ended June 30, 2026:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%;"> <tbody><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="width: 88%; text-align: left;"> Risk Free Interest Rate</td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 9%; text-align: right;">3.8</td> <td style="width: 1%; text-align: left;">%</td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-align: left;">Expected Volatility</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">89.1</td> <td style="text-align: left;">%</td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-align: left;">Expected Life (in years)</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">2.4</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-align: left;">Dividend Yield</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">0</td> <td style="text-align: left;">%</td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td>Weighted average estimated fair value of options during the period</td> <td> </td> <td style="text-align: left;">$</td> <td style="text-align: right;">0.17</td> <td style="text-align: left;"> </td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;">The following table summarizes the activities for the Company’s stock options for the six months ended June 30, 2026:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%;"> <tbody><tr style="vertical-align: bottom; background-color: White;"><td style="padding-bottom: 1pt;"> </td> <td style="font-weight: bold; padding-bottom: 1pt;"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Options Outstanding</span></span></td> <td style="padding-bottom: 1pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> <td> </td> <td colspan="2" style="text-align: left;"> </td> <td style="text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Weighted -</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td> </td> <td colspan="2" style="text-align: left;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> <td> </td> <td colspan="2" style="text-align: left;"> </td> <td style="text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Average </span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td> </td> <td colspan="2" style="text-align: left;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> <td> </td> <td colspan="2" style="text-align: left;"> </td> <td style="text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Remaining</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Aggregate</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Weighted-</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Contractual</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Intrinsic</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td style="font-weight: bold;"> </td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Number of</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Average </span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Term</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Value</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="padding-bottom: 1pt;"> </td> <td style="font-weight: bold; padding-bottom: 1pt;"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Shares</span></span></td> <td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; padding-bottom: 1pt;"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Exercise Price</span></span></td> <td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; padding-bottom: 1pt;"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">(in years)</span></span></td> <td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; padding-bottom: 1pt;"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">(in 000's) (1)</span></span></td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 40%;">Balance, December 31, 2025</td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 12%; text-align: right;">11,496,525</td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 12%; text-align: right;">0.80</td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 12%; text-align: right;">1.9</td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 12%; text-align: right;">93</td> <td style="width: 1%; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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(204,238,255);"> <td>Granted</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">1,410,000</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">0.70</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">2.0</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_473696893;">-</span></td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td>Exercised</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1143440982;">-</span></td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_101072980;">-</span></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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1583518696;">-</span></td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 1pt;">Expired/Cancelled</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;">(472,500</td> <td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; text-align: left;">)</td> <td style="border-bottom: Black 1pt solid; 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;">1.05</td> <td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; 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="border-bottom: Black 1pt solid; padding-bottom: 1pt; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; 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;"><span style="-sec-ix-hidden:fc_1280677812;">-</span></td> <td style="padding-bottom: 1pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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(204,238,255);"> <td>Balance, June 30, 2026</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">12,434,025</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;">$</td> <td style="text-align: right;">0.78</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">1.7</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;">$</td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1520483313;">1,149</span></td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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(204,238,255);"> <td style="text-align: left; padding-bottom: 2.5pt;">Exercisable at June 30, 2026 and expected to vest thereafter</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;">12,434,025</td> <td style="border-bottom: Black 2.5pt double; text-align: left;"> </td> <td style="border-bottom: Black 2.5pt double;"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right;">0.78</td> <td style="border-bottom: Black 2.5pt double; text-align: left;"> </td> <td style="border-bottom: Black 2.5pt double;"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left;"> </td> <td style="border-bottom: Black 2.5pt double; text-align: right;">1.7</td> <td style="border-bottom: Black 2.5pt double; text-align: left;"> </td> <td style="border-bottom: Black 2.5pt double;"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right;">1,149</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;" width="100%"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in;"></td> <td style="width: 0.25in;">(1)</td> <td> The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the closing stock price of $0.61 for the Company’s common stock on June 30, 2026.</td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">The Company recognized share-based compensation expense of $425,216 and $532,982 for the three and six months ended June 30, 2026 and $41,850 and $1,179,347 for the three and six months ended June 30, 2025 with respect to stock options.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">As of June 30, 2026, there was $0 of unrecognized share-based compensation cost related to outstanding stock options. The difference, if any, between the stock options exercisable at June 30, 2026 and the stock options exercisable and expected to vest relates to management’s estimate of options expected to vest in the future.</span> </p> 25000000 200000 5000000 150000 150000 0 1 1.10 0.10 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;">The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted by the Company during the six months ended June 30, 2026:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"><span style="background-color: white;"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%;"> <tbody><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="width: 88%; text-align: left;"> Risk Free Interest Rate</td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 9%; text-align: right;">3.8</td> <td style="width: 1%; text-align: left;">%</td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-align: left;">Expected Volatility</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">89.1</td> <td style="text-align: left;">%</td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-align: left;">Expected Life (in years)</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">2.4</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-align: left;">Dividend Yield</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">0</td> <td style="text-align: left;">%</td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td>Weighted average estimated fair value of options during the period</td> <td> </td> <td style="text-align: left;">$</td> <td style="text-align: right;">0.17</td> <td style="text-align: left;"> </td> </tr></tbody> </table> 0.038 0.891 P2Y4M24D 0 0.17 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;">The following table summarizes the activities for the Company’s stock options for the six months ended June 30, 2026:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%;"> <tbody><tr style="vertical-align: bottom; background-color: White;"><td style="padding-bottom: 1pt;"> </td> <td style="font-weight: bold; padding-bottom: 1pt;"> </td> <td colspan="14" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Options Outstanding</span></span></td> <td style="padding-bottom: 1pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> <td> </td> <td colspan="2" style="text-align: left;"> </td> <td style="text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Weighted -</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td> </td> <td colspan="2" style="text-align: left;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> <td> </td> <td colspan="2" style="text-align: left;"> </td> <td style="text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Average </span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td> </td> <td colspan="2" style="text-align: left;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> <td> </td> <td colspan="2" style="text-align: left;"> </td> <td style="text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Remaining</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Aggregate</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Weighted-</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Contractual</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Intrinsic</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td style="font-weight: bold;"> </td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Number of</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Average </span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Term</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Value</span></span></td> <td style="font-weight: bold; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="padding-bottom: 1pt;"> </td> <td style="font-weight: bold; padding-bottom: 1pt;"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Shares</span></span></td> <td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; padding-bottom: 1pt;"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Exercise Price</span></span></td> <td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; padding-bottom: 1pt;"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">(in years)</span></span></td> <td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; font-weight: bold; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; padding-bottom: 1pt;"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">(in 000's) (1)</span></span></td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 40%;">Balance, December 31, 2025</td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 12%; text-align: right;">11,496,525</td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 12%; text-align: right;">0.80</td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 12%; text-align: right;">1.9</td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 12%; text-align: right;">93</td> <td style="width: 1%; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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(204,238,255);"> <td>Granted</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">1,410,000</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">0.70</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">2.0</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_473696893;">-</span></td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td>Exercised</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1143440982;">-</span></td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_101072980;">-</span></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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1583518696;">-</span></td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 1pt;">Expired/Cancelled</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;">(472,500</td> <td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; text-align: left;">)</td> <td style="border-bottom: Black 1pt solid; 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;">1.05</td> <td style="border-bottom: Black 1pt solid; padding-bottom: 1pt; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; 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="border-bottom: Black 1pt solid; padding-bottom: 1pt; text-align: left;"> </td> <td style="border-bottom: Black 1pt solid; 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;"><span style="-sec-ix-hidden:fc_1280677812;">-</span></td> <td style="padding-bottom: 1pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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(204,238,255);"> <td>Balance, June 30, 2026</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">12,434,025</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;">$</td> <td style="text-align: right;">0.78</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">1.7</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;">$</td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1520483313;">1,149</span></td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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(204,238,255);"> <td style="text-align: left; padding-bottom: 2.5pt;">Exercisable at June 30, 2026 and expected to vest thereafter</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;">12,434,025</td> <td style="border-bottom: Black 2.5pt double; text-align: left;"> </td> <td style="border-bottom: Black 2.5pt double;"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right;">0.78</td> <td style="border-bottom: Black 2.5pt double; text-align: left;"> </td> <td style="border-bottom: Black 2.5pt double;"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left;"> </td> <td style="border-bottom: Black 2.5pt double; text-align: right;">1.7</td> <td style="border-bottom: Black 2.5pt double; text-align: left;"> </td> <td style="border-bottom: Black 2.5pt double;"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left;">$</td> <td style="border-bottom: Black 2.5pt double; text-align: right;">1,149</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt;" width="100%"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in;"></td> <td style="width: 0.25in;">(1)</td> <td> The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the closing stock price of $0.61 for the Company’s common stock on June 30, 2026.</td> </tr></tbody> </table> 11496525 0.8 P1Y10M24D 93 1410000 0.7 P2Y 472500 1.05 12434025 0.78 P1Y8M12D 12434025 0.78 P1Y8M12D 1149 0.61 425216 532982 41850 1179347 0 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 13 – OPERATING LEASES</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">For the three and six months ended June 30, 2026, total rent expense under leases amounted to $1,382 and $2,734 and for the three and six months ended June 30, 2025 total rent under leases amounted to $1,316 and $2,656. The Company has elected not to recognize right-of-use assets and lease liabilities arising from short-term leases. The Company has <span style="-sec-ix-hidden:fc_1437075384;">no</span> long-term lease obligations as of June 30, 2026.</span> </p> 1382 2734 1316 2656 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 14 – RELATED PARTY TRANSACTIONS</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;"> On January 29, 2026 the Company entered into a $10,000 Promissory Note agreement with the Chief Executive Officer. This Promissory Note had a term of 30 days and an interest rate of 7%. It was repaid in full with applicable interest on February 9, 2026. Interest expense recognized for the three and six months ended June 30, 2026 was $21. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;"> On January 30, 2026 the Company entered into a $15,000 Promissory Note agreement with the Chairman. This Promissory Note had a term of 30 days and an interest rate of 7%. It was repaid in full with applicable interest on April 3, 2026. Interest expense recognized for the three and six months ended June 30, 2026 was $182. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;">See Notes 3,6,7, and 8, which also include related party transactions.</p> 10000 P30D 0.07 21 21 15000 P30D 0.07 182 182 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white;"><span style="font-weight: bold;">NOTE 15 - INVESTOR PRIVATE LINE OF CREDIT</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;"> On March 13, 2023, the Company entered into an Investor Private Line of Credit agreement (the “LOC Agreement”) with an existing shareholder of the Company (the “Lender”). Pursuant to this agreement, the Lender could extend unsecured loans to the Company in the amount of up to twenty million dollars ($20,000,000) which could be drawn upon by the Company for a period of one year in order to provide additional capital to facilitate the Company’s operations. Drawings could be made by the Company as long as there had not been any material change in the operations of the Company. Loans under the LOC Agreement bear interest at the rate of 7% per annum. Drawings under the LOC Agreement must be repaid in full:(i) upon the execution and completion of a sale, merger or other transaction of the Company whereby the Company transfers its ownership and/or its assets to a third party within thirty (30) days of the completion of the transaction (a “Change of Control”) or (ii) if a Change of Control does not occur within one year from the date of the LOC Agreement, the Company will repay any amounts outstanding within sixty (60) days. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;">On March 13, 2024, the Company entered into an Amendment to Investor Private Line of Credit (the “Amendment”) with the Lender. The Amendment extended the maturity date of the existing Investor Private Line of Credit Agreement with the Lender by one year, from March 13, 2024 to March 13, 2025. On March 13, 2025, the maturity date of this LOC Agreement was extended again for one year to March 13, 2026.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;">On March 13, 2026, this LOC Agreement expired with no outstanding balance.</p> 20000000 0.07 P30D P60D <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;"><span style="font-weight: bold;">NOTE 16 – SEGMENT REPORTING</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;"> The Company manages the business activities on a consolidated basis and operates in one reportable segment. The Company's reportable segment is a family financial solutions platform that safeguards children’s privacy and provides anti-fraud protection for the elderly. The segment is data management and monetization. As the Company has <span style="-sec-ix-hidden:fc_1342578625;">one</span> reportable segment, sales, transaction expense, marketing, product development, and general and administrative expenses are equal to consolidated results. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;"> Financial results for the Company's reportable segment have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's Chief Operating Decision Maker ("CODM") in allocating resources and in assessing performance. The Company's CODM is the <span style="-sec-ix-hidden:fc_367668287;">Chief Executive Officer</span>. The measurement of segment profit or loss that the CODM uses to evaluate the performance of the Company's segment is net income attributable to Rego Payment Architectures, Inc.Financial budgets and actual results used by the CODM to assess performance and allocate resources, as well as strategic decisions related to headcount and other expenditures are reviewed on a consolidated basis. The CODM considers the impact of the significant segment expenses in the table below on net income when deciding where and when to make expenditures. </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;">In accordance with ASC 280, the Company has disclosed below the significant segment expense categories that are regularly provided to the CODM and included in the measure of segment profit or loss.</p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="white-space: nowrap;"> </td> <td> </td> <td colspan="6" style="white-space: nowrap; text-align: center;">For the Three Months Ended</td> <td> </td> <td> </td> <td colspan="6" style="white-space: nowrap; text-align: center;">For the Six Months Ended</td> <td> </td> </tr><tr style="vertical-align: bottom;"><td style="white-space: nowrap;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="6" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid;">June 30,</td> <td style="padding-bottom: 1pt;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="6" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid;">June 30,</td> <td style="padding-bottom: 1pt;"> </td> </tr><tr style="vertical-align: bottom;"><td style="white-space: nowrap;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="2" style="white-space: nowrap; text-align: right;"><span style="text-decoration:underline">2026</span></td> <td style="padding-bottom: 1pt;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="2" style="white-space: nowrap; text-align: right;"><span style="text-decoration:underline">2025</span></td> <td style="padding-bottom: 1pt;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="2" style="white-space: nowrap; text-align: right;"><span style="text-decoration:underline">2026</span></td> <td style="padding-bottom: 1pt;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="2" style="white-space: nowrap; text-align: right;"><span style="text-decoration:underline">2025</span></td> <td style="padding-bottom: 1pt;"> </td> </tr><tr style="vertical-align: bottom;"><td style="white-space: nowrap;"> </td> <td> </td> <td colspan="2" style="white-space: nowrap;"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap;"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap;"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap;"> </td> <td> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="width: 40%; text-align: left; padding-bottom: 1pt;">NET REVENUE</td> <td style="width: 1%; padding-bottom: 1pt;"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left;">$</td> <td style="width: 12%; border-bottom: Black 1pt solid; text-align: right;">31,850</td> <td style="width: 1%; padding-bottom: 1pt; text-align: left;"> </td> <td style="width: 1%; padding-bottom: 1pt;"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left;">$</td> <td style="width: 12%; border-bottom: Black 1pt solid; text-align: right;"><span style="-sec-ix-hidden:fc_1441714281;">-</span></td> <td style="width: 1%; padding-bottom: 1pt; text-align: left;"> </td> <td style="width: 1%; padding-bottom: 1pt;"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left;">$</td> <td style="width: 12%; border-bottom: Black 1pt solid; text-align: right;">43,600</td> <td style="width: 1%; padding-bottom: 1pt; text-align: left;"> </td> <td style="width: 1%; padding-bottom: 1pt;"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left;">$</td> <td style="width: 12%; border-bottom: Black 1pt solid; text-align: right;"><span style="-sec-ix-hidden:fc_1939980148;">-</span></td> <td style="width: 1%; padding-bottom: 1pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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(204,238,255);"><td style="text-align: left;">OPERATING EXPENSES</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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: White;"><td style="white-space: nowrap; text-align: left; padding-left: 0.2in;">Transaction expense</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1165848569;">-</span></td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">57,593</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">46,967</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">122,468</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="white-space: nowrap; text-align: left; padding-left: 0.2in;">Sales and marketing</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">88,735</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">110,408</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">190,031</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">229,141</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="white-space: nowrap; text-align: left; padding-left: 0.2in;">Product development</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">787,052</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">863,441</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">1,663,133</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">1,421,982</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="white-space: nowrap; text-align: left; padding-left: 0.2in;">General and administrative</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;">916,742</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;">826,464</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;">1,509,757</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;">2,641,138</td> <td style="padding-bottom: 1pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="white-space: nowrap; text-align: left; padding-bottom: 1pt; padding-left: 0.4in;">Total operating expenses</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;">1,792,529</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;">1,857,906</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;">3,409,888</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;">4,414,729</td> <td style="padding-bottom: 1pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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: White;"><td style="text-align: left; padding-bottom: 2.5pt;">NET OPERATING LOSS</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;">(1,760,679</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;">(1,857,906</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;">(3,366,288</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;">(4,414,729</td> <td style="padding-bottom: 2.5pt; text-align: left;">)</td> </tr></tbody></table> The Company's CODM is the Chief Executive Officer. The measurement of segment profit or loss that the CODM uses to evaluate the performance of the Company's segment is net income attributable to Rego Payment Architectures, Inc.Financial budgets and actual results used by the CODM to assess performance and allocate resources, as well as strategic decisions related to headcount and other expenditures are reviewed on a consolidated basis <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white;"> </p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="white-space: nowrap;"> </td> <td> </td> <td colspan="6" style="white-space: nowrap; text-align: center;">For the Three Months Ended</td> <td> </td> <td> </td> <td colspan="6" style="white-space: nowrap; text-align: center;">For the Six Months Ended</td> <td> </td> </tr><tr style="vertical-align: bottom;"><td style="white-space: nowrap;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="6" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid;">June 30,</td> <td style="padding-bottom: 1pt;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="6" style="white-space: nowrap; text-align: center; border-bottom: Black 1pt solid;">June 30,</td> <td style="padding-bottom: 1pt;"> </td> </tr><tr style="vertical-align: bottom;"><td style="white-space: nowrap;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="2" style="white-space: nowrap; text-align: right;"><span style="text-decoration:underline">2026</span></td> <td style="padding-bottom: 1pt;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="2" style="white-space: nowrap; text-align: right;"><span style="text-decoration:underline">2025</span></td> <td style="padding-bottom: 1pt;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="2" style="white-space: nowrap; text-align: right;"><span style="text-decoration:underline">2026</span></td> <td style="padding-bottom: 1pt;"> </td> <td style="padding-bottom: 1pt;"> </td> <td colspan="2" style="white-space: nowrap; text-align: right;"><span style="text-decoration:underline">2025</span></td> <td style="padding-bottom: 1pt;"> </td> </tr><tr style="vertical-align: bottom;"><td style="white-space: nowrap;"> </td> <td> </td> <td colspan="2" style="white-space: nowrap;"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap;"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap;"> </td> <td> </td> <td> </td> <td colspan="2" style="white-space: nowrap;"> </td> <td> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="width: 40%; text-align: left; padding-bottom: 1pt;">NET REVENUE</td> <td style="width: 1%; padding-bottom: 1pt;"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left;">$</td> <td style="width: 12%; border-bottom: Black 1pt solid; text-align: right;">31,850</td> <td style="width: 1%; padding-bottom: 1pt; text-align: left;"> </td> <td style="width: 1%; padding-bottom: 1pt;"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left;">$</td> <td style="width: 12%; border-bottom: Black 1pt solid; text-align: right;"><span style="-sec-ix-hidden:fc_1441714281;">-</span></td> <td style="width: 1%; padding-bottom: 1pt; text-align: left;"> </td> <td style="width: 1%; padding-bottom: 1pt;"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left;">$</td> <td style="width: 12%; border-bottom: Black 1pt solid; text-align: right;">43,600</td> <td style="width: 1%; padding-bottom: 1pt; text-align: left;"> </td> <td style="width: 1%; padding-bottom: 1pt;"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left;">$</td> <td style="width: 12%; border-bottom: Black 1pt solid; text-align: right;"><span style="-sec-ix-hidden:fc_1939980148;">-</span></td> <td style="width: 1%; padding-bottom: 1pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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(204,238,255);"><td style="text-align: left;">OPERATING EXPENSES</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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: White;"><td style="white-space: nowrap; text-align: left; padding-left: 0.2in;">Transaction expense</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1165848569;">-</span></td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">57,593</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">46,967</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">122,468</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="white-space: nowrap; text-align: left; padding-left: 0.2in;">Sales and marketing</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">88,735</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">110,408</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">190,031</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">229,141</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="white-space: nowrap; text-align: left; padding-left: 0.2in;">Product development</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">787,052</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">863,441</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">1,663,133</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">1,421,982</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="white-space: nowrap; text-align: left; padding-left: 0.2in;">General and administrative</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;">916,742</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;">826,464</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;">1,509,757</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;">2,641,138</td> <td style="padding-bottom: 1pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="white-space: nowrap; text-align: left; padding-bottom: 1pt; padding-left: 0.4in;">Total operating expenses</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;">1,792,529</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;">1,857,906</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;">3,409,888</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;">4,414,729</td> <td style="padding-bottom: 1pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </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: White;"><td style="text-align: left; padding-bottom: 2.5pt;">NET OPERATING LOSS</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;">(1,760,679</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;">(1,857,906</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;">(3,366,288</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;">(4,414,729</td> <td style="padding-bottom: 2.5pt; text-align: left;">)</td> </tr></tbody></table> 31850 43600 57593 46967 122468 88735 110408 190031 229141 787052 863441 1663133 1421982 916742 826464 1509757 2641138 1792529 1857906 3409888 4414729 -1760679 -1857906 -3366288 -4414729 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0;"><span style="background-color: white;"><span style="font-weight: bold;">NOTE 17 – SUBSEQUENT EVENTS</span></span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> </p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify;"> <span style="background-color: white;">In July 2026, the Company granted stock options to purchase 322,500 shares of the Company’s common stock with a weighted average grant-date fair value of $0.25 per share, for a total fair value of $80,359. </span> </p> 322500 0.25 80359 false false false false The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the closing stock price of $0.61 for the Company’s common stock on June 30, 2026.