NOTE 6 - NOTE RECEIVABLE

On May 2, 2024, the Company entered into a $100,000 promissory note agreement with an independent, non-affiliated third party. The note had a term of 180 days and bore interest at 8% per annum.

As of December 31, 2024, the note was in default, and the Company recorded a full allowance for credit losses on the outstanding principal balance and related accrued interest. The Company continued to maintain the full allowance as of December 31, 2025. As of the date of the assignment described below, the note remained in default, and the Company continued to maintain a full allowance on the outstanding balance and related accrued interest, including additional accrued interest recorded during the six months ended June 30, 2026.

On May 28, 2026, the Company assigned all of its rights, title, and interest in the note to SB Technology Holdings, Inc., a related party, for cash consideration of $1,000 on an “as-is, where-is,” non-recourse basis. The Board determined that the consideration represented the fair value of the impaired note after considering its delinquent status, uncertainty of collection, and the absence of third-party offers, and concluded that the transaction was fair to and in the best interests of the Company.

 SCHEDULE OF NOTE RECEIVABLE