| ACCOUNTS PAYABLES AND ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
NOTE
7 – ACCOUNTS PAYABLES AND ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
On
June 30, 2026, there was $1,001,115 due in form of accrued liabilities and accounts payable to affiliates. Further there was a short-term
loan from affiliates of $355,598 and $75,761 in accrued interest. On December 31, 2025, there was $577,500 in form of accrued liabilities
and accounts payable while the short-term loan amounted to $395,668 and the accrued interest $52,459.
The
following table represents the major components of accounts payable and accrued expenses and other current liabilities at June 30, 2026,
and December 31, 2025:
SCHEDULE OF ACCOUNTS PAYABLES AND ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
| | |
June 30, 2026 | | |
December 31, 2025 | |
| Affiliate liabilities (1) | |
$ | 1,001,115 | | |
$ | 577,500 | |
| Pension/401K | |
| 195,786 | | |
| 114,534 | |
| Payroll tax reserve | |
| 66,448 | | |
| 43,787 | |
| Accounts payable affiliates (1) | |
| 11,000 | | |
| 18,000 | |
| Professional fees | |
| 574,961 | | |
| 412,521 | |
| Other accounts payable | |
| 679 | | |
| 838 | |
| Interest affiliates (3) | |
| 75,761 | | |
| 52,459 | |
| Interest | |
| 349,811 | | |
| 277,956 | |
| Un-issued shares affiliates (2) | |
| 1,360,606 | | |
| 82,006 | |
| Un-issued shares | |
| 58,202 | | |
| 16,272 | |
| Loan from affiliates (3) | |
| 355,598 | | |
| 395,668 | |
| Short term loan | |
| 50,000 | | |
| 50,000 | |
| Convertible note payable | |
| 805,000 | | |
| 805,000 | |
| Derivative liability | |
| 369,730 | | |
| 403,353 | |
| Total | |
$ | 5,274,697 | | |
$ | 3,249,894 | |
| (1) |
To
the CFO and CEO, there was $843,615 and $427,000 in accrued payroll as of June 30, 2026 and December 31, 2025, respectively. As of
June 30, 2026, and at December 31, 2025, the Company had recorded reserves for contingent compensation claims of $157,500 and $11,000
relating to disputed compensation and expense reimbursement claims asserted by the former Chief Commercial Officer and current shareholder.
These amounts reflect management’s reserve associated with a disputed matter and do not represent routine accrued payroll obligations
incurred in the ordinary course. |
| (2) |
As
of June 30, 2026, the amount to be converted into shares of Preferred Stock is $1,360,606. This consist of $82,006 is to our Directors
for their attendance at board and committee meetings during the fourth quarter and $1,278,600 to Dr. Platt as a performance grant
in recognition of his role in executing the Company’s first commercial distribution agreement and advancing capital funding
initiatives. On December 31, 2025 this amount was $82,006. |
| (3) |
On
June 30, 2026, the Company has a $355,598 loan from an affiliated company with an interest rate of 8%. The accrued interest is currently
$75,761. On December 31, 2025, the Company the loan was $395,668 and the accrued interest $52,459. |
|