Note 8 – Derivative liabilities

Certain of the Company’s convertible notes contain features that create derivative liabilities. The pricing model the Company uses for determining fair value of its derivatives is the black-scholes model. Valuations derived from these models are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves management’s judgment and may impact net income. The derivative components of the note is valued at issuance, at conversion, at restructuring, and at each period end.

Derivative liability activity for the six months ended June 30, 2026, is summarized in the table below:

 Schedule of derivative liability

The following assumptions were used for the valuation of the derivative liability associated with this obligation:

 Schedule of valuation of the derivative liability