NOTE 6. PREPAID EXPENSES

Prepaid expenses were the following at June 30, 2026 and December 31, 2025:

 SCHEDULE OF PREPAID EXPENSE

As of June 30, 2026 and December 31, 2025, the Company’s prepaid expenses relate to its continuing operations. Prepaid inventory consists of deposits and advance payments to ticket suppliers, sponsors, and partners for event tickets to be received and held for resale, which are transferred to ticket inventory upon receipt of the tickets. Prepaid offering costs consist primarily of issuance costs associated with the Company’s equity line of credit, which are withheld from the proceeds of draws and amortized to additional paid-in capital as shares are issued. Prepaid expenses of the Video Solutions business are included within assets of the Video Solutions business held-for-sale in the condensed consolidated balance sheets. See Note 22, Discontinued Operations, for additional information regarding the assets and liabilities of the Video Solutions business.