NOTE 3 – EXTINGUISHMENT OF LIABILITIES

During the nine months ended June 30, 2026, the Company settled $25,400 of accounts payable with cash payments of $9,500 and recognized a gain of $15,900. Further, the Company issued 186,516 shares of its common stock with an estimated fair value of $78,212 based on recent sales of common stock for the settlement of accounts payable totaling $55,955 resulting in a loss on the settlement of the accounts balance of $22,257 (see also Note 8) which is included in the net loss on settlement of accounts payable on the condensed unaudited consolidated statement of operations.

During the nine months ended June 30, 2025, the Company issued an aggregate of 120,000 shares of common stock with an estimated fair value of $30,000 based on recent sales of common stock for the settlement of $43,902 of outstanding accounts payable balances. The settlement resulted in a net gain of approximately $13,902, which is included in net gain on settlement of liabilities on the unaudited condensed consolidated statements of operations. Further, the Company executed a release and settlement agreement with its former CEO for amounts owed to the former CEO totaling $50,000. Pursuant to the release and settlement agreement, the Company agreed to pay $55,000 for the settlement of all amounts outstanding with this individual and recognized a loss of $5,000 which has been netted with the gain on settlement of accounts payable, net, on the condensed unaudited consolidated statements of operations.