NOTE 11. SUBSEQUENT EVENTS

On July 10, 2026 and July 21, 2026, the Company issued an aggregate of 2,245,000 shares of Restricted Stock under the 2024 Plan to the Company’s executive officers and other key employees and consultants, including a grant of 1,220,000 shares of Restricted Stock to Dr. Saadi. The shares of Restricted Stock granted to Dr. Saadi will vest in four equal annual installments beginning on July 10, 2033 and the shares of Restricted Stock granted to each other grantee will vest in three equal installments on the earlier of each of (i) the first anniversary of the grant date and the Issuer having aggregate revenue of $50 million since the grant date, (ii) the second anniversary of the grant date and the Issuer having aggregate revenue of $100 million since the grant date, and (ii) the third anniversary of the grant date and the Issuer having aggregate revenue of $150 million since the grant date, provided that the reporting person remains in service with the Issuer on the applicable vesting date (the “2026 RSA Vesting Period”), and provided that the shares will automatically vest in full in the event of termination due to death or disability. Pursuant to the terms of these awards, the Company’s executive officers are entitled to vote the Restricted Stock, but the shares may not be sold, assigned, transferred, pledged, hypothecated, or otherwise encumbered, subject to automatic forfeit. The grantees will automatically forfeit all unvested Restricted Stock in the event they depart the Company for any reason, unless termination of their service triggers accelerated vesting pursuant to the terms of the applicable award agreement or the 2024 Plan. The fair value per share for these awards was determined to be approximately $5.06 and $4.06 per share for grants issued on July 10, 2026 and July 21, 2026, respectively, equivalent to the closing price of the Company’s common stock on the grant date, resulting in a total grant date fair value of $11,075,000. In accordance with ASC 718, the Company will recognize compensation expense on a straight-line basis from the grant date until the completion of the 2026 RSA Vesting Period.