NOTE 7 – Commitments and Contingencies

Legal Proceedings. The Company disclosed in its Annual Report on Form 10-K that demands for arbitration were submitted to JAMS in Jonathan Sanger v. American Picture House Corporation (JAMS Case No. 5220010741) and Michael Jones v. American Picture House Corporation (JAMS Case No. 5220010727), with JAMS advising that the Jones matter had been consolidated with the Sanger-caption matter. The Company disputes the claims asserted and reserves all rights, objections and defenses, including with respect to commencement, service and arbitrability.

BECKY 3 Master Investment and Co-Production Agreement. Effective May 26, 2026, and executed on June 3, 2026, the Company entered into a Master Investment and Co-Production Agreement and related ancillary agreements with Russ Posternak and Becky III The Movie LLC with respect to the motion picture BECKY 3. The Company is not obligated to fund any cash under the agreement. The Company is treated for economic purposes as having made a $300,000 senior equity investment in the picture, entitling it to recoup $360,000 out of the picture waterfall on a senior equity basis, pari passu with up to $300,000 of other senior equity, together with a distribution fee corridor participation, a participation in the producer’s future BECKY-related producer fees and backend, and an assignment of certain collateral recovery rights. As consideration, the Company agreed to issue 250,000 shares of common stock and to grant two-year options to purchase 300,000 shares of common stock at an exercise price of $0.20 per share, which options become exercisable proportionally as the Company collects its $360,000 recoupment entitlement. At June 30, 2026, the Company’s obligation to issue those securities remained subject to approval by the Company’s Board of Directors and other conditions precedent, and accordingly no shares had been issued, no options had been granted, and no amounts had been recorded in the accompanying condensed consolidated financial statements. The conditions were satisfied on August 6, 2026. See Note 9.