| Schedule of Amortized Cost of the Convertible Debt |
A continuity of the amortized
cost of the convertible debt hosts contract are as follows:
| | |
First ELOC Agreement | | |
Second ELOC Agreement | | |
Total | |
| Balance, January 1, 2026 | |
$ | 1,254,479 | | |
$ | - | | |
$ | 1,254,479 | |
| Principal | |
| 16,890,768 | | |
| 10,730,000 | | |
| 27,620,768 | |
| Fair value of embedded derivative liability | |
| (3,392,520 | ) | |
| (331,856 | ) | |
| (3,724,376 | ) |
| Allocation of original issue discount and issuance cost (1) | |
| (2,235,109 | ) | |
| (1,835,546 | ) | |
| (4,070,655 | ) |
| Accretion | |
| 335,797 | | |
| 280,496 | | |
| 616,293 | |
| Interest expense | |
| 268,297 | | |
| 145,322 | | |
| 413,619 | |
| Repayment through common stock | |
| (10,632,356 | ) | |
| (2,402,289 | ) | |
| (13,034,645 | ) |
| Balance, June 30, 2026 | |
$ | 2,489,356 | | |
$ | 6,586,127 | | |
$ | 9,075,483 | |
| (1) | Total original issuance discounts and issuance costs amounted to $4,070,655, of which $3,450,152 were allocated to the amortized cost of the convertible debt and $620,503 were allocated to the derivative liabilities and recorded as finance cost in the statement of operations. |
|