v3.26.1
Operating Expenses
 6 Months Ended
Jun. 30, 2026
Operating Expenses [Abstract]  
OPERATING EXPENSES

NOTE 11 – OPERATING EXPENSES

 

For the three and six months ended June 30, 2026 and 2025, operating expenses consisted of the following:

 

    Three months ended     Six months ended  
    June 30,     June 30,  
Sales and marketing   2026     2025     2026     2025  
Professional and consulting fees   $ 791,820     $ 73,151     $ 839,680     $ 162,016  
Share-based Compensation – professional and consulting fees     553,750       -       553,750       -  
Office expenses     7,800       -       15,600       -  
Travel and entertainment     -       34       -       34  
Marketing and advertising     105,100       784,662       331,343       1,856,372  
    $ 1,458,470     $ 857,847     $ 1,740,373     $ 2,018,422  

 

    Three months ended     Six months ended  
    June 30,     June 30,  
Research and development   2026     2025     2026     2025  
Professional fees   $ 124,007     $ 95,785     $ 146,007     $ 184,523  
Other expenses     (6,522 )     5,493       (2,222 )     5,503  
Technology Expense     131,500       -       131,500       -  
Amortization     45,587       -       45,587       -  
    $ 294,572     $ 101,278     $ 320,872     $ 190,026  
In-process research and development     4,258,449       -       4,258,449       -  

 

On June 11, 2026, the Company entered into a license agreement with LightShift granting an exclusive, worldwide license to LightShift’s patent-protected quantum photonic array (“quantum antenna”) technology to develop, manufacture, and commercialize quantum antenna systems for UAV/drone platforms in defense and national-security applications. Consideration consists of $1,000,000 in cash, paid in installments, and 2,121,386 restricted shares. The agreement is subject to a performance condition requiring LightShift to deliver a demonstrable prototype by December 31, 2026 (extendable to March 31, 2027). LightShift has also agreed to a voting agreement supporting board-recommended proposals, and unvested shares (and, in the event of breach, vested shares) are subject to forfeiture or low-cost repurchase by the Company. As the license has a single use “field of use”, the license lacks alternative future use and should be expensed as IPR&D.

 

The Company recognized IPR&D expense of $4,258,449, comprising a $1,000,000 intellectual property acquisition liability and $3,258,449 representing 2,121,386 ordinary shares issued. The Company used the grant-date price, net of DLOM related to the non-registered status of shares issued, of $1.536/share to value the ordinary shares. During the six months ended June 30, 2026, the Company paid $250,000. As of June 30, 2026, the intellectual property acquisition liability remained outstanding at $750,000.

 

    Three months ended     Six months ended  
    June 30,     June 30,  
General and administrative   2026     2025     2026     2025  
Salaries and benefits   $ 1,287,549     $ 202,535     $ 1,907,947     $ 375,666  
Share-based compensation – salary and benefits     (240,363 )     -       736,168       -  
Professional and consulting fees     539,073       183,554       966,127       506,761  
Stock-based compensation – professional and consulting fees     1,860,500       -       1,860,500       -  
Office expenses     174,342       55,614       248,878       117,311  
Insurance     213,598       59,053       265,777       118,106  
Travel and entertainment     42,743       10,007       46,885       32,835  
    $ 3,877,442     $ 670,950     $ 6,032,282     $ 2,167,152