The Company is subject to a matter which is currently in arbitration whereby a plaintiff is seeking $570,000 from the Company plus 5% of the Company’s equity. The parties to the arbitration will present their written briefs to the arbitrator by September 4, 2026, once the briefs have been delivered, the Arbitrator will take sixty days to issue his ruling. The Company firmly believes that the claims are baseless and no estimated loss can be determined.

The variable interest entity, FINAP USA, which is consolidated into the Company’s results has a contingent license fee payable of $600,000 dependent on the Company generating revenues, of which 10%, after the deduction of all operating expenses, is payable to the licensor.

The Company has notes payable and convertible debt, disclosed under Notes 9 and 10 above, of which $2,124,119 and $4,243,086, respectively, have already matured, the Company had entered into a forbearance agreement with two significant convertible note holders, which had expired on May 1, 2026. We have certain forbearance agreements in place with other convertible note holders which extended the maturity date of the convertible notes to December 31, 2026, the remaining convertible notes are technically in default. Should the convertible debt not be converted to Common Stock, the Company may need to repay the principal and interest outstanding on this convertible debt.