NOTE 8 - SIGNIFICANT EVENTS DURING THE PERIOD

On February 3, 2026, the Company entered into an agreement to settle outstanding notes payable with an aggregate principal balance of $50,000 and related accrued interest of $17,034 through the issuance of 30,188,500 shares of common stock. As at March 31, 2026, the carrying value of the notes, including accrued interest, was remeasured to $129,811. The resulting increase in carrying value was recognized as a finance charge and included in interest expense.

On June 18, 2026, the Company issued the 30,188,500 common shares pursuant to the settlement agreement. The shares had a fair value of $75,471, based on the closing market price of $0.0025 per share on the settlement date. The shares were issued in full satisfaction of the debt obligation, which had a carrying value of $132,516, including accrued interest, immediately prior to settlement. Accordingly, the Company recognized the difference between the carrying amount and the settlement amount as a recovery of interest expense of $57,045.

Mr. Tal and Koze are related parties of the Company by virtue of their equity rights. During 2026 the maturity date of all outstanding promissory and convertible notes held by them was extended to December 31, 2026. The stated annual interest rate of 6% and the 15% market rate used to impute interest were unchanged by the 2026 Debt Amendment. Because the notes bear interest below the market rate and are held by shareholders of the Company, the discount arising on initial imputation was recognized as a capital contribution to additional paid-in capital, rather than in the condensed interim consolidated statements of operations and comprehensive loss.