NOTE 8 – ADVANCES AND NON-CONVERTIBLE NOTES PAYABLE

Factoring Advances

Advances for Simple Agreements for Future Tokens were entered into with accredited investors issued pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended, by virtue of Section 4(a)(2) thereof and/or Regulation D thereunder in 2018. As of June 30, 2026 and December 31, 2025, the Company owed $85,000 and $85,000 for Simple Agreements for Future Tokens, respectively.

Non-Convertible Notes Payable

On April 21, 2022, the Company entered into a secured promissory note in the principal amount of $964,470 for the financing and installation of a piece of equipment in the amount $750,000. The Company is required to make monthly payments in the amount $6,665 through October 2022 and monthly payments of $19,260 until October 2026. The note bears an interest rate of 10.6%, is secured by certain assets of the Company, and matures on October 21, 2026. During the six months ended June 30, 2026 and 2025, the Company made $93,575 and $9,280 in payments towards the note, respectively. There was additional interest of $16,148 booked during the year ended December 31, 2025 and of $9,315 booked in the six months ended June 30, 2026. There was amortization of debt discount of $7,515 and $4,215 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $90,731 and $176,792 net an unamortized debt discount of $(68,986) and $(61,471), respectively.

On September 1, 2022, the Company entered into a Deed of Trust note for the purchase of land and buildings. The note has a principal amount of $600,000, bears an interest rate of 6.5%, and matures on September 1, 2032. The Company is required to make monthly payments of $4,476 until September 1, 2032, when the remaining principal and accrued interest becomes due. The Company made principal payments of $8,668 and $8,668 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a principal balance of $535,319 and $543,988, and accrued interest of $0 and $0, respectively. The Company made interest payments of $17,742 and $18,186 during the three months ended June 30, 2026 and 2025, respectively.

On September 1, 2022, the Company entered into a Deed of Trust note for the purchase of land and buildings. The note has a principal amount of $600,000, bears an interest rate of 6.5%, and matures on September 1, 2032. The Company is required to make monthly payments of $4,476 until September 1, 2032, when the remaining principal and accrued interest becomes due. The Company made principal payments of $8,668 and $8,668 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a principal balance of $535,319 and $543,988, and accrued interest of $0 and $0, respectively. The Company made interest payments of $17,742 and $18,186 during the three months ended June 30, 2026 and 2025, respectively.

On January 10, 2023, the Company entered into a secured promissory note in the principal amount of $1,245,018 for a purchase price of $1,021,500. The note is secured by certain assets of the Company. There were cash proceeds of $1,000,000. The Company is required to make monthly payments in the amount of $10,365 through March 2023 and then monthly payments in the amount of $34,008 through March 2026. The note bears an interest rate of 10.6%, is secured by certain assets of the Company, and matures on March 10, 2026. There was amortization of debt discount of $32,408 and $32,186 during the six months ended June 30, 2026 and 2025, respectively. There were payments of $165,437 and $165,863 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $0 and $133,752 net an unamortized debt discount of $0 and $50,416, respectively.

On February 23, 2023, the Company entered into a secured promissory note in the principal amount of $822,040 for a purchase price of $628,353. The note is secured by certain assets of the Company. There were non-cash proceeds of $628,253 used to purchase equipment. The Company is required to make monthly payments in the amount of $6,370 through June 2023 and then monthly payments in the amount of $16,595 through June 2027. The note bears an interest rate of 10.6%, is secured by certain assets of the Company, and matures on June 23, 2027. The company recorded additional interest adjusted to debt discount amounting to $113,839. There was amortization of debt discount of $48,781 and $32,186 during the three months ended June 30, 2026 and 2025 respectively. There were payments of $53,776 and $106,023 during the three months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $252,015 and $242,229 net an unamortized debt discount of $(185,298) and $(229,154), respectively.

On February 24, 2023, the Company entered into a secured promissory note in the principal amount of $1,186,580 for a purchase price of $832,605. The note is secured by certain assets of the Company. There were non-cash proceeds of $832,605 used to purchase equipment. The Company is required to make monthly payments in the amount of $9,185 through June 2023 and then monthly payments in the amount of $23,955 through June 2027. The note bears an interest rate of 10.6%, is secured by certain assets of the Company, and matures on June 24, 2027. There were additional fees incurred of $8,733 and $21,380 during the years ended December 31, 2024 and 2023, respectively. There was amortization of debt discount of $48,781 and $35,958 during the six months ended June 30, 2026 and 2025, respectively. There were payments of $116,413 and $138,199 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $174,597 and $349,636 net an unamortized debt discount of $292,128 and $340,909, respectively.

On December 2, 2024, the Company entered into a secured promissory note with an entity controlled by the Company’s Chief Executive Officer in the principal amount of $11,699,916. The note was for the purchase of certain land and permits from an entity controlled by the Company’s Chief Executive Officer and is secured by such property. There were non-cash proceeds of $11,699,916 used to purchase the land and equipment. The note matured on March 31, 2025 and accrues interest at 10% per annum. The note requires monthly payments of $2,983,309, however in the event such payment would result in the Company having less than $3 million cash on hand, such payment is delayed without penalty until the following month and the maturity date of the note extended. There was amortization of debt discount of $0 during the six months ended June 30, 2026 and 2025. The Company made payments of $0 and $2,300,000 towards the principal of the note during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a principal balance and accrued interest of $5,391,859. Subsequent to June 30, 2026, the note was extended to July 31, 2026.

On February 3, 2025, the Company entered into a secured promissory note in the principal amount of $1,373,040 for a purchase price of $1,026,844. The note is secured by certain assets of the Company. The Company is required to make monthly payments in the amount of $19,070. The note matures on February 3, 2031. There was amortization of debt discount of $38,253 and $13,920 during the six months ended June 30, 2026 and 2025, respectively. There were payments of $95,350 and $77,250 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $854,687 and $911,784 net of an unamortized debt discount of $250,373 and $288,626, respectively.

On February 3, 2025, the Company entered into a secured promissory note in the principal amount of $1,000,107 for a purchase price of $769,383. The note is secured by certain assets of the Company. There were non-cash proceeds of $29,853 used to purchase equipment. The Company is required to make monthly payments in the amount of $14,305. The note matures on February 3, 2031. There was amortization of debt discount of $28,683 and $(19,322) during the six months ended June 30, 2026 and 2025, respectively. There were payments of $71,525 and $57,220 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $641,208 and $684,050 net of an unamortized debt discount of $158,629 and $187,312, respectively.

On February 3, 2025, the Company entered into a secured promissory note in the principal amount of $1,517,127 for a purchase price of $1,167,350. The note is secured by certain assets of the Company. There were non-cash proceeds of $45,273 used to purchase equipment. The Company is required to make monthly payments in the amount of $21,700. The note matures on February 3, 2031. There was amortization of debt discount of $43,540 and $(14,584) during the six months ended June 30, 2026 and 2025, respectively. There were payments of $108,500 and $87,800 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $972,483 and $1,037,443 net of an unamortized debt discount of $239,844 and $283,384, respectively.

On February 3, 2025, the Company entered into a secured promissory note in the principal amount of $1,213,693 for a purchase price of $898,653. The note is secured by certain assets of the Company. There were non-cash proceeds of $36,227 used to purchase equipment. The Company is required to make monthly payments in the amount of $17,360. The note matures on February 3, 2031. There was amortization of debt discount of $34,811 and $(13,164) during the six months ended June 30, 2026 and 2025, respectively. There were payments of $86,800 and $69,440 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $778,126 and $830,115 net of an unamortized debt discount of $192,527 and $227,338, respectively.

On May 28, 2025, the Company entered into a secured promissory note in the principal amount of $1,658,880 for a purchase price of $1,240,690. The note is secured by certain assets of the Company. The Company is required to make monthly payments in the amount of $23,040. The note matures on May 28, 2031. There was amortization of debt discount of $58,484 and $5,363 during the six months ended June 30, 2026 and 2025, respectively. There were payments of $138,240 and $69,120 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $1,089,882 and $1,169,642 net of an unamortized debt discount of $338,594 and $397,078, respectively.

On May 28, 2025, the Company entered into a secured promissory note in the principal amount of $1,327,680 for a purchase price of $992,852. The note is secured by certain assets of the Company. The Company is required to make monthly payments in the amount of $7,383. The note matures on May 28, 2031. There was amortization of debt discount of $38,620 and $16,937 during the six months ended June 30, 2026 and 2025, respectively. There were payments of $92,200 and $36,880 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $872,185 and $925,765 net of an unamortized debt discount of $282,151 and $320,772, respectively.

On February 3, 2026, the Company entered into a secured promissory note in the principal amount of $182,880 for a purchase price of $153,400. The note is secured by certain assets of the Company. The Company is required to make monthly payments in the amount of $3,810. The note matures on February 3, 2030. There was amortization of debt discount of $49,156 and $30,193 during the six months ended June 30, 2026 and 2025, respectively. There were payments of $52,327 and $0 during the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026 and December 31, 2025, the note had a balance of $147,969 and $0 net of an unamortized debt discount of $(17,416) and $0, respectively.

The following table details the current and long-term principal due under non-convertible notes as of June 30, 2026.

 SCHEDULE OF CURRENT AND LONG TERM PRINCIPAL DUE UNDER NONCONVERTIBLE NOTE

Total principal payments due on non-convertible notes for 2026 through 2029 and thereafter is as follows:

 SCHEDULE OF PRINCIPAL PAYMENTS DUE ON NON-CONVERTIBLE NOTES