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| Equity | 9. Equity
Preferred Stock
The Company has authorized a total of 10,000,000 shares of preferred stock, par value $0.01 per share. The Company has 1,000,000 shares authorized for Series D Preferred Stock. As of June 30, 2026 and December 31, 2025, the Company had issued and outstanding 427,750 and 576,562 shares of Series D Convertible Preferred Stock, respectively. On April 6, 2026, 148,812 shares of Series D Convertible Preferred Stock was converted into 148,812,000 shares of common stock. The Company’s Board of Directors has the authority to provide, out of the unissued shares of preferred stock, for one or more series of preferred stock and, with respect to each such series, to fix the number of shares constituting such series and the designation of such series, the voting powers, if any, of the shares of such series, and the preferences and relative, participating, optional or other special rights, if any, and any qualifications, limitations or restrictions thereof, of the shares of such series. The powers, preferences and relative, participating, optional and other special rights of each series of preferred stock, and the qualifications, limitations or restrictions thereof, if any, may differ from those of any and all other series at any time outstanding. The Preferred Stock shall be treated pari passu with the Common Stock except that the dividend on each share of Preferred Stock shall be equal to the amount of the dividend declared and paid on each share of Common Stock multiplied by the Conversion Rate, which is 1,000 shares of Common Stock for each share of Preferred Stock. The Preferred Stock is not entitled to a liquidation preference and conversions can only occur when sufficient shares are available to be issued.
Common Stock
As of June 30, 2026 and December 31, 2025, respectively, the Company had authorized 500,000,000 shares of its common stock, par value $0.001 per share. As of June 30, 2026 and December 31, 2025, the Company had 382,091,775 and 213,601,313 shares issued and outstanding, respectively.
As of June 30, 2026, the Company had 382,091,775 common shares outstanding and 527,211,073 common stock equivalents related to convertible notes payable and convertible preferred stock. As of June 30, 2026 and December 31, 2025, the number of outstanding common stock plus common stock equivalents is greater than the authorized shares. However, preferred stock conversions may only take place if the Company has enough authorized and unissued shares available to accommodate the conversion. On August 14, 2026, the Company received approval to increase the authorized shares from 500,000,000 shares to 5,000,000,000 shares. See Note 13.
Shares to be issued
As of June 30, 2026 and December 31, 2025, the Company had 5,378,966 and 8,563,324 in shares to be issued, respectively. The shares to be issued consist of the following:
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