NOTE 15 – FORGIVENESS OF RELATED PARTY ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

During 2023 and 2024, the Company was not able to pay the former CEO the salary per his employment agreement. This unpaid salary has been accrued as a liability. On August 5, 2024, the Company negotiated with the former CEO and agreed that his accrued salary of $169,521 would be forgiven. This document was never turned in to the accounting firm during the management transition and was never recorded. The document was found during the six months ended June 30, 2026. The Company evaluated the materiality of this transaction and determined that it is not material for either the year ended December 31, 2024 or the six months ended June 30, 2026. Since the former CEO is a related entity, the Company charged the amount of $169,521 for this forgiven accrued salary directly to additional paid-in capital.

The Company has carried an accounts payable amount of $106,300 to a company controlled by the former CEO. On May 19, 2026, the Company received a signed letter from the former CEO stating that due to an accounting error this amount was not owed by the Company and that there was no money owed to the company under his control. Since the former CEO is a related entity, the Company charged the amount of $106,300 for the reduction of accounts payable directly to additional paid-in capital.