| SEGMENT INFORMATION |
NOTE 16 – SEGMENT INFORMATION The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its chief executive officers, who review financial information presented on a consolidated basis. The CODM uses consolidated operating margin and net income (loss) to assess financial performance and allocate resources. These financial metrics are used by the CODM to make key operating decisions, such as the allocation of budget between cost of revenues, sales and marketing, professional fees, and general and administrative expenses. The following table presents selected financial information with respect to the Company’s single operating segment for the three and six months ended June 30, 2026 and 2025: | | For the Three Months Ended | | | | June 30, 2026 | | | June 30, 2025 | | Net sales | | $ | 538,673 | | | $ | 94,454 | | Cost of sales | | | 238,458 | | | | 76,451 | | Gross profit (loss) | | | 300,215 | | | | 18,003 | | | | | | | | | | | Operating expenses | | | | | | | | | General and administrative expenses | | | 310,578 | | | | 160,800 | | Research and development | | | 73,213 | | | | 789 | | Consulting fees | | | 2,152,497 | | | | 727,547 | | Legal and accounting fees | | | 5,774 | | | | 63,809 | | Audit fees | | | 17,500 | | | | 27,500 | | Depreciation and amortization expense | | | 23,375 | | | | 19,376 | | Total operating expenses | | | 2,582,937 | | | | 999,821 | | Operating loss | | | (2,282,722 | ) | | | (981,818 | ) | Operating margin | | | -424 | % | | | -1039 | % | | | | | | | | | | Other income (expenses) | | | | | | | | | Loss on extinguishment of debt | | | (924,625 | ) | | | - | | Interest expense | | | (230,861 | ) | | | (179,653 | ) | Financing incentive expense | | | - | | | | (83,250 | ) | Total other income (expense) | | | (1,155,486 | ) | | | (262,903 | ) | Loss before income tax expense | | | (3,438,208 | ) | | | (1,244,721 | ) | Income tax expense | | | - | | | | - | | Net loss | | $ | (3,438,208 | ) | | $ | (1,244,721 | ) |
| | For the Six Months Ended | | | | June 30, 2026 | | | June 30, 2025 | | Net sales | | $ | 1,479,139 | | | $ | 524,541 | | Cost of sales | | | 734,173 | | | | 402,249 | | Gross profit (loss) | | | 744,966 | | | | 122,292 | | | | | | | | | | | Operating expenses | | | | | | | | | General and administrative expenses | | | 715,445 | | | | 427,466 | | Research and development | | | 123,565 | | | | 60,760 | | Consulting fees | | | 3,191,086 | | | | 1,839,022 | | Legal and accounting fees | | | 38,775 | | | | 97,696 | | Audit fees | | | 35,000 | | | | 27,500 | | Depreciation and amortization expense | | | 46,492 | | | | 32,079 | | Total operating expenses | | | 4,150,363 | | | | 2,484,523 | | Operating loss | | | (3,405,397 | ) | | | (2,362,231 | ) | Operating margin | | | -230 | % | | | -450 | % | | | | | | | | | | Other income (expenses) | | | | | | | | | Other income | | | - | | | | 46,256 | | Loss on extinguishment of debt | | | (1,418,518 | ) | | | - | | Interest expense | | | (492,248 | ) | | | (441,377 | ) | Financing incentive expense | | | - | | | | (83,250 | ) | Total other income (expense) | | | (1,910,766 | ) | | | (478,371 | ) | Loss before income tax expense | | | (5,316,163 | ) | | | (2,840,602 | ) | Income tax expense | | | - | | | | - | | Net loss | | $ | (5,316,163 | ) | | $ | (2,840,602 | ) |
The Company had $358,805 and $405,296 in long-lived tangible assets as of June 30, 2026 and December 31, 2025, respectively.
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