| SCHEDULE OF WARRANT OUTSTANDING AND WARRANT ACTIVITY |
SCHEDULE
OF WARRANT OUTSTANDING AND WARRANT ACTIVITY
| Description | |
Classification | |
Exercise Price | | |
Expiration Date | |
Balance December 31, 2025 | | |
Warrants Issued | | |
Warrants Exercised | | |
Warrants
Expired / Cancelled | | |
Adjustments (ii) | | |
Balance
June
30, 2026 | |
| Secured Promissory Note Warrants | |
Equity (i) | |
$ | 0.01 | | |
3/30/2031 | |
| 1,601,052 | | |
| - | | |
| (1,541,871 | ) | |
| - | | |
| 196,525 | | |
| 255,706 | |
| Default Warrants | |
Equity (i) | |
$ | 0.01 | | |
3/30/2031 | |
| 800,526 | | |
| - | | |
| (870,164 | ) | |
| - | | |
| 69,638 | | |
| - | |
| Service Provider Warrants | |
Equity (iv) | |
$ | 0.01 | | |
12/31/2026 | |
| - | | |
| 4,794,604 | | |
| (3,835,684 | ) | |
| - | | |
| - | | |
| 958,920 | |
| Placement Agent Warrants | |
Equity (iii) | |
$ | 5.38 | | |
1/12/2031 | |
| - | | |
| 36,822 | | |
| - | | |
| - | | |
| - | | |
| 36,822 | |
| Unsecured Promissory Note Warrants | |
Equity (v) | |
$ | 0.00 | | |
8/24/2034 | |
| 99,072 | | |
| - | | |
| - | | |
| (99,072 | ) | |
| - | | |
| - | |
| | |
| |
| | | |
| |
| 2,500,650 | | |
| 4,831,426 | | |
| (6,247,719 | ) | |
| (99,072 | ) | |
| 266,163 | | |
| 1,251,448 | |
| (i) | | The Secured
Promissory Note Warrants and Default Warrants were reclassified to equity upon the conversion of the convertible promissory notes in
connection with the Series A-I Closing in January and February 2026. During the three months ended June 30, 2026, 2,412,035
of the Secured Promissory Note Warrants and Default Warrants
were exercised. |
| (ii) | | Reflects changes
in estimated shares issuable due to changes in the Company’s fully diluted capitalization determined upon the Series A financing.
The Secured Promissory Note Warrants and the Default Warrants entitled holders to a specified percentage of fully diluted equity rather
than a fixed number of shares prior to their reclassification to equity. |
| (iii) | | The Placement
Agent Warrants were reclassified from a liability to equity during the three months ended June 30, 2026 upon the increase in authorized
common shares (see Note 12). |
| (iv) | | The Service
Provider Warrants were reclassified from a liability to equity during the three months ended June 30, 2026 upon the increase in authorized
common shares (see Note 12). During that period, 3,835,684
of the Service Provider Warrants were exercised. The shares
issued upon this exercise are included in common shares issued and outstanding but remain subject to forfeiture until the performance
condition is satisfied and are therefore treated as contingently returnable shares that are excluded from the computation of net loss
per share until the performance condition is met. |
| (v) | | The Unsecured
Promissory Note Warrants, which were equity-classified, were cancelled during the three months ended June 30, 2026. Accordingly, no Unsecured
Promissory Note Warrants remain outstanding at June 30, 2026. |
|
SCHEDULE
OF WARRANT OUTSTANDING AND WARRANT ACTIVITY
| Description | |
Classification | | |
Exercise Price | | |
Expiration Date | |
Balance December 31, 2024 | | |
Warrants Issued | | |
Warrants Exercised | | |
Warrants Expired | | |
Adjustments (i) | | |
Balance December 31, 2025 | |
| Secured Promissory Note Warrants | |
| Liability | | |
$ | 0.01 | | |
11/24/2033 | |
| 1,411,508 | | |
| - | | |
| - | | |
| - | | |
| 89,478 | | |
| 1,500,986 | |
| Secured Promissory Note Warrants | |
| Liability | | |
$ | 0.01 | | |
12/5/2033 | |
| 94,101 | | |
| - | | |
| - | | |
| - | | |
| 5,965 | | |
| 100,066 | |
| Default Warrants | |
| Liability | | |
$ | 0.01 | | |
11/24/2033 | |
| - | | |
| 600,395 | | |
| - | | |
| - | | |
| - | | |
| 600,395 | |
| Default Warrants | |
| Liability | | |
$ | 0.01 | | |
12/5/2033 | |
| - | | |
| 200,131 | | |
| - | | |
| - | | |
| - | | |
| 200,131 | |
| Pre-funded warrants | |
| Equity | | |
$ | 0.01 | | |
(ii) | |
| - | | |
| 694,673 | | |
| (694,673 | ) | |
| - | | |
| - | | |
| - | |
| Unsecured Promissory Note Warrants | |
| Equity | | |
$ | 0.00 | | |
8/24/2034 | |
| 99,072 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 99,072 | |
| | |
| | | |
| | | |
| |
| 1,604,681 | | |
| 1,495,199 | | |
| (694,673 | ) | |
| - | | |
| 95,443 | | |
| 2,500,650 | |
| (i) | Reflects changes
in estimated shares issuable due to changes in the Company’s fully diluted capitalization from December 31, 2024 to December 31,
2025. The Secured Promissory Note Warrants entitle holders to a specified percentage of fully diluted equity rather than a fixed number
of shares. |
| (ii) | Pre-funded warrants
were exercisable for two business days from date of issuance and were immediately exercised upon issuance. |
|