v3.26.1
Stockholders’ Deficit
6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Stockholders’ Deficit

Note 9 — Stockholders’ Deficit

 

On January 1, 2026, the Company filed a Certificate of Amendment with the State of Nevada to increase the number of preferred shares authorized to issue to 10,000,000 preferred shares with a $0.001 par value. Of these 10,000,000 shares, 100,000 shares of Series A Preferred Stock have been issued in prior periods and these shares are super-voting with 10 votes per share. On January 26, 2026, the Company designated 500 of the remaining 9,900,000 shares as Series B Preferred Stock. On April 23, 2026, the Company filed a Certificate of Amendment with the State of Nevada to increase the number of Series B Preferred Shares from 500 to 750. All other shares have one voting right.

 

Preferred Stock

 

Shares Issued for Cash

 

During the six months ended June 30, 2026, the Company issued 550 shares of Series B Preferred Stock for cash received in prior periods totaling $4,137,500. The cash previously received was recorded as Unissued stock liability. The cash previously received was recorded as Unissued stock liability. During the six months ended June 30, 2026, the Company issued 55,166,167 warrants associated with the Series B Preferred Stock. (See Footnote 8)

 

During the six months ended June 30, 2026, the Company issued 49 shares of Series B Preferred Stock for services rendered valued at $488,358. In addition, the Company recognized a gain on extinguishment of debt of $350,263 within other income in the accompanying condense statements of operations. The warrants associated with these Series B Preferred Stock have not yet been issued.

 

Common Stock

 

Shares Issued for Cash

 

During the six months ended June 30, 2026, the Company issued 40,053,167 shares of common stock for cash received of $684,900.

 

 

Shares Issued for Services

 

During the six months ended June 30, 2026, the Company issued 28,411,342 shares of common stock for services rendered valued at $547,972.

 

Convertible Note Payable Conversion

 

During the six months ended June 30, 2026, the convertible note holder (see Footnote 7) converted $25,000 principal and $5,983 accrued interest into 2,161,732 shares of common stock.

 

Conversion of Preferred Shares

 

During the six months ended June 30, 2026, the Company issued 24,942,445 shares of Common Stock in connection with the conversion of 42.16 shares of Series B Preferred Stock. As of June 30, 2026, the Common Stock had been issued, while the corresponding cancellation of the Series B Preferred Stock remained pending. Although the administrative process related to the conversion had not been fully completed as of June 30, 2026, the common shares had been issued prior to period end.

 

Subsequent to June 30, 2026, the shareholder completed the conversion of its entire holding of 66.50 shares of Series B Preferred Stock into 39,314,218 shares of Common Stock. In connection with the completion of the conversion, duplicate shares of common stock were cancelled to reflect the appropriate number of shares issuable upon conversion.

 

Accordingly, based on the substance of the transaction, the conversion of the 42.16 shares of Series B Preferred Stock is reflected in the accompanying financial statements as having occurred prior to June 30, 2026.

 

Commitment/Contingency Shares

 

During the six months ended June 30, 2026, the Company issued 12,500,000 shares of common stock per the settlement agreement signed in March 2026. (see Footnote 4). The value of these shares is $312,500.

 

Deferred Stock-Based Compensation

 

During the year ended November 30, 2024, the Company issued 10,000,000 shares of common stock for future services valued at $1,000,000. These shares were recorded as Deferred Stock-based compensation and the value of the shares is being amortized over three years. The value of the Deferred Stock-based compensation is an offset to Additional Paid in Capital. During the six months ended June 30, 2026, there was $166,666 amortization recorded.

 

Subscription Receivable

 

As of the six months ended June 30, 2026, the Company had issued shares valued at $20,950 for which funds had not yet been received. This subscription receivable is an offset to Additional Paid in Capital.

 

Shares Cancelled

 

During the six months ended June 30, 2026, the Company cancelled 15,556 shares of Reg A shares for a value of $1,000. These shares were part of the Regulation A offering. After the shares were issued, the investors challenged the investments. The Company cancelled the shares because of this challenge.