NOTE 7 — COMMITMENTS AND CONTINGENCIES

Lease commitments

In May 2024, the Company entered into a lease agreement for office space that commenced on May 1, 2024 and expired on October 31, 2025, with monthly rent of $1,609 throughout the lease term. The Company recognized a right-of-use asset and lease liability of $27,482 at commencement using a discount rate of 7.5%.

In November 2025, the Company entered into a new lease agreement for office space. The lease commenced on November 1, 2025 and expires on October 31, 2027, with monthly rent of $1,815 throughout the lease term. The Company recognized a right-of-use asset and lease liability of $40,586 at commencement using a discount rate of 7.5%. The lease does not contain renewal options that the Company is reasonably certain to exercise, residual value guarantees, or material restrictive covenants.

The following is a summary of future minimum lease payments as of December 31, 2025, presented on the Company’s new calendar fiscal year basis:

Operating lease cost was $10,066 for the six months ended December 31, 2025, $9,654 for the six months ended December 31, 2024 (unaudited), $19,308 for the year ended June 30, 2025 and $3,218 for the year ended June 30, 2024. Cash paid for amounts included in the measurement of lease liabilities approximated operating lease cost in each period. The weighted-average remaining lease term as of December 31, 2025 was 1.8 years and the weighted-average discount rate was 7.5%.

Contingencies

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition or results of operations. As of December 31, 2025, the Company was not a party to any material pending legal proceedings.