Note 6 – INSURANCE PREMIUM FINANCE ARRANGEMENT

On April 20, 2026 the Company bound a directors and officers liability insurance policy, policy number dno01102364p-00, underwritten by StarStone Specialty Insurance Company through RT Specialty and brokered by M3 Insurance Solutions, for a twelve-month term ending April 20, 2027. The premium was $40,000 and taxes and fees were $1,200, for a total of $41,200. The Company paid a down payment of $7,200 on June 12, 2026 and financed the balance with FIRST Insurance Funding under loan number 106833924, payable in monthly installments of $3,534.02. An installment payment of $7,268.04 was made on June 24, 2026.

At June 30, 2026 the remaining balance payable to FIRST Insurance Funding was $28,272.16, which is included in accounts payable and accrued expenses. Prepaid insurance of $34,333 relating to the unexpired portion of the policy is included in prepaid insurance, and insurance expense of $8,426 was recognized for the period, comprising $6,867 of premium and fees and $1,559 of finance and processing charges. The finance and processing charges were recognized in full in the period rather than allocated over the term of the finance agreement.