Note 4 – Bridge Note Payable

On May 11, 2026, the Company entered into a bridge note with a lender for $111,000 for net proceeds of $100,000, after direct expenses of $11,000, which was recorded as a debt discount to be amortized over the term of the note. The note matures on March 11, 2027, ten months after issuance date. The Bridge note bears interest at 24% of the value of the bridge note ($27,000) regardless of repayment date, resulting in an effective interest rate of 30.16% based on the repayment schedule. Additional tranches of funding are available up to a total of $500,000 during the 12 months ending May 11, 2027.

The bridge note is repayable in five instalments, $70,000 on October 30, 2026, $17,000 on each of November 30, 2026, December 30, 2026, January 30, 2027 and February 28, 2027.

In the event of default, the principal balance of the note will be increased by 150%, and after the expiry of 180 days, the note may be converted into shares of common stock at the option of the lender, at a conversion price of 65% of the lowest closing bid price of the Company’s common stock during the ten day trading period prior to conversion, with conversion limited to 4.99% of the total issued and outstanding common stock at the time of conversion.

The note may be prepaid up to 180 days from date of issuance with prepayment discounts ranging from 95% to 98% of the total amount outstanding, including the interest of $27,000.