Adjustment

Treatment in these financial statements

R1 – Ecker Capital sale

ZenaTech, Inc. shares received as consideration ($10,471,466 at December 31, 2025) derecognized and related gains and losses reversed; the Company’s interest in Ecker Capital, LLC carried at nil (Note 6).

R2 – Bozki / VW Win mergers

Epazz, Inc. notes assumed in the mergers (principal $1,014,094; accrued interest $699,009 at December 31, 2025) and related interest derecognized; 50,000,000 conversion shares cancelled; commitment-fee amortization reversed.

R3 – Meridian note

Recognized with accrued interest and late charge (Note 10).

R4 – Equity

Shares issued for Galaxy Batteries (10,000,000,000) and the $37,000,000 common control adjustment account reversed; 366,000,000 shares issued in January 2025 under the voided compensation and management agreements cancelled and 2025 stock-based compensation of $477,722 ($183,000 in the 2025 periods presented) reversed; other shares issued to Dr. Passley and his affiliates and the Series B, C and D preferred stock cancelled (Note 11); reverse stock split rescinded. No effect on total equity.

R6 – Management fees

Fees of $479,565 billed by Epazz, Inc. under the voided Management Services Agreement and unpaid at December 31, 2025 derecognized from the beginning of the earliest period presented (Note 12).

Three months as previously reported

Adjustment

As restated

Six months as previously reported

Adjustment

As restated

Revenue

22,492

–

22,492

22,492

–

22,492

General and administrative

2,067

–

2,067

10,353

–

10,353

Stock-based compensation

183,000

(183,000)

–

183,000

(183,000)

–

Depreciation and amortization

2,000

–

2,000

4,000

–

4,000

Total operating expenses

187,067

(183,000)

4,067

197,353

(183,000)

14,353

Operating income (loss)

(164,575)

183,000

18,425

(174,861)

183,000

8,139

Interest expense

(28,623)

21,387

(7,236)

(55,615)

42,832

(12,783)

Gain (loss) on investment in securities

1,725,833

(1,725,833)

–

(7,296,262)

7,296,262

–

Net income (loss)

1,532,635

(1,521,446)

11,189

(7,526,738)

7,522,094

(4,644)

Weighted average shares – basic and diluted

949,226,791

368,015,948

949,226,791

382,933,075

Net income (loss) per share – basic and diluted

0.00

0.00

(0.01)

(0.00)

As previously reported

Adjustment

As restated

Cash

2,543

–

2,543

Total current assets

2,543

–

2,543

Property and equipment, net

417,313

–

417,313

Franchise and development rights, net

78,375

–

78,375

Investment in securities

10,471,466

(10,471,466)

–

Total long-term assets

10,967,154

(10,471,466)

495,688

Total assets

10,969,697

(10,471,466)

498,231

Accounts payable

516,051

(479,565)

36,486

Accrued interest and expenses

700,642

(699,009)

1,633

Short-term debt

125,232

(104,232)

21,000

Short-term advances from affiliates

892,386

–

892,386

Amount due to Meridian Pacific Holdings, LLC

–

566,195

566,195

Total current liabilities

2,234,311

(716,611)

1,517,700

Long-term debt

935,065

(909,862)

25,203

Total long-term liabilities

935,065

(909,862)

25,203

Total liabilities

3,169,376

(1,626,473)

1,542,903

Preferred stock – Series A

74,887

–

74,887

Preferred stock – Series B

100,000

(100,000)

–

Preferred stock – Series C

599,890

(599,890)

–

Preferred stock – Series D

90,836

(90,836)

–

Preferred stock – Series E

230,000

–

230,000

Common stock

9,124

358,892

368,016

Additional paid-in capital

38,940,342

(37,045,888)

1,894,454

Common control adjustment account

(37,000,000)

37,000,000

–

Accumulated surplus (deficit)

4,755,242

(8,367,271)

(3,612,029)

Total stockholders’ equity (deficit)

7,800,321

(8,844,993)

(1,044,672)

Total liabilities and stockholders’ equity (deficit)

10,969,697

(10,471,466)

498,231

As previously reported

Adjustment

As restated

Revenue

5,419

–

5,419

General and administrative

8,223

–

8,223

Depreciation and amortization

8,208

–

8,208

Operating loss

(11,012)

–

(11,012)

Interest expense

(22,458)

16,512

(5,946)

Loss on investment in securities

(2,976,458)

2,976,458

–

Net loss

(3,009,928)

2,992,970

(16,958)

Weighted average shares – basic and diluted

9,131,485

368,015,948

Net loss per share – basic and diluted

(0.33)

(0.00)

Total stockholders’ equity (deficit), March 31, 2026

4,790,393

(5,852,023)

(1,061,630)