Note 7. Stockholders’ Equity

Common Stock

On January 18, 2023 and February 18, 2023, the Company issued to Charles Hyatt, an aggregate of 11,428,570 units, with each unit consisting of one share of common stock and a two-year warrant to purchase one share of common stock at an exercise price of $0.0175 per share in consideration of $200,000.

On March 31, 2023, the Company issued 61,204 shares of common stock to Robert Carmichael for payment of interest on the convertible demand note for the three months ending March 31, 2023. The fair value of these shares was $1,336.

On March 31, 2023, the Company issued an aggregate of 137,000 shares of common stock to the holders of convertible notes for payment of interest for the three months ending December 31, 2022. The fair value of these shares was $7,000.

On June 30, 2023, the Company issued 61,205 shares of common stock to Robert Carmichael for payment of interest on the convertible demand note for the three months ending June 30, 2023. The fair value of these shares was $1,326.

On June 30, 2023, the Company issued an aggregate of 137,000 shares of common stock to the holders of convertible notes for payment of interest for the three months ending June 30, 2023. The fair value of these shares was $7,000.

On September 30, 2023, the Company issued 61,205 shares of common stock to Robert Carmichael for payment of interest on the convertible demand note for the three months ending September 30, 2023. The fair value of these shares was $1,326.

On September 30, 2023, the Company issued an aggregate of 137,000 shares of common stock to the holders of convertible notes for payment of interest for the three months ending September 30, 2023. The fair value of these shares was $7,000.

On December 31, 2023, the Company issued 61,677 shares of common stock to Robert Carmichael for payment of interest on the convertible demand note for the three months ending December 31, 2023. The fair value of these shares was $1,287.

On December 31, 2023, the Company issued an aggregate of 136,527 shares of common stock to the holders of convertible notes for payment of interest for the three months ending December 31, 2023. The fair value of these shares was $7,000.

On March 31, 2025, the Company issued 61,677 shares of common stock to Robert Carmichael for payment of interest on the convertible demand note for the three months ending March 31, 2025. The fair value of these shares was $4,007.

On March 31, 2025, the Company issued an aggregate of 136,527 shares of common stock to the holders of convertible notes for payment of interest for the three months ending March 31, 2025. The fair value of these shares was $7,000.

On June 30, 2025, the Company issued 123,354 shares of common stock to Robert Carmichael for payment of interest on the convertible demand note for the three months ending June 30, 2025. The fair value of these shares was $2,672.

On June 30, 2025, the Company issued an aggregate of 136,527 shares of common stock to the holders of convertible notes for payment of interest for the three months ending June 30, 2025. The fair value of these shares was $7,000.

On August 15, 2025 the Company issued 850,000 shares of common stock to the holders of convertible notes for payment of professional services. The fair market value of these shares was $8,500.

On March 31, 2025, the Company issued an aggregate of 136,527 shares of common stock to the holders of convertible notes for payment of interest for the three months ending March 31, 2025. The fair value of these shares was $7,000.

On December 9, 2025, the Company issued 8,241,759 shares to Blake Carmichael as compensation related to a salary reduction. The fair market value of these shares was $60,000.

On December 31, 2025, the Company issued an aggregate of 136,527 shares of common stock to the holders of convertible notes for payment of interest for the three months ending December 31, 2025. The fair value of these shares was $7,000.

On March 31, 2025, the Company issued an aggregate of 136,527 shares of common stock to the holders of convertible notes for payment of interest for the three months ending March 31 2025. The fair value of these shares was $7,000.

On June 30, 2025, the Company issued an aggregate of 136,527 shares of common stock to the holders of convertible notes for payment of interest for the three months ending June 30, 2025. The fair value of these shares was $7,000.

On August 31, 2025, the Company issued an aggregate of 3,302,148 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was $22,667.

On September 30, 2025, the Company issued an aggregate of 351,958 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was $2,833.

On September 30, 2025, the Company issued an aggregate of 136,527 shares of common stock to the holders of convertible notes for payment of interest for the three months ending September 30, 2025. The fair value of these shares was $7,000.

On December 31, 2025, the Company issued an aggregate of 136,527 shares of common stock to the holders of convertible notes for payment of interest for the three months ending December 31, 2025. The fair value of these shares was $7,000.

On December 31, 2025, the Company issued an aggregate of 216,093 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was $2,833.

On January 31, 2026, the Company issued an aggregate of 440,188 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was $2,833.

On February 28, 2026, the Company issued an aggregate of 509,704 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was $2,833.

On March 31, 2026, the Company issued an aggregate of 640,152 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was $2,833.

On March 31, 2026, the Company issued an aggregate of 136,527 shares of common stock to the holder of convertible note for payment of interest for the three months ending March 31, 2026. The fair value of these shares was $7,000.

On April 30, 2026, the Company issued an aggregate of 466,800 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was $2,833.

On May 1, 2026, the Company issued an aggregate of 1,562,500 shares of common stock to an employee as a signing bonus. The fair value of these shares was $10,000.

On May 31, 2026, the Company issued an aggregate of 451,245 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was $2,833.

On June 10, 2026, the Company issued an aggregate of 250,000 shares of common stock to Robert Carmichael for compensation for board of directors’ fees for December 2025. The fair value of these shares was $1,500.

On June 10, 2026, the Company issued an aggregate of 250,000 shares of common stock to Chrles F. Hyatt for compensation for board of directors’ fees for December 2025. The fair value of these shares was $1,500.

On June 10, 2026, the Company issued an aggregate of 1,097,561 shares of common stock to Robert Carmichael for compensation for board of directors’ fees for the first quarter ended March 31, 2026. The fair value of these shares was $4,500.

On June 10, 2026, the Company issued an aggregate of 1,097,561 shares of common stock to Charles F. Hyatt for compensation for board of directors’ fees for the quarter ended March 31, 2026. The fair value of these shares was $4,500.

On June 30, 2026, the Company issued an aggregate of 1,022,727 shares of common stock to Charles F. Hyatt for compensation for board of directors’ fees for quarter June 30, 2026. The fair value of these shares was $4,500.

On June 30, 2026, the Company issued an aggregate of 1,097,561 shares of common stock to Robert Carmichael for compensation for board of directors’ fees for quarter ended March 31, 2026. The fair value of these shares was $4,500.

On June 30, 2026, the Company issued an aggregate of 515,857 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was $2,833.

On June 30, 2026, the Company issued an aggregate of 136,527 shares of common stock to the holder of a convertible note for payment of interest for the three months ended June 30, 2026. The fair value of these shares was $7,000.

On July 1, 2026, in connection with the Sunrise Paddleboards asset acquisition, the Company issued 42,000,000 shares of common stock to the sole member and owner of Sunrise Paddleboards and 1,000,000 shares of common stock to an employee of Sunrise Paddleboards. The fair value of these shares was $189,200.

On July 31, 2026, the Company issued an aggregate of 635,101 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was approximately $2,833.

On August 31, 2026, the Company issued an aggregate of 711,577 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was approximately $2,833.

On September 30, 2026, the Company issued an aggregate of 870,664 shares of common stock to Blake Carmichael as compensation for cash reduction in his salary. The fair value of these shares was approximately $2,833.

On September 30, 2026, the Company issued an aggregate of 1,125,000 shares of common stock to Robert Carmichael, 1,125,000 shares to Charles F. Hyatt and 1,125,000 shares to Mikkel Pitzner as compensation for board of directors’ fees for the quarter ended September 30, 2026. The fair value of each issuance was $4,500.

On September 30, 2026, the Company issued an aggregate of 136,527 shares of common stock to the holders of convertible notes for payment of interest for the three months ended September 30, 2026. The fair value of these shares was $7,000.

Preferred Stock

During the second quarter of 2010, the holders of the majority of the Company’s outstanding shares of common stock approved an amendment to the Company’s Articles of Incorporation authorizing the issuance of 10,000,000 shares of blank check preferred stock. The blank check preferred stock as authorized has such voting powers, designations, preferences, limitations, restrictions and relative rights as may be determined by the Board of Directors of the Company from time to time in accordance with the provisions of the Florida Business Corporation Act. In April 2011, the Board of Directors designated 425,000 shares as Series A Convertible Preferred Stock. Each share of Series A Convertible Preferred Stock is convertible into a share of the Company’s common stock at any time at the option of the holder at a conversion price of $18.23 per share. Holders of shares of Series A Convertible Preferred Stock are entitled to 250 votes for each share held. The Company’s common stock and Series A Convertible Preferred Stock vote together on any matters submitted to our shareholders. As of September 30, 2026, and December 31, 2025, 425,000 shares of Series A Convertible Preferred Stock are issued and outstanding and are owned by Robert Carmichael.

Equity Incentive Plan

On May 26, 2021 the Company adopted an Equity Incentive Plan (the “Plan”). Under the Plan, stock options may be granted to employees, directors, and consultants in the form of incentive stock options or non-qualified stock options, stock purchase rights, time vested and/performance invested restricted stock, and stock appreciation rights and unrestricted shares may also be granted under the Plan. 25,000,000 shares are reserved for issuance under the Plan. The term of the Plan is ten years.

The Company also issued options outside of the Plan that were not approved by the security holders. These options may be granted to employees, directors, and consultants in the form of incentive stock options or non-qualified stock options.

Equity Compensation Plan Information as of September 30, 2026:

 Schedule of Equity Compensation Plan Information

Options

As of September 30, 2026, the Company had no stock options outstanding. For the nine months ended September 30, 2026, and the year ended December 31, 2025, the Company issued no options to purchase shares.

For the three and nine months ended September 30, 2026, the Company recognized $0 of non-cash stock compensation expense related to options. As of September 30, 2026, the Company had no unrecognized pre-tax non-cash compensation expense related to outstanding stock options.

The Company uses the Black-Scholes option-pricing model to estimate the fair value of its stock option awards and warrant issuances. The calculation of the fair value of the awards using the Black-Scholes option-pricing model is affected by the Company’s stock price on the date of grant as well as assumptions regarding the following:

Schedule of Valuation Assumptions of Options 

The expected volatility was determined with reference to the historical volatility of the Company’s common stock. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate in effect at the time of grant.

A summary of the status of the Company’s outstanding stock options as of September 30, 2026 and December 31, 2025 and changes during the periods ending on such dates is as follows:

 Schedule of Outstanding Stock Option Activity

At September 30, 2026, there were no outstanding stock options and no related unrecognized stock option expense.

Warrants

On January 18, 2023 and February 18, 2023, the Company issued to Charles Hyatt, an aggregate of 11,428,570 units, with each unit consisting of one share of common stock and a two-year common stock purchase warrant to purchase one share of common stock at an exercise price of $0.0175 per share in consideration of $200,000.

A summary of the Company’s warrants as of December 31, 2025 and changes during the nine months ended September 30, 2026 is presented below:

Schedule of Warrant Activity