NOTE 4 – GOING CONCERN

The accompanying unaudited condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited financial statements, for the nine months ended September 30, 2026, and 2025, the Company had a net loss of $5,538,244 and $2,757,059, respectively, and used cash in operating activities of $2,231,024 during the nine months ended September 30, 2026. As of September 30, 2026, the Company had cash of $273,079 and an accumulated deficit of $45,168,346, and its current liabilities exceeded its current assets by $2,545,343. In addition, as of September 30, 2026, the Company had approximately $834,000 of unpaid invoices, including approved change orders and late-payment interest, due under an October 31, 2025, Partnership Agreement for Consulting Services (the “Services Agreement”) and first statement of work, entered into simultaneously with the Services Agreement (“SoW 1”) with International Business Machines Corporation and its affiliates (the “IBM Parties”). The Company also has other near-term obligations, including a $250,000 license fee due to AKA Licenses, a related party, by December 18, 2026, an unpaid $250,000 sign-on bonus due to the Company’s Chief Executive Officer, minimum commitments under an Embedded Solution Agreement with the IBM Parties of $3,800,000, of which $3,300,000 will become non-refundable unless terminated by December 31, 2026, and guaranteed payments under the Grateful Dead License Agreement (see Note 10). These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued.

The Company’s management believes that cash generated from its operations and raised through sales of equity will not be sufficient to fund the Company’s operating cash needs, including its remaining scheduled payments to the IBM Parties, over at least the next 12 months, and that the Company will require additional funding. The Company plans to raise additional required funding when required through the sale of debt or equity, which may not be available on favorable terms, if at all, and may, if sold, cause significant dilution to existing stockholders. During the three months ended September 30, 2026, the Company received $450,000 from the sale of 90,000 shares of common stock and warrants to purchase 65,000 shares of common stock and $1,000,000 from the issuance of the Investments AKA Convertible Note on July 28, 2026 (see Note 6). In October 2026, the Investments AKA Convertible Note was converted into common stock and warrants, and Investments AKA subscribed for 300,000 units for $1,500,000 (see Note 10). However, the Company’s plans to raise additional capital through sales of debt or equity securities are not solely within its control and cannot be considered probable of being effectively implemented within one year after the date that these unaudited condensed financial statements are issued. Accordingly, management has concluded that its plans do not alleviate the substantial doubt about the Company’s ability to continue as a going concern. If the Company is unable to obtain additional capital, it may be required to curtail or cease operations.

The unaudited condensed financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.