Preferred Stock and Notes Payable (Tables)

9 Months Ended

Sep. 30, 2026

Preferred Stock And Notes Payable

Schedule of Debt

Debt consists of following as of September 30, 2026:

Schedule of Debt

		Amount
Note A-1		$	1,590,166
Note B			5,000,000
Total Debt			6,590,166
Less: current portion			(1,344,728	)
Less: unamortized debt discount and issuance costs			(360,813	)
Debt, net of discount and issuance costs		$	4,884,625

Schedule of Interest Expense

Interest expense consistent of following for nine months ended September 30:

Schedule of Interest Expense

		2026				2025				2026				2025
		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2026				2025				2026				2025

Interest expense on Note A-1		$	54,070			$	-			$	70,166			$	-
Interest expense on Note B			64,005				-				82,789				-
Amortization of debt discount and issuance costs on Note A-1			122,264				-				157,674				-
Amortization of debt issuance costs - Note B			23,794				-				30,777				-
Total		$	264,133				-			$	341,406				-

Schedule of Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table reconciles the derivative liability for the redemption feature of the A-1 Note, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

		September 30,
		2026
		(Unaudited)
Balance at beginning of period		$	–
Initial recognition upon issuance of A-1 Note (June 3, 2026)			130,156
Change in fair value recognized in earnings ⁽¹⁾			(67,866	)
Derecognition upon partial extinguishment of A-1 Note			(27,481	)
Balance at end of period		$	34,809

Schedule of Amounts Recognized in Connection with the Exchange

The following table summarizes the amounts recognized in connection with the exchange:

		Amount
Fair value of Series B Preferred Stock issued		$	1,200,000
Net carrying amount of Note A-1 extinguished			(1,004,876	)
Portion of embedded derivative liability derecognized			(27,481	)
Loss on extinguishment of Note A-1		$	167,643

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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