| Schedule of Convertible Notes |
During the nine months ended September 30, 2026, the Company issued convertible promissory notes (collectively, the “Convertible Notes”) to Keystone Capital Partners, LLC (“Keystone”) and SRX as follows: | Note | | Original Holder | | Issue Date | | Purchase Price | | | Principal | | Maturity | | February 2026 Note | | Keystone | | February 9, 2026 | | $ | 750,000 | | | $ | 937,500 | | July 9, 2027 | | March 2026 Note | | Keystone | | March 6, 2026 | | | 750,000 | | | | 937,500 | | August 6, 2027 | | April 2026 Note | | Keystone | | April 8, 2026 | | | 350,000 | | | | 437,500 | | April 8, 2027 | | Second April Note | | Keystone | | April 27, 2026 | | | 400,000 | | | | 500,000 | | April 27, 2027 | | May 2026 Note | | SRX | | May 28, 2026 | | | 750,000 | | | | 937,500 | | May 28, 2027 | | June 2026 advance | | SRX | | June 23, 2026 | | | 663,600 | | | | 829,500 | | May 28, 2027 | | July 2026 advance | | SRX | | July 14, 2026 | | | 671,600 | | | | 839,500 | | May 28, 2027 | | August 2026 advance | | SRX | | August 11, 2026 | | | 150,000 | | | | 187,500 | | May 28, 2027 | | Total | | | | | | $ | 4,485,200 | | | $ | 5,606,500 | | |
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| Schedule of Fair Value of the Derivative Liabilities |
The derivative liabilities were remeasured to fair value at each reporting date and on August 27, 2026, with changes recognized in earnings. Fair value was estimated using a binomial valuation model, a Level 3 measurement, with the following assumptions: | | | Nine months ended
September 30,
2026 | | | Expected dividend rate | | | – | | | Expected term (years) | | | 0.8 to 1.4 | | | Volatility | | | 271.4% to 293.8 | % | | Risk-free interest rate | | | 3.48% to 4.04 | % |
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| Schedule of Activity in the Derivative Liabilities |
Activity in the derivative liabilities for the nine months ended September 30, 2026 was as follows: | | | Amount | | | Balance, December 31, 2025 | | $ | – | | | Initial fair value of conversion features allocated to debt discount | | | 4,485,200 | | | Initial fair value of conversion features allocated to initial derivative expense | | | 3,623,224 | | | Gain on revaluation of derivative liabilities | | | (227,340 | ) | | Derecognized upon extinguishment of debt included in gain on debt extinguishment | | | (7,881,084 | ) | | Balance, September 30, 2026 | | $ | – | |
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| Schedule of Gain Recognized On Gain of Extinguishment Debt |
The Company recognized a gain on extinguishment of debt as follows: | | | Amount | | | Principal of Previous Notes | | $ | 5,606,500 | | | Less: unamortized debt discount | | | (4,079,671 | ) | | Accrued interest | | | 59,609 | | | Fair value of embedded conversion feature derivatives | | | 7,881,084 | | | Net carrying amount of extinguished debt | | | 9,467,522 | | | Less: fair value of Consolidated Note (reacquisition price) | | | (5,666,109 | ) | | Gain on extinguishment of debt | | $ | 3,801,413 | |
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