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(OTCQB: CERO) (“CERo”, or the “Company”), F/K/A Phoenix Biotech Acquisition Corp. (“PBAX”) was incorporated in Delaware on June 8, 2021. PBAX was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses (a “business combination”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company is an innovative immunotherapy company advancing the development of next generation engineered T cell therapeutics for the treatment of cancer. The Company’s proprietary approach to T cell engineering, which enables it to integrate certain desirable characteristics of both innate and adaptive immunity into a single therapeutic construct, is designed to engage the body’s full immune repertoire to achieve optimized cancer therapy. The Company is in early clinical development but has not yet begun product commercialization. The Company’s efforts will focus on continued product development, including clinical development, to support regulatory approval to commercialize and subsequent product commercialization.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">In November 2024, the U.S. Food and Drug Administration (“FDA”) cleared the Company’s Investigational New Drug Application for Phase 1 clinical trial of its lead compound, CER-1236, in acute myelogenous leukemia (“AML”), and in May 2025 announced the first patient was dosed with CER-1236 in a Phase 1/1b trial of AML. In June 2025, the Company announced the completion of the initial evaluation of the first patient in its Phase 1/1b trial without any dose-limiting toxicity and dosed the second AML patient in July 2025. In September 2025, the Company announced that it had dosed the third patient in the starting dose cohort of its Phase 1 clinical trial evaluating CER-1236 in AML.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">We submitted a second Investigational New Drug (“IND”) application for the investigation of CER-T cell therapy in NSCLC and ovarian cancer, which was accepted by the FDA on March 27, 2025.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i>Stock Purchase Agreement - </i></span></span>On October 6, 2026, the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) with SRX Global Inc., a Delaware corporation formerly known as SRX Health Solutions, Inc. (“SRX” or the “Buyer”). Subject to the terms and conditions of the Purchase Agreement, the Company, subject to various closing conditions, may sell to the Buyer all of the outstanding capital stock of CERo Therapeutics, Inc., its wholly owned operating subsidiary (the “Subsidiary”), which sale is referred to herein as the “Transaction.” Upon completion of the Transaction (the “Closing”), the Company will cease to own the Subsidiary (See Note 15). In connection with signing the Purchase Agreement, the maturity date of the Consolidated Senior Secured Promissory Note entered into on August 27, 2026 (see Note 6) was extended to the date that is five (5) business days following the earlier of the Closing Date or the valid termination of the Purchase Agreement pursuant to its terms.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"><span style="font-weight: bold;">Nasdaq Delisting -</span> On October 29, 2025, the Company received the determination of the Nasdaq Hearings Panel (the “Panel”) to deny the Company’s request to continue the listing of its shares of common stock on Nasdaq and that the trading in the Company’s securities would be suspended at the open of trading on October 31, 2025. The Company submitted a request for review of the Panel’s decision by the Nasdaq Listing and Hearing Review Council and was denied the listing on Nasdaq. On October 31, 2025, the Company’s shares of common stock commenced trading on the OTC Pink Sheets and are now traded on the OTCQB market.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Risks and Uncertainties</span> – The Company is subject to all of the risks inherent in an early-stage biotechnology company. These risks include, but are not limited to, limited management resources, intense competition, and dependence upon the availability of cash to sustain operations. The Company’s operating results may be materially affected by the foregoing factors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-bottom: 0px; margin-bottom: 0px;">The Company’s research also requires approvals from the FDA prior to beginning clinical trials and prior to product commercialization. There can be no assurance that the Company’s current ongoing research and future clinical development will result in the granting of these required approvals. If the Company is denied such approvals or such approvals are substantially delayed, they could have a material adverse effect upon the Company’s future financial results and cash flows</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-top: 0px; margin-top: 0px;">.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 2 – <span style="text-decoration:underline">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Basis of presentation –</span> The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules and regulations of the SEC. In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">These unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on April 15, 2026. The results of operations for the three and nine months ended September 30, 2026 are not necessarily indicative of the results to be expected for the full year ending December 31, 2026 or for any future interim period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, CERo Therapeutics, Inc., which was incorporated under the laws of Delaware on September 23, 2016. All significant intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Reverse stock splits</span> – On January 8, 2025, the Company effected a reverse stock split of our shares of common stock at a ratio of 1-for-100 and on June 13, 2025, the Company effected a reverse stock split of our shares of common stock at a ratio of 1-for-20 (the “Reverse Stock Splits”). The Company’s common stock continued to trade, prior to the Nasdaq Delisting, on Nasdaq on a post-split basis under the Company’s existing trading symbol, “CERO”.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 13.05pt; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">All of the Company’s historical share and per share information related to issued and outstanding common stock and outstanding options and warrants exercisable for common stock in these consolidated financial statements have been adjusted, on a retroactive basis, to reflect the Reverse Stock Splits.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 13.05pt; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 13.05pt; text-align: justify;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Going concern</span> – The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital to fund its research and development (“R&amp;D”) activities and meet its obligations on a timely basis. As of September 30, 2026, the Company reported $650,681 of cash, restricted cash, and cash equivalents, a working capital deficit of approximately $19.3 million, and an accumulated deficit and stockholders’ deficit of approximately $93.7 million and $18.8 million, respectively. Additionally, during the nine months ended September 30, 2026, the Company used approximately $8.1 million of net cash in operating activities, had a net loss of approximately $2.9 million and has no revenues. The Company intends to devote most of the available cash to the clinical development of its product candidates and public company compliance costs.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Based on current business plans, the Company believes that the cash available as of September 30, 2026 will not fund its operations and capital requirements for one year after the date these unaudited condensed consolidated financial statements are issued. During the nine months ended September 30, 2026, we received aggregate net proceeds of $7.1 million, consisting of $700,491 from the sale of common stock in connection with ELOC fundings, $4,485,200 from the issuance of Convertible Notes and $1,925,600 of net advances under the Consolidated Note.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Additional funds are necessary to maintain current operations and to continue R&amp;D activities. However, there can be no assurance that sufficient funding will be available to allow the Company to successfully continue its R&amp;D activities and planned regulatory filings with the FDA. If the Company is unable to obtain the necessary funds, significant reductions in spending and the delay or cancellation of planned activities may be necessary. These actions would have a material adverse effect on the Company’s business, results of operations, and prospects. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date these unaudited condensed consolidated financial statements are issued. These unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On October 6, 2026, the Company entered into a Stock Purchase Agreement providing for the sale of its wholly owned operating subsidiary (see Note 15). If the Transaction is completed, the Company will no longer own the operating business through which it conducts its research and development activities, and its remaining assets would consist principally of the consideration received. The Transaction remains subject to closing conditions and there can be no assurance it will be completed.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Use of estimates</span> – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of expenses incurred during the reporting period. Items subject to such estimates and assumptions include the fair value of derivative liabilities, the fair value of preferred stock liabilities, the fair value of stock-based compensation expense, the present value of right-of-use assets and lease liabilities, the valuation of earnout liability, the value of deemed dividends and inducement expense, and the valuation allowance associated with deferred tax assets. Actual results could differ from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> <span style="font-weight: bold;">Cash, restricted cash, and cash equivalents</span> – The Company considers all highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. As of September 30, 2026 and December 31, 2025, cash and cash equivalents consist of cash deposited with banks, including a money market sweep account, and restricted cash of $194,756 and $74,756, respectively, held on account by financial institutions as collateral for a demand letter of credit issued as a real estate security deposit. The demand letter of credit for $74,756 secured the Company’s obligations under the operating lease that expired in September 2026. The related collateral remained restricted at September 30, 2026 and is expected to be released upon termination of the letter of credit. The demand letter of credit for $120,000 will expire at the end of the Company’s new operating lease in September 2028 and is included in non-current assets. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Investment in equity securities -</span> The Company’s investment in equity securities consisted of Series D Preferred Stock of Stella Diagnostics, Inc. (“Stella”), which was held by the Company as of June 30, 2025 and sold during the three months ended September 30, 2025. There was no gain or loss on the sale. Investments in equity securities were initially measured at cost. Cost was based upon either the cost of the investment or the estimated market value of the investment at the time it was acquired, whichever can be more clearly determined. The Company elected the measurement alternative for equity securities without readily determinable fair values. Under this alternative, if the Company identified an observable price change in an orderly transaction for an identical or similar investment of the same issuer, the Company measured the equity security at fair value as of the date that the observable transaction occurred. Any adjustments resulting from observable price changes were recognized in earnings. The Company monitored these investments for changes in observable prices from orderly transactions and assesses them for impairment. If an equity security was deemed to be impaired, an impairment loss is recognized in earnings, measured as the difference between the investment’s cost and its fair value at the impairment assessment date.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> <span style="font-weight: bold;">Concentration of credit risk</span> – Financial instruments that potentially subject the Company to credit risk consist primarily of cash, restricted cash, and cash equivalents. The Company’s cash, restricted cash, and cash equivalents are on deposit with two financial institutions that management believes are of sufficiently high credit quality. Deposits at any of the Company’s financial institutions may, at times, exceed federal insured limits. As of September 30, 2026, deposits in excess of federal insured limits amounted to approximately $196,000. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Investor concentrations</span> – Generally, the Company receives substantially all of its funding from two investors. The loss of these investors would have a material adverse effect on the Company’s consolidated results of operations and financial condition. If the Company is unable to obtain the necessary funds from new investors, significant reductions in spending and the delay or cancellation of planned activities may be necessary. These actions would have a material adverse effect on the Company’s business, results of operations, and prospects.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Property and equipment</span> – Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, generally three to five years or the remaining lease term for leasehold improvements, if shorter. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in the consolidated statements of operations.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Impairment of long-lived assets</span> – The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When such an event occurs, management determines whether there has been an impairment by comparing the anticipated undiscounted future net cash flows to the related asset’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. Through September 30, 2026, the Company has not experienced any impairment losses on its long-lived assets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Leases –</span> The Company determines whether an arrangement is or contains a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The lease term includes options to extend or terminate the lease only when the Company is reasonably certain to exercise them.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company’s leases do not provide an implicit rate. The Company therefore uses its incremental borrowing rate, based on information available at the commencement date, to determine the present value of lease payments. The ROU asset also includes lease payments made at or before commencement and initial direct costs, and is reduced by lease incentives.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Lease cost for operating leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included in the measurement of ROU assets and lease liabilities. Examples include the Company’s share of operating expenses and taxes above base-year amounts, and charges for excess services.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company has elected the practical expedient to account for lease and non-lease components together as a single lease component for its real estate leases. It has also elected not to recognize ROU assets and lease liabilities for leases with a term of 12 months or less.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"><span style="font-weight: bold;">Derivative financial instruments</span> – The Company evaluates financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are initially recorded at fair value on the issuance date and re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. Derivative assets and liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Preferred stock liabilities –</span> The Company accounts for its convertible preferred stock as either equity or as a liability based on an assessment of the instrument’s rights and preferences under ASC 480 and ASC 815.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Under ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity, a contract may be classified in equity only if the Company has sufficient authorized and unissued shares of common stock available to settle it. In May 2026, the issuance of additional convertible promissory notes and the reduction of the conversion price of the Company’s outstanding preferred stock from $0.05 to $0.01 per share caused the number of shares of common stock potentially issuable upon conversion or exercise of all outstanding instruments to exceed the Company’s authorized but unissued shares.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">When authorized shares are insufficient, the Company applies a sequencing policy based on the latest inception date, under which instruments with the most recent inception dates are reclassified first. The Company’s sequencing policy is applied to its convertible preferred stock and to the embedded conversion features of its convertible notes payable. Share-based payment awards issued under the 2024 Plan and accounted for under ASC 718 are excluded from the sequencing policy.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Applying this policy, the Company determined that its Series E Convertible Preferred Stock no longer qualified for equity classification on May 5, 2026, and that its Series D Convertible Preferred Stock no longer qualified for equity classification on June 30, 2026. On each date the Company reclassified the instrument from stockholders’ equity to preferred stock liabilities at its fair value, resulting in reclassifications of $12,799,260 for the Series E Convertible Preferred Stock and $8,784,862 for the Series D Convertible Preferred Stock, or $21,584,122 in the aggregate.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Preferred stock liabilities are measured at fair value at each reporting date and immediately before reclassification or conversion. Changes in fair value are recognized in the consolidated statements of operations. The Company estimates fair value using an as-if-converted approach. This approach multiplies the number of common shares issuable upon conversion by the quoted closing price of the Company’s common stock on the measurement date. The number of shares issuable is derived from the $1,000 stated value per share and the conversion price in effect on the measurement date. Because these inputs are observable, the measurement is classified as Level 2 in the fair value hierarchy.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On August 27, 2026, the Company completed a secured financing with SRX. As part of the transaction, it issued SRX a non-convertible Consolidated Senior Secured Promissory Note (the “Consolidated Note”) with an aggregate principal amount of $5,666,109 (see Note 6). The Consolidated Note replaced all of the Company’s outstanding unsecured convertible grid promissory notes (the “Previous Notes”), consisting of: (i) Previous Notes held by SRX with an aggregate principal amount of $2,794,000; and (ii) Previous Notes held by Keystone Capital Partners, LLC with an aggregate principal amount of $2,812,500 and accrued and unpaid interest of $59,609, which Keystone sold to SRX.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Following this transaction, the Company has no convertible debt outstanding. The Company reassessed the classification of its preferred stock under its sequencing policy. It determined that sufficient authorized shares are now available to settle the Series D Convertible Preferred Stock, but not the Series E Convertible Preferred Stock. Accordingly, on August 27, 2026, the Company remeasured the Series D Convertible Preferred Stock to its fair value of $7,322,990 and reclassified it from preferred stock liabilities to stockholders’ equity. Gains and losses recognized before the reclassification were not reversed. The Series E Convertible Preferred Stock remains classified as a preferred stock liability as of September 30, 2026. It will continue to be remeasured at fair value until the Company has sufficient authorized shares to settle it, or until it is converted or otherwise settled.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">During the nine months ended September 30, 2026, preferred stock liabilities activity consisted of the following:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Series D Preferred Stock</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Series E Preferred Stock</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Total</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Preferred stock liabilities balance on December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_305721362;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_217426897;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1509757642;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="width: 64%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Reclassification of fair value of preferred stock from equity to preferred stock liabilities</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,784,862</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">12,799,260</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">21,584,122</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Gain on changes in fair value recognized in consolidated statement of operations</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(1,461,872</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(8,873,254</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(10,335,126</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Reclassification of fair value of preferred stock from preferred stock liabilities to equity</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,322,990</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_573127778;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,322,990</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Reclassification of fair value of preferred stock liability to paid-in capital upon conversion</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1277971610;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(196,406</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(196,406</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Preferred stock liabilities balance on September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_2091247216;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">For the three and nine months ended September 30, 2026, the Company recognized gains on the change in fair value of preferred stock liabilities of $3,724,886 and $10,335,126, respectively. These gains are included in other income (expense) in the consolidated statements of operations.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Earnout liability -</span> As a result of the Merger in February 2024, the Company recognized an initial earnout liability of approximately $4.9 million on the merger date. The earnout liability is measured using unobservable (Level 3) inputs and is included in current liabilities on the accompanying consolidated balance sheet. Historically, the Company estimated the fair value of the earnout liability by applying a Monte-Carlo simulation method using the Company’s projection of future operating results and the estimated probability of achievement of the earnout target metrics. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of the fair value of the earnout liability. The liability was remeasured to fair value using the Monte-Carlo simulation method at each reporting period, and the change in fair value is recognized in other income (expense) until the contingency is resolved. Earnout target metrics include (i) the achievement of certain stock price-based earnout targets related to 500 earnout common shares and (ii) upon closing of a definitive agreement with respect to a change of control related to 100 earnout common shares. On February 5, 2024, the Company entered into Amendment No. 1 to the Business Combination Agreement to modify the stock-price based milestones such that (a) the trading price condition for the first level earnout target related to 250 common shares was reset to $25,000 or 125% of the conversion price of the Series A Preferred Stock, which equals $0.0125 as of September 30, 2026 and (b) the trading price condition for the second level earnout target related to 250 common shares was reset to $30,000 or 150% of the conversion price of the Series A Preferred Stock, which equals $0.015 as of September 30, 2026. During the nine months ended September 30, 2025, the Company did not record a gain or loss from the change in fair value of the earnout liability. During the three and nine months ended September 30, 2026, the Company recorded a gain from the change in fair value of the earnout liability of $0 and $19,500, respectively, which is included in other income (expense), net on the accompanying unaudited condensed consolidated statement of operations. As of September 30, 2026 and December 31, 2025, 600 shares of the Company’s common stock are issuable pursuant to the earnout target metrics and the Company estimates that the earnout liability amount is insignificant.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"><span style="font-weight: bold;">Fair value measurements</span> – Certain of the Company’s liabilities are carried at fair value. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the assumptions that market participants would use in pricing an asset or liability (the inputs) are based on a tiered fair value hierarchy consisting of three levels, as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.65in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Level 1 –</span></span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.65in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Level 2 –</span></span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.65in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Level 3 –</span></span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants would price the asset or liability. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">Carrying amounts of certain of the Company’s financial instruments, including cash, restricted cash, and cash equivalents, prepaid expenses and other current assets, notes payable, accounts payable, and accrued liabilities approximate fair value due to their relatively short maturities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On September 30, 2026 and December 31, 2025, the fair value of the Company’s preferred stock liabilities and earnout liability was classified as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">September 30, 2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 1</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 2</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 3</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Total</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 52%; text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Preferred stock liabilities – Series E Preferred</span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1042249592;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_788208487;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_798948521;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1657573964;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">December 31, 2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 1</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 2</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 3</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Total</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 52%; text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability</span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1765629942;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_2045071481;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The change in the fair value measurement using significant inputs (Level 3) for the nine months ended September 30, 2026 and 2025 for the Company is presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Level 3</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Derivative liabilities:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;">Balance at December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1437165690;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; width: 88%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Initial fair value of conversion features allocated to debt discount</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,485,200</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Initial fair value of conversion features allocated to initial derivative expense</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,623,224</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Gain on revaluation of derivative liabilities</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(227,340</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Derecognized upon extinguishment of debt included in gain on debt extinguishment</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,881,084</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance at September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1766931235;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;">Balance at December 31, 2024</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Revaluation of earnout liability</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_642582903;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance at September 30, 2025</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;">Balance at December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Revaluation of earnout liability</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(19,500</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance at September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Research and development</span> – R&amp;D costs consist primarily of salaries and benefits, including stock-based compensation, occupancy, materials and supplies, contracted research, consulting arrangements, and other expenses incurred in the pursuit of the Company’s R&amp;D programs. R&amp;D costs are expensed as incurred.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Stock-based compensation –</span> The Company periodically issues common stock and stock options to officers, directors, and consultants for services rendered. Stock-based compensation accounting requires the recognition of stock-based compensation expense, using a grant date fair value-based method, for costs related to all share-based payments including stock options and restricted stock awards granted to employees and non-employees. Companies are required to estimate the fair value of all share-based payment awards on the date of grant using an option pricing model, and the Company uses a Black-Scholes option pricing model (“Black-Scholes”) to estimate option award fair value. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Common Stock expected dividend yield assumption of 0.0% is based on the expectation of no dividend payouts to Common Stock.</span></td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The risk-free interest rate assumption is based on the U.S. Department of Treasury instruments whose term was most consistent with the expected life of the Company’s stock options.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The expected stock price volatility assumption was determined by examining the historical volatilities for industry peers, as the Company does not have sufficient public trading history for the Company’s Common Stock. The Company will continue to analyze the historical stock price volatility and expected term assumption as more historical price data for the Company’s Common Stock becomes available.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The expected lives of the Company’s stock options are estimated based on the type of award issued using approaches that do not rely on the historical data of the Company, as management has concluded there is insufficient data to provide a reasonable forward-looking estimate. The expected life of an incentive stock option is estimated using the simplified method described in Staff Accounting Bulletin Topic 14 – Share-Based Payment. All incentive and non-qualified stock options awarded by the Company have terms consistent with this approach, which is to calculate the weighted average midpoint between the vesting date of each vesting tranche and the termination date of the option.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The fair value of restricted stock awards is based upon the estimated share price of the common stock on the date of grant.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Forfeitures are accounted for as they occur. All options and restricted stock awards granted since inception are expensed on a straight-line basis over the requisite service period, which is usually the vesting period, or as certain performance-based vesting terms become probable. The related amounts are recognized in the consolidated statements of operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Income taxes</span> – The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company follows tax accounting requirements for the recognition, measurement, presentation, and disclosure in the financial statements of any uncertain tax positions that have been taken or expected to be taken on a tax return. No liability related to uncertain tax positions is recorded in the financial statements. It is the Company’s policy to include penalties and interest expense related to income taxes as a component of income tax expense, as necessary. The Company has not recorded any interest or penalties associated with income tax. Tax years subsequent to 2022 are subject to examination by federal and state authorities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, which included among other provisions the restoration of immediate expensing of domestic research and experimental (“R&amp;E”) expenditures under Section 174. Pursuant to the OBBBA’s transition rules, the Company elected to expense all unamortized domestic R&amp;E costs previously capitalized between 2022 and 2024.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Loss per common share –</span> The Company reports both basic and diluted loss per common share. Basic loss per share is calculated based on the weighted average number of shares of common stock outstanding and excludes the dilutive effect of convertible preferred stock, warrants for convertible preferred stock or common stock, stock options or any other type of convertible securities. Diluted loss per common share is calculated based on the weighted average number of shares of common stock outstanding and when the effect of stock options, warrants and other types of convertible securities is dilutive, they are included in the calculation. Dilutive securities are excluded from the diluted loss per common share calculation if their effect is anti-dilutive, such as in periods where the Company reports a net loss (See Note 3).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Segment reporting</span> <i>-</i> Operating segments are defined as components of a business for which separate discrete financial information is available for evaluation by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company operates as a <span style="-sec-ix-hidden:fc_374319097;"><span style="-sec-ix-hidden:fc_1495217330;">single</span></span> operating and reporting segment, reflecting our sole focus in developing next generation engineered T cell therapeutics for the treatment of cancer. Our Chief Executive Officer serves as the Chief Operating Decision Maker (CODM), responsible for assessing the Company’s performance and making resource allocation decisions. The CODM evaluates financial information on a consolidated basis, focusing on key metrics such as research and development expense, general and administrative expenses, and other income/expenses, which is reflected on the face of the Company’s consolidated statement of operations. The CODM allocates resources based on the Company’s available cash resources, forecasted cash flow, and expenditures on a consolidated basis, as well as an assessment of the probability of success of its research and development activities. Resource allocation decisions are informed by budgeted and forecasted expense information, along with actual expenses incurred to date. The measure of segment assets is reported on the consolidated balance sheets as total assets. Disaggregated profit or loss information at the program or functional level is <i>not</i> regularly provided to or relied upon by the CODM, as our integrated operating model emphasizes shared resources and centralized decision-making.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Accounting standards not yet adopted</span> – In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires entities to provide more detailed disaggregation of expenses in the income statement, focusing on the nature of the expenses rather than their function. The new disclosures will require entities to separately present expenses for significant line items, including but not limited to, depreciation, amortization, and employee compensation. Entities will also be required to provide a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, disclose the total amount of selling expenses and, in annual reporting periods, provide a definition of what constitutes selling expenses. This pronouncement is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing this ASU to determine the impact on its consolidated financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), Narrow-Scope Improvements, to provide clarity about the current requirements, rather than evaluate whether to expand or reduce interim disclosure requirements. The amendments in ASU 2025-11 result in a comprehensive list of interim disclosures that are required by GAAP. The amendments in ASU 2025-11 also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027 and early adoption is permitted. The amendments in ASU 2025-11 can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the disclosure impact that ASU 2025-11 may have on its financial statement presentation and disclosures. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-bottom: 0px; margin-bottom: 0px;">Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the Company’s consolidated financial statements</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-top: 0px; margin-top: 0px;">.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Basis of presentation –</span> The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the applicable rules and regulations of the SEC. In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">These unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on April 15, 2026. The results of operations for the three and nine months ended September 30, 2026 are not necessarily indicative of the results to be expected for the full year ending December 31, 2026 or for any future interim period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, CERo Therapeutics, Inc., which was incorporated under the laws of Delaware on September 23, 2016. All significant intercompany balances and transactions have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Reverse stock splits</span> – On January 8, 2025, the Company effected a reverse stock split of our shares of common stock at a ratio of 1-for-100 and on June 13, 2025, the Company effected a reverse stock split of our shares of common stock at a ratio of 1-for-20 (the “Reverse Stock Splits”). The Company’s common stock continued to trade, prior to the Nasdaq Delisting, on Nasdaq on a post-split basis under the Company’s existing trading symbol, “CERO”.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 13.05pt; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">All of the Company’s historical share and per share information related to issued and outstanding common stock and outstanding options and warrants exercisable for common stock in these consolidated financial statements have been adjusted, on a retroactive basis, to reflect the Reverse Stock Splits.</span></p> 1-for-100 1-for-20 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Going concern</span> – The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company’s ability to continue as a going concern is dependent on its ability to raise additional capital to fund its research and development (“R&amp;D”) activities and meet its obligations on a timely basis. As of September 30, 2026, the Company reported $650,681 of cash, restricted cash, and cash equivalents, a working capital deficit of approximately $19.3 million, and an accumulated deficit and stockholders’ deficit of approximately $93.7 million and $18.8 million, respectively. Additionally, during the nine months ended September 30, 2026, the Company used approximately $8.1 million of net cash in operating activities, had a net loss of approximately $2.9 million and has no revenues. The Company intends to devote most of the available cash to the clinical development of its product candidates and public company compliance costs.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Based on current business plans, the Company believes that the cash available as of September 30, 2026 will not fund its operations and capital requirements for one year after the date these unaudited condensed consolidated financial statements are issued. During the nine months ended September 30, 2026, we received aggregate net proceeds of $7.1 million, consisting of $700,491 from the sale of common stock in connection with ELOC fundings, $4,485,200 from the issuance of Convertible Notes and $1,925,600 of net advances under the Consolidated Note.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Additional funds are necessary to maintain current operations and to continue R&amp;D activities. However, there can be no assurance that sufficient funding will be available to allow the Company to successfully continue its R&amp;D activities and planned regulatory filings with the FDA. If the Company is unable to obtain the necessary funds, significant reductions in spending and the delay or cancellation of planned activities may be necessary. These actions would have a material adverse effect on the Company’s business, results of operations, and prospects. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year from the date these unaudited condensed consolidated financial statements are issued. These unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On October 6, 2026, the Company entered into a Stock Purchase Agreement providing for the sale of its wholly owned operating subsidiary (see Note 15). If the Transaction is completed, the Company will no longer own the operating business through which it conducts its research and development activities, and its remaining assets would consist principally of the consideration received. The Transaction remains subject to closing conditions and there can be no assurance it will be completed.</span></p> 650681 -19300000 -93700000 -18800000 -8100000 2900000 7100000 700491 4485200 1925600 P1Y <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Use of estimates</span> – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of expenses incurred during the reporting period. Items subject to such estimates and assumptions include the fair value of derivative liabilities, the fair value of preferred stock liabilities, the fair value of stock-based compensation expense, the present value of right-of-use assets and lease liabilities, the valuation of earnout liability, the value of deemed dividends and inducement expense, and the valuation allowance associated with deferred tax assets. Actual results could differ from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> <span style="font-weight: bold;">Cash, restricted cash, and cash equivalents</span> – The Company considers all highly liquid investments with an original maturity from the date of purchase of three months or less to be cash equivalents. As of September 30, 2026 and December 31, 2025, cash and cash equivalents consist of cash deposited with banks, including a money market sweep account, and restricted cash of $194,756 and $74,756, respectively, held on account by financial institutions as collateral for a demand letter of credit issued as a real estate security deposit. The demand letter of credit for $74,756 secured the Company’s obligations under the operating lease that expired in September 2026. The related collateral remained restricted at September 30, 2026 and is expected to be released upon termination of the letter of credit. The demand letter of credit for $120,000 will expire at the end of the Company’s new operating lease in September 2028 and is included in non-current assets. </p> 194756 74756 74756 120000 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Investment in equity securities -</span> The Company’s investment in equity securities consisted of Series D Preferred Stock of Stella Diagnostics, Inc. (“Stella”), which was held by the Company as of June 30, 2025 and sold during the three months ended September 30, 2025. There was no gain or loss on the sale. Investments in equity securities were initially measured at cost. Cost was based upon either the cost of the investment or the estimated market value of the investment at the time it was acquired, whichever can be more clearly determined. The Company elected the measurement alternative for equity securities without readily determinable fair values. Under this alternative, if the Company identified an observable price change in an orderly transaction for an identical or similar investment of the same issuer, the Company measured the equity security at fair value as of the date that the observable transaction occurred. Any adjustments resulting from observable price changes were recognized in earnings. The Company monitored these investments for changes in observable prices from orderly transactions and assesses them for impairment. If an equity security was deemed to be impaired, an impairment loss is recognized in earnings, measured as the difference between the investment’s cost and its fair value at the impairment assessment date.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> <span style="font-weight: bold;">Concentration of credit risk</span> – Financial instruments that potentially subject the Company to credit risk consist primarily of cash, restricted cash, and cash equivalents. The Company’s cash, restricted cash, and cash equivalents are on deposit with two financial institutions that management believes are of sufficiently high credit quality. Deposits at any of the Company’s financial institutions may, at times, exceed federal insured limits. As of September 30, 2026, deposits in excess of federal insured limits amounted to approximately $196,000. </p> 196000 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Investor concentrations</span> – Generally, the Company receives substantially all of its funding from two investors. The loss of these investors would have a material adverse effect on the Company’s consolidated results of operations and financial condition. If the Company is unable to obtain the necessary funds from new investors, significant reductions in spending and the delay or cancellation of planned activities may be necessary. These actions would have a material adverse effect on the Company’s business, results of operations, and prospects.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Property and equipment</span> – Property and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets, generally three to five years or the remaining lease term for leasehold improvements, if shorter. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposition, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is reflected in the consolidated statements of operations.</span> </p> P3Y P5Y <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Impairment of long-lived assets</span> – The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When such an event occurs, management determines whether there has been an impairment by comparing the anticipated undiscounted future net cash flows to the related asset’s carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. Through September 30, 2026, the Company has not experienced any impairment losses on its long-lived assets.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Leases –</span> The Company determines whether an arrangement is or contains a lease at inception. Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The lease term includes options to extend or terminate the lease only when the Company is reasonably certain to exercise them.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company’s leases do not provide an implicit rate. The Company therefore uses its incremental borrowing rate, based on information available at the commencement date, to determine the present value of lease payments. The ROU asset also includes lease payments made at or before commencement and initial direct costs, and is reduced by lease incentives.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Lease cost for operating leases is recognized on a straight-line basis over the lease term. Variable lease payments are expensed as incurred and are not included in the measurement of ROU assets and lease liabilities. Examples include the Company’s share of operating expenses and taxes above base-year amounts, and charges for excess services.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company has elected the practical expedient to account for lease and non-lease components together as a single lease component for its real estate leases. It has also elected not to recognize ROU assets and lease liabilities for leases with a term of 12 months or less.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"><span style="font-weight: bold;">Derivative financial instruments</span> – The Company evaluates financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are initially recorded at fair value on the issuance date and re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. Derivative assets and liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Preferred stock liabilities –</span> The Company accounts for its convertible preferred stock as either equity or as a liability based on an assessment of the instrument’s rights and preferences under ASC 480 and ASC 815.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Under ASC 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity, a contract may be classified in equity only if the Company has sufficient authorized and unissued shares of common stock available to settle it. In May 2026, the issuance of additional convertible promissory notes and the reduction of the conversion price of the Company’s outstanding preferred stock from $0.05 to $0.01 per share caused the number of shares of common stock potentially issuable upon conversion or exercise of all outstanding instruments to exceed the Company’s authorized but unissued shares.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">When authorized shares are insufficient, the Company applies a sequencing policy based on the latest inception date, under which instruments with the most recent inception dates are reclassified first. The Company’s sequencing policy is applied to its convertible preferred stock and to the embedded conversion features of its convertible notes payable. Share-based payment awards issued under the 2024 Plan and accounted for under ASC 718 are excluded from the sequencing policy.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.5in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Applying this policy, the Company determined that its Series E Convertible Preferred Stock no longer qualified for equity classification on May 5, 2026, and that its Series D Convertible Preferred Stock no longer qualified for equity classification on June 30, 2026. On each date the Company reclassified the instrument from stockholders’ equity to preferred stock liabilities at its fair value, resulting in reclassifications of $12,799,260 for the Series E Convertible Preferred Stock and $8,784,862 for the Series D Convertible Preferred Stock, or $21,584,122 in the aggregate.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Preferred stock liabilities are measured at fair value at each reporting date and immediately before reclassification or conversion. Changes in fair value are recognized in the consolidated statements of operations. The Company estimates fair value using an as-if-converted approach. This approach multiplies the number of common shares issuable upon conversion by the quoted closing price of the Company’s common stock on the measurement date. The number of shares issuable is derived from the $1,000 stated value per share and the conversion price in effect on the measurement date. Because these inputs are observable, the measurement is classified as Level 2 in the fair value hierarchy.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On August 27, 2026, the Company completed a secured financing with SRX. As part of the transaction, it issued SRX a non-convertible Consolidated Senior Secured Promissory Note (the “Consolidated Note”) with an aggregate principal amount of $5,666,109 (see Note 6). The Consolidated Note replaced all of the Company’s outstanding unsecured convertible grid promissory notes (the “Previous Notes”), consisting of: (i) Previous Notes held by SRX with an aggregate principal amount of $2,794,000; and (ii) Previous Notes held by Keystone Capital Partners, LLC with an aggregate principal amount of $2,812,500 and accrued and unpaid interest of $59,609, which Keystone sold to SRX.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Following this transaction, the Company has no convertible debt outstanding. The Company reassessed the classification of its preferred stock under its sequencing policy. It determined that sufficient authorized shares are now available to settle the Series D Convertible Preferred Stock, but not the Series E Convertible Preferred Stock. Accordingly, on August 27, 2026, the Company remeasured the Series D Convertible Preferred Stock to its fair value of $7,322,990 and reclassified it from preferred stock liabilities to stockholders’ equity. Gains and losses recognized before the reclassification were not reversed. The Series E Convertible Preferred Stock remains classified as a preferred stock liability as of September 30, 2026. It will continue to be remeasured at fair value until the Company has sufficient authorized shares to settle it, or until it is converted or otherwise settled.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">During the nine months ended September 30, 2026, preferred stock liabilities activity consisted of the following:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Series D Preferred Stock</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Series E Preferred Stock</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Total</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Preferred stock liabilities balance on December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_305721362;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_217426897;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1509757642;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="width: 64%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Reclassification of fair value of preferred stock from equity to preferred stock liabilities</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,784,862</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">12,799,260</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">21,584,122</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Gain on changes in fair value recognized in consolidated statement of operations</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(1,461,872</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(8,873,254</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(10,335,126</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Reclassification of fair value of preferred stock from preferred stock liabilities to equity</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,322,990</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_573127778;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,322,990</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Reclassification of fair value of preferred stock liability to paid-in capital upon conversion</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1277971610;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(196,406</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(196,406</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Preferred stock liabilities balance on September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_2091247216;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">For the three and nine months ended September 30, 2026, the Company recognized gains on the change in fair value of preferred stock liabilities of $3,724,886 and $10,335,126, respectively. These gains are included in other income (expense) in the consolidated statements of operations.</span> </p> 0.05 0.01 12799260 8784862 21584122 1000 5666109 2794000 2812500 59609 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">During the nine months ended September 30, 2026, preferred stock liabilities activity consisted of the following:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Series D Preferred Stock</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Series E Preferred Stock</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Total</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;"> </span></span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Preferred stock liabilities balance on December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_305721362;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_217426897;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1509757642;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="width: 64%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Reclassification of fair value of preferred stock from equity to preferred stock liabilities</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,784,862</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">12,799,260</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">21,584,122</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Gain on changes in fair value recognized in consolidated statement of operations</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(1,461,872</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(8,873,254</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(10,335,126</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Reclassification of fair value of preferred stock from preferred stock liabilities to equity</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,322,990</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_573127778;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,322,990</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Reclassification of fair value of preferred stock liability to paid-in capital upon conversion</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1277971610;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(196,406</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(196,406</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Preferred stock liabilities balance on September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_2091247216;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 8784862 12799260 21584122 -1461872 -8873254 -10335126 -7322990 -7322990 -196406 -196406 3729600 3729600 3724886 10335126 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Earnout liability -</span> As a result of the Merger in February 2024, the Company recognized an initial earnout liability of approximately $4.9 million on the merger date. The earnout liability is measured using unobservable (Level 3) inputs and is included in current liabilities on the accompanying consolidated balance sheet. Historically, the Company estimated the fair value of the earnout liability by applying a Monte-Carlo simulation method using the Company’s projection of future operating results and the estimated probability of achievement of the earnout target metrics. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of the fair value of the earnout liability. The liability was remeasured to fair value using the Monte-Carlo simulation method at each reporting period, and the change in fair value is recognized in other income (expense) until the contingency is resolved. Earnout target metrics include (i) the achievement of certain stock price-based earnout targets related to 500 earnout common shares and (ii) upon closing of a definitive agreement with respect to a change of control related to 100 earnout common shares. On February 5, 2024, the Company entered into Amendment No. 1 to the Business Combination Agreement to modify the stock-price based milestones such that (a) the trading price condition for the first level earnout target related to 250 common shares was reset to $25,000 or 125% of the conversion price of the Series A Preferred Stock, which equals $0.0125 as of September 30, 2026 and (b) the trading price condition for the second level earnout target related to 250 common shares was reset to $30,000 or 150% of the conversion price of the Series A Preferred Stock, which equals $0.015 as of September 30, 2026. During the nine months ended September 30, 2025, the Company did not record a gain or loss from the change in fair value of the earnout liability. During the three and nine months ended September 30, 2026, the Company recorded a gain from the change in fair value of the earnout liability of $0 and $19,500, respectively, which is included in other income (expense), net on the accompanying unaudited condensed consolidated statement of operations. As of September 30, 2026 and December 31, 2025, 600 shares of the Company’s common stock are issuable pursuant to the earnout target metrics and the Company estimates that the earnout liability amount is insignificant.</span> </p> 4900000 500 100 250 25000 1.25 0.0125 250 30000 1.50 0.015 0 19500 600 600 <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"><span style="font-weight: bold;">Fair value measurements</span> – Certain of the Company’s liabilities are carried at fair value. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the assumptions that market participants would use in pricing an asset or liability (the inputs) are based on a tiered fair value hierarchy consisting of three levels, as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.65in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Level 1 –</span></span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Observable inputs such as unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.65in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Level 2 –</span></span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Inputs (other than quoted prices included in Level 1) that are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.65in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Level 3 –</span></span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants would price the asset or liability. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">Carrying amounts of certain of the Company’s financial instruments, including cash, restricted cash, and cash equivalents, prepaid expenses and other current assets, notes payable, accounts payable, and accrued liabilities approximate fair value due to their relatively short maturities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On September 30, 2026 and December 31, 2025, the fair value of the Company’s preferred stock liabilities and earnout liability was classified as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">September 30, 2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 1</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 2</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 3</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Total</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 52%; text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Preferred stock liabilities – Series E Preferred</span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1042249592;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_788208487;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_798948521;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1657573964;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">December 31, 2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 1</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 2</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 3</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Total</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 52%; text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability</span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1765629942;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_2045071481;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The change in the fair value measurement using significant inputs (Level 3) for the nine months ended September 30, 2026 and 2025 for the Company is presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Level 3</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Derivative liabilities:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;">Balance at December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1437165690;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; width: 88%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Initial fair value of conversion features allocated to debt discount</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,485,200</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Initial fair value of conversion features allocated to initial derivative expense</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,623,224</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Gain on revaluation of derivative liabilities</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(227,340</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Derecognized upon extinguishment of debt included in gain on debt extinguishment</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,881,084</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance at September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1766931235;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;">Balance at December 31, 2024</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Revaluation of earnout liability</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_642582903;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance at September 30, 2025</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;">Balance at December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Revaluation of earnout liability</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(19,500</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance at September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On September 30, 2026 and December 31, 2025, the fair value of the Company’s preferred stock liabilities and earnout liability was classified as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">September 30, 2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 1</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 2</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 3</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Total</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 52%; text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Preferred stock liabilities – Series E Preferred</span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1042249592;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_788208487;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,729,600</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_798948521;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1657573964;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">December 31, 2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 1</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 2</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Level 3</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Total</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 52%; text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability</span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1765629942;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_2045071481;">-</span></span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 3729600 3729600 500 500 20000 20000 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The change in the fair value measurement using significant inputs (Level 3) for the nine months ended September 30, 2026 and 2025 for the Company is presented below:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-indent: -0.125in; padding-left: 0.125in; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;"><span style="font-weight: bold;">Level 3</span></span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Derivative liabilities:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;">Balance at December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1437165690;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; width: 88%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Initial fair value of conversion features allocated to debt discount</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,485,200</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Initial fair value of conversion features allocated to initial derivative expense</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,623,224</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Gain on revaluation of derivative liabilities</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(227,340</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Derecognized upon extinguishment of debt included in gain on debt extinguishment</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,881,084</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance at September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1766931235;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;">Balance at December 31, 2024</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Revaluation of earnout liability</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_642582903;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance at September 30, 2025</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Earnout liability:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in;"><span style="font-family: Times New Roman, Times, Serif;">Balance at December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">20,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-indent: -0.125in; padding-left: 0.25in; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Revaluation of earnout liability</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(19,500</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance at September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 4485200 3623224 -227340 7881084 20000 20000 20000 19500 500 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Research and development</span> – R&amp;D costs consist primarily of salaries and benefits, including stock-based compensation, occupancy, materials and supplies, contracted research, consulting arrangements, and other expenses incurred in the pursuit of the Company’s R&amp;D programs. R&amp;D costs are expensed as incurred.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Stock-based compensation –</span> The Company periodically issues common stock and stock options to officers, directors, and consultants for services rendered. Stock-based compensation accounting requires the recognition of stock-based compensation expense, using a grant date fair value-based method, for costs related to all share-based payments including stock options and restricted stock awards granted to employees and non-employees. Companies are required to estimate the fair value of all share-based payment awards on the date of grant using an option pricing model, and the Company uses a Black-Scholes option pricing model (“Black-Scholes”) to estimate option award fair value. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Common Stock expected dividend yield assumption of 0.0% is based on the expectation of no dividend payouts to Common Stock.</span></td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The risk-free interest rate assumption is based on the U.S. Department of Treasury instruments whose term was most consistent with the expected life of the Company’s stock options.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The expected stock price volatility assumption was determined by examining the historical volatilities for industry peers, as the Company does not have sufficient public trading history for the Company’s Common Stock. The Company will continue to analyze the historical stock price volatility and expected term assumption as more historical price data for the Company’s Common Stock becomes available.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The expected lives of the Company’s stock options are estimated based on the type of award issued using approaches that do not rely on the historical data of the Company, as management has concluded there is insufficient data to provide a reasonable forward-looking estimate. The expected life of an incentive stock option is estimated using the simplified method described in Staff Accounting Bulletin Topic 14 – Share-Based Payment. All incentive and non-qualified stock options awarded by the Company have terms consistent with this approach, which is to calculate the weighted average midpoint between the vesting date of each vesting tranche and the termination date of the option.</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The fair value of restricted stock awards is based upon the estimated share price of the common stock on the date of grant.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Forfeitures are accounted for as they occur. All options and restricted stock awards granted since inception are expensed on a straight-line basis over the requisite service period, which is usually the vesting period, or as certain performance-based vesting terms become probable. The related amounts are recognized in the consolidated statements of operations.</span></p> 0 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Income taxes</span> – The Company accounts for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company follows tax accounting requirements for the recognition, measurement, presentation, and disclosure in the financial statements of any uncertain tax positions that have been taken or expected to be taken on a tax return. No liability related to uncertain tax positions is recorded in the financial statements. It is the Company’s policy to include penalties and interest expense related to income taxes as a component of income tax expense, as necessary. The Company has not recorded any interest or penalties associated with income tax. Tax years subsequent to 2022 are subject to examination by federal and state authorities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted, which included among other provisions the restoration of immediate expensing of domestic research and experimental (“R&amp;E”) expenditures under Section 174. Pursuant to the OBBBA’s transition rules, the Company elected to expense all unamortized domestic R&amp;E costs previously capitalized between 2022 and 2024.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Loss per common share –</span> The Company reports both basic and diluted loss per common share. Basic loss per share is calculated based on the weighted average number of shares of common stock outstanding and excludes the dilutive effect of convertible preferred stock, warrants for convertible preferred stock or common stock, stock options or any other type of convertible securities. Diluted loss per common share is calculated based on the weighted average number of shares of common stock outstanding and when the effect of stock options, warrants and other types of convertible securities is dilutive, they are included in the calculation. Dilutive securities are excluded from the diluted loss per common share calculation if their effect is anti-dilutive, such as in periods where the Company reports a net loss (See Note 3).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Segment reporting</span> <i>-</i> Operating segments are defined as components of a business for which separate discrete financial information is available for evaluation by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company operates as a <span style="-sec-ix-hidden:fc_374319097;"><span style="-sec-ix-hidden:fc_1495217330;">single</span></span> operating and reporting segment, reflecting our sole focus in developing next generation engineered T cell therapeutics for the treatment of cancer. Our Chief Executive Officer serves as the Chief Operating Decision Maker (CODM), responsible for assessing the Company’s performance and making resource allocation decisions. The CODM evaluates financial information on a consolidated basis, focusing on key metrics such as research and development expense, general and administrative expenses, and other income/expenses, which is reflected on the face of the Company’s consolidated statement of operations. The CODM allocates resources based on the Company’s available cash resources, forecasted cash flow, and expenditures on a consolidated basis, as well as an assessment of the probability of success of its research and development activities. Resource allocation decisions are informed by budgeted and forecasted expense information, along with actual expenses incurred to date. The measure of segment assets is reported on the consolidated balance sheets as total assets. Disaggregated profit or loss information at the program or functional level is <i>not</i> regularly provided to or relied upon by the CODM, as our integrated operating model emphasizes shared resources and centralized decision-making.</span> </p> The CODM evaluates financial information on a consolidated basis, focusing on key metrics such as research and development expense, general and administrative expenses, and other income/expenses, which is reflected on the face of the Company’s consolidated statement of operations. <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Accounting standards not yet adopted</span> – In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires entities to provide more detailed disaggregation of expenses in the income statement, focusing on the nature of the expenses rather than their function. The new disclosures will require entities to separately present expenses for significant line items, including but not limited to, depreciation, amortization, and employee compensation. Entities will also be required to provide a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, disclose the total amount of selling expenses and, in annual reporting periods, provide a definition of what constitutes selling expenses. This pronouncement is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing this ASU to determine the impact on its consolidated financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270), Narrow-Scope Improvements, to provide clarity about the current requirements, rather than evaluate whether to expand or reduce interim disclosure requirements. The amendments in ASU 2025-11 result in a comprehensive list of interim disclosures that are required by GAAP. The amendments in ASU 2025-11 also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in ASU 2025-11 are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027 and early adoption is permitted. The amendments in ASU 2025-11 can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the disclosure impact that ASU 2025-11 may have on its financial statement presentation and disclosures. </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-bottom: 0px; margin-bottom: 0px;">Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the Company’s consolidated financial statements</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-top: 0px; margin-top: 0px;">.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 3 – <span style="text-decoration:underline">NET LOSS PER SHARE OF COMMON STOCK</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The accounting standards require the presentation of both basic and diluted loss per common share on the face of the statements of operations. The Company’s basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted average number of shares of common stock outstanding for the period. If there are dilutive securities, diluted loss per common share is computed by including common stock equivalents which includes shares issuable upon the exercise of stock options into shares of common stock, exercise of preferred warrants into shares of preferred stock, and conversion of preferred stock into shares of common stock, net of any shares assumed to have been purchased with the proceeds, using the treasury stock method.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">For the three months ended September 30, 2026, the Company reported net income attributable to common stockholders, and diluted earnings per share was computed by applying the if-converted method to the outstanding convertible preferred stock and the treasury stock method to the outstanding stock options and warrants, with each class tested separately and applied in order of dilutive effect. The outstanding stock options and warrants had exercise prices in excess of the average market price of the common stock and produced no incremental shares. Application of the if-converted method to the outstanding convertible preferred stock requires reversal of the $3,724,886 gain on revaluation of preferred stock liabilities recognized in the period, and was dilutive, with the resulting effect of reducing net income per share by $0.06 per share. Accordingly, diluted earnings per share for the three months ended September 30, 2026 was $0.00.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">For the nine months ended September 30, 2026 and for the three and nine months ended September 30, 2025, the Company reported a net loss attributable to common stockholders and all potentially dilutive securities were excluded because their effect would have been anti-dilutive.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The following table presents a reconciliation of basic and diluted net income per common share for the three months ended September 30, 2026:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"></span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: center;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;">Three Months Ended<br/> September 30,</td> <td style="font-weight: bold;"> </td> </tr><tr style="vertical-align: bottom;"><td style="text-align: center;"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt;"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;">2026</td> <td style="padding-bottom: 1.5pt; font-weight: bold;"> </td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: justify;">Net income per common share - basic:</td> <td> </td> <td colspan="2" style="text-align: right;"> </td> <td> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 88%; text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Net income attributable to common shareholders</td> <td style="width: 1%; padding-bottom: 4pt;"> </td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;">$</td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;">4,019,112</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Weighted average common shares outstanding – basic</td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;"> </td> <td style="border-bottom: Black 4pt double; text-align: right;">72,844,427</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Net income per common share – basic</td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;">$</td> <td style="border-bottom: Black 4pt double; text-align: right;">0.06</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="font-weight: bold; text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;">Net income per common share - diluted:</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;">Net income attributable to common shareholders – basic</td> <td> </td> <td style="text-align: left;">$</td> <td style="text-align: right;">4,019,112</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Less: gain on the revaluation of preferred stock liabilities</td> <td style="padding-bottom: 1.5pt;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right;">(3,724,886</td> <td style="padding-bottom: 1.5pt; text-align: left;">)</td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Numerator for income per common share – diluted</td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;">$</td> <td style="border-bottom: Black 4pt double; text-align: right;">294,226</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;">Weighted average common shares outstanding – basic</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">72,844,427</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;">Add: dilutive shares related to:</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -6.6pt; padding-left: 13.05pt;">Convertible preferred stock</td> <td style="padding-bottom: 1.5pt;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right;">1,017,967,450</td> <td style="padding-bottom: 1.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Weighted average common shares outstanding – diluted</td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;"> </td> <td style="border-bottom: Black 4pt double; text-align: right;">1,090,811,877</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Net income per common share – diluted</td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;">$</td> <td style="border-bottom: Black 4pt double; text-align: right;">0.00</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The following table summarizes the number of shares of Common Stock issuable upon conversion or exercise, as applicable, of preferred stock, stock options, and warrants that were not included in the calculation of diluted net income (loss) per share because such shares are anti-dilutive:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> three months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> nine months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> three and<br/> nine months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 64%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Conversion of convertible preferred stock issued and outstanding</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_605224424;">-</span></span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1,017,967,450</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,644,267</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Exercise of warrants for common stock</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">159,724</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">159,724</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">159,724</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Exercise of outstanding stock options</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,833,762</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,833,762</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">74,151</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,993,486</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1,063,960,936</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,878,142</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 3724886 0.06 0 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The following table presents a reconciliation of basic and diluted net income per common share for the three months ended September 30, 2026:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"></span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: center;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;">Three Months Ended<br/> September 30,</td> <td style="font-weight: bold;"> </td> </tr><tr style="vertical-align: bottom;"><td style="text-align: center;"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt;"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;">2026</td> <td style="padding-bottom: 1.5pt; font-weight: bold;"> </td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: justify;">Net income per common share - basic:</td> <td> </td> <td colspan="2" style="text-align: right;"> </td> <td> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 88%; text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Net income attributable to common shareholders</td> <td style="width: 1%; padding-bottom: 4pt;"> </td> <td style="width: 1%; border-bottom: Black 4pt double; text-align: left;">$</td> <td style="width: 9%; border-bottom: Black 4pt double; text-align: right;">4,019,112</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Weighted average common shares outstanding – basic</td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;"> </td> <td style="border-bottom: Black 4pt double; text-align: right;">72,844,427</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Net income per common share – basic</td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;">$</td> <td style="border-bottom: Black 4pt double; text-align: right;">0.06</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"><td style="text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="font-weight: bold; text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;">Net income per common share - diluted:</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;">Net income attributable to common shareholders – basic</td> <td> </td> <td style="text-align: left;">$</td> <td style="text-align: right;">4,019,112</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Less: gain on the revaluation of preferred stock liabilities</td> <td style="padding-bottom: 1.5pt;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right;">(3,724,886</td> <td style="padding-bottom: 1.5pt; text-align: left;">)</td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Numerator for income per common share – diluted</td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;">$</td> <td style="border-bottom: Black 4pt double; text-align: right;">294,226</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;">Weighted average common shares outstanding – basic</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">72,844,427</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"><td style="text-align: justify; text-indent: -6.5pt; padding-left: 6.5pt;">Add: dilutive shares related to:</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"> </td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 1.5pt; text-indent: -6.6pt; padding-left: 13.05pt;">Convertible preferred stock</td> <td style="padding-bottom: 1.5pt;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right;">1,017,967,450</td> <td style="padding-bottom: 1.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Weighted average common shares outstanding – diluted</td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;"> </td> <td style="border-bottom: Black 4pt double; text-align: right;">1,090,811,877</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt; text-indent: -6.5pt; padding-left: 6.5pt;">Net income per common share – diluted</td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;">$</td> <td style="border-bottom: Black 4pt double; text-align: right;">0.00</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr></tbody></table> 4019112 72844427 0.06 4019112 -3724886 294226 72844427 1017967450 1090811877 0 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The following table summarizes the number of shares of Common Stock issuable upon conversion or exercise, as applicable, of preferred stock, stock options, and warrants that were not included in the calculation of diluted net income (loss) per share because such shares are anti-dilutive:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> three months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> nine months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> three and<br/> nine months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 64%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Conversion of convertible preferred stock issued and outstanding</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_605224424;">-</span></span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1,017,967,450</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,644,267</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Exercise of warrants for common stock</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">159,724</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">159,724</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">159,724</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Exercise of outstanding stock options</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,833,762</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,833,762</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">74,151</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,993,486</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1,063,960,936</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,878,142</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 1017967450 2644267 2644267 159724 159724 159724 159724 45833762 45833762 74151 74151 45993486 1063960936 2878142 2878142 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 4 – <span style="text-decoration:underline">PROPERTY AND EQUIPMENT</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Property and equipment, net, consisted of the following as of September 30, 2026 and December 31, 2025:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">December 31,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 76%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Laboratory equipment</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,507,839</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,507,839</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td><span style="font-family: Times New Roman, Times, Serif;">Computers</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">38,323</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">38,323</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Furniture</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,429</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,429</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Total cost</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,554,591</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,554,591</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Less: accumulated depreciation</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(2,483,279</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(2,308,443</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Property and equipment, net</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">71,312</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">246,148</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-bottom: 0px; margin-bottom: 0px;">For the three months ended September 30, 2026 and 2025, depreciation expense was $54,635 and $69,354, respectively, and for the nine months ended September 30, 2026 and 2025, depreciation expense was $174,836 and $215,069, respectively</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-top: 0px; margin-top: 0px;">.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Property and equipment, net, consisted of the following as of September 30, 2026 and December 31, 2025:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">December 31,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 76%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Laboratory equipment</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,507,839</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,507,839</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td><span style="font-family: Times New Roman, Times, Serif;">Computers</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">38,323</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">38,323</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Furniture</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,429</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,429</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Total cost</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,554,591</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,554,591</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Less: accumulated depreciation</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(2,483,279</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(2,308,443</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Property and equipment, net</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">71,312</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">246,148</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 2507839 2507839 38323 38323 8429 8429 2554591 2554591 2483279 2308443 71312 246148 54635 69354 174836 215069 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 5 – <span style="text-decoration:underline">CONVERTIBLE NOTES PAYABLE</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Convertible Notes Issued</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Note</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Original Holder</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Issue Date</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Purchase Price</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Principal</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Maturity</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 41%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">February 2026 Note</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 11%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Keystone</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 11%; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">February 9, 2026</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">750,000</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">937,500</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 11%; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">July 9, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">March 2026 Note</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Keystone</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">March 6, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">750,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">937,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">August 6, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">April 2026 Note</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Keystone</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">April 8, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">350,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">437,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">April 8, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Second April Note</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Keystone</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">April 27, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">400,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">April 27, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">May 2026 Note</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">SRX</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">May 28, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">750,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">937,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">May 28, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">June 2026 advance</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">SRX</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">June 23, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">663,600</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">829,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">May 28, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">July 2026 advance</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">SRX</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">July 14, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">671,600</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">839,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">May 28, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">August 2026 advance</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">SRX</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">August 11, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">150,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">187,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">May 28, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Total</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,485,200</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">5,606,500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Each Convertible Note was issued at a purchase price equal to 80% of its principal amount, resulting in an aggregate original issue discount of $1,121,300. The notes bear interest at 10% per annum. Each Keystone note permitted borrowings of up to $1,000,000.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On June 23, July 14 and August 11, 2026, the Company and SRX amended and restated the May 2026 Note to increase the maximum loan amount to $1,413,600, $2,085,200 and $2,235,200, respectively, and SRX funded the additional advances shown above. All other terms were unchanged. The Company accounted for each advance as a new borrowing. The Company evaluated each amendment under ASC 470-50, Debt – Modifications and Extinguishments, and concluded that each was a modification, with no gain or loss recognized.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">At any time, each holder could convert all or part of its outstanding principal and accrued but unpaid interest into common stock. The conversion price was the lesser of (i) $0.05 per share and (ii) 80% of the average of the five lowest intraday trading prices during the 20 trading days before the conversion request. The conversion price was subject to certain adjustments and to a 4.99% beneficial ownership limitation.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Embedded Conversion Feature Derivative Liabilities</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The conversion price of each Convertible Note varied with the market price of the Company’s common stock, so the embedded conversion feature is not indexed to the Company’s own stock under ASC 815-40-15. In addition, from May 2026 the Company had insufficient authorized shares to settle it (see Note 2). The Company concluded that the conversion feature was not clearly and closely related to the debt host, that the Convertible Notes were not measured at fair value through earnings, and that the feature would meet the definition of a derivative on a standalone basis. The Company further concluded that the feature did not qualify for the scope exception in ASC 815-10-15-74(a). The Company therefore bifurcated it and accounted for it as a derivative liability under ASC 815-15, Derivatives and Hedging – Embedded Derivatives.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">At issuance, the aggregate fair value of the conversion feature derivatives was $8,108,424. Of this amount, $4,485,200 was recorded as a debt discount, limited to the net proceeds of the notes. The remaining $3,623,224 was charged to operations as initial derivative expense. The debt discount and the original issue discount were amortized to interest expense over the terms of the notes.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Nine months ended <br/> September 30,<br/> 2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; width: 88%;"><span style="font-family: Times New Roman, Times, Serif;">Expected dividend rate</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left; width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right; width: 9%;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_727190476;">–</span></span></td> <td style="text-align: left; width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Expected term (years)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">0.8 to 1.4</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td><span style="font-family: Times New Roman, Times, Serif;">Volatility</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">271.4% to 293.8</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">% </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Risk-free interest rate</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">3.48% to 4.04</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">% </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Activity in the derivative liabilities for the nine months ended September 30, 2026 was as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Amount</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Balance, December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1656510463;">–</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="width: 88%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Initial fair value of conversion features allocated to debt discount</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,485,200</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Initial fair value of conversion features allocated to initial derivative expense</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,623,224</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Gain on revaluation of derivative liabilities</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(227,340</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Derecognized upon extinguishment of debt included in gain on debt extinguishment</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,881,084</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance, September 30, 2026</span></td> <td style="font-weight: bold; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_212319112;">–</span></span></td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">For the three and nine months ended September 30, 2026, the Company recognized a net gain (loss) on derivative liabilities of $604,371 and $(3,395,884), respectively. The nine-month amount consists of initial derivative expense of $(3,623,224) and a gain on the change in fair value of $227,340. For the three months: initial derivative expense of $(1,062,245) and a gain on change in fair value of $1,666,616.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Extinguishment of Convertible Notes</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On August 27, 2026, the Company completed a secured financing with SRX and issued the non-convertible Consolidated Senior Secured Promissory Note (the “Consolidated Note”) described in Note 6. Before the transaction, Keystone sold its Convertible Notes to SRX. Because this was a transfer between creditors, it had no accounting effect for the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Consolidated Note replaced all outstanding Convertible Notes (the “Previous Notes”). Its principal amount of $5,666,109 consists of (i) $2,794,000 of principal under the Previous Notes originally held by SRX and (ii) $2,812,500 of principal and $59,609 of accrued and unpaid interest under the Previous Notes originally held by Keystone.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company first evaluated the exchange under ASC 470-60, Troubled Debt Restructurings by Debtors. It concluded that the exchange was not a troubled debt restructuring because the creditor granted no concession: the Consolidated Note’s principal equals the principal and accrued interest of the Previous Notes, and the effective borrowing rate did not decrease. The Company then evaluated the exchange under ASC 470-50. Because the exchange eliminated a substantive conversion option, the terms of the Consolidated Note are substantially different under ASC 470-50-40-10. The exchange was therefore accounted for as an extinguishment of the Previous Notes.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Immediately before the extinguishment, the Company remeasured the embedded conversion feature derivatives to their fair value of $7,881,084. Because the bifurcated derivatives were extinguished together with the debt host, their fair value was included in the carrying amount of the extinguished debt. The Consolidated Note was recorded at its fair value of $5,666,109. The Company recognized a gain on extinguishment of debt as follows:</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Amount</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 88%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Principal of Previous Notes</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">5,606,500</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Less: unamortized debt discount</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(4,079,671</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Accrued interest</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">59,609</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Fair value of embedded conversion feature derivatives</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">7,881,084</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="font-weight: bold; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Net carrying amount of extinguished debt</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">9,467,522</span></td> <td style="font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Less: fair value of Consolidated Note (reacquisition price)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(5,666,109</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Gain on extinguishment of debt</span></td> <td style="font-weight: bold; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,801,413</span></td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The gain is included in “Gain on extinguishment of debt” in other income (expense) in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2026. Following the extinguishment, the Company had no convertible debt outstanding. As a result, it reassessed the classification of its convertible preferred stock (see Note 2, “Preferred Stock Liabilities”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Interest Expense</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">For the three months ended September 30, 2026 and 2025, amortization of debt discounts related to the Convertible Notes was $780,182 and $0, respectively. For the nine months ended September 30, 2026 and 2025, amortization of debt discounts related to the Convertible Notes was $1,526,829 and $0, respectively. These amounts are included in interest expense on the accompanying condensed consolidated statement of operations. The unamortized debt discount of $4,079,671 at August 27, 2026 was included in the carrying amount of the extinguished debt, was not charged to interest expense and was included in gain on debt extinguishment on the accompanying condensed consolidated statement of operations. The weighted average stated interest rate of the Convertible Notes was 10.0% for the nine months ended September 30, 2026.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-bottom: 0px; margin-bottom: 0px;">As of September 30, 2026 and December 31, 2025, the Company had <span style="-sec-ix-hidden:fc_1527761291;"><span style="-sec-ix-hidden:fc_243319486;">no</span></span> convertible notes or related derivative liabilities outstanding</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-top: 0px; margin-top: 0px;">.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Note</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Original Holder</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Issue Date</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Purchase Price</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Principal</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Maturity</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 41%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">February 2026 Note</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 11%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Keystone</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 11%; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">February 9, 2026</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">750,000</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">937,500</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 11%; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">July 9, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">March 2026 Note</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Keystone</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">March 6, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">750,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">937,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">August 6, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">April 2026 Note</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Keystone</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">April 8, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">350,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">437,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">April 8, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Second April Note</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Keystone</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">April 27, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">400,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">April 27, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">May 2026 Note</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">SRX</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">May 28, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">750,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">937,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">May 28, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">June 2026 advance</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">SRX</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">June 23, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">663,600</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">829,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">May 28, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">July 2026 advance</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">SRX</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">July 14, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">671,600</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">839,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">May 28, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">August 2026 advance</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">SRX</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">August 11, 2026</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">150,000</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">187,500</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">May 28, 2027</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Total</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,485,200</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">5,606,500</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: center; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> Keystone 2026-02-09 750000 937500 2027-07-09 Keystone 2026-03-06 750000 937500 2027-08-06 Keystone 2026-04-08 350000 437500 2027-04-08 Keystone 2026-04-27 400000 500000 2027-04-27 SRX 2026-05-28 750000 937500 2027-05-28 SRX 2026-06-23 663600 829500 2027-05-28 SRX 2026-07-14 671600 839500 2027-05-28 SRX 2026-08-11 150000 187500 2027-05-28 4485200 5606500 0.80 1121300 0.10 1000000 1413600 2085200 2235200 0.05 0.80 P20D 0.0499 8108424 4485200 3623224 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Nine months ended <br/> September 30,<br/> 2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; width: 88%;"><span style="font-family: Times New Roman, Times, Serif;">Expected dividend rate</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left; width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right; width: 9%;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_727190476;">–</span></span></td> <td style="text-align: left; width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Expected term (years)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">0.8 to 1.4</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td><span style="font-family: Times New Roman, Times, Serif;">Volatility</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">271.4% to 293.8</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">% </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Risk-free interest rate</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">3.48% to 4.04</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">% </span></td> </tr></tbody></table> 0.8 1.4 271.4 293.8 3.48 4.04 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Activity in the derivative liabilities for the nine months ended September 30, 2026 was as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Amount</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Balance, December 31, 2025</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1656510463;">–</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="width: 88%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Initial fair value of conversion features allocated to debt discount</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,485,200</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Initial fair value of conversion features allocated to initial derivative expense</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,623,224</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Gain on revaluation of derivative liabilities</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(227,340</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Derecognized upon extinguishment of debt included in gain on debt extinguishment</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(7,881,084</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance, September 30, 2026</span></td> <td style="font-weight: bold; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_212319112;">–</span></span></td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 4485200 3623224 227340 -7881084 604371 -3395884 -3623224 227340 -1062245 1666616 5666109 2794000 2812500 59609 7881084 5666109 The Company recognized a gain on extinguishment of debt as follows:<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Amount</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 88%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Principal of Previous Notes</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">5,606,500</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Less: unamortized debt discount</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(4,079,671</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Accrued interest</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">59,609</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Fair value of embedded conversion feature derivatives</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">7,881,084</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="font-weight: bold; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;">Net carrying amount of extinguished debt</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">9,467,522</span></td> <td style="font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: justify; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Less: fair value of Consolidated Note (reacquisition price)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(5,666,109</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="font-weight: bold; text-align: justify; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Gain on extinguishment of debt</span></td> <td style="font-weight: bold; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; font-weight: bold; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3,801,413</span></td> <td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 5606500 4079671 59609 7881084 9467522 5666109 3801413 780182 0 1526829 0 4079671 0.10 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 6 – <span style="text-decoration:underline">NOTES PAYABLE</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="text-decoration:underline">SRX</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On August 27, 2026, the Company completed a secured financing transaction with SRX. In connection with the transaction, the Company issued to SRX the Consolidated Note. Prior to the transaction, SRX was a lender to the Company under certain of the convertible promissory notes described in Note 5. The Consolidated Note consolidates the Previous Notes, including (i) obligations under Previous Notes held by SRX in an aggregate amount of $2,794,000 and (ii) obligations under Previous Notes originally held by Keystone in an aggregate amount of $2,872,109, consisting of $2,812,500 of principal and $59,609 of accrued and unpaid interest. Before the transaction, Keystone sold its Convertible Notes to SRX. Because this was a transfer between creditors, it had no accounting effect for the Company. Accordingly, the principal amount of the Consolidated Note represented by previously outstanding debt was $5,666,109, and such amounts were lent to the Company on an unsecured basis.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> The Consolidated Note provides for additional advances by SRX to the Company of up to $6,000,000 in the aggregate, inclusive of the initial advance described below, resulting in a maximum aggregate Consolidated Note amount of $11,666,109. Provided that no Event of Default has occurred and is continuing as determined under the terms of the Consolidated Note, the Consolidated Note provides for additional funding advances to the Company on the first day of each calendar month following the original issue date and before the maturity date in the amounts set forth in the Consolidated Note, reflecting the Company’s budget attached to the Consolidated Note. SRX may, in its sole and absolute discretion, make additional advances reasonably requested by the Company, subject to the $6,000,000 aggregate advance limit. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> From August 27, 2026 to September 30, 2026, the Company received advances under the Consolidated Note from SRX in the gross amount of $1,975,600, and received net proceeds of $1,925,600, which is net of $50,000 reimbursement of SRX’s legal expenses, which amount was withheld from the initial advance and treated as a debt discount to be amortized into interest expense over the term. The Company intends to use the proceeds of the advances to pay outstanding trade payables and for working capital purposes of the Company. Interest that is not paid when due may be recorded as an additional advance under the Consolidated Note. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> The outstanding principal amount of the Consolidated Note bears interest at 10% per annum, calculated on the basis of a 30-day month and a 360-day year. During the existence of an Event of Default, the outstanding obligations bear interest at the lesser of (i) 24.99% per annum and (ii) the maximum rate permitted by applicable law. If the Event of Default is cured, the interest rate returns to 10% per annum. The unpaid principal amount, accrued and unpaid interest and all other amounts payable under the Consolidated Note were due and payable on October 15, 2026, unless earlier accelerated or otherwise paid in accordance with the Consolidated Note. Provided that no Event of Default has occurred and is continuing, SRX may extend the maturity date for up to four consecutive 30-day periods by providing the Company with at least one business day’s prior written notice. In connection with signing the Stock Purchase Agreement (See Note 15), the maturity date of the Consolidated Note entered into on August 27, 2026 was extended to the date that is five (5) business days following the earlier of the Closing Date or the valid termination of the Stock Purchase Agreement pursuant to its terms (See Note 15). </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Except in connection with the consummation of a change of control Transaction, the Company may not prepay any amounts outstanding under the Consolidated Note without SRX’s prior written consent.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">As security for the Company’s obligations under the Consolidated Note, the Company entered into a Pledge and Security Agreement with SRX, dated as of August 27, 2026 (the “Pledge Agreement”). Under the Pledge Agreement, the Company pledged and granted SRX a continuing security interest in all of the Company’s right, title and interest in the issued and outstanding capital stock of its subsidiary, CERo Therapeutics, Inc., together with any additional shares or other equity interests in Cero Therapeutics, Inc. subsequently acquired by the Company and all distributions and proceeds relating to those interests. The security interest created by the Pledge Agreement is intended to be a first-priority security interest. Cero Therapeutics, Inc. also entered into an Asset Security Agreement with SRX, dated as of August 27, 2026 (the “Asset Security Agreement”), pursuant to which Cero Therapeutics, Inc., granted SRX a continuing security interest in substantially all of Cero Therapeutics, Inc.’s assets. The collateral includes, among other assets, intellectual property, patents, patent applications, studies, clinical trials, regulatory applications and other assets relating to the Company’s and Cero Therapeutics, Inc.’s CER-T cell therapy business, including CER-1236. In addition, pursuant to a Guaranty of Payment dated as of August 27, 2026 (the “Guaranty”), Cero Therapeutics, Inc. absolutely, unconditionally and irrevocably guaranteed the payment and performance of the Company’s obligations under the Consolidated Note and the other transaction documents, including principal, interest, fees, enforcement costs and other amounts payable thereunder. The Guaranty is a guaranty of payment and performance and not merely a guaranty of collection.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Consolidated Note contains customary negative covenants that, subject to specified exceptions, restrict the Company and its subsidiaries from, among other things, incurring additional indebtedness or liens, repaying certain other indebtedness, paying cash dividends or distributions on the Company’s equity securities, amending organizational documents in a manner materially adverse to SRX and entering into certain affiliate transactions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">Events of Default under the Consolidated Note include, among other matters, payment defaults; breaches of covenants, representations or warranties; certain cross-defaults under other material agreements; bankruptcy and insolvency events; certain judgments, levies or attachments; the incurrence of unpermitted indebtedness or liens; failure to use proceeds in accordance with the Company’s budget; the occurrence of a Material Adverse Effect; and the invalidity or unenforceability of a transaction document. Following an Event of Default, SRX may declare all outstanding principal and other amounts owing under the Consolidated Note immediately due and payable and may exercise its remedies against the pledged shares and other collateral.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">In connection with the issuance of the Consolidated Note, the Previous Notes, including their conversion and other terms, were superseded and replaced in their entirety by the Consolidated Note. The unpaid principal and accrued interest under the Previous Notes were consolidated into the original principal amount of the Consolidated Note rather than repaid at the time of the transaction.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="text-decoration:underline">Other</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> On September 30, 2026, in connection with the Settlement Agreement with Goodwin Procter LLP described in Note 14, the Company’s wholly owned subsidiary, CERo Therapeutics, Inc., issued a promissory note to Goodwin in the principal amount of $500,000 (the “Goodwin Note”). The Goodwin Note was issued as partial consideration for the settlement of unpaid legal fees, and the Company received no cash proceeds. The Goodwin Note is payable in five monthly installments of $100,000 on November 30, 2026, December 30, 2026, January 30, 2027, February 28, 2027, and March 30, 2027, and matures on March 31, 2027. The Goodwin Note bears no interest unless an event of default occurs. Following an event of default, the outstanding principal bears interest at 12% per annum. The Company may prepay the Goodwin Note in whole or in part at any time without penalty. The Goodwin Note is unsecured. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Events of default under the Goodwin Note include, among others: failure to pay principal when due; breach of a material covenant not cured within ten days after notice; a material misrepresentation; assignment for the benefit of creditors or appointment of a receiver or trustee; a money judgment exceeding $500,000 that remains unvacated, unbonded or unstayed for 60 days; bankruptcy or insolvency proceedings not dismissed within 60 days; dissolution or liquidation; and cessation of operations. The Goodwin Note provides that disclosure of substantial doubt about the Company’s ability to continue as a going concern is not an admission that the Company is unable to pay its debts as they become due. If an event of default is not cured within ten business days after the holder delivers a default notice, the outstanding principal, accrued interest, and costs of collection, including legal fees, become immediately due and payable. A default under the Goodwin Note also terminates Goodwin’s forbearance under the Settlement Agreement, as described in Note 14.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> Because the Goodwin Note was issued in a troubled debt restructuring accounted for under ASC 470-60, the Company did not impute interest on the Goodwin Note. The Goodwin Note is carried at its principal amount of $500,000 and is classified as a current liability as of September 30, 2026. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On September 30, 2026 and December 31, 2025, notes payable, net consisted of the following:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">September 30,<br/> 2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">December 31,<br/> 2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 76%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Consolidated Note with SRX</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">7,641,709</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">      <span style="-sec-ix-hidden:fc_1228343251;">-</span></span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Promissory note with Goodwin</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500,000</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1100512615;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,141,709</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_246860500;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Less: unamortized debt discount</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(15,306</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_193559062;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Notes payable, net</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,126,403</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1411322057;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Less: current portion of notes payable</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(8,126,403</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_22497509;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Notes payable, net – long-term</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1566987790;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_614042948;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-bottom: 0px; margin-bottom: 0px;">For the three and nine months ended September 30, 2026, amortization of debt discount related to notes payable amounted to $34,694, which has been included in interest expense on the accompanying unaudited condensed consolidated statements of operations. The weighted average interest rate during the nine months ended September 30, 2026 was approximately 10.0%</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-top: 0px; margin-top: 0px;">.</span> </p> 2794000 2872109 2812500 59609 5666109 6000000 11666109 6000000 1975600 1925600 50000 0.10 0.2499 0.10 500000 100000 100000 100000 100000 100000 0.12 500000 500000 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On September 30, 2026 and December 31, 2025, notes payable, net consisted of the following:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">September 30,<br/> 2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">December 31,<br/> 2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 76%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Consolidated Note with SRX</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">7,641,709</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">      <span style="-sec-ix-hidden:fc_1228343251;">-</span></span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Promissory note with Goodwin</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">500,000</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1100512615;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,141,709</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_246860500;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Less: unamortized debt discount</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(15,306</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_193559062;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Notes payable, net</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,126,403</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1411322057;">-</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Less: current portion of notes payable</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(8,126,403</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_22497509;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Notes payable, net – long-term</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1566987790;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_614042948;">-</span></span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 7641709 500000 8141709 15306 8126403 8126403 34694 0.10 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 7 – <span style="text-decoration:underline">ACCRUED LIABILITIES</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 13.05pt; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Accrued liabilities consisted of the following as of September 30, 2026 and December 31, 2025:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 13.05pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 13.05pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"></span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;">September 30,</td> <td style="font-weight: bold;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;">December 31,</td> <td style="font-weight: bold;"> </td> </tr><tr style="vertical-align: bottom;"><td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt;"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;">2026</td> <td style="padding-bottom: 1.5pt; font-weight: bold;"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt;"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;">2025</td> <td style="padding-bottom: 1.5pt; font-weight: bold;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 76%; text-align: left;">Employee payroll related liabilities</td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 9%; text-align: right;">142,196</td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 9%; text-align: right;">168,889</td> <td style="width: 1%; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;">Accrued franchise taxes</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">78,448</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">78,448</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left;">Penalty for late S-1 filing and effectiveness</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">55,000</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">55,000</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;">Accrued interest payable</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">137,595</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1124252563;">-</span></td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left;">Security deposits payable</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">25,000</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1747599866;">-</span></td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;">Accrued consulting and professional services</td> <td style="padding-bottom: 1.5pt;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right;">18,306</td> <td style="padding-bottom: 1.5pt; text-align: left;"> </td> <td style="padding-bottom: 1.5pt;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right;">61,474</td> <td style="padding-bottom: 1.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 4pt;"> </td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;">$</td> <td style="border-bottom: Black 4pt double; text-align: right;">456,545</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;">$</td> <td style="border-bottom: Black 4pt double; text-align: right;">363,811</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 13.05pt; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Accrued liabilities consisted of the following as of September 30, 2026 and December 31, 2025:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 13.05pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 13.05pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"></span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;">September 30,</td> <td style="font-weight: bold;"> </td> <td style="font-weight: bold;"> </td> <td colspan="2" style="font-weight: bold; text-align: center;">December 31,</td> <td style="font-weight: bold;"> </td> </tr><tr style="vertical-align: bottom;"><td> </td> <td style="font-weight: bold; padding-bottom: 1.5pt;"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;">2026</td> <td style="padding-bottom: 1.5pt; font-weight: bold;"> </td> <td style="font-weight: bold; padding-bottom: 1.5pt;"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;">2025</td> <td style="padding-bottom: 1.5pt; font-weight: bold;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 76%; text-align: left;">Employee payroll related liabilities</td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 9%; text-align: right;">142,196</td> <td style="width: 1%; text-align: left;"> </td> <td style="width: 1%;"> </td> <td style="width: 1%; text-align: left;">$</td> <td style="width: 9%; text-align: right;">168,889</td> <td style="width: 1%; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;">Accrued franchise taxes</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">78,448</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">78,448</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left;">Penalty for late S-1 filing and effectiveness</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">55,000</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">55,000</td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;">Accrued interest payable</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">137,595</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1124252563;">-</span></td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left;">Security deposits payable</td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;">25,000</td> <td style="text-align: left;"> </td> <td> </td> <td style="text-align: left;"> </td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1747599866;">-</span></td> <td style="text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;">Accrued consulting and professional services</td> <td style="padding-bottom: 1.5pt;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right;">18,306</td> <td style="padding-bottom: 1.5pt; text-align: left;"> </td> <td style="padding-bottom: 1.5pt;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right;">61,474</td> <td style="padding-bottom: 1.5pt; text-align: left;"> </td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 4pt;"> </td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;">$</td> <td style="border-bottom: Black 4pt double; text-align: right;">456,545</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> <td style="padding-bottom: 4pt;"> </td> <td style="border-bottom: Black 4pt double; text-align: left;">$</td> <td style="border-bottom: Black 4pt double; text-align: right;">363,811</td> <td style="padding-bottom: 2.5pt; text-align: left;"> </td> </tr></tbody></table> 142196 168889 78448 78448 55000 55000 137595 25000 18306 61474 456545 363811 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 8 – <span style="text-decoration:underline">LEASE</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> Through September 30, 2026, the Company held a five-year lease for laboratory and office space which expired in September 2026. The lease had escalating contractual rent and variable rent components and the Company elected to separate the contractual and variable elements for valuing the operating lease liability and right-of-use asset. The lease did not have any options for extension or expansion. On December 30, 2025 and effective on January 1, 2026, the Company entered into a license agreement to sublease a portion of its leased space to the sublessee for $25,000 per month on a monthly basis, which terminated in July 2026. In connection with lease agreement, in January 2026, the Company collected a $25,000 security deposit, which is included in accrued liabilities on the accompanying unaudited condensed consolidated balance sheet as of September 30, 2026. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On September 1, 2026, the Company entered into a lease agreement (the “Lease”) with SMBC Baker, LLC for approximately 3,498 rentable square feet of office and laboratory space at 999 Baker Way, San Mateo, California. The Lease commenced on September 1, 2026 and expires on September 30, 2028, a term of 25 months.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> Monthly base rent is $30,000 from October 2026 through September 2027, $31,050 from October 2027 through August 2028, and $32,137 for September 2028. Base rent for September 2026 was abated. The abated amount becomes payable if the Lease is terminated because of a Company default. The Company paid base rent for October 2026 upon execution of the Lease. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> In addition to base rent, the Company pays its 5.09% pro rata share of the building’s operating expenses and real estate taxes in excess of 2026 base-year amounts. These amounts are accounted for as variable lease payments, which are expensed as incurred. The Lease also provides the Company with use of landlord-owned furniture and equipment in the premises, non-exclusive use of shared laboratory areas and equipment, and ten non-exclusive parking spaces at no charge. The Company accounts for these as part of the single lease component. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> The Lease includes an option to extend the term for one additional two-year period, from October 1, 2028 through September 30, 2030, at specified base rents of $33,261 and $34,425 per month. The Company must give notice by April 1, 2028. At commencement, the Company concluded that it was not reasonably certain to exercise the extension option. The option period is therefore excluded from the lease term and from the measurement of the ROU asset and lease liability. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Lease is classified as an operating lease. At commencement, the Company recognized an operating lease liability of $687,052 and an operating lease ROU asset of $687,052. The lease liability was measured using an incremental borrowing rate of 10.0%, based on the Company’s current borrowing rate.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> As required by the Lease, the Company delivered a $120,000 irrevocable standby letter of credit to the landlord. The letter of credit must remain in effect until 90 days after the Lease expires or terminates. The letter of credit is collateralized by a cash deposit of $120,000, which is included in restricted cash, non-current, in the unaudited condensed consolidated balance sheet as of September 30, 2026. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company recorded the following lease costs:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> three months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> three months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> nine months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> nine months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td><span style="font-family: Times New Roman, Times, Serif;">Operating leases:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 52%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Operating lease cost</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">260,586</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">226,880</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">719,248</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">685,542</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Variable operating lease cost</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">210,157</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">187,730</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">476,973</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">600,334</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Sublease income received</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(25,000</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_853837056;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(172,500</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1318391906;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Total lease cost</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">445,743</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">414,610</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1,023,721</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1,285,876</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The right-of-use asset, net for the operating lease was recorded in the consolidated balance sheets as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">December 31,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 76%; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Right-of-use asset, net</span></td> <td style="width: 1%; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">662,188</span></td> <td style="width: 1%; padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">660,706</span></td> <td style="width: 1%; padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The operating lease liability for the operating lease was recorded in the consolidated balance sheets as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">December 31,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 76%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Operating lease liability, current</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">308,616</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">699,107</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Operating lease liability, non-current</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">354,162</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_559956157;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Total operating lease liability</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">662,778</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">699,107</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Weighted-average remaining lease term of operating leases (in years)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2.0</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.75</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Weighted-average discount rate for operating leases</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">10.0</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">%</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">9.60</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">%</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Maturity of the Company’s lease liability as of September 30, 2026 is as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; width: 88%;"><span style="font-family: Times New Roman, Times, Serif;">2026 (remainder of year)</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">90,000</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">2027</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">364,200</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">2028</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">280,537</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Total lease payments</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">734,737</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Less: imputed interest</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(71,959</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Total lease liability</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">662,778</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> P5Y 25000 25000 3498 P25M 30000 31050 32137 0.0509 33261 34425 687052 687052 0.10 120000 120000 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company recorded the following lease costs:</span></p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> three months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> three months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> nine months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">For the<br/> nine months<br/> ended<br/> September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td><span style="font-family: Times New Roman, Times, Serif;">Operating leases:</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 52%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Operating lease cost</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">260,586</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">226,880</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">719,248</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">685,542</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Variable operating lease cost</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">210,157</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">187,730</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">476,973</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">600,334</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Sublease income received</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(25,000</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_853837056;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(172,500</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1318391906;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Total lease cost</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">445,743</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">414,610</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1,023,721</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1,285,876</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The right-of-use asset, net for the operating lease was recorded in the consolidated balance sheets as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">December 31,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 76%; text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Right-of-use asset, net</span></td> <td style="width: 1%; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">662,188</span></td> <td style="width: 1%; padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">660,706</span></td> <td style="width: 1%; padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The operating lease liability for the operating lease was recorded in the consolidated balance sheets as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">September 30,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">December 31,</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2026</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">2025</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 76%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Operating lease liability, current</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">308,616</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">699,107</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Operating lease liability, non-current</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">354,162</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_559956157;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Total operating lease liability</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">662,778</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">699,107</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"><td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Weighted-average remaining lease term of operating leases (in years)</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2.0</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.75</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Weighted-average discount rate for operating leases</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">10.0</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">%</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">9.60</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">%</span></td> </tr></tbody></table> 260586 226880 719248 685542 210157 187730 476973 600334 -25000 -172500 445743 414610 1023721 1285876 662188 660706 308616 699107 354162 662778 699107 P2Y P0Y9M 0.10 0.096 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Maturity of the Company’s lease liability as of September 30, 2026 is as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; width: 88%;"><span style="font-family: Times New Roman, Times, Serif;">2026 (remainder of year)</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">90,000</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">2027</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">364,200</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">2028</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">280,537</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Total lease payments</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">734,737</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Less: imputed interest</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">(71,959</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">)</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Total lease liability</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">662,778</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 90000 364200 280537 734737 71959 662778 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 9 – <span style="text-decoration:underline">STOCKHOLDERS’ DEFICIT</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i>Series A Convertible Preferred Stock</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company designated 12,580 shares of its authorized preferred stock as the Series A Preferred Stock and the rights, preferences and privileges of the Series A Preferred Stock are summarized below.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Each share of Series A Preferred Stock has a stated value of $1,000 per share and, when issued, the Series A Preferred Stock was fully paid and non-assessable. The Series A Preferred Stock ranks senior to all other Company capital stock unless required holder votes are obtained to create a class of stock senior to Series A Preferred Stock. The requisite holders of Series A Preferred Stock consented to the issuance of the Series C Preferred Stock and Series D Preferred Stock, each as described below, which ranks senior to the Series A Preferred Stock and Series B Preferred Stock.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Dividend and Participation Rights:</i> The holders of Series A Preferred Stock are entitled to dividends, on an as-if converted basis, equal to and in the same form as dividends actually paid on shares of Common Stock, when and if actually paid. Series A Preferred Stockholders are entitled to participate pro rata in any purchase rights extended to holders of Common Stock on an as-converted basis.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Conversion</i>: Each holder of Series A Preferred Stock may convert at any time, all, or any part, of the outstanding Series A Preferred Stock into shares of the Common Stock at the initial “Conversion Price” of $20,000, which is subject to customary adjustments for stock splits. The Company’s Board of Directors has the right, at any time, with the written consent of the Required Holders (as defined in the Certificate of Designation of Preferences, Rights and Limitations of the Series A Convertible Preferred Stock (the “Series A Certificate of Designations”), to lower the fixed conversion price to any amount and for any period of time. If 90 days or 180 days following the occurrence of the effective date of the registration statement filed pursuant to the First PIPE Registration Rights Agreement, the Conversion Price then in effect is greater than the greater of $2,000.00 and the Market Price (as defined in the Series A Certificate of Designations) then in effect (the “Adjustment Price”), the Conversion Price shall automatically lower to the Adjustment Price. In connection with such adjustment provisions, the Conversion Price was reset to $2,000.00. The Series A Certificate of Designations contains other down-round provisions.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> <i>Alternate Conversion:</i> Following the occurrence and during the continuance of a Trigger Event (as defined below), each holder may alternatively elect to convert the Series A Preferred Stock at the “Alternate Conversion Price” equal to the lesser of the Conversion Price and the greater of $2,000.00 (the “Series A Conversion Price Floor”) or 80% of the 5-day volume weighted average price of a share of Common Stock. Trigger Events include customary terms related to exchange listing, registration rights, failure to deliver shares on conversion or exercise of derivative instruments, or insolvency. Notwithstanding the Series A Conversion Price Floor, if the Series A Conversion Price Floor is greater than 80% of the 5-day volume weighted average price of a share of Common Stock, then the Conversion Amount (as defined in the Series A Certificate of Designations) is increased by a multiplier resulting in the convertibility of the shares of Series A Preferred Stock into the number of shares of Common Stock that would have been issuable if the Alternate Conversion Price had been equal to such lower volume weighted average price. Such multiplier was in effect from when the registration statement for the resale of shares of Common Stock issuable upon conversion of the Series A Preferred Stock was declared effective on July 5, 2024 because such effectiveness was after the applicable deadline therefore and, as a result of such multiplier, such registration statement registered fewer than the maximum number of shares of Common Stock issuable upon such conversion. Such multiplier ceased to apply on January 6, 2025, the 20^th trading day after the effectiveness of the additional registration statement registering the resale of additional shares of Common Stock issuable upon conversion of the Series A Preferred Stock resulting from such shortfall, which additional registration statement was declared effective on December 5, 2024. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Redemptions:</i> Upon bankruptcy or liquidation, Series A Preferred Stock is redeemed at a 25% premium (or at 50% premium 180 days after issuance) to the greater of the conversion amount or the number of shares multiplied by the highest closing price within the preceding 20 days. Additionally, the Company may voluntarily redeem the Series A Preferred Stock at a 20% premium to the greater of the conversion amount or the number of shares multiplied by the highest closing price within the preceding 20 days.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The holders of the Series A Preferred Stock have no voting rights.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> In February 2024, the Company consummated a private placement (the “Series A PIPE Financing”) of 10,089 shares of Series A Preferred Stock, warrants to purchase 306 shares of Common Stock (the “February 2024 PIPE Common Warrants”) and warrants to purchase 2,500 shares of Series A Preferred Stock (the “Preferred Warrants”) (See Note 10 below), pursuant to the Amended and Restated Securities Purchase Agreement, dated February 14, 2024, by and among the Company, PBAX and certain accredited investors for aggregate cash proceeds to the Company of approximately $10.0 million, including cash previously received for convertible bridge note proceeds. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">A portion of such Series A Preferred Stock was issued as consideration for the cancellation of outstanding indebtedness, including a promissory note of PBAX amounting to $1,555,000 and the Predecessor’s convertible bridge notes amounting to $627,154.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> The Company accounts for preferred stock as either equity or debt-like securities based on an assessment of the Preferred Stock rights and preferences and applicable authoritative guidance in ASC 480 and ASC 815, Derivatives and Hedging. Prior to May 5, 2026, the Company concluded that Series A, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, and Series E Preferred Stock, which have no cash redemption features outside of the Company’s control, are treated as equity. The Company has also concluded that the Series A Common Warrants and Series C Common Warrants do not possess redemption features outside of the Company’s control and are treated as equity. In May 2026, as a result of the issuance of additional convertible promissory notes and the reduction of preferred stock conversion prices from $0.05 to $0.01, the Company no longer had sufficient authorized shares in the event that all potentially dilutive instruments were exercised. Accordingly, beginning in May 2026 (Series E) and June 2026 (Series D), certain of the Company’s embedded conversion features on Series D Preferred Stock and Series E Preferred Stock have been treated as preferred stock liabilities for accounting purposes under ASC 815 due to insufficient authorized shares to fully settle conversion features of the preferred stock instruments, if exercised (see Series D Preferred Stock and Series E Preferred Stock below). </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> During the three months ended March 31, 2025, the 625 remaining Series A Preferred Warrants were exercised into 625 shares of Series A Preferred Stock for gross proceeds of $500,000. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the nine months ended September 30, 2025, 1,090 shares of Series A Preferred Stock were converted into 14,447 shares of Common Stock. The conversion ratio was based on the Series A Certificate of Designations and reflected the application of the Alternate Conversion Price described above, applicable as of each date of conversion plus a 25% premium for penalties due. As a result of the 25% premium, during the nine months ended September 30, 2025, the Company recorded the following: 1) for 473 shares of Series A Preferred Stock converted during the continuance of a Trigger Event as described above, the Company recorded a deemed dividend of $118,250, which represents the fair value of excess common shares convertible and issuable to the preferred shareholders upon occurrence of the trigger event based on an average per share common share price of $95.00, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying consolidated statement of operations for the nine months ended September 30, 2025, and 2) for 625 shares of Series A Preferred Stock converted after the expiration of a Trigger Event as described above, the Company recorded a stock-based inducement expense of $156,250, which represents the fair value of excess common shares transferred to the preferred shareholders based on an average per share common share price of $95.00 and is reflected as part of other income (expense), net, on the accompanying condensed consolidated statement of operations for the nine months ended September 30, 2025. Additionally, during the three and nine months ended September 30, 2025, Series C Preferred Stock was converted by investors at a conversion price lower than the conversion price of the Series A Preferred Stock then in effect. The lower conversion price lowered the Series A Preferred Stock conversion price from $39.20 per share to $1.76 per share. In connection with this down round triggering event, during the three and nine months ended September 30, 2025, the Company recorded a deemed dividend of $0 and $14,871,551, respectively, which represents the fair value of excess common shares convertible and issuable to the preferred shareholders upon occurrence of the trigger event based on an average per share common share price of $19.18, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying consolidated statement of operations for the nine months ended September 30, 2025.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Additionally, certain investors are owed an aggregate of 692 shares of Common Stock of the Company due to shortfall in number of shares issued upon conversion, which represents the 25% premium not received during the year ended December 31, 2024. Accordingly, during the year ended December 31, 2024, the Company reduced additional paid-in capital by $85,500 and recorded a liability of $85,500, which is reflected on the accompanying unaudited condensed consolidated balance sheets as deemed dividend - common stock liability as of September 30, 2026 and December 31, 2025.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three and nine months ended September 30, 2026, Series D Preferred Stock and Series E Preferred Stock were converted by investors at a conversion price lower than the conversion price of the Series A Preferred Stock then in effect. The lower conversion price lowered the Series A Preferred Stock conversion price from $0.05 per share to $0.01 per share. In connection with this down round triggering event, during the three and nine months ended September 30, 2026, the Company recorded a deemed dividend of $0 and $3,852,584, respectively, which represents the fair value of excess common shares convertible and issuable to the preferred shareholders upon occurrence of the trigger event based on an average per share common share price of $0.0337, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying consolidated statement of operations for the three and nine months ended September 30, 2026.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">As of September 30, 2026, there were 1,429 remaining shares of Series A Preferred Stock, which were convertible into approximately 142,900,000 shares of Common Stock based on a conversion price of $0.01 per share.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i>Series B Convertible Preferred Stock</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company designated 626 shares of its authorized preferred stock as Series B Preferred Stock and established the rights, preferences and privileges of the Series B Preferred Stock pursuant to the Certificate of Designation of Preferences, Rights and Limitations of the Series B Convertible Preferred Stock (the “Series B Certificate of Designations” and, together with the Series A Certificate of Designations, the “Certificates of Designations”), as summarized below. Except as set forth below, the Series B Preferred Stock has terms and provisions that are identical to those of the Series A Preferred Stock.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The holders of the Series B Preferred Stock have no voting rights.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Series B Preferred Stock ranks pari passu with the Series A Preferred Stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Due to delayed filing and declaration of effectiveness relative to the deadlines defined in the Registration Rights Agreement, through December 31, 2024, the Company accrued a registration rights penalty amounting to $55,000, which is payable in cash to the holders of Series B Preferred Stock and included in accrued liabilities on the accompanying unaudited condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three months ended March 31, 2025, 75 shares of Series B Preferred Stock were converted into 2,500 shares of Common Stock. The conversion ratio was based on the Series B Certificate of Designations and included the 25% premium to the greater of the conversion amount or the number of shares multiplied by the highest closing price within the preceding 20 days. During the three months ended June 30, 2025, 198 shares of Series B Preferred Stock were converted into 42,258 shares of Common Stock. The conversion ratio of 23 Series B Preferred Stock was based on the Series B Certificate of Designations and included the 25% premium to the greater of the conversion amount or the number of shares multiplied by the highest closing price within the preceding 20 days. As a result of the 25% premium, the Company recorded a deemed dividend of $0 and $18,750, which represents the fair value of excess common shares transferred to the preferred shareholders based on an average per share common share price of $37.50, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying consolidated statement of operations for the three and nine months ended September 30, 2025, respectively. Additionally, during the three and nine months ended September 30, 2025, the Company converted 175 shares of Series B Preferred stock at a conversion price lower than the contractual conversion price of the Series B Preferred Stock. These shares were converted after the expiration of a prior Trigger Event. The lower conversion price lowered the Series B Preferred Stock conversion price from the contractual conversion price to $1.76 per share. In connection with this down round triggering event, during the three and nine months ended September 30, 2025, the Company recorded a deemed dividend of $0 and $488,703, respectively, which represents the fair value of excess common shares convertible and issuable to the preferred shareholders upon occurrence of the trigger event based on a per share common share price of $6.87, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying consolidated statement of operations for the three and nine months ended September 30, 2025. As of the date of this triggering event and September 30, 2025, 60,338 common shares remain issuable to the then holder of Series B Preferred.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">As of September 30, 2026 and December 31, 2025, there were <span style="-sec-ix-hidden:fc_489311814;"><span style="-sec-ix-hidden:fc_1438447148;">no</span></span> remaining shares of Series B Preferred Stock.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i>Series C Convertible Preferred Stock</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company designated 2,853 shares of its authorized preferred stock as the Series C Preferred Stock and the rights, preferences and privileges of the Series C Preferred Stock are summarized below.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Each share of Series C Preferred Stock has a stated value of $1,000 per share and, when issued, the Series C Preferred Stock was fully paid and non-assessable. The Series C Preferred Stock ranks senior to all other Company capital stock unless required holder votes are obtained to create a class of stock senior to Series C Preferred Stock.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Ranking:</i> The Series C Preferred Stock are senior in rank with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company to the Series A Convertible Preferred Stock, Series B Convertible Preferred Stock, and Common Stock. The Company shall not, without the consent of the Required Holders, authorize or issue any shares of senior rank with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company, shares of pari passu rank with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company, or shares of junior ranking stock that have a maturity or redemption date prior to the first anniversary of the Series C Preferred Stock issuance date.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Dividend and Participation Rights</i>: The holders of Series C Preferred Stock are entitled to dividends, on an as-if converted basis, equal to and in the same form as dividends actually paid on shares of Common Stock, when and if actually paid. Series C Preferred Stockholders will be entitled to participate pro rata in any purchase rights extended to holders of Common Stock on an as-converted basis.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Conversion:</i> Each holder of Series C Preferred Stock may convert at any time, all, or any part, of the outstanding Series C Preferred Stock into shares of the Common Stock at the initial “Conversion Price” of $448.00, which is subject to customary adjustments for stock splits.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Alternate Conversion:</i> Following the occurrence and during the continuance of a Trigger Event (as defined below), each holder may alternatively elect to convert the Series C Preferred Stock at the “Alternate Conversion Price” equal to the lesser of the then current Conversion Price and the greater of $39.20 (the “Series C Conversion Price Floor”) or 80% of the trailing 5-day daily volume weighted average price of a share of Common Stock. Trigger Events include customary terms related to exchange listing, registration rights, failure to deliver shares on conversion or exercise of derivative instruments, or insolvency. Notwithstanding the Series C Conversion Price Floor, if the Series C Conversion Price Floor is greater than 80% of the 5-day volume weighted average price of a share of Common Stock, then the Conversion Amount (as defined in the Series C Certificate of Designation) for such Series C Preferred Stock is increased by a multiplier resulting in the convertibility of the shares of Series C Preferred Stock into the number of shares of Common Stock that would have been issuable if the Alternate Conversion Price had been equal to such lower volume weighted average price.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> <i>Redemptions:</i> Upon bankruptcy or liquidation, Series C Preferred Stock will be redeemed at a 25% premium to the conversion amount multiplied by the highest Alternate Conversion Price within the preceding 20 days multiplied by 125% of the greatest closing sale price of the Common Stock on any day immediately following public announcement of insolvency and the date the entire redemption payment has been made. Additionally, the Company may voluntarily redeem the Series C Preferred Stock at a 25% premium to the greater of the Conversion Amount or the number of shares multiplied by the highest closing price within the preceding 20 days. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The holders of the Series C Preferred Stock have no voting rights.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> In September 2024, the Company consummated a private placement (the “Series C PIPE Financing”) of 2,853 shares of Series C Preferred Stock and warrants to purchase 4,088 shares of Common Stock (See Note 10 below), pursuant to the Securities Purchase Agreement, dated September 25, 2024, by and among the Company and certain accredited investors for aggregate gross cash proceeds to the Company of approximately $1.25 million. The Company received net proceeds of $803,561, which is net of offering costs of $446,438. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">The Company accounts for preferred stock as either equity or debt-like securities based on an assessment of the Preferred Stock rights and preferences and applicable authoritative guidance in ASC 480 and ASC 815, Derivatives and Hedging. The Company has concluded that the Series C Preferred Stock, which has no cash redemption features outside of the Company’s control, is treated as equity. The Company has also concluded that the Series C Common Warrants do not possess redemption features outside of the Company’s control and are treated as equity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On March 10, 2025, the Company paid certain investors $395,000 for the redemption of 316 shares of the Series C Preferred Stock, which included $267,856 of the initial purchase price and a cash redemption premium of $127,144. During the three and nine months ended September 30, 2025, the $0 and $127,144 of excess paid over the initial purchase price was included in deemed dividend on the accompanying unaudited condensed consolidated statement of operations, respectively.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three months ended June 30, 2025, 2,477 shares of Series C Preferred Stock were converted into 808,444 shares of Common Stock. The conversion ratios were agreed upon by the Company and investors and ranged from $1.76 to $5.00 per share, which was lower than the conversion price based on the Series C Certificate of Designations Alternate Conversion price. As a result, pursuant to ASC 470-20, upon initial down round triggering events, the Company recorded a stock-based inducement expense of $707,300, which represents the fair value of excess common shares transferred to the preferred shareholders based on an average per share common share price of $7.50 and is reflected as part of other income (expense), net, on the accompanying condensed consolidated statement of operations for the nine months ended September 30, 2025. Additionally, subsequent to the initial triggering events, during the three and nine months ended September 30, 2025, Series C Preferred Stock was converted by investors at a conversion price lower than the contractual conversion price of the Series C Preferred Stock then in effect. The initial triggering events lowered the Series C Preferred Stock conversion price from $39.20 per share to $5.00 and from $5.00 per share to $1.76 per share. In connection with these down round triggering events, during the three and nine months ended September 30, 2025, the Company recorded a deemed dividend of $0 and $9,340,120, respectively, which represents the fair value of excess common shares convertible and issuable to the preferred shareholders upon the occurrence of the initial trigger event based on an average per share common share price of $10.37, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying consolidated statement of operations for the three and nine months ended September 30, 2025.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On July 18, 2025, 53 shares of Series C Preferred Stock were converted into 10,600 shares of Common Stock. The conversion ratio was agreed upon by the Company and investor at a conversion price of $5.00 per share.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three and nine months ended September 30, 2026, Series D Preferred Stock and Series E Preferred Stock were converted by investors at a conversion price lower than the contractual conversion price of the Series C Preferred Stock then in effect. The triggering event lowered the Series C Preferred Stock conversion price from $0.05 per share to $0.01 per share. In connection with this down round triggering event, during the three and nine months ended September 30, 2026, the Company recorded a deemed dividend of $0 and $18,872, respectively, which represents the fair value of excess common shares convertible and issuable to the preferred shareholders upon the occurrence of the trigger event based on an average per share common share price of $0.0337, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying consolidated statement of operations for the three and nine months ended September 30, 2026.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">As of September 30, 2026 and December 31, 2025, there were 7 remaining shares of Series C Preferred Stock, which were convertible into approximately 700,000 shares of Common Stock at a conversion price of $0.01 per share.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i>Series D Convertible Preferred Stock</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i> </i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On April 22, 2025, the Company designated 12,500 shares of our authorized and unissued Preferred Stock as Series D Preferred Stock and established the rights, preferences and privileges of the Series D Preferred Stock pursuant to the Series D Certificate of Designations filed with the Secretary of State of the State of Delaware, as summarized below. Except as set forth below, the Series D Preferred Stock has terms and provisions that are substantially the same as those of the Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>General.</i> Each share of Series D Preferred Stock has a stated value of $1,000 per share and, when issued, the Series D Preferred Stock will be fully paid and non-assessable.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Ranking.</i> The Series D Preferred Stock, with respect to the payment of dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company, ranks senior to all capital stock of the Company (including the Series A Preferred Stock and the Series B Preferred Stock, except for the Series C Preferred Stock, which will rank <i>pari passu</i>) unless the Required Holders (as defined in the Series D Certificate of Designations) consent to the creation of other capital stock of the Company that is senior or equal in rank to the Series D Preferred Stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Dividends.</i> The holders of Series D Preferred Stock will be entitled to dividends, on an as-if converted basis, equal to and in the same form as dividends actually paid on shares of the Company’s Common Stock, when and if actually paid.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Purchase Rights.</i> If at any time the Company grants, issues or sells any options, convertible securities, or rights to purchase stock, warrants, securities or other property pro rata to all or substantially all of the record holders of any class of Common Stock (the “Series D Purchase Rights”), then each holder of Series D Preferred Stock will be entitled to acquire, upon the terms applicable to such Series D Purchase Rights, the aggregate Series D Purchase Rights which such holder could have acquired if such holder had held the number of shares of Common Stock acquirable upon complete conversion of all the Series D Preferred Stock held by such holder immediately prior to the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Series D Purchase Rights at the Series D Alternate Conversion Price (as defined below); subject to certain limitations on beneficial ownership.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Conversion Rights</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Conversion at Option of Holder.</i> Each holder of Series D Preferred Stock may convert all, or any part, of the outstanding Series D Preferred Stock, at any time at such holder’s option, into shares of the Common Stock (which converted shares of Common Stock are referred to as “Series D Conversion Shares” herein) at the fixed “Series D Conversion Price” of $15.60, which is subject to proportional adjustment upon the occurrence of any stock split, stock dividend, stock combination and/or similar transactions.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Voluntary Adjustment Right.</i> Subject to the rules and regulations of the Nasdaq, the Company has the right, at any time after the Stockholder Approval Date (as defined below), with the written consent of the Required Holders, to lower the fixed conversion price to any amount and for any period of time deemed appropriate by the board of directors of the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Alternate Conversion Upon a Triggering Event.</i> Following the occurrence and during the continuance of a Series D Triggering Event (as defined below), each holder may alternatively elect to convert the Series D Preferred Stock at the “Series D Alternate Conversion Price” equal to the lesser of:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The applicable Conversion Price, and</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">the greater of:</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">the floor price of $3.12; and</span></td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">80% of the lowest volume weighted average price of the Common Stock during the five consecutive trading days immediately prior to such conversion.</span></td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Series D Certificate of Designations contains standard and customary triggering events (each, a “Series D Triggering Event”), including but not limited to: (i) the suspension from trading or the failure to list the Common Stock within certain time periods; (ii) failure to declare or pay any dividend when due; (iii) the failure to timely file or make effective a registration statement on Form S-1 or Form S-3 pursuant to the Registration Rights Agreement (as defined below), (iv) the Company’s failure to cure a conversion failure or notice of the Company’s intention not to comply with a request for conversion of any Series D Preferred Stock, and (v) bankruptcy or insolvency of the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Other Adjustments.</i> In connection with the April 2025 Private Placement (see below), the Company agreed to seek stockholder approval at a special meeting of stockholders, of the issuance of Conversion Shares at a conversion price below the Conversion Price (the date of such approval, the “Series D Stockholder Approval Date”). If the Company did not obtain such stockholder approval prior to May 31, 2025, then the Company would have been required to (i) file a preliminary Proxy Statement seeking such stockholder consent with the SEC no later than May 31, 2025, (ii) use reasonable best efforts to file the definitive Proxy Statement no later than June 30, 2025 and (iii) use reasonable best efforts to hold the Stockholder Meeting no later than July 31, 2025. Such stockholder approval was obtained on May 29, 2025. If, on or after the Series D Stockholder Approval Date, the Company issues any shares of Common Stock for a consideration per share (the “Series D New Issuance Price”) less than a price equal to the Series D Conversion Price in effect immediately prior to such issuance, the Conversion Price shall be reduced to the Series D New Issuance Price.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> If 30 days or 60 days following the occurrence of the later of (x) the Series D Stockholder Approval Date and (y) the earlier of (a) the effective date of the registration statement to be filed pursuant to the Registration Rights Agreement and (b) the date that the Series D Preferred Stock is eligible to be resold without restriction under Rule 144 of the Securities Act, the Series D Conversion Price then in effect is greater than the greater of $3.12 and the Market Price (as defined in the Series D Certificate of Designations) then in effect (the “Series D Adjustment Price”), the Conversion Price shall automatically lower to the Series D Adjustment Price (See below). </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On August 13, 2025, the Company and the Investors of Series D Preferred Stock entered into an Amendment and Limited Waiver Agreement (the “Waiver Agreement”), whereby the Investors (i) amended the Registration Rights Agreement to extend certain deadlines therein and (ii) waived certain provisions of the Series D COD. Pursuant to the Waiver Agreement, the Company and the Series D Preferred Holders acknowledged that it was inefficient and impracticable to file the Registration Statement prior to the consummation of additional closings. Accordingly, the filing deadline with respect to the initial Registration Statement was extended to August 15, 2025; The Registration Statement on Form S-3 was filed on August 11, 2025. Additionally, the “Effectiveness Deadline” with respect to the initial Registration Statement required to be filed, shall be the earlier of the (A) October 15, 2025 (or, if such Registration Statement is subject to a full review by the SEC, November 30, 2025 and (B) fifth Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Registration Statement will not be reviewed or will not be subject to further review and (ii) with respect to any additional Registration Statements that may be required to be filed by the Company pursuant to this Waiver Agreement, the earlier of the (A) ninetieth (90th) calendar day following the date on which the Company was required to file such additional Registration Statement and (B) fifth (5th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Registration Statement will not be reviewed or will not be subject to further review. The Registration Statement on Form S-3 was declared effective on August 15, 2025. Furthermore, during the second quarter of 2025, the Company issued shares of Common Stock (the “Existing Series C Conversion Shares”) upon conversion of shares of Series C Preferred Stock at conversion prices below the Conversion Price of the Series D Preferred Stock (the “Existing Series C Conversions”), which each of the Company and Holder acknowledges was mutually beneficial. Pursuant to the Waiver Agreement, the Series D Preferred Holders waived Section 8(a) of the Series D COD, in part, solely with respect to the Existing Series C Conversions, such that the Prior Series C Conversion Shares were deemed “Excluded Securities” under Section 8(a) (the “Antidilution Waiver”).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Bankruptcy Triggering Event Redemption Right.</i> Upon any bankruptcy Series D Triggering Event, the Company shall immediately redeem in cash all amounts due under the Series D Preferred Stock at a 25% premium to the greater of (x) the amount of shares of Series D Preferred Stock then outstanding and (y) the equity value of the shares of Series D Preferred Stock then outstanding, unless the holder waives such right to receive such payment. The equity value of the Common Stock underlying the Series D Preferred Stock is calculated using the greatest closing sale price of the Common Stock on any trading day immediately preceding such bankruptcy Series D Triggering Event and the date the Company makes the entire payment required.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Change of Control Exchange.</i> Upon a change of control of the Company, each holder may require the Company to exchange the holder’s shares of Series D Preferred Stock for consideration equal to the Change of Control Election Price (as defined in the Series D Certificate of Designations), to be satisfied at the Company’s election in either (x) cash or (y) rights convertible into such securities or other assets to which such holder would have been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by such holder upon consummation of such corporate event.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Company Optional Redemption.</i> At any time the Company shall have the right to redeem in cash all, but not less than all, the shares of Series D Preferred Stock then outstanding at a 25% redemption premium to the greater of (x) the amount of shares being redeemed, and (y) the equity value of the Common Stock underlying the Series D Preferred Stock. The equity value of the Common Stock underlying the Series D Preferred Stock is calculated using the greatest closing sale price of the Common Stock on any trading day immediately preceding the date the Company notifies the holders of the Company’s election to redeem and the date the Company makes the entire payment required.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"><i>Fundamental Transactions.</i> The Series D Certificate of Designations prohibits the Company from entering specified fundamental transactions (including, without limitation, mergers, business combinations and similar transactions) unless the Company (or the Company’s successor) assumes in writing all of the Company’s obligations under the Certificate of Designations and the other Transaction Documents (as defined in the Series D Certificate of Designations).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Voting Rights.</i> The holders of the Series D Preferred Stock shall have no voting power and no right to vote on any matter at any time, either as a separate series or class or together with any other series or class of share of capital stock, and shall not be entitled to call a meeting of such holders for any purpose nor shall they be entitled to participate in any meeting of the holders of Common Stock, except as provided in the Series D Certificate of Designations (or as otherwise required by applicable law).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Covenants.</i> The Series D Certificate of Designations contains a variety of obligations on the Company’s part not to engage in specified activities. In particular, the Company will not, and will cause the Company’s subsidiaries to not, redeem, repurchase or declare any dividend or distribution on any of the Company’s capital stock (other than as required under the Series D Certificate of Designations) and will not incur any indebtedness other than ordinary course trade payables or, subject to certain exceptions, incur any liens. In addition, the Company will not issue any preferred stock or issue any other securities that would cause a breach or default under the Series D Certificate of Designations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Reservation Requirements.</i> So long as any Series D Preferred Stock remains outstanding, the Company shall at all times reserve at least 250% of the number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all Series D Preferred Stock then outstanding.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On April 21, 2025, the Company entered into a Securities Purchase Agreement (the “Fourth Securities Purchase Agreement”) with certain accredited investors. Pursuant to the Fourth Securities Purchase Agreement, up to 10,000 shares of the Company’s Series D Preferred Stock shall be purchased for an aggregate purchase price of up to $8 million in one or more closings.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On April 22, 2025, pursuant to the Fourth Securities Purchase Agreement, the Company issued and sold, and the investors purchased, in a private placement (the “Fourth PIPE Financing”), 6,250 shares of the Series D Preferred Stock in exchange for the receipt of 1,000,279 shares of Series D Preferred Stock of Stella Diagnostics, Inc, (the “Stella Series D Preferred Stock”), in lieu of cash, which is included in investment in equity securities on the accompanying unaudited condensed balance sheet as of June 30, 2025. Pursuant to the Fourth PIPE Financing, on April 22, 2025, the Company issued 6,250 shares of its Series D Preferred Stock to investors in exchange for 1,000,279 shares of Series D Preferred Stock of Stella Diagnostics, in which a portion of the Series D Preferred Stock of Stella Diagnostics was owned by a related party investor (see Note 13). The fair value of Stella’s Series D Preferred Stock received was determined to be $500,000 as of the transaction date, based on the subsequent sale of the 1,000,279 Stella Series D Preferred Stock for $500,000 in cash, pursuant to a Stock Purchase Agreement dated August 20, 2025. Accordingly, the Company recognized the issuance of its Series D Preferred Stock to investors at a cost of $500,000, which represents the fair value of the consideration received. The difference between the stated value of the Company’s Series D Preferred Stock ($5.0 million) and the fair value of the consideration received ($500,000) was recorded as a decrease to additional paid-in capital, which amounted to $4.5 million. The investment in Stella’s Series D Preferred Stock is classified as an equity security without a readily determinable fair value and is accounted for under the measurement alternative in accordance with ASC 321, <i>Investments – Equity Securities</i>. Under this method, the investment is initially recorded at cost, which was determined to be equal to the fair value of the consideration received, and is subsequently adjusted for observable price changes in orderly transactions for the same or similar securities and for impairment, if any. There was no impairment identified on the investment in equity securities during the period ended September 30, 2025. This non-cash transaction did not impact the Company’s cash flows and is disclosed as a non-cash investing and financing activity in the condensed consolidated statement of cash flows in accordance with ASC 230, <i>Statement of Cash Flows</i>.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On June 5, 2025, the Company sold an additional 938 shares of Series D Preferred Stock for gross cash proceeds of $750,400 in an additional closing of the Fourth PIPE Financing.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On June 25, 2025, we entered into an amendment (the “Amendment”) to the Fourth Securities Purchase Agreement pursuant to which the Company added certain new institutional investors to the schedule of buyers in the Fourth Securities Purchase Agreement, to issue and sell to such investors, in one or more closings shares of the Company’s Series D Preferred Stock. Also, on June 25, 2025, we sold an additional 2,315 shares of Series D Preferred Stock for gross cash proceeds of $1,852,000 in an additional closing of the Fourth PIPE Financing.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> On July 18, 2025, the Company sold an additional 497 shares of Series D Preferred Stock for gross cash proceeds of $397,600 in an additional closing, and the Company received net proceeds of $320,801. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On September 15, 2025, the 30th day following the effective date of the registration statement to be filed pursuant to the Registration Rights Agreement, the conversion price of Series D Preferred Stock was lowered to from $15.60 to $5.36, the Series D Adjustment Price. In connection with this down round triggering event, during the three and nine months ended September 30, 2025, the Company recorded a deemed dividend of $6,649,828, which represents the fair value of excess common stock convertible and issuable to the preferred shareholders upon the occurrence of the initial trigger event based on a per common share price of $5.43, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying condensed consolidated statement of operations for the three and nine months ended September 30, 2025.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three months ended September 30, 2025, 200 shares of Series D Preferred Stock were converted into 37,314 shares of Common Stock. The conversion ratios were at the Series D Adjustment Price.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three and nine months ended September 30, 2026, Series D Preferred Stock and Series E Preferred Stock were converted by investors at a conversion price lower than the contractual conversion price of the Series D Preferred Stock then in effect. The triggering event lowered the Series D Preferred Stock conversion price from $0.05 per share to $0.01 per share. In connection with this down round triggering event, during the three and nine months ended September 30, 2026, the Company recorded a deemed dividend of $0 and $14,267,232, respectively, which represents the fair value of excess common shares convertible and issuable to the preferred shareholders upon the occurrence of the trigger event based on an average per share common share price of $0.0337, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying consolidated statement of operations for the three and nine months ended September 30, 2026.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three months ended March 31, 2026, 60 shares of Series D Preferred Stock were converted into 1,200,000 shares of Common Stock. The conversion ratios were at the Series D New Issuance Price of $0.05 per share. During the three months ended June 30, 2026, 69 shares of Series D Preferred Stock were converted into 6,900,000 shares of Common Stock. The conversion ratios were at the Series D New Issuance Price of $0.01 per share. During the three months ended September 30, 2026, 31 shares of Series D Preferred Stock were converted into 3,100,000 shares of Common Stock. The conversion ratios were at the Series D New Issuance Price of $0.01 per share.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">As of September 30, 2026, there were 5,192 remaining shares of Series D Preferred Stock, which were convertible into approximately 519,200,000 shares of Common Stock at the $0.01 conversion price based on stated value of $1,000 per share of Series D Preferred Stock. As of December 31, 2025, there were 5,352 remaining shares of Series D Preferred Stock, which were convertible into approximately 107,040,000 shares of Common Stock.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> As a result of the issuance of additional convertible promissory notes and the reduction of preferred stock conversion prices from $0.05 to $0.01, the Company no longer had sufficient authorized shares in the event that all potentially dilutive instruments were exercised. Accordingly, beginning in June 2026, certain of the Company’s embedded conversion features on preferred stock have been treated as preferred stock liabilities for accounting purposes under ASC 815 due to insufficient authorized shares to fully settle conversion features of the preferred stock instruments, if exercised. As a result, the Company evaluated certain preferred stock instruments issued and determined that shares of Series D preferred stock no longer qualified as equity instruments and qualify for derivative liability treatment. The Company utilized the latest inception date sequencing method to reclassify the outstanding Series D Preferred Stock instruments from equity to preferred stock liabilities. On June 30, 2026, the fair value of the Series D Preferred Stock was measured using the as if converted method, which included contractual terms such as the number of shares of preferred stock issued and outstanding, the $1,000 issued stated value, and the current conversion price. The as if converted method also utilizes observable inputs, such as the underlying common stock price on the measurement date. On the measurement date, the fair value of the Series D Preferred Stock was reclassified out of equity and recorded as preferred stock liabilities. On June 30, 2026, the Company reclassified $8,784,862 out of equity and recorded preferred stock liabilities - Series D convertible preferred stock of $8,784,862. On August 27, 2026, the Company completed a secured financing with SRX. As part of the transaction, it issued SRX the Consolidated Note (see Note 6). The Consolidated Note replaced all of the Company’s Previous Notes. Following this transaction, the Company has no convertible debt outstanding. The Company reassessed the classification of its preferred stock under its sequencing policy. It determined that sufficient authorized shares are now available to settle the Series D Convertible Preferred Stock, but not the Series E Convertible Preferred Stock. Accordingly, on August 27, 2026, the Company remeasured the Series D Convertible Preferred Stock to its fair value of $7,322,990 and reclassified it from preferred stock liabilities to stockholders’ equity. For the three and nine months ended September 30, 2026, the Company recognized gains on the change in fair value of Series D preferred stock liabilities of $1,461,872. This gain is included in other income (expense) in the consolidated statements of operations. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i> </i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i>Series E Convertible Preferred Stock</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.3pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On October 14, 2025, the Company filed the Certificate of Designations of Rights and Preferences of the Series E Preferred Stock (the “Series E Certificate of Designations”) establishing and designating 10,000 shares of the Company’s Series E Preferred Stock and establishing the rights, preferences and privileges of the Series E Preferred Stock, as summarized below:</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>General</i>. Each share of Series E Preferred Stock has a stated value of $1,000 per share and, when issued, the Series E Preferred Stock will be fully paid and non-assessable.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Ranking</i>. The Series E Preferred Stock, with respect to the payment of dividends, distributions and payments upon the liquidation, dissolution and winding up of the Company, ranks senior to all capital stock of the Company (except the Series A convertible preferred stock which will rank senior to the Series E Preferred Stock and except for the Series C convertible preferred stock and Series D convertible preferred stock, which will rank <i>pari passu</i> to the Series E Preferred Stock) unless the Required Holders (as defined in the Fifth Securities Purchase Agreement) consent to the creation of other capital stock of the Company that is senior or equal in rank to the Series E Preferred Stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Dividends</i>. The holders of Series E Preferred Stock will be entitled to dividends, on an as-if converted basis, equal to and in the same form as dividends actually paid on shares of the Common Stock, when and if actually paid.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Purchase Rights</i>. If at any time the Company grants, issues or sells any options, convertible securities, or rights to purchase stock, warrants, securities or other property pro rata to all or substantially all of the record holders of any class of Common Stock (the “Series E Purchase Rights”), then each holder of Series E Preferred Stock will be entitled to acquire, upon the terms applicable to such Series E Purchase Rights, the aggregate Series E Purchase Rights which such holder could have acquired if such holder had held the number of shares of Common Stock acquirable upon complete conversion of all the Series E Preferred Stock (without taking into account any limitations or restrictions on the convertibility of the Series E Preferred Stock and assuming for such purpose that all the Series E Preferred Stock held by such holder were converted at the Series E Alternate Conversion Price (as defined below) in effect as of the applicable record date); subject to certain limitations on beneficial ownership.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Conversion Rights</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Conversion at Option of Holder</i>. Each holder of Series E Preferred Stock may convert all, or any part, of the outstanding Series E Preferred Stock, at any time at such holder’s option, into shares of the Common Stock (which converted shares of Common Stock are referred to as “Conversion Shares” herein) at the initial fixed “Series E Conversion Price” of $4.1625, which is subject to proportional adjustment upon the occurrence of any stock split, stock dividend, stock combination and/or similar transactions.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Voluntary Adjustment Right</i>. Subject to the rules and regulations of Nasdaq, the Company has the right, at any time after the Stockholder Approval Date (as defined below), with the written consent of the Required Holders, to lower the fixed Series E Conversion Price to any amount and for any period of time deemed appropriate by the Board of Directors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Alternate Optional Conversion</i>. After the Stockholder Approval Date, at any time, at the option of the holder, the holder may convert the Series E Preferred Stock at the “Series E Alternate Optional Conversion Price” equal to the lesser of:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The applicable Series E Conversion Price, and</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">the greater of:</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">the floor price of $1.00; and</span></td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">95% of the lowest volume weighted average price of the Common Stock during the five consecutive trading days immediately prior to such conversion.</span></td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Alternate Conversion Upon a Triggering Event</i>. Following the occurrence and during the continuance of a Triggering Event (as defined below), each holder may alternatively elect to convert the Series E Preferred Stock at the “Series E Alternate Triggering Event Conversion Price” (and together with the Series E Alternate Optional Conversion Price, each an “Series E Alternate Conversion Price”) equal to the lesser of:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The applicable Series E Conversion Price, and</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">the greater of:</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">the floor price of $1.00; and</span></td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">●</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">90% of the lowest volume weighted average price of the Common Stock during the five consecutive trading days immediately prior to such conversion.</span></td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Series E Certificate of Designations contains standard and customary triggering events (each, a “Series E Triggering Event”), including but not limited to: (i) the suspension from trading or the failure to list the Common Stock within certain time periods; (ii) failure to declare or pay any dividend when due; (iii) the failure to timely file or make effective a registration statement on Form S-1 or Form S-3 pursuant to the Registration Rights Agreement (as defined below), (iv) the Company’s failure to cure a conversion failure or notice of the Company’s intention not to comply with a request for conversion of any Series E Preferred Stock, and (v) bankruptcy or insolvency of the Company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Other Adjustments</i>. In connection with the Private Placement, the Company has agreed to seek stockholder approval at a special meeting of stockholders, of the issuance of Conversion Shares at a conversion price below the Series E Conversion Price (the date of such approval, the “Series E Stockholder Approval Date”). If the Company has not otherwise obtained such stockholder approval prior to October 31, 2025, which did not occur, then the Company shall (i) file a preliminary Proxy Statement seeking such stockholder consent with the SEC no later than October 31, 2025, (ii) use reasonable best efforts to file the definitive Proxy Statement no later than November 30, 2025 and (iii) use reasonable best efforts to hold the Stockholder Meeting no later than December 31, 2025 (the “Stockholder Meeting Deadline”). The Company filed its preliminary Proxy Statement on November 17, 2025, filed its definitive Proxy Statement on November 28, 2025, and held its annual meeting on December 19, 2025. If, on or after the Series E Stockholder Approval Date, the Company issues any shares of Common Stock for a consideration per share (the “New Issuance Price”) less than a price equal to the Series E Conversion Price in effect immediately prior to such issuance (each, a “Dilutive Issuance”), the Series E Conversion Price shall be reduced to the New Issuance Price; provided that, if any Dilutive Issuances or other events that would have resulted in an adjustment to the Series E Conversion Price prior to the Series E Stockholder Approval Date, the Series E Conversion Price shall automatically adjust to such New Issuance Price on the Series E Stockholder Approval Date. Accordingly, on December 19, 2025, the conversion price of the Series E Preferred Stock was reduced to $0.05 per share.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Bankruptcy Triggering Event Redemption Right</i>. Upon any bankruptcy Series E Triggering Event, the Company shall immediately redeem in cash all amounts due under the Series E Preferred Stock at a 25% premium to the greater of (x) the amount of shares of Series E Preferred Stock then outstanding and (y) the equity value of the shares of Series E Preferred Stock then outstanding, unless the holder waives such right to receive such payment. The equity value of the Common Stock underlying the Series E Preferred Stock is calculated using the greatest closing sale price of the Common Stock on any trading day immediately preceding such bankruptcy Series E Triggering Event and the date the Company makes the entire payment required.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Change of Control Exchange</i>. Upon a change of control of the Company, each holder may require the Company to exchange the holder’s shares of Series E Preferred Stock for consideration equal to the Change of Control Election Price (as defined in the Series E Certificate of Designations), to be satisfied at the Company’s election in either (x) cash or (y) rights convertible into such securities or other assets to which such holder would have been entitled with respect to such shares of Common Stock had such shares of Common Stock been held by such holder upon consummation of such corporate event.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Company Optional Redemption</i>. At any time the Company shall have the right to redeem in cash all, but not less than all, the shares of Series E Preferred Stock then outstanding at a 25% redemption premium to the greater of (x) the amount of shares being redeemed, and (y) the equity value of the Common Stock underlying the Series E Preferred Stock. The equity value of the Common Stock underlying the Series E Preferred Stock is calculated using the greatest closing sale price of the Common Stock on any trading day immediately preceding the date the Company notifies the holders of the Company’s election to redeem and the date the Company makes the entire payment required.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Fundamental Transactions</i>. The Series E Certificate of Designations prohibits the Company from entering specified fundamental transactions (including, without limitation, mergers, business combinations and similar transactions) unless the Company (or the Company’s successor) assumes in writing all of the Company’s obligations under the Series E Certificate of Designations and the other Transaction Documents (as defined in the Series E Certificate of Designations).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Voting Rights</i>. The holders of the Series E Preferred Stock shall have no voting power and no right to vote on any matter at any time, either as a separate series or class or together with any other series or class of share of capital stock, and shall not be entitled to call a meeting of such holders for any purpose nor shall they be entitled to participate in any meeting of the holders of Common Stock, except as provided in the Series E Certificate of Designations (or as otherwise required by applicable law).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Covenants</i>. The Series E Certificate of Designations contains a variety of obligations on the Company’s part not to engage in specified activities. In particular, the Company will not, and will cause the Company’s subsidiaries to not, redeem, repurchase or declare any dividend or distribution on any of the Company’s capital stock (other than as required under the Series E Certificate of Designations) and will not incur any indebtedness other than ordinary course trade payables or, subject to certain exceptions, incur any liens. In addition, the Company will not issue any preferred stock or issue any other securities that would cause a breach or default under the Series E Certificate of Designations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Reservation Requirements</i>. So long as any Series E Preferred Stock remains outstanding, the Company shall at all times reserve at least 250% of the number of shares of Common Stock as shall from time to time be necessary to effect the conversion of all Series E Preferred Stock then outstanding.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On October 14, 2025, the Company entered into the Fifth Securities Purchase Agreement with certain accredited investors named therein, pursuant to which the Company agreed to issue and sell up to 9,750 shares of the Company’s Series E Preferred Stock for an aggregate purchase price of up to $7 million in one or more closings. On October 15, 2025, the Company and the requisite buyers party to the Fifth Securities Purchase Agreement entered into Amendment No. 1 to the Securities Purchase Agreement (the “SPA Amendment”) to add an additional Buyer (as defined in the Fifth Securities Purchase Agreement) and increase the size of the Initial Closing (as defined in the Fifth Securities Purchase Agreement) by $500,000 to an aggregate of approximately $2.25 million of gross proceeds (see below) and reduce the size of the Additional Closings (as defined in the Fifth Securities Purchase Agreement) by an offsetting amount. There was no change to the aggregate amount of up to $7 million of proceeds to be funded pursuant to the Fifth Securities Purchase Agreement upon consummation of all of the Closings (as defined in the Fifth Securities Purchase Agreement) provided for therein.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On October 16, 2025, pursuant to the Fifth Securities Purchase Agreement, the Company issued and sold, and certain investors purchased 3,816 shares of the Series E Preferred Stock for aggregate gross proceeds of approximately $2.25 million, paid in cash at share prices ranging from $308.00 to $800.00 per share. The Company received net proceeds of $1,926,133, which is net of offering costs of $330,247. Each Additional Closing under the Fifth Securities Purchase Agreement is subject to a mutual option of the Company and certain investors and satisfaction of customary closing conditions.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.3pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Fifth Securities Purchase Agreement includes the consent of the holders of the Company’s outstanding Series C and Series D Preferred Stock to the issuance of the Series E Preferred Stock <i>pari passu</i> therewith, in consideration for the reduction of the conversion price for the Company’s outstanding Series C and Series D convertible preferred stock to $1.76, effective as of the date of the Fifth Securities Purchase Agreement.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> On December 19, 2025, the date of the Special Meeting of the Company, the stockholders of the Company approved, subject to certain conditions, the issuance of shares of Common Stock in accordance with Nasdaq Listing Rule 5635, upon the conversion of the Company’s Series E Preferred Stock. Pursuant to the Series E Certificate of Designations, the Series E Conversion Price shall automatically adjust to such New Issuance Price on the Series E Stockholder Approval Date. Since October 14, 2025, the Company converted Series C Preferred Stock at a lower price than the Series E conversion price then in effect of $4.1625. Accordingly, the conversion price of the 3,816 Series E Preferred Stock adjusted from a conversion price of $4.1625 to $0.05 per share. In connection with these down round triggering events, during the fourth quarter of 2025, the Company recorded a deemed dividend of $7,163,308, which represents the fair value of excess common stock convertible and issuable to the Series E Preferred shareholders upon occurrence of the trigger event based on an average per share common share price of $0.095, the effect of which was an increase in the net loss attributable to common shareholders in the consolidated statement of operations for the year ended December 31, 2025. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three and nine months ended September 30, 2026, Series D Preferred Stock and Series E Preferred Stock were converted by investors at a conversion price lower than the contractual conversion price of the Series E Preferred Stock then in effect. The triggering event lowered the Series E Preferred Stock conversion price from $0.05 per share to $0.01 per share. In connection with this down round triggering event, during the three and nine months ended September 30, 2026, the Company recorded a deemed dividend of $0 and $10,287,936, respectively, which represents the fair value of excess common shares convertible and issuable to the preferred shareholders upon the occurrence of the trigger event based on an average per share common share price of $0.0337, the effect of which was an increase in the net loss attributable to common shareholders in the accompanying consolidated statement of operations for the three and nine months ended September 30, 2026.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Registration Rights Agreement</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: -0.15pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On October 14, 2025, the Company entered into the Fifth Registration Rights Agreement, pursuant to which the Company filed a registration statement with the SEC, to register for resale the Common Stock issuable upon the conversion of the Series E Preferred Stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> During the three months ended June 30, 2026, approximately 136 shares of Series E Preferred Stock were converted into 13,634,645 shares of Common Stock at a conversion price of $0.01 per share. During the three months ended September 30, 2026, approximately 128 shares of Series E Preferred Stock were converted into 12,798,346 shares of Common Stock at a conversion price of $0.01 per share. Pursuant to Series E Certificate of Designations, the conversion price of the remaining Series E Preferred Stock was reduced to $0.01 per share.  </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">As of September 30, 2026, there were 3,552 shares of Series E Preferred Stock issued and outstanding, and as of December 31, 2025 there were 3,816 shares issued and outstanding, which were convertible at September 30, 2026 into approximately 355,167,450 shares of Common Stock at a conversion price of $0.01 per share.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> On May 5, 2026, as a result of the issuance of convertible promissory notes and the reduction of preferred stock conversion prices from $0.05 to $0.01, the Company no longer had sufficient authorized shares in the event that all potentially dilutive instruments were exercised. Accordingly, beginning in May 2026, certain of the Company’s embedded conversion features on preferred stock have been treated as preferred stock liabilities for accounting purposes under ASC 815 due to insufficient authorized shares to fully settle conversion features of the preferred stock instruments, if exercised. As a result, the Company evaluated certain preferred stock instruments issued and determined that shares of Series E preferred stock no longer qualified as equity instruments and qualify for derivative liability treatment. In this case, the Company utilized the latest inception date sequencing method to reclassify the outstanding Series E Preferred Stock instruments from equity to preferred stock liabilities. The fair value of the Series E Preferred Stock is measured using the as if converted method, which included contractual terms such as the number of shares of preferred stock issued and outstanding, the $1,000 issued stated value, and the current conversion price. The as if converted method also utilizes observable inputs, such as the underlying common stock price on the measurement date and the period end remeasurement date. On May 5, 2026, the measurement date, the fair value of the Series E Preferred Stock of $12,799,260 was reclassified out of equity and recorded as preferred stock liabilities – Series E convertible preferred stock. On August 27, 2026, the Company completed a secured financing with SRX. As part of the transaction, it issued SRX the Consolidated Note (see Note 6). The Consolidated Note replaced all of the Company’s Previous Notes. Following this transaction, the Company has no convertible debt outstanding. The Company reassessed the classification of its preferred stock under its sequencing policy. It determined that sufficient authorized shares were not available to settle the Series E Convertible Preferred Stock. The preferred stock liabilities are recognized at fair value with changes in fair value recognized as an increase or decrease in loss until such time as the conditions giving rise to such preferred stock liability classifications are settled. During the three and nine months ended September 30, 2026, the Company recorded a gain on reevaluation of Series E preferred stock liability of $2,263,014 and $8,873,254, respectively. As of September 30, 2026, the Series E Convertible Preferred Stock remains classified as a preferred stock liability amounting to $3,729,600. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i>Purchase of Common Stock by Keystone Capital Partners under the Equity Line of Credit (“ELOC”)</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On February 14, 2024, in conjunction with, and as a condition to the closing of the Series A PIPE Financing, the Company entered into a common stock purchase agreement with Keystone Capital Partners, LLC (“Keystone”), pursuant to which we may sell and issue, and Keystone is obligated to purchase, up to 12,500 shares subject to the Company obtaining all necessary stockholder approvals to issue the shares to Keystone. The price of the shares purchased by Keystone under the ELOC is 90% of various volume-weighted average price (“VWAP”) and closing price-based formula, and requires a waiver, should the selling price be below $2,000.00 per share. On November 8, 2024, the Company consummated a purchase agreement with Keystone (the “November 2024 Keystone Purchase Agreement”) pursuant to which we may sell and issue, and Keystone is obligated to purchase, up to $20.6 million of shares of Common Stock, constituting the remaining unsold balance under the original Keystone Purchase Agreement, subject to certain market conditions. The price of the shares purchased by Keystone under the ELOC is 90% of various volume-weighted average price (“VWAP”) and closing price-based formula, and requires a waiver, should the selling price be below $20.00 per share. On July 11, 2025, the Company entered into an agreement to issue and sell 12,500,000 shares of Common Stock under the New Keystone Purchase Agreement. As the New Keystone Purchase Agreement constitutes a continuation of the equity line program commenced under the February 2024 Purchase Agreement, the Commitment Shares issued to the Investor pursuant to the February 2024 Purchase Agreement shall satisfy in full the Company’s obligation to deliver any additional shares of Common Stock to the Investor as consideration for entering into the New Keystone Purchase Agreement. On November 26, 2025, the Company entered into an agreement and may issue and sell up to 729,596,950 shares of Common Stock under the November 2025 Keystone Purchase Agreement, at the Company’s sole discretion. As the November 2025 Keystone Purchase Agreement constitutes a continuation of the equity line program commenced under the February 2024 Purchase Agreement, the Commitment Shares issued to the Investor pursuant to the February 2024 Purchase Agreement shall satisfy in full the Company’s obligation to deliver any additional shares of Common Stock to the Investor as consideration for entering into the November 2025 Keystone Purchase Agreement.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three months ended March 31, 2025, the Company sold 14,531 shares of common stock of the Company for net proceeds of $1,227,241 under the November 2024 Keystone Purchase Agreement. Additionally, in January 2025, the Company received net proceeds of $716,694 from the collection of stock subscription receivable, which was reflected as a stock subscription receivable on December 31, 2024. The Company sought and received a waiver to sell the shares below the applicable minimum price in the agreement.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three months ended June 30, 2025, the Company sold 75,064 common shares of the Company for net proceeds of $481,971 under the November 2024 Keystone Purchase Agreement.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three months ended September 30, 2025, the Company sold 253,682 shares of common stock of the Company for net proceeds of $1,278,217 under the July 2025 Keystone Purchase Agreement.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three months ended March 31, 2026, the Company sold 13,707,702 shares of common stock of the Company for net proceeds of $456,166 and a subscription receivable of $44,545 as of March 31, 2026 under the November 2025 Keystone Purchase Agreement. The subscription receivable was collected in April 2026.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">During the three months ended June 30, 2026, the Company sold 7,266,378 shares of common stock of the Company for net proceeds of $244,325 and a subscription receivable of $9,857 as of September 30, 2026 under the November 2025 Keystone Purchase Agreement.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i>Sale of Pre-funded Warrants and Common Stock</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i> </i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On February 5, 2025, the Company announced the pricing of a reasonable best efforts public offering (the “Offering”), with participation from a member of the Company’s board of directors and a single institutional investor, for the purchase and sale of (i) 127,551 shares of Common Stock or common stock equivalents in lieu thereof (the Company sold 15,000 shares of its common stock and 112,551 pre-funded warrants); and (ii) common warrants to purchase up to 127,551 shares of common stock (the “Warrants”), at a combined public offering price of $39.20 per share and Warrant. In connection with the Offering, on February 5, 2025, the Company entered into a securities purchase agreement (the “SPA”) with the investors. The SPA contains customary representations, warranties and agreements of the Company and each investor and customary indemnification rights and obligations of the parties. In connection with this offering, the Company received net proceeds of approximately $4.2 million, which is net of offering costs and fees of $839,004. During the three months ended March 31, 2025, 15,000 shares of common stock were purchased upon the closing of the Offering for proceeds of $588,000 and 91,214 shares were issued in connection with the exercise of pre-funded warrants for proceeds of $182, totaling 106,214 shares of its common stock issued of the aggregate amount of 127,551 Common Stock shares sold. As of September 30, 2026 and December 31, 2025, 10,787 pre-funded warrants remain exercisable.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Warrants have an exercise price of $39.20 per share, are immediately exercisable upon stockholder approval and have a term of exercise equal to five years following the initial exercise date. The exercise price and number of shares of Common Stock issuable upon exercise is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting the Common Stock and the exercise price.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">In connection with the Offering, on February 5, 2025, the Company entered into a placement agency agreement (the “Placement Agency Agreement”) with Alliance Global Partners (“A.G.P.”), as the exclusive placement agent in connection with the Offering (the “Placement Agent”). Pursuant to a side letter between the Placement Agent and JonesTrading Institutional Services LLC (“Jones”), dated February 3, 2025, Jones agreed to be a financial advisor for the Offering. In connection with the services provided by Jones, the Placement Agent and Jones agreed that the Placement Agent will receive an aggregate fee equal to 6% of the gross proceeds received in the Offering and Jones will receive an aggregate fee equal to 3% of the gross proceeds received in the Offering. In addition, the Company agreed to reimburse the Placement Agent for its legal fees and expenses and other out-of-pocket expenses in an amount up to $85,000, non-accountable expenses of up to $25,000 and has agreed to reimburse Jones for all reasonable and documented out-of-pocket fees and expenses, including but not limited to travel and other out-of-pocket expenses in an amount not to exceed $15,000. In aggregate, the Placement Agent and Jones were paid fees and expenses of $524,983.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company’s directors and executive officers agreed not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of any shares of common stock or other securities convertible into or exercisable or exchangeable for common stock for a period of 90 days following the closing date of the Offering, which terms may be waived in the sole discretion of and without notice by the Placement Agent, subject to certain exceptions. In addition, the Company has agreed to not enter into variable rate financings for a period of 180 days following the closing date, subject to certain exceptions, or enter into any equity financings for a period of 60 days following the closing date, subject to certain exceptions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-bottom: 0px; margin-bottom: 0px;">In connection with the Offering, the Conversion Price of the Series A Preferred Stock and Series C Preferred Stock reset to $39.20 per share of Common Stock, which was further adjusted downward to $0.01, as noted above</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-top: 0px; margin-top: 0px;">.</span> </p> 12580 1000 20000 2000 2000 2000 0.80 0.80 0.25 0.50 0.20 10089 306 2500 10000000 1555000 627154 0.05 0.01 625 625 500000 1090 14447 0.25 0.25 473 118250 95 625 156250 95 39.2 1.76 0 14871551 19.18 692 0.25 85500 85500 0.05 0.01 0 3852584 0.0337 1429 142900000 0.01 626 55000 75 2500 0.25 198 42258 23 0.25 0.25 0 18750 37.5 175 175 1.76 0 488703 6.87 60338 2853 1000 448 39.2 0.80 0.80 0.25 1.25 0.25 2853 4088 1250000 803561 446438 395000 316 267856 127144 0 127144 2477 808444 1.76 5 707300 7.5 39.2 5 5 1.76 0 9340120 10.37 10.37 53 10600 5 0.05 0.01 0 18872 0.0337 0.0337 7 7 700000 700000 0.01 0.01 12500 1000 15.6 3.12 0.80 P5D 3.12 0.25 0.25 10000 8000000 6250 1000279 6250 1000279 500000 1000279 500000 500000 5000000 -500000 4500000 938 750400 2315 1852000 497 397600 320801 15.6 5.36 6649828 6649828 5.43 5.43 37314 0.05 0.01 0 14267232 0.0337 60 1200000 0.05 69 6900000 0.01 31 3100000 0.01 5192 519200000 0.01 1000 5352 107040000 0.05 0.01 1000 8784862 8784862 7322990 1461872 1461872 10000 1000 4.1625 1 0.95 P5D 1 0.90 P5D 0.05 0.25 0.25 9750 7000000 500000 2250000 7000000 3816 2250000 308 800 1926133 330247 1.76 4.1625 3816 4.1625 0.05 7163308 0.095 0.05 0.01 0 10287936 0.0337 0.0337 136 13634645 0.01 128 12798346 0.01 0.01 3552 3552 3816 3816 355167450 355167450 0.01 0.01 0.05 0.01 1000 12799260 2263014 8873254 3729600 12500 0.90 2000 20600000 0.90 20 12500000 729596950 14531 1227241 716694 75064 481971 253682 1278217 13707702 456166 44545 7266378 244325 9857 127551 15000 112551 127551 39.2 4200000 839004 15000 588000 91214 182 106214 127551 10787 10787 39.2 P5Y 0.06 0.03 85000 25000 15000 524983 39.2 0.01 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 10 – <span style="text-decoration:underline">WARRANTS</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">A summary of outstanding warrants as of September 30, 2026 is as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Number of<br/> Warrants</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Weighted<br/> Average<br/> Exercise<br/> Price</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Weighted<br/> Average<br/> Remaining<br/> Contractual Life<br/> (in years)</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 64%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Public and Private Placement Warrants</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,596</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">23,000.00</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2.38</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">February 2024 Series A Common Warrants</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">306</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,780.00</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.87</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">September 2024 Series C Common Warrants</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,088</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.80</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1.46</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td><span style="font-family: Times New Roman, Times, Serif;">December 2024 Common Warrants</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,203</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">112.20</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1.73</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td><span style="font-family: Times New Roman, Times, Serif;">January 2025 Common Warrants</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,193</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">116.40</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1.77</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td><span style="font-family: Times New Roman, Times, Serif;">February 2025 Pre-funded Warrants</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">10,787</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.002</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1383172504;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">No expiration date</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">February 2025 Common Warrants</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">127,551</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">39.20</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3.36</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Outstanding as of September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">159,724</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">707.39</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3.14</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On September 30, 2026, the intrinsic value of the warrants amounted to $92.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">A summary of outstanding warrants as of September 30, 2026 is as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Number of<br/> Warrants</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Weighted<br/> Average<br/> Exercise<br/> Price</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Weighted<br/> Average<br/> Remaining<br/> Contractual Life<br/> (in years)</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 64%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">Public and Private Placement Warrants</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,596</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">23,000.00</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2.38</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">February 2024 Series A Common Warrants</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">306</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">2,780.00</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.87</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">September 2024 Series C Common Warrants</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,088</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.80</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1.46</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td><span style="font-family: Times New Roman, Times, Serif;">December 2024 Common Warrants</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">4,203</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">112.20</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1.73</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td><span style="font-family: Times New Roman, Times, Serif;">January 2025 Common Warrants</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">8,193</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">116.40</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">1.77</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td><span style="font-family: Times New Roman, Times, Serif;">February 2025 Pre-funded Warrants</span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">10,787</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.002</span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="text-align: right;"><span style="-sec-ix-hidden:fc_1383172504;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">No expiration date</span></span></td> <td style="text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">February 2025 Common Warrants</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">127,551</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">39.20</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3.36</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Outstanding as of September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">159,724</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">707.39</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">3.14</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 4596 23000 P2Y4M17D 306 2780 P0Y10M13D 4088 0.8 P1Y5M15D 4203 112.2 P1Y8M23D 8193 116.4 P1Y9M7D 10787 0.002 127551 39.2 P3Y4M9D 159724 707.39 P3Y1M20D 92 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 11 – <span style="text-decoration:underline">STOCK-BASED COMPENSATION</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On March 25, 2024, stockholders approved the 2024 Employee Stock Purchase Plan (the “2024 ESPP”), with initial reserves of 255 shares of common stock. The 2024 ESPP became effective on February 14, 2024. The 2024 ESPP also has an evergreen provision. On January 1, 2025, the reserve increased by 510 shares. On January 1, 2026, the reserve increased by 510 shares. No awards have been granted under the 2024 ESPP as of September 30, 2026.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> On March 25, 2024, stockholders approved the 2024 Equity Incentive Plan (the “2024 Plan”), with initial reserves of 2,586 shares of common stock. The 2024 Plan became effective on February 14, 2024. At a special meeting of stockholders on April 30, 2024, the stockholders approved an increase in the number of shares available for issuance under the 2024 Plan and the number of shares that may be issued pursuant to incentive stock options, by an additional 1,000 shares each. At a special meeting of stockholders on November 11, 2024, the stockholders approved an increase in the number of shares available for issuance under the 2024 Plan and the number of shares that may be issued pursuant to incentive stock options, by an additional 10,423 shares each. The 2024 Plan has an evergreen provision that allows for an annual increase in the number of shares available for issuance under the 2024 Plan to be added on the first day of January, starting with January 1, 2025, in an amount equal to the lesser of (i) 5% of the fully diluted shares of our Common Stock on the immediately preceding December 31 or (ii) such number of shares as determined by our board in each case subject to adjustment in the event of a stock split, stock dividend or other change in our capitalization. On January 1, 2025, the number of shares reserved under the 2024 Plan was increased by 5% of the fully diluted shares of our common stock on the immediately preceding December 31, or 9,485 shares. On May 29, 2025, at the Company’s annual meeting, the stockholders approved an amendment to the 2024 Plan to increase the number of shares issuable thereunder by an additional 100,000 shares of Common Stock. On December 19, 2025, at the Company’s 2025 Special Meeting, the stockholders approved an amendment to the 2024 Plan to increase the number of shares issuable thereunder by an additional 32,000,000 shares of Common Stock. On January 1, 2026, in connection with the 2024 Plan’s evergreen provision that allows for an annual increase in the number of shares available for issuance under the 2024 Plan to be added on the first day of January in an amount equal to the lesser of (i) 5% of the fully diluted shares of our Common Stock on the immediately preceding December 31 or (ii) such number of shares as determined by our board in each case subject to adjustment in the event of a stock split, stock dividend or other change in our capitalization, the number of shares reserved under the 2024 Plan was increased by 5% of the fully diluted shares of our common stock on the immediately preceding December 31, or 12,386,327 shares. As of September 30, 2026, the aggregate number of shares reserved under the 2024 Plan was 44,509,821 shares. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On January 7, 2026, the Company’s Board of Directors granted an aggregate of 43,936,333 stock options under the 2024 Plan, to executive officers, board members, employees, and consultants, exercisable at $0.055 per share with a <span style="-sec-ix-hidden:fc_1308276519;">ten-year</span> term and vest and are exercisable over a requisite service period, which is usually the vesting period, or as certain performance-based vesting terms are met. These options were valued at $2,416,498 on the grant date using a Black Scholes option pricing model using the assumptions summarized below. The Company calculated the fair value of the unvested stock options, in the amount of $2,416,498, which is being amortized over the vesting period or as certain performance-based vesting terms have been met.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On March 4, 2026, the Company’s Board of Directors granted an aggregate of 1,823,278 stock options which were issued partially under the 2024 Plan, to a new board member, exercisable at $0.055 per share with a <span style="-sec-ix-hidden:fc_143483639;">ten-year</span> term and vest and are exercisable over a requisite service period, which is usually the vesting period, or as certain performance-based vesting terms are met. These options were valued at $69,102 on the grant date using a Black Scholes option pricing model using the assumptions summarized below. The Company calculated the fair value of the unvested stock options, in the amount of $69,102, which is being amortized over the vesting period or as certain performance-based vesting terms have been met.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company’s stock option activity for the nine months ended September 30, 2026 was as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Weighted</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Weighted</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Average</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Average</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Remaining</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Outstanding</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Exercise</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Contractual</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Stock</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Price Per</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Life</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Options</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Share</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">(in Years)</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 64%;"><span style="font-family: Times New Roman, Times, Serif;">Balance, December 31, 2025</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">74,151</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">22.67</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">9.32</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Options granted</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,759,611</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.055</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1490737441;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance, September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,833,762</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.092</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">9.28</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Options exercisable as of September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,818,478</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.087</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">9.28</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company estimated the fair value of the stock options during the nine months ended September 30, 2026 and 2025 using Black-Scholes with the following assumptions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Nine Months<br/> Ended<br/> September 30,</span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Nine Months<br/> Ended<br/> September 30,</span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> </tr><tr style="vertical-align: bottom;"><td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">2026</span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">2025</span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 73%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Risk-free interest rate</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 2%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">3.54 to 3.70</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 2%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">3.98% to 4.01</span></td> <td style="width: 2%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Expected life (in years)</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">5.0 to 6.0</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">5.0</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Expected dividend yield</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="-sec-ix-hidden:fc_958108760;">-</span></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="-sec-ix-hidden:fc_1471877376;">-</span></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Expected volatility</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">289.71 to 299.44</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">104.54 to 121.09</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">For the three months ended September 30, 2026, the Company recorded stock-based compensation expense of $121,936, of which $57,479 was related to research and development and $64,457 was related to general and administrative. For the nine months ended September 30, 2026, the Company recorded stock-based compensation expense of $2,861,476, of which $841,822 was related to research and development and $2,019,654 was related to general and administrative.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> For the three months ended September 30, 2025, the Company recorded stock-based compensation expense of $348,116, of which $82,225 was related to research and development and $265,891 was related to general and administrative. For the nine months ended September 30, 2025, the Company recorded stock-based compensation expense of $836,390, of which $209,348 was related to research and development and $627,042 was related to general and administrative. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> As of September 30, 2026, the Company had approximately $395,217 of unamortized stock-based compensation expense related to unvested stock options, which is expected to be recognized over a weighted average period of 0.73 years. The weighted average grant date calculated fair value per share of the Company’s options granted during the nine months ended September 30, 2026 was $0.054. As of September 30, 2026, the intrinsic value of outstanding stock options was $0.00. As of September 30, 2026, the number of stock options outstanding of 45,833,762 exceeded the number of shares reserved under the 2024 Plan by approximately 1,323,941 options. </p> 255 510 510 2586 1000 10423 0.05 0.05 9485 100000 32000000 0.05 0.05 12386327 44509821 43936333 0.055 2416498 2416498 1823278 0.055 69102 69102 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company’s stock option activity for the nine months ended September 30, 2026 was as follows:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Weighted</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Weighted</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Average</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Average</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Remaining</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Outstanding</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Exercise</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Contractual</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Stock</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Price Per</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;">Life</span></td> <td style="font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: center;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Options</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Share</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">(in Years)</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 64%;"><span style="font-family: Times New Roman, Times, Serif;">Balance, December 31, 2025</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">74,151</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">22.67</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">9.32</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="text-align: left; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Options granted</span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,759,611</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.055</span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 1.5pt solid; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;"><span style="-sec-ix-hidden:fc_1490737441;">-</span></span></td> <td style="padding-bottom: 1.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Balance, September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,833,762</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.092</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">9.28</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;">Options exercisable as of September 30, 2026</span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">45,818,478</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">0.087</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="padding-bottom: 2.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="border-bottom: Black 4pt double; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">9.28</span></td> <td style="padding-bottom: 2.5pt; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> 74151 22.67 P9Y3M25D 45759611 0.055 45833762 0.092 P9Y3M10D 45818478 0.087 P9Y3M10D <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company estimated the fair value of the stock options during the nine months ended September 30, 2026 and 2025 using Black-Scholes with the following assumptions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: bottom;"><td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Nine Months<br/> Ended<br/> September 30,</span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">Nine Months<br/> Ended<br/> September 30,</span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> </tr><tr style="vertical-align: bottom;"><td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">2026</span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">2025</span></span></td> <td style="text-align: center;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 73%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Risk-free interest rate</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 2%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">3.54 to 3.70</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 2%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">3.98% to 4.01</span></td> <td style="width: 2%;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Expected life (in years)</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">5.0 to 6.0</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">5.0</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Expected dividend yield</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="-sec-ix-hidden:fc_958108760;">-</span></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="-sec-ix-hidden:fc_1471877376;">-</span></span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> </tr><tr style="vertical-align: bottom; background-color: White;"> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Expected volatility</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">289.71 to 299.44</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></td> <td style="text-align: right;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">104.54 to 121.09</span></td> <td><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">%</span></td> </tr></tbody></table> 0.0354 0.037 0.0398 0.0401 P5Y P6Y P5Y 2.8971 2.9944 1.0454 1.2109 121936 57479 64457 2861476 841822 2019654 348116 82225 265891 836390 209348 627042 395217 P0Y8M23D 0.054 0 45833762 1323941 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 12 – <span style="text-decoration:underline">401(K) RETIREMENT SAVINGS PLAN</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company sponsors a 401(k) defined contribution plan covering eligible employees who elect to participate. The Company is allowed to make discretionary profit sharing and 401(k) matching contributions as defined in the plan and as approved by the Board of Directors. The Company’s accrued contributions for the nine months ended September 30, 2026 were $34,650. The Company did not make any contributions to the 401(k) during the nine months ended September 30, 2025.</span> </p> 34650 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 13 – <span style="text-decoration:underline">RELATED-PARTY TRANSACTIONS</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On February 5, 2025, the Company announced the pricing of a reasonable best efforts public offering (the “Offering”), with participation from a member of the Company’s board of directors and a single institutional investor, for the purchase and sale of (i) 15,000 shares of common stock, (ii) 112,551 February 2025 Pre-funded Warrants; and (iii) common warrants to purchase up to 127,551 shares of common stock (the “February 2025 Common Warrants”), at a combined public offering price of $39.20 per share and Warrant (See Note 9).</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The following table summarizes the pre-funded warrants and February 2025 Common Warrants sold to our related party:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: justify; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Purchasers</span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Pre-Funded<br/> Warrants<br/> Purchased</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Total<br/> Purchase<br/> Price</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">February 2025<br/> Common<br/> Warrants<br/> Issued</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 64%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Atwood-Edminster Trust dtd 4-2-2000 and GVN, LLC ⁽¹⁾</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">25,510</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">999,992</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">25,510</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">(1)</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Brian G. Atwood served as Chairman and Chief Executive Officer of the Company from February 2024 to September 2024, and previously served as Chairman of PBAX until the closing of the Business Combination in February 2024. Mr. Atwood is currently a member of the board of directors of the Company and serves as a trustee of Atwood-Edminster Trust dtd 4-2-2000. GVN, LLC, is a limited liability company of which the sole member is the Atwood-Edminster Trust dtd 4-2-2000, and of which Brian G. Atwood and Lynne H. Edminster are the managers.</span></td> </tr></tbody> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On April 22, 2025, pursuant to the Fourth Securities Purchase Agreement, the Company issued and sold, and the investors purchased, in a private placement (the “Fourth PIPE Financing”), 6,250 shares of the Series D Preferred Stock to investors in exchange for the receipt of 1,000,279 shares of the Stella Series D Preferred Stock in lieu of cash, in which a portion of the Stella Series D Preferred Stock was owned by a related party investor. The investor is a majority shareholder of Stella Diagnostics, Inc. and has representation on the board of directors thereof. The related shares of the Stella Series D Preferred Stock were resold to the related party investor in the three months ended September 30, 2025.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-bottom: 0px; margin-bottom: 0px;">During the three months ended September 30, 2026 and 2025, the Company incurred consulting fees of $55,000 and $55,000 to members of the Company’s board of directors, respectively. During the nine months ended September 30, 2026 and 2025, the Company incurred consulting fees of $165,000 and $190,000 to members of the Company’s board of directors, respectively</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-top: 0px; margin-top: 0px;">.</span> </p> 15000 112551 127551 39.2 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The following table summarizes the pre-funded warrants and February 2025 Common Warrants sold to our related party:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif;"> <tbody><tr style="vertical-align: bottom;"><td style="font-weight: bold; text-align: justify; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Purchasers</span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Pre-Funded<br/> Warrants<br/> Purchased</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">Total<br/> Purchase<br/> Price</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="font-weight: bold; padding-bottom: 1.5pt;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid;"><span style="font-family: Times New Roman, Times, Serif;">February 2025<br/> Common<br/> Warrants<br/> Issued</span></td> <td style="padding-bottom: 1.5pt; font-weight: bold;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr><tr style="vertical-align: bottom; background-color: rgb(204,238,255);"> <td style="width: 64%; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Atwood-Edminster Trust dtd 4-2-2000 and GVN, LLC ⁽¹⁾</span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">25,510</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;">$</span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">999,992</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> <td style="width: 9%; text-align: right;"><span style="font-family: Times New Roman, Times, Serif;">25,510</span></td> <td style="width: 1%; text-align: left;"><span style="font-family: Times New Roman, Times, Serif;"> </span></td> </tr></tbody></table> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <table cellpadding="0" cellspacing="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse;"> <tbody><tr style="vertical-align: top;"><td style="width: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">(1)</span></td> <td style="text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Brian G. Atwood served as Chairman and Chief Executive Officer of the Company from February 2024 to September 2024, and previously served as Chairman of PBAX until the closing of the Business Combination in February 2024. Mr. Atwood is currently a member of the board of directors of the Company and serves as a trustee of Atwood-Edminster Trust dtd 4-2-2000. GVN, LLC, is a limited liability company of which the sole member is the Atwood-Edminster Trust dtd 4-2-2000, and of which Brian G. Atwood and Lynne H. Edminster are the managers.</span></td> </tr></tbody> </table> 25510 999992 25510 6250 1000279 55000 55000 165000 190000 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 14 – <span style="text-decoration:underline">COMMITMENTS AND CONTINGENCIES</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"> </span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="text-decoration:underline">Legal matters</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">From time to time, the Company may be involved in litigation or receive claims arising out of our operations in the normal course of business. We are not currently a party to any other legal proceeding nor are we aware of claims that we believe would, if decided adversely, have a material adverse effect on the Company’s business, financial condition, or operating results.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="text-decoration:underline">Settlement Agreement with Former Legal Counsel</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">On September 30, 2026 (the “Effective Date”), the Company and its wholly owned subsidiary, CERo Therapeutics, Inc. (the “Operating Subsidiary”), entered into a Settlement and Release Agreement (the “Settlement Agreement”) with Goodwin Procter LLP (“Goodwin”), the Company’s former legal counsel, to resolve unpaid fees for legal services totaling approximately $3,650,000 (the “Outstanding Debt”), which were included in accounts payable in the condensed consolidated balance sheets.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Under the Settlement Agreement, the Company agreed to deliver the following consideration in full satisfaction of the Outstanding Debt: (i) a cash payment of $300,000, which the Company paid on September 30, 2026; (ii) a non-interest-bearing promissory note issued by the Operating Subsidiary in the principal amount of $500,000 (See Note 6); and (iii) following the closing of a contemplated strategic transaction involving the sale of all or substantially all of the equity interests of the Operating Subsidiary (the “Transaction”), an equity interest in a special purpose vehicle to be formed in connection with the Transaction, equal to 1% of a 20% management equity pool to be established within that vehicle (the “Equity Grant”). If the Transaction does not close, or the special purpose vehicle is not formed, on or before December 31, 2027, the obligation to issue the Equity Grant will be extinguished.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">Goodwin agreed to forbear from collection actions on the Outstanding Debt while the Company complies with the Settlement Agreement, until the earlier of March 31, 2027 or the commencement of a liquidation, wind-up, or dissolution of the Operating Subsidiary or the special purpose vehicle. Goodwin’s release of the Company from claims relating to the Outstanding Debt becomes effective only upon receipt of the cash payment, issuance and repayment in full of the Note by March 31, 2027, and completion of the Equity Grant. If the Company fails to perform, the forbearance terminates and Goodwin may pursue all available remedies, including collection of the Outstanding Debt.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> As of September 30, 2026, the remaining liability of $3,350,000 is included on the accompanying unaudited condensed consolidated balance sheet in accounts payable ($2,850,000) and notes payable ($500,000). The Company may recognize a gain on the restructuring, measured as the excess of the carrying amount of the liability over the consideration paid (including the fair value of the Equity Grant, if issued), when the release conditions are satisfied. The Settlement Agreement also includes a release by the Company and the Operating Subsidiary of claims against Goodwin, mutual non-disparagement and confidentiality provisions, and the Company’s acknowledgment of Goodwin’s withdrawal as counsel effective September 22, 2026. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">The Company has not recognized a liability for the Equity Grant. The special purpose vehicle has not been formed and the Transaction has not closed, and accordingly the fair value of the Equity Grant was not reasonably estimable at September 30, 2026. The Company will measure and recognize the Equity Grant, and reassess the restructuring, in the period in which the Transaction closes and the vehicle is formed to date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-bottom: 0px; margin-bottom: 0px;">See Note 8 for leases</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; padding-top: 0px; margin-top: 0px;">.</span></p> 3650000 300000 500000 0.01 0.20 3350000 2850000 500000 <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;">NOTE 15 – <span style="text-decoration:underline">SUBSEQUENT EVENTS</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><span style="font-weight: bold;"><i>Stock Purchase Agreement</i></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">On October 6, 2026, the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) with SRX. Subject to the terms and conditions of the Purchase Agreement, the Company will sell to the Buyer all of the outstanding capital stock of CERo Therapeutics, Inc., its wholly owned operating subsidiary (the “Subsidiary”), which sale is referred to herein as the “Transaction.” Upon completion of the Transaction (the “Closing”), the Company will cease to own the Subsidiary. In connection with signing the Stock Purchase Agreement, the maturity date of the Consolidated Note entered into on August 27, 2026 was extended to the date that is five (5) business days following the earlier of the Closing Date or the valid termination of the Stock Purchase Agreement pursuant to its terms.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> At Closing, the Company will receive (i) shares of SRX common stock determined by dividing $1,000,000.00 by the lower of (a) closing price of SRX common stock on the NYSE American on the trading day immediately preceding the date of the Purchase Agreement, and (b) the 20-day volume-weighted average price (VWAP) of SRX common stock on the NYSE American ending on such date, subject to adjustment for specified changes in SRX’s capital structure; (ii) forgiveness, cancellation and discharge of all obligations under the Consolidated Note (in the original principal amount of up to $11,666,109) and related loan documents, plus accrued and unpaid interest, fees and expenses; and (iii) the Buyer’s assumption of the liabilities specified in the Purchase Agreement and related assumption agreement in the amount of approximately $1.5 million, with Buyer agreeing to defend, indemnify, and hold harmless the Company and its past, present, and future officers and directors from and against any and all claims, liabilities, and expenses arising out of or resulting from the assumed liabilities. The debt discharge will be accompanied by termination of the related Pledge Agreement, Asset Security Agreement, the Company’s Guaranty, and releases of liens securing the obligations represented by the Consolidated Note on the Subsidiary’s stock and assets. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Purchase Agreement provides a 30-day go-shop period beginning on the signing date and ending thirty (30) days from the signing date (the “Go-Shop Period”). During this period, the Company and its representatives may actively solicit, initiate, facilitate, and encourage alternative acquisition proposals and provide nonpublic information under acceptable confidentiality agreements. The Company has retained Joseph Gunnar &amp; Co., LLC to conduct the go-shop process. The Company must notify SRX within 24 hours after receipt of an acquisition proposal during the Go-Shop Period, identify the bidder and summarize the material terms, and keep SRX reasonably informed of material developments.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">If the Company receives a Superior Proposal before the Go-Shop Period expires, the Purchase Agreement provides up to 45 additional days after the go-shop end date to negotiate that proposal and execute a definitive agreement. A “Superior Proposal” must, among other requirements, be a bona fide written proposal that the Company’s board determines in good faith, after consultation with its financial advisor and outside counsel, is more favorable to the Company than the Transaction, taking into account any revisions proposed by SRX. The proposal must not be subject to third-party financing and must require consummation no later than March 15, 2027. A qualifying alternative acquisition proposal must also contemplate full repayment of Company obligations under the Consolidated Note and related security documents, release of the related liens and payment of the applicable termination fee to SRX.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">After the Go-Shop Period, the Purchase Agreement restricts further solicitation, information sharing, and negotiations, subject to negotiation of any Superior Proposal received during the Go-Shop Period, provisions and a fiduciary exception for qualifying unsolicited written proposals. Before terminating the Purchase Agreement to enter into an agreement for a Superior Proposal, the Company must comply with the applicable procedures, including at least three business days’ prior written notice to SRX and, if requested, good-faith negotiations regarding revisions offered by SRX. A material amendment to the competing proposal requires a new two-business-day notice period. The Company’s board must determine that the competing proposal remains superior after considering SRX’s proposed revisions, and the Company must pay the applicable termination fee in connection with termination.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">The go-shop process expired with no Superior Proposals.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">The Stock Purchase Agreement was entered into on October 6, 2026, after the balance sheet date. The Go-Shop Period provided for in the Purchase Agreement expired on November 5, 2026. No acquisition proposals were received during the Go-Shop Period or through the date of this filing. The Company evaluated the criteria in ASC 360-10-45-9 and concluded that the Subsidiary did not meet all the criteria to be classified as held for sale as of September 30, 2026. Accordingly, the assets and liabilities of the Subsidiary have not been reclassified in the accompanying unaudited condensed consolidated balance sheet. If the Transaction is completed, the Company expects the Subsidiary to be presented as a discontinued operation in accordance with ASC 205-20 in the period in which the held-for-sale criteria are met.<i> </i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Purchase Agreement may be terminated in specified circumstances, including by mutual agreement, upon a final legal prohibition, for specified uncured breaches, or if Closing has not occurred by the applicable outside date. The Company may also terminate to enter into an agreement for a Superior Proposal in compliance with the go-shop procedures, and the Buyer may terminate for a breach of the go-shop provisions or an adverse change in the Company’s board recommendation.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Company is required to pay a $750,000 termination fee in the circumstances specified in the Purchase Agreement, including if the Purchase Agreement is terminated in connection with the Company’s acceptance of a Superior Proposal or by the Buyer following certain breaches of the go-shop provisions or an adverse recommendation change. The fee may also become payable following certain terminations relating to the outside date or a breach by the Company if a qualifying acquisition proposal was outstanding and the Company enters into an agreement for, or completes, an alternative acquisition within 12 months following termination. SRX may also be required to pay to the Company $750,000 if the Purchase Agreement is terminated in specified circumstances involving SRX’s failure to fund or deliver the required consideration after the conditions to the Buyer’s obligations to consummate the Transaction have been satisfied, subject to the applicable termination and cure provisions of the Purchase Agreement.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"> <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Purchase Agreement also provides for reimbursement of up to $100,000 of the Buyer’s reasonable, documented transaction expenses following certain Company-breach terminations, with amounts paid credited against a subsequently payable Company termination fee. Subject to the Purchase Agreement, the Company may elect specific performance instead of the reverse termination fee, and fraud and willful-breach remedies are preserved.</span> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Closing of the Transaction is conditioned upon SRX’s acquisition of the shares of the Company’s Series C, Series D and Series E preferred stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">The Closing of the Transaction is also conditioned upon the holders of the Company’s Series A preferred stock holding the requisite percentage or amount of such preferred stock providing the applicable waivers or consents and/or converting their Series A preferred stock into the Company’s common stock, in each case as specified in the transaction documents.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">In evaluating arrangements to satisfy the Series A preferred stock closing condition, discussions have occurred regarding potential minority equity participation in a post-closing acquisition entity; any such arrangements, if finalized, remain subject to definitive documentation, mutual agreement with the applicable preferred holders, and review by the Special Committee.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">Completion remains subject to the satisfaction or permitted waiver of the applicable closing conditions, including specified consents, the accuracy of representations and warranties, material compliance with covenants, the absence of specified material adverse effects, the preferred stock arrangements described above, and delivery of the required transaction documents. The Company’s conditions include SRX’s funding of the required advances and delivery of the registration rights agreement providing for registration of the resale of the SRX shares issued to the Company or their subsequent distribution to the Company’s stockholders, and requiring SRX to use commercially reasonable efforts to obtain and maintain the effectiveness of the applicable registration statements, subject to the terms of that agreement. The Buyer’s obligations are not subject to a financing condition.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;">The Purchase Agreement contemplates Closing on the first business day following the end of the Go-Shop Period on which the closing conditions are satisfied or waived, unless the parties agree otherwise in writing, subject to the applicable Superior Proposal provisions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">The Company’s board, acting on the unanimous recommendation of a special committee of independent and disinterested directors, approved the Purchase Agreement and the Transaction. The Purchase Agreement contemplates the sale of pledged collateral under Section 272 of the Delaware General Corporation Law (“DGCL”). Pursuant to Section 272 of the DGCL, the Company’s board determined that the Shares constitute collateral pledged to SRX pursuant to the Pledge Agreement, that the sale represents an alternative sale of pledged collateral in lieu of foreclosure resulting in the elimination and reduction of the secured debt, and that the fair market value of the Shares does not exceed the total amount of secured liabilities and obligations being eliminated, discharged, or assumed by Buyer. Accordingly, no vote or consent of the holders of the Company’s common stock is required under Delaware law to authorize or consummate the Transaction, subject to the satisfaction of the preferred stock closing conditions described above.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;">The Purchase Agreement contains representations, warranties and covenants, including restrictions on the Subsidiary’s conduct before Closing. It contemplates employment agreements with certain key employees, 180-day lock-up agreements for specified recipients of consideration shares, and registration rights relating to the SRX shares. Pursuant to the Purchase Agreement, the Company may obtain, at its cost and expense, a prepaid “tail” directors’ and officers’ liability insurance policy covering current and former directors and officers of the Company and the Subsidiary, funded in part from funds previously set aside by the Company for such purpose. In addition, Buyer has unconditionally guaranteed all indemnification, advancement, and exculpation obligations of the Subsidiary, and effective upon the Closing, Buyer, on behalf of itself, its affiliates, and the acquired Subsidiary, has agreed to deliver a comprehensive mutual release extinguishing all pre-closing claims and liabilities against the Company and its current and former officers, directors, employees, and advisors, with such individuals designated as express third-party beneficiaries entitled to enforce such protections directly.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 23.65pt; text-align: justify; text-indent: -23.9pt;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Advances on the Consolidated Note</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> During the period from October 1, 2026 to November 13, 2026, the Company received advances under the Consolidated Note from SRX in the gross amount of $1,424,673 and received net proceeds of $1,424,673. </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"><i>Conversion of Series D Preferred Shares</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify; text-indent: 0.25in;"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt;"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in;"> During the period from October 1, 2026 to November 13, 2026, 36 shares of Series D Preferred Stock were converted into 3,600,000 shares of Common Stock at a conversion price of $0.01 per share. </p> 1000000 11666109 1500000 750000 750000 100000 1424673 1424673 36 3600000 0.01 false false false false false false Brian G. Atwood served as Chairman and Chief Executive Officer of the Company from February 2024 to September 2024, and previously served as Chairman of PBAX until the closing of the Business Combination in February 2024. Mr. Atwood is currently a member of the board of directors of the Company and serves as a trustee of Atwood-Edminster Trust dtd 4-2-2000. GVN, LLC, is a limited liability company of which the sole member is the Atwood-Edminster Trust dtd 4-2-2000, and of which Brian G. Atwood and Lynne H. Edminster are the managers.