NOTE 7 – FINANCING ADVANCE

In March 2026, the Company received a $100,000 advance from an investor in connection with a proposed convertible promissory note financing. The advance was received pursuant to an understanding that it would be applied toward the investor’s participation in a larger contemplated financing transaction.

As of March 31, 2026, the advance is presented as a financing advance liability on the condensed consolidated balance sheet, as the related financing had not yet been consummated and the final terms had not been executed. The Company evaluated the substance of the arrangement and concluded that liability classification was appropriate given the contingent nature of the underlying financing and the absence of executed definitive agreements as of the balance sheet date.

Subsequent to March 31, 2026, the Company completed the contemplated financing transaction. The $100,000 advance was applied toward the investor’s participation in the financing and became part of the total consideration under the related convertible promissory note. See Note 13.