Note Payable

In October 2025, the Company entered into a securities purchase agreement with the Investor, pursuant to which the Company issued and sold to the Investor a secured promissory note in the original principal amount of $600,000 (the “New Note”). The New Note carries an original issuance discount of $150,000 and the Company paid $13,125 to the Investor to cover legal and other fees. The original issuance discount for the New Note and modification fees related to the Note as described in Note 6 were deducted from the proceeds of the New Note received by the Company which resulted in a purchase price received by the Company of $300,000.

The New Note is due and payable on April 6, 2027 and the Company is required to make monthly repayments to the Investor of $46,154 starting on April 6, 2026. The Company can pay all or any portion of the outstanding balance earlier than it is due without penalty. In the event the Company repays the New Note in full on or before April 6, 2026, the Company will receive an 8% discount from the outstanding balance. The New Note is secured by all of the Company's assets pursuant to a security agreement and intellectual property security agreement entered into with the Investor in October 2025. The Company's obligations under the New Note are guaranteed by each of the Company's subsidiaries. No interest will accrue on the New Note unless and until an occurrence of an event of default, as defined in the New Note.