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NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF BASIS OF PRESENTATION Nature of Business CQENS Technologies, Inc. (“we”, “our”, the “Company”, “CQENS”) is a technology company with a proprietary method of heating plant-based consumable formulations that produce an aerosol that lead to the effective and efficient inhalation of the plant’s constituents. This is accomplished at a high temperature but without the accompanying constituents of combustion. Our system of heating is a high temperature, non-combustion system. Our Heat-not-Burn Tobacco Product (HTP) system is a patent-pending method of heating plant-based consumables for inhalation that is superior to other methods of ingestion, smoking, vaping, swallowing or via topical application. On December 20, 2023, we entered into a Shareholder Agreement with Asahi Corporation to establish CQENS Electronics (Hong Kong) Limited (“CEL”), a Hong Kong company, for design, development and manufacture of our heat-not-burn device (“Device”). CQENS acquired 50% membership of CEL and holds majority of the board seats including the chair. Pursuant to the establishment of CEL, CQENS entered into an exclusive, worldwide License Agreement with CEL for designing and manufacturing a consumer device consistent with our IP. CEL activities are included in our unaudited consolidated financial statements. Our business model is further dependent upon our ability to enter into additional strategic partnerships in the future, including alliances or joint ventures with consumer product companies, to enhance and accelerate the development and commercialization of our proposed products. We will be dependent upon third party marketing and distribution companies. We believe that our business opportunities are international in nature and include potential partnerships in the UK, the EU and Asia, including the People’s Republic of China. Recent US and international concerns with the possibility of international manufacturing and trade being disrupted by the threat or the imposition of tariffs could have a negative effect on our plans of operations. Basis of Presentation Basis of Presentation - The following unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such interim consolidated financial statements do not include all the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete annual consolidated financial statements. The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the consolidated financial statements not misleading. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The balance sheet as of June 30, 2025, has been derived from the Company’s annual consolidated financial statements that were audited by our independent registered public accounting firm but does not include all of the information and footnotes required for complete annual consolidated financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto which are included in our Annual Report on Form 10-K for the year ended December 31, 2024, and filed with the SEC on March 31, 2025, for a broader discussion of our business and the risks inherent in such business. Segment Information - In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which introduced new guidance for improving disclosures about a public entity’s reporting segments to provide, when applicable, more detailed information about a reportable segment’s expenses. This standard was effective for the Company as of January 1, 2024. The senior management team consisting of the CEO, CFO and COO collectively are identified as the Chief Operating Decision Maker (CODM). The CODM, for the Company, has determined, consistent with the guidance in ASC 280 paragraph 280-10-50-1, that CQENS Technologies and its subsidiary, CQENS Electronics (Hong Kong) Limited (“CEL”), are a single operating and reporting segment. The CODM has chosen to organize the Company around differences in products and services. CQENS and CEL are focused on research and development of our HnB technology and on production and commercialization of this same technology. As a result, there is no additional disclosures required and no impact to our financial statements at adoption. CQENS and its subsidiary CEL are organized currently with a singular focus on research and development of our HnB technology and on production and commercialization of this same technology. During the first half of 2025 no additional disclosures are required and there is no impact to our financial statements for this reporting period. Recent Accounting Pronouncements - On November 4, 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03 which issues new guidance requiring disclosure of the disaggregation of income statement expenses (DISE) by public business entities (PBE’s) and is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard. The Company does not believe that any other recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying consolidated financial statements.

0.50

Basis of Presentation Basis of Presentation - The following unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, such interim consolidated financial statements do not include all the information and footnotes required by accounting principles generally accepted in the United States (“GAAP”) for complete annual consolidated financial statements. The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the consolidated financial statements not misleading. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. The balance sheet as of June 30, 2025, has been derived from the Company’s annual consolidated financial statements that were audited by our independent registered public accounting firm but does not include all of the information and footnotes required for complete annual consolidated financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto which are included in our Annual Report on Form 10-K for the year ended December 31, 2024, and filed with the SEC on March 31, 2025, for a broader discussion of our business and the risks inherent in such business.

Segment Information - In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which introduced new guidance for improving disclosures about a public entity’s reporting segments to provide, when applicable, more detailed information about a reportable segment’s expenses. This standard was effective for the Company as of January 1, 2024. The senior management team consisting of the CEO, CFO and COO collectively are identified as the Chief Operating Decision Maker (CODM). The CODM, for the Company, has determined, consistent with the guidance in ASC 280 paragraph 280-10-50-1, that CQENS Technologies and its subsidiary, CQENS Electronics (Hong Kong) Limited (“CEL”), are a single operating and reporting segment. The CODM has chosen to organize the Company around differences in products and services. CQENS and CEL are focused on research and development of our HnB technology and on production and commercialization of this same technology. As a result, there is no additional disclosures required and no impact to our financial statements at adoption. CQENS and its subsidiary CEL are organized currently with a singular focus on research and development of our HnB technology and on production and commercialization of this same technology. During the first half of 2025 no additional disclosures are required and there is no impact to our financial statements for this reporting period.

Recent Accounting Pronouncements - On November 4, 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2024-03 which issues new guidance requiring disclosure of the disaggregation of income statement expenses (DISE) by public business entities (PBE’s) and is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of adopting the standard. The Company does not believe that any other recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying consolidated financial statements.

NOTE 2 – GOING CONCERN The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Currently, the Company has recurring losses, with cash resources expected to be substantially depleted over the next 12 months, with renewed research and development efforts and with no source of revenue sufficient to cover its operations costs over the next 12 months, these may not allow it to continue as a going concern. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company will be dependent upon the raising of additional capital. The consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.

NOTE 3 – STOCKHOLDERS’ EQUITY On June 16, 2025, the Company granted stock options under the Company’s 2019 Equity Compensation Plan to a third party for services to purchase <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20250616__20250616__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_z4NyjZ9MGIll" title="Options garanted">20,000 shares at $20.00 per share. These options were exercisable immediately. The fair market value of the options at the grant date was determined to be $<span id="xdx_907_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20250616__20250616__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zOtHQOBpZI9h" title="Stock issued during period value new issues">255,303, which was expensed in the second quarter of 2025. The options were valued using the Black Scholes option pricing model with the following assumptions: 1) a current stock price per share of $20.00, based on the price of recent offerings; 2) expected term of <span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250616__20250616__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zCWe9fMmPQA4" title="Expected Term">5 years; 3) computed volatility of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsWeightedAverageVolatilityRate_pid_dp_uPure_c20250616__20250616__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zP2i4Knr6G52" title="Expected Volatility Rate">75.10%; and 4) the risk-free rate of return of <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250616__20250616__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zcUOkM8riy84" title="Risk Free Rate Of Return">4.04%. The exercise period of the options terminates on <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_ddp_c20250616__20250616__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember_zvUxdfPx0Etd" title="Options terminates date">June 16, 2030. In the first half of 2025, we sold 518,500 shares of our common stock for $10,370,000 in private transactions. We did not pay commissions or finder’s fees and are using the proceeds for working capital. In the first half of 2025, we issued 60,169 shares of our common stock to unrelated third parties as compensation for their consulting services. The stock was valued at $1,203,380. In the first half of 2024, we issued 203,650 shares of our common stock for $4,073,000 in private transactions. We did not pay commissions or finder’s fees and are using the proceeds for working capital. In the first half of 2024, we issued <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20240101__20240630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AngloChineseFinancialMember_zJPWePzMbptj" title="Number of shares issued">12,500 shares valued at $<span id="xdx_907_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20240101__20240630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AngloChineseFinancialMember_zuxSkqnGUaye" title="Number of shares issued, value">250,000 as a retainer pursuant to our engagement of Anglo-Chinese Financial as our investment banker. In the first half of 2024 we issued <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesIssuedForServices_pid_c20240101__20240630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--NonrelatedPartyMember_z8yNVbWkVpe4" title="Shares issued services">713 shares of our common stock to unrelated third parties as compensation for their consulting services. The stock was valued at $<span id="xdx_906_eus-gaap--StockIssuedDuringPeriodValueIssuedForServices_c20240101__20240630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--NonrelatedPartyMember_zx5Caxuiw479" title="Shares issued services value">14,260. In the first half of 2025 stock option expenses amounted to $1,164,408 compared to $395,624 for the same period in 2024. As of June 30, 2025, the Company had 27,407,052 shares of common stock issued and outstanding. The following table represents option activity for the six months ended June 30, 2025: SCHEDULE OF OPTION ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of Options</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average Remaining Contractual Life in Years</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Aggregate Intrinsic Value</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; width: 36%; text-align: left">Outstanding - December 31, 2024</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zZSODovzy3ll" style="border-bottom: Black 2.5pt double; width: 12%; text-align: right" title="Number of Option, Outstanding, Beginning">1,851,074</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zFoEBcDnld6f" style="border-bottom: Black 2.5pt double; width: 12%; text-align: right" title="Weighted Average Exercise Price, Outstanding, Beginning">9.82</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td id="xdx_98F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20240101__20241231__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zm58XhXNKvB5" style="border-bottom: Black 2.5pt double; width: 12%; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Outstanding">3.49</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; width: 12%; text-align: right"> </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: left">Exercisable - December 31, 2024</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iS_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zT3iv2m0MRI" style="text-align: right" title="Number of Option, Exercisable, Beginning">1,357,574</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iS_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zDaDiRwneiJ8" style="text-align: right" title="Weighted Average Exercise Price, Exercisable, Beginning">8.99</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20240101__20241231__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zya1oVKSvax4" style="text-align: right" title="Weighted Average Remaining Contractual Life in Years, Exercisable">2.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iS_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zy4wtTxZ95a1" style="text-align: right" title="Aggregate Intrinsic Value, Exercisable, Beginning">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left">Granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zSQMe2yfXgh1" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Granted">20,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantedWeightedAverageExercisePrice_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zaTZhwCJatni" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Granted">20.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left">Forfeited</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zIy5QJxOoNVh" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Forfeited">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </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="padding-bottom: 2.5pt; text-align: left">Vested</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z0nqikSDayt7" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Vested">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedWeightedAverageExercisePrice_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z8GajuwJD332" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Vested">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left">Outstanding – June 30, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zFme835WiImd" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Outstanding, Ending">1,871,074</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z9bzPvDJI8F9" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Outstanding, Ending">9.92</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zwcRg3x2R2Ll" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Outstanding">3.02</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </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="padding-bottom: 2.5pt; text-align: left">Exercisable – June 30, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zb3p2eaggG8l" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Exercisable, Ending">1,427,574</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zjbz7E8EnFm" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Exercisable, Ending">9.08</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zzCssfBmJNaa" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Exercisable">2.14</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z6gXcy8G0Jxj" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate Intrinsic Value, Exercisable, Ending">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

20000

20.00

255303

20.00

P5Y

0.7510

0.0404

2030-06-16

518500

10370000

60169

1203380

203650

4073000

12500

250000

713

14260

1164408

395624

27407052

The following table represents option activity for the six months ended June 30, 2025: SCHEDULE OF OPTION ACTIVITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Number of Options</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Weighted Average Remaining Contractual Life in Years</td><td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">Aggregate Intrinsic Value</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; width: 36%; text-align: left">Outstanding - December 31, 2024</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zZSODovzy3ll" style="border-bottom: Black 2.5pt double; width: 12%; text-align: right" title="Number of Option, Outstanding, Beginning">1,851,074</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zFoEBcDnld6f" style="border-bottom: Black 2.5pt double; width: 12%; text-align: right" title="Weighted Average Exercise Price, Outstanding, Beginning">9.82</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td id="xdx_98F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20240101__20241231__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zm58XhXNKvB5" style="border-bottom: Black 2.5pt double; width: 12%; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Outstanding">3.49</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; width: 12%; text-align: right"> </td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Exercisable - December 31, 2024</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iS_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zT3iv2m0MRI" style="text-align: right" title="Number of Option, Exercisable, Beginning">1,357,574</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iS_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zDaDiRwneiJ8" style="text-align: right" title="Weighted Average Exercise Price, Exercisable, Beginning">8.99</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20240101__20241231__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zya1oVKSvax4" style="text-align: right" title="Weighted Average Remaining Contractual Life in Years, Exercisable">2.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iS_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zy4wtTxZ95a1" style="text-align: right" title="Aggregate Intrinsic Value, Exercisable, Beginning">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left">Granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zSQMe2yfXgh1" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Granted">20,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantedWeightedAverageExercisePrice_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zaTZhwCJatni" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Granted">20.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left">Forfeited</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zIy5QJxOoNVh" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Forfeited">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </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="padding-bottom: 2.5pt; text-align: left">Vested</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z0nqikSDayt7" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Vested">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedWeightedAverageExercisePrice_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z8GajuwJD332" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Vested">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left">Outstanding – June 30, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zFme835WiImd" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Outstanding, Ending">1,871,074</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z9bzPvDJI8F9" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Outstanding, Ending">9.92</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zwcRg3x2R2Ll" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Outstanding">3.02</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left">Exercisable – June 30, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zb3p2eaggG8l" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of Option, Exercisable, Ending">1,427,574</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zjbz7E8EnFm" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, Exercisable, Ending">9.08</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_zzCssfBmJNaa" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Remaining Contractual Life in Years, Exercisable">2.14</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_c20250101__20250630__us-gaap--PlanNameAxis__custom--StockOptionPlanMember_z6gXcy8G0Jxj" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate Intrinsic Value, Exercisable, Ending">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1851074

9.82

P3Y5M26D

1357574

8.99

P2Y6M

20000

20.00

1871074

9.92

P3Y7D

1427574

9.08

P2Y1M20D

NOTE 4 – RELATED PARTY TRANSACTIONS We maintain our corporate offices at 5550 Nicollet Avenue, Minneapolis, MN 55419. We lease the premises on a month-to-month basis from 5550 Nicollet LLC, a company owned by Mr. Chong. Rent for the first half of 2025 was $<span id="xdx_905_eus-gaap--PaymentsForRent_do_c20250101__20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--FiveThousandFiveHundredAndFiftyNicolletLLCMember_zSsEftFWa5U6" title="Payments for rent">4,800 compared to $<span id="xdx_90D_eus-gaap--PaymentsForRent_do_c20240101__20240630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--FiveThousandFiveHundredAndFiftyNicolletLLCMember_zq5diyNdanqh" title="Payments for rent">4,650 in the first half of 2024. As of June 30, 2025, there was <span id="xdx_901_eus-gaap--OtherReceivablesNetCurrent_iI_do_c20250630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--FiveThousandFiveHundredAndFiftyNicolletLLCMember_zym0Eo8Nmf5h" title="Rent due to related party">no outstanding balance. In the first six months of 2025, the Company repaid $50,000 to Xten Capital Group, a common control entity, while in the first six months of 2024, the Company borrowed $<span id="xdx_907_eus-gaap--ProceedsFromRepaymentsOfRelatedPartyDebt_c20240101__20240630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--XtenCapitalGroupMember_zjstcFE7gHYj" title="Borrowing from related party">100,000. The balance of the loan on June 30, 2025, is $950,000. The loan is due upon demand and is non-interest bearing. In the first six months of 2025, Liu Mei Chong loaned CQENS Electronics (Hong Kong) Limited (CEL) $59,924 to fund operations. In the first six months of 2024 she loaned CEL $2,573 to fund operations. At June 30, 2025, the loan balance is $76,638. The loan is due upon demand and is non-interest bearing. In the first six months of 2025 we secured the services of Plexus International, a common control entity, to provide consulting services to assist in the creation and implementation of our Quality Management System (QMS). The fees and expenses incurred for the QMS consulting services during this timeframe were $74,043.

4800

4650

50000

100000

950000

59924 2573

76638

74043

NOTE 5 – LEASES In March 2022 we entered into a three-year lease agreement commencing April 15, 2022 and continuing through April 30, 2025. In April 2025 we extended the lease for two additional years commencing May 1, 2025 and continuing through April 30, 2027. The annual rate for the initial lease year is 70,785 with installment payments of $5,555 in May 2025 and $5,930 each month thereafter. Annual increases are tied to the U.S. Consumer Price Index of the Bureau of Labor Statistics of the Department of Labor for all Urban Consumers for San Francisco-Oakland-San Jose area. We account for our leases under ASC 842, Leases, which requires all leases to be reported on the balance sheet as right-of-use assets and lease obligations. We elected the expedients permitted under the transition guidance that retained lease classification and initial direct costs for any leases that existed prior to adoption of the standard. We categorized leases with terms longer than twelve months as either operating or finance. Finance leases are generally those leases that would allow us to substantially utilize or pay for the entire asset over its estimated life. Assets acquired under finance leases are recorded in property and equipment, net. All other leases are categorized as operating leases. We did not have any finance leases as of June 30, 2025. Our lease for property is for two years. We elected the accounting policy to include both the lease and non-lease components of our agreements as a single component and account for them as a lease. Lease liabilities are recognized at the present value of the fixed lease payments using a discount rate based on similarly secured borrowings available to us. Lease assets are recognized based on the initial present value of the fixed lease payments, reduced by landlord incentives, plus any direct costs from executing the lease. Lease assets are tested for impairment in the same manner as long-lived assets used in operations. Leasehold improvements are capitalized at cost over the lesser of their expected useful life or the lease term. When we have options to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and it is reasonably certain that we will exercise the option, we consider these options in determining the classification and measurement of the lease. Costs associated with the operating lease are recognized on a straight-line basis within operating expenses over the term of the lease. The following table presents the lease-related asset and liability recorded on the balance sheets: SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20250630_zYlkXbmX9sNe" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zdc7mlzQil0d" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 82%; text-align: justify">Operating lease asset</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">121,252</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </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">Liabilities</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="text-align: justify">Current</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="padding-left: 10pt; text-align: justify">Operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20250630_zrtdJVLgeTag" style="text-align: right" title="Operating lease liabilities, Current">64,005</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Noncurrent</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: justify">Operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20250630_zv8S2R1zfoKc" style="text-align: right" title="Operating lease liabilities, Noncurrent">57,247</td><td style="text-align: left"> </td></tr> </table> Supplemental cash flow information related to leases was as follows: SCHEDULE OF CASH FLOW INFORMATION RELATED LEASE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250101__20250630_z9qRBBuHd2Pg" style="border-bottom: Black 1pt solid; text-align: center">Six Months Ended June 30, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Cash paid for amounts included in the measurement of lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLeasePayments_zbOgatpj89Sh" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 82%; text-align: justify">Operating cash flows from operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">33,464</td><td style="width: 1%; text-align: left"> </td></tr> </table> The table below presents the remaining lease terms and discount rates for operating lease: SCHEDULE OF REMAINING LEASE TERMS AND DISCOUNT RATES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted-average remaining lease term</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="padding-left: 10pt; text-align: justify">Operating lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.8 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted-average discount rate</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="padding-left: 10pt; width: 82%; text-align: justify">Operating lease</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">7.75</td><td style="width: 1%; text-align: left">%</td></tr> </table> Maturities of lease liabilities as of June 30, 2025, were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt; padding-left: 10pt"></td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_496_20250630_zedC5p7EbT82" style="border-bottom: Black 1pt solid; text-align: center">Operating Lease</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPza2c_ztpJ7wrIvAvl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; text-align: justify">2025 (6 months remaining)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">35,580</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPza2c_zPNF88cCmm86" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">71,160</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearOne_iI_maLOLLPza2c_z1Mnti1dnYfd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">23,720</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPza2c_za51MoHvjtHc" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,460</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zUXA9ExzkKqk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">Less: amount of lease payments representing interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(9,208</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseLiability_iI_zugHaECKBaGe" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Present value future minimum lease payments</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">121,252</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityCurrent_iNI_di_zbY3rEj19Io4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">Less: current obligations under lease</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(64,005</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zh1VYdZI9Vrc" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Non-current obligations</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">57,247</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

70785

5555

5930

The following table presents the lease-related asset and liability recorded on the balance sheets: SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20250630_zYlkXbmX9sNe" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseRightOfUseAsset_iI_zdc7mlzQil0d" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 82%; text-align: justify">Operating lease asset</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">121,252</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Current</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: justify">Operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20250630_zrtdJVLgeTag" style="text-align: right" title="Operating lease liabilities, Current">64,005</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </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">Noncurrent</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="padding-left: 10pt; text-align: justify">Operating lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20250630_zv8S2R1zfoKc" style="text-align: right" title="Operating lease liabilities, Noncurrent">57,247</td><td style="text-align: left"> </td></tr> </table>

121252

64005

57247

Supplemental cash flow information related to leases was as follows: SCHEDULE OF CASH FLOW INFORMATION RELATED LEASE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250101__20250630_z9qRBBuHd2Pg" style="border-bottom: Black 1pt solid; text-align: center">Six Months Ended June 30, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Cash paid for amounts included in the measurement of lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--OperatingLeasePayments_zbOgatpj89Sh" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 82%; text-align: justify">Operating cash flows from operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">33,464</td><td style="width: 1%; text-align: left"> </td></tr> </table>

33464

The table below presents the remaining lease terms and discount rates for operating lease: SCHEDULE OF REMAINING LEASE TERMS AND DISCOUNT RATES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center">June 30, 2025</td><td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted-average remaining lease term</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="padding-left: 10pt; text-align: justify">Operating lease</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.8 years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Weighted-average discount rate</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="padding-left: 10pt; width: 82%; text-align: justify">Operating lease</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">7.75</td><td style="width: 1%; text-align: left">%</td></tr> </table>

P1Y9M18D

0.0775

Maturities of lease liabilities as of June 30, 2025, were as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: center; padding-bottom: 1pt; padding-left: 10pt"></td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_496_20250630_zedC5p7EbT82" style="border-bottom: Black 1pt solid; text-align: center">Operating Lease</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear_iI_maLOLLPza2c_ztpJ7wrIvAvl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; text-align: justify">2025 (6 months remaining)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">35,580</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPza2c_zPNF88cCmm86" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2026</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">71,160</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--LesseeOperatingLeaseLiabilityPaymentsDueAfterYearOne_iI_maLOLLPza2c_z1Mnti1dnYfd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">23,720</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPza2c_za51MoHvjtHc" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">130,460</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zUXA9ExzkKqk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">Less: amount of lease payments representing interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(9,208</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseLiability_iI_zugHaECKBaGe" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Present value future minimum lease payments</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">121,252</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OperatingLeaseLiabilityCurrent_iNI_di_zbY3rEj19Io4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">Less: current obligations under lease</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">(64,005</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_zh1VYdZI9Vrc" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Non-current obligations</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">57,247</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

35580

71160

23720

130460

9208

121252

64005

57247

NOTE 6 - PREPAID EXPENSE – NON-CURRENT PORTION Effective June 3, 2025, we entered into a second manufacturing contract with Montrade S.p.A., Bologna, Italy, to manufacture and install a second machine for the automated manufacture of tobacco consumables for the Company’s proprietary, patented and patent pending Heat-not-Burn system. When operational, the Company expects this machine will produce 300 tobacco consumables per minute. Completion of the machine build is anticipated in the third quarter of 2026. We made an initial payment of $<span id="xdx_90E_eus-gaap--PaymentsToAcquireMachineryAndEquipment_uUSD_c20250603__20250603__us-gaap--TypeOfArrangementAxis__custom--MontradeSpAMember_zQMAZPi3K6J8" title="Payment for prepaid expense non current">1,016,531 USD. We recorded $867,482 of this payment as Prepaid Expenses – non-current portion while we expensed $149,049 in the second quarter. We are required to make additional payments approximating $<span id="xdx_90C_ecustom--AdditionalPaymentsToAcquireMachineryAndEquipment_uUSD_c20250603__20250603__us-gaap--TypeOfArrangementAxis__custom--MontradeSpAMember_zOx1MOaQDrnj" title="Additional payment for prepaid expense non current">1,963,882 USD as certain stages are completed. Effective July 13, 2022, we entered into our first contract with Montrade to manufacture and install consumable manufacturing equipment capable of producing 100 tobacco consumables per minute. The Company made an initial payment of $589,265 USD on July 11, 2022 and was required to make additional payments, prior to Amendments, of up to $<span id="xdx_907_eus-gaap--PaymentsToAcquirePropertyPlantAndEquipment_c20220711__20220711__srt--RangeAxis__srt--MaximumMember__dei--LegalEntityAxis__custom--MontradeSpAMember_z1U0He65FEGj" title="Initial payment">1,086,465 USD for the module as certain stages are completed. On February 23, 2023, we made a payment of $138,386 for completion of the design phase. On March 29, 2023, the Company signed Amendment 1 to the manufacturing contract for additional design work and paid $12,465 of the additional $36,809 cost. Amendment 1 was for design work so $12,465 was expensed. On October 18, 2023, the Company signed Amendment 2 to the manufacturing contract to modify certain components and paid $40,091 of the $114,546 cost. In 2022, $130,948 of the initial payment was expensed for design services completed by Montrade. The remaining payment of $458,317 and the additional payment on October 24, 2023, for Amendment 2 of $40,091 for a combined total of $498,408 are related to the manufacturing of the module for the automated manufacture of consumables for the Company’s proprietary, patented and patent pending Heat-not-Burn system. The $498,408 payment is recorded as Prepaid expenses – noncurrent portion. With the two amendments added and with payments made in 2023 the Company will be required to pay up to $1,046,878. On February 26, 2024, the Company signed Amendment 3 to the manufacturing contract, for a change to a component with a cost of $27,845 and made payment in full on March 6, 2024 for this change. In December 2024 the Company entered into Amendment 4 to the manufacturing contract amending the payment terms. In this Amendment, the Company agreed to pay an amount that when added to the payments already made would equal 90% of the equipment build portion of the contract. This amount is $813,875 and was paid in January 2025. Following this January 2025 payment, 90% of the build-cost for the manufacturing equipment has been made in line with Amendment 4. On February 14, 2025, we signed Amendment 5 to the agreement for the modification to one component of the machine. The cost for this modification is $160,106 of which half was paid on or about the time of signing, in line with the Amendment. We expect this machine to be in the US no later than the first quarter of 2026. Montrade is an industry leading designer and manufacturer of machines for a wide range of products, including heated tobacco products.

1016531

867482 149049 1963882

589265

1086465

138386

12465

36809

12465

40091

114546

130948

458317

40091

498408

1046878

27845

813875

160106

NOTE 7 – SUBSEQUENT EVENTS On July 2, 2025, under the Company’s 2019 Equity Compensation Plan, CQENS granted options to purchase a combined total of <span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_c20250702__20250702__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zl30JuY8zH64" title="Share based compensation granted options">2,450 shares at $<span id="xdx_902_eus-gaap--SharePrice_iI_pid_c20250702__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zZFDDIucOrNc" title="Share price">20.00 per share to four unrelated individuals for services rendered. These options were exercisable immediately. The fair market value of the options at the grant date was determined to be $<span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_c20250702__20250702__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zU6d41HybEW1" title="Fair market value of option granted">30,748. The options were valued using the Black Scholes option pricing model with the following assumptions: 1) a current stock price per share of $<span id="xdx_901_eus-gaap--SharePrice_iI_pid_c20250702__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zualxg2hVby4" title="Share price">20.00, based on the price of recent offerings; 2) expected term of <span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20250702__20250702__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zpoE1Yxyw8f8" title="Expected term">5 years; 3) computed volatility of <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20250702__20250702__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zofoYxJOG2e8" title="Expected volatility rate">72.54%; and, 4) the risk free rate of return of <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20250702__20250702__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zceWV2ehvyv3" title="Risk free rate of return">3.87%. The exercise period of the options terminates on <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardExpirationDate_ddp_c20250702__20250702__us-gaap--PlanNameAxis__custom--TwoThousandNineteenEquityCompensationPlanMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zqjsBVlLJJIj" title="Options terminates date">July 2, 2030. On July 29, 2025, the company sold 1,000 shares for $20,000 in private transactions. We did not pay commissions or finder’s fees and are using the proceeds for working capital.

2450

20.00

30748

20.00

P5Y

0.7254

0.0387

2030-07-02

1000

20000