Derivative Valuation

3 Months Ended

Mar. 31, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Valuation

Note 8 — Derivative Valuation

During the year ended December 31, 2024, the Company issued a convertible note (see Footnote 7). The conversion terms of the convertible note are based on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock issuable upon conversion of the promissory note is indeterminate. Due to the exercise terms of the conversion feature becoming available on November 28, 2025, the conversion features in the note met the definition of a derivative and required bifurcation and liability classification at fair value. At the end of the year ending December 31, 2025, the derivative liability was $507,733. During the three months ending Mach 31, 2026, there was a decrease of the derivative liability to $362,182 which represented a change in the fair value of the derivative of $145,551. The Company estimates the fair value of convertible note using the Monte Carlo simulation.

During the three months ended March 31, 2026, the Company had the following activity in the derivative liability account:

Derivative liability at December 31, 2025	$	507,733
(Gain) loss on change in fair value		(145,551	)
Derivative liability at March 31, 2026	$	362,182

A summary of quantitative information with respect to valuation methodology and significant unobservable income used for the Company’s derivative liability that are categorized within Level 3 of fair value hierarchy for the three months ended March 31, 2026 is as follows:

Stock price at valuation date	$	1.04
Risk free interest rate		3.68	%
Stock volatility factor		51.77	%
Contractual terms (in years)		0.36