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DEBT

6 Months Ended

Jun. 30, 2025

NOTE 10 – DEBT

Convertible Notes

The Company uses the Black-Scholes Model to calculate the derivative value of its convertible debt. The valuation result generated by this pricing model is necessarily driven by the value of the underlying common stock incorporated into the model. The values of the common stock used were based on the price at the date of issue of the debt security as of June 30, 2025 and 2024. In 2024 management determined the expected volatility of 106.90%, a risk-free rate of interest of 5.48%, and contractual lives of the debt of three months. In 2024 management determined the expected volatility of 140.30%, a risk-free rate of interest of 4.73%, and contractual lives of the debt of three months. Management made the determination to use an expected life rather than contractual life for the calculations for the matured debt as of June 30, 2025 and 2024.

As of June, 2025 and, 2024, there was $0 and $91,971 of convertible debt principal outstanding, respectively. During the six months ended June 30, 2025 and 2024, $0 and $0 of the debt discount was amortized.

The summary of convertible notes are:

Schedule of convertible notes
	June 30,
	2025			2024
Principal Outstanding	$	0		$	108,900
Less: unamortized debt discount		(0	)		(16,929	)
Convertible notes, net	$	0		$	91,971

During the three months ended June 30, 2025 and 2024, change in fair value of the derivative liability was $90,103 and $94,759, respectively.

The following is a summary of the derivative liability:

Schedule of derivative liability
Balances at December 31, 2024	$	(57,235	)
Loss on issuance of debt		(8,064	)
Issuance of convertible note - 1800 Diagonal Lending		–
Change in fair value		90,103
EMA settlement		–
Balances at June 30, 2025	$	24,804

Notes Payable

On August 27, 2024, the Company entered into a promissory note for a principal of $67,200, which was funded on August 30, 2024. The note bears interest at a rate of 12% per annum and matures after nine months.

On November 20, 2024, the Company entered into a promissory note for a principal of $67,860, which was funded on December 2, 2024. The note bears interest at a rate of 15% per annum and matures after nine months.

Loans Payable

The Company’s RI and WS subsidiaries have various loans including Small Business Association (“SBA”) Economic Injury Disaster Loan (“EIDL’) loans, lines of credit and other advances. The loans bear interest with varying rates up to 9.25% per annum. The following is a summary of the loans payable at June 30, 2025 and December 31, 2024:

Schedule of loans payable
	June 30 2025		December 31, 2024
RI - line of credit	$	153,358	$	153,358
RI - Short-term loans		46,544		46,544
WS - line of credit		218,616		218,616
WS - Short-term loans		151,970		151,970
OPT – Optilan Communications & Security Ltd		924		1,042
Loans payable, current	$	571,412	$	571,530

RI - SBA EIDL	$	102,597	$	102,597
RI - long-term loans		65,532		63,532
WS - SBA EIDL		26,307		26,307
WS - long-term loans		97,532		97,532
Loans payable, non-current	$	291,967	$	291,967