What changed in this filing

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Item 1. Financial Statements

2026-05-20 compared with 2025-11-13 · 670 added, 788 removed, 606 unchanged (71% of the section changed)

5 unchanged sentences

Accounts receivable, net

Prepaid expenses and other current

Prepaid expenses and other current assets

TOTAL CURRENT ASSETS

2 unchanged sentences

Operating lease right-of-use assets

Notes receivable, related party

Investment in related party

Joint venture

Other assets, net

Intangible assets, net

TOTAL NON-CURRENT ASSETS

2 unchanged sentences

Accounts payable and accrued expenses

Contract liabilities

Loss provision for contracts in progress

Convertible notes, net

Notes payable, current

8 unchanged sentences

Secured debenture

Operating lease liabilities - non-current

Non-current liabilities - discontinued

TOTAL NON-CURRENT LIABILITIES

3 unchanged sentences

Series A Super Voting preferred stock - par value $ 0.01 ;

shares designated, 100

shares issued and outstanding at both September 30, 2025 and September 30, 2024

Convertible preferred stock - Series D, par value

shares designated, 88,235

shares issued and outstanding as of both September 30, 2025 and December 31, 2024

Common stock, par value $ 0.0001 ,

30,000,000,000 shares

authorized, 81,630,799 and

52,892,512 shares

issued as of September 30, 2025 and December 31, 2024, respectively,

Treasury stock at cost, 500,000

shares at September 30, 2025 and December 31, 2024

100 shares designated, 100 shares issued and outstanding at both March 31, 2026, and December 31, 2025

Convertible preferred stock - Series D, par value $ 0.01 , 100,000 shares designated, 88,235 shares issued and outstanding as of both March 31, 2026 and December 31, 2025

Common stock, par value $ 0.0001 , 20,000,000,000 shares authorized, 115,191,608 and 90,904,606 shares issued as of March 31, 2026 and December 31, 2025, respectively,

Treasury stock at cost, 500 shares at March 31, 2026 and December 31, 2025

Additional paid-in capital

10 unchanged sentences

( 19,520,159 )

TOTAL LIABILITIES AND STOCKHOLDERS'

See the accompanying notes to the unaudited condensed

consolidated financial statements

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

See the accompanying

notes to the unaudited condensed consolidated financial statements

DARKPULSE, INC.

1 unchanged sentence

Three Months Ended

Nine Months Ended

September 30,

COST OF REVENUES

7 unchanged sentences

Impairment expense

Gain on forgiveness of payables

Loss/(Gain) on partial extinguishment of debt

TOTAL OPERATING EXPENSES

OPERATING LOSS

( 1,426,930 )

( 1,563,089 )

OTHER INCOME (EXPENSE):

Interest expense

Gain (Loss) on convertible notes

Loss on deconsolidation

Change in fair market of derivative liabilities

Loss on equity investment

( 1,500,000 )

Gain/(Loss) on Legal Settlement

Gain/(Loss) on exceptional costs

Gain/(Loss) on Disposal of Asset

Gain on the forgiveness of debt

Exceptional Costs gain

Foreign currency exchange rate variance

TOTAL OTHER INCOME (EXPENSE)

( 1,977,059 )

Net income (loss)

( 1,504,701 )

( 3,540,148 )

Net loss attributable to non-controlling interests

2 unchanged sentences

$ ( 266,790 )

$ ( 1,492,954 )

$ ( 3,534,550 )

Net loss per share - basic and diluted

Weighted average common shares outstanding - basic and diluted

$ ( 471,284 )

$ ( 587,043 )

Three Months Ended

$ ( 245,958 )

2 unchanged sentences

Foreign currency translation

( 1,222,453 )

( 1,222,454 )

COMPREHENSIVE LOSS

1 unchanged sentence

$ ( 666,018 )

$ ( 2,271,277 )

$ ( 4,762,602 )

See the accompanying notes to the unaudited condensed

consolidated financial statements

See the accompanying

notes to the unaudited condensed consolidated financial statements

DARKPULSE, INC.

Consolidated Statement of Stockholders' Deficit

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

For the Three Months Ended March 31, 2026 and

Preferred Stock

2 unchanged sentences

Common stock issued for cash, net of fees

Issuance of common stock for legal settlement

Common Stock to be issued

Foreign currency adjustment

Common stock issued for cash

Balance at March 31, 2024

Common stock issued for cash, net of fees

Conversion of convertible debt into common stock

Common Stock to be issued

Foreign currency adjustment

Common stock issued for cash

Balance at June 30, 2024

Common stock issued for cash, net of fees

Conversion of convertible debt into common stock

Common Stock to be issued

Foreign currency adjustment

Common stock issued for cash

Net Income (loss)

Balance at September 30, 2024

Balance at December 31, 2024

Common stock issued for cash, net of fees

Conversion of convertible debt into common stock

Issuance of common stock for legal settlement

2 unchanged sentences

Foreign currency adjustment

Common stock issued for cash

Net Income (loss)

Common stock issued corrections

Balance at March 31, 2025

Common stock issued for cash, net of fees

Conversion of convertible debt into common stock

Issuance of common stock for legal settlement

( 3,750,000 )

Preferred Stock

Common stock to be issued

Foreign currency adjustment

Common stock issued for cash

Net Income (loss)

Balance at June 30, 2025

Balance at December 31, 2025

Common stock issued for cash, net of fees

6 unchanged sentences

Net Income (loss)

Balance at September 30, 2025

Balance at March 31, 2026

DARKPULSE, INC.

Consolidated Statement of Stockholders' Deficit

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

For the Three Months Ended March 31, 2026 and

Treasury stock

Additional paid-in

Accumulated other compre-

Total stockholders’ deficit

Balance at December 31, 2023

( 1,253,356 )

( 67,376,221 )

( 16,675,319 )

Common stock issued for cash, net of fees

Issuance of common stock for legal settlement

Common Stock to be issued

Foreign currency adjustment

Common stock issued for cash

Balance at March 31, 2024

( 1,253,356 )

( 67,909,610 )

( 17,071,136 )

Common stock issued for cash, net of fees

Conversion of convertible debt into common stock

Common Stock to be issued

Foreign currency adjustment

Common stock issued for cash

( 2,410,261 )

( 2,416,705 )

Balance at June 30, 2024

$ ( 1,253,356 )

$ ( 70,319,871 )

( 19,156,321 )

Common stock issued for cash, net of fees

Conversion of convertible debt into common stock

Common Stock to be issued

Foreign currency adjustment

( 1,222,455 )

Common stock issued for cash

Net Income (loss)

Balance at September 30, 2024

$ ( 2,475,811 )

$ ( 70,910,769 )

( 20,285,272 )

Non- controlling

Accumulated other comprehensive

stockholders’ deficit

Balance at December 31, 2024

3 unchanged sentences

Common stock issued for cash, net of fees

Conversion of convertible debt into common stock

Issuance of common stock for legal settlement

2 unchanged sentences

Common stock issued for cash

Net Income (loss)

Balance at March 31, 2025

2 unchanged sentences

$ ( 17,223,485 )

Common stock issued for cash, net of fees

Conversion of convertible debt into common stock

Issuance of common stock for legal settlement

Common Stock to be issued

Foreign currency adjustment

Common stock issued for cash

Net Income (loss)

Balance at June 30, 2025

other comprehensive

stockholders’ deficit

at December 31, 2025

$ ( 2,399,122 )

1 unchanged sentence

$ ( 19,520,159 )

Common stock issued for cash, net of fees

Conversion of convertible debt into common stock

Issuance of common stock for legal settlement

Common Stock to be issued

Foreign currency adjustment

Common stock issued corrections

Net Income (loss)

Balance at September 30, 2025

Common stock issued

for cash, net of fees

Conversion of convertible

debt into common stock

Issuance of common

stock for legal settlement

Common Stock to

Foreign currency

Income (loss)

at March 31, 2026

$ ( 2,179,893 )

1 unchanged sentence

$ ( 19,346,214 )

See the accompanying notes to the unaudited condensed

consolidated financial statements

See the accompanying

notes to the unaudited condensed consolidated financial statements

DARKPULSE, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

Nine Months Ended

Three Months Ended

Cash flows from operating activities:

5 unchanged sentences

Change in fair market of derivative liabilities

Loss on equity investment

Loss on notes payable convertible option

Issuance of common stock for legal settlement

Amortization of debt discount

Bad debt expense

Exceptional Costs gain

Operating lease expense

(Gain)/Loss on Disposal of Asset

Loss on converible notes

Discontinued operations

Gain on partial extinguishment of debt

Changes in operating assets and liabilities:

7 unchanged sentences

Cash flows from investing activities:

Purchases of property and equipment

Proceeds (purchases) of property and equipment

Investment in joint venture

Issuance of note receivable, related party

3 unchanged sentences

Issuance of common stock, net of fees

Proceeds from notes payable

Proceeds from convertible notes

Net repayments of loan payable

2 unchanged sentences

Effect of exchange rate on cash

( 1,379,338 )

Cash at beginning of year

5 unchanged sentences

Conversion of convertible debt

See the accompanying notes to the unaudited condensed

consolidated financial statements

Partial extinguishment of loan payable

accompanying notes to the unaudited condensed consolidated financial statements

DARKPULSE, INC.

1 unchanged sentence

NOTE 1 – BASIS OF FINANCIAL STATEMENT PRESENTATION

Organization and Description

Organization and Description of Business

DarkPulse, Inc.

21 unchanged sentences

provides project engineering & design, system provisioning and contract bid services for the Company throughout Europe.

Technologies – FZCO will provide science and technology consultancy, building maintenance and model makers and information technology

(“IT”) infrastructure.

DarkPulse Technologies – FZCO will provide science and technology

consultancy, building maintenance and model makers and information technology (“IT”) infrastructure.

DarkPulse Manufacturing Inc., based in Arizona (formerly TJM Electronics

23 unchanged sentences

the reporting period.

Significant estimates and assumptions reflected in these financial statements include, but are not limited to, assumptions

used to calculate derivative liabilities, revenue recognition and impairment of long-lived assets.

The Company bases its estimates on

historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances.

Significant estimates and assumptions reflected in these financial statements include, but are not limited to,

assumptions used to calculate derivative liabilities, revenue recognition and impairment of long-lived assets.

The Company bases its

estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable

under the circumstances.

On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience.

Changes in estimates

are recorded in the period in which they become known.

Changes in estimates are recorded in the period in which they become known.

Actual results could differ from those estimates.

29 unchanged sentences

potential for recovery is considered remote.

As of September 30, 2025 and 2024, the Company determined that the allowance for doubtful

accounts was $ 0 and $ 0 , respectively.

As of March 31, 2026 and 2025, the Company determined that the allowance for doubtful accounts

was $ 0 and $ 0 , respectively.

Foreign Currency Translation

13 unchanged sentences

The relevant translation rates are as follows:

for the nine months

ended September 30, 2025 a closing rate at 1.3447 US$:

GBP, average rate at 1.2064 US$:GBP, a closing rate of .7185 US$:CAD a closing

rate of .01126 INR:USD, a closing rate of TRY:USD .02405 and a closing rate of .2723 UAE :USD.

for the three ended

March 31, 2026 a closing rate at 1.3227 US$GBP:

a closing rate of .7185 US$:CAD, a closing rate of $ .0107 INR:USD, a closing rate of $ .02248

TRY:USD, a closing rate of .2723 UAE :USD and a closing rate at 1.1555 EURO:USD .

The relevant translation rates are as follows:

for the nine months

ended September 30, 2024 a closing rate at 1.35229 US$:

GBP, a closing rate at CAD$:USD, $ 0.7395 , $ 0.01193 INR$:USD and $ 0.02936 TL$:USD.

for the year ended March

31, 2025 a closing rate at 1.292 US$:

GBP, average rate at 1.2633 US$:GBP, and closing rate of 1.4391 US$:CAD.

Long-Lived Assets and Goodwill

44 unchanged sentences

Revenue Recognition

The Company’s revenues are generated primarily from the sale

of our services, which consist primarily of advanced technology solutions for integrated communications and security systems, as well

as habitat management.

The Company’s revenues are

generated primarily from the sale of our services, which consist primarily of advanced technology solutions for integrated communications

and security systems, as well as habitat management.

The Company’s sales of products are primarily generated from our TJM subsidiaries.

Sales of products and

services are separate from one another.

At contract inception, we assess the goods and services promised in the contract with customers

and identify a performance obligation for each.

To determine the performance obligation, we consider all products and services promised

in the contract regardless of whether they are explicitly stated or implied by customary business practices.

The timing of satisfaction

of the performance obligation is not subject to significant judgment.

We measure revenue as the amount of consideration expected to be

received in exchange for transferring goods and services.

We recognize service revenues as the performance obligations are met, which

is generally as milestones are satisfied over time.

We generally recognize product revenues at the time of shipment, provided that all

other revenue recognition criteria have been met.

The Company recognizes revenue when its customer obtains control of

promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services.

To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, we perform the following

Sales of products and services are separate from one another.

At contract inception, we assess the goods and services promised in the

contract with customers and identify a performance obligation for each.

To determine the performance obligation, we consider all products

and services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices.

timing of satisfaction of the performance obligation is not subject to significant judgment.

We measure revenue as the amount of consideration

expected to be received in exchange for transferring goods and services.

We recognize service revenues as the performance obligations

are met, which is generally as milestones are satisfied over time.

We generally recognize product revenues at the time of shipment, provided

that all other revenue recognition criteria have been met.

The Company recognizes revenue when

its customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in

exchange for those goods or services.

To determine revenue recognition for arrangements that the Company determines are within the scope

of ASC 606, we perform the following five steps:

(i) identify the contract(s) with a customer;

(ii) identify the performance obligations in the contract;

(iii) determine the

transaction price;

(ii) identify the performance obligations

in the contract;

(iii) determine the transaction price;

(iv) allocate the transaction price to the performance obligations in the contract;

and (v) recognize revenue when

(or as) we satisfy a performance obligation.

The five-step model is applied to contracts when it is probable that we will collect the

consideration we are entitled to in exchange for the goods or services transferred to the customer.

At contract inception, once the contract

is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determine those that

are performance obligations and assess whether each promised good or service is distinct.

We then recognize revenue in the amount of the

transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

The Company considers each individual sale of service contract to be

its own performance obligation.

Services in the contract are highly interdependent and interrelated, and the successful completion of

each milestone is necessary for the overall success of the contract.

Therefore, each milestone is not separately identifiable from other

promises in the contract, and not distinct and ultimately not individual performance obligations.

The Company records revenue over time using the input measure as it

is the most faithful depiction of an entity’s performance because it directly measures the value of the goods and services transferred

to the customer.

The Company utilizes the Right to Invoice for these contracts, as the pricing structure is based on various milestones

that are specified in the contract.

These milestones include Construction Phase Plan, Start of the construction phase, installation phase,

site surveys, fiber splicing, recoveries, and closeouts.

There are specified payments associated with these milestones in the contract,

and the value allocated is commensurate with work done.

In the event that there are advances such as upfront retainers and not based on

the value, those are recorded as contract liabilities.

and (v) recognize revenue when (or as) we satisfy a performance obligation.

The five-step model is applied to contracts when it is probable

that we will collect the consideration we are entitled to in exchange for the goods or services transferred to the customer.

inception, once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract

and determine those that are performance obligations and assess whether each promised good or service is distinct.

We then recognize revenue

in the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation

is satisfied.

The Company considers each individual

sale of service contract to be its own performance obligation.

Services in the contract are highly interdependent and interrelated, and

the successful completion of each milestone is necessary for the overall success of the contract.

Therefore, each milestone is not separately

identifiable from other promises in the contract, and not distinct and ultimately not individual performance obligations.

The Company records revenue over

time using the input measure as it is the most faithful depiction of an entity’s performance because it directly measures the value

of the goods and services transferred to the customer.

The Company utilizes the Right to Invoice for these contracts, as the pricing structure

is based on various milestones that are specified in the contract.

These milestones include Construction Phase Plan, Start of the construction

phase, installation phase, site surveys, fiber splicing, recoveries, and closeouts.

There are specified payments associated with these

milestones in the contract, and the value allocated is commensurate with work done.

In the event that there are advances such as upfront

retainers and not based on the value, those are recorded as contract liabilities.

In accordance with ASU No.

2016-12, Revenue from Contracts with Customers

Narrow-Scope Improvements and Practical Expedient, which is to (1) clarify the objective of the collectability criterion

for applying paragraph 606-10-25-7;

(2) permit an entity to exclude amounts collected from customers for all sales (and other similar)

taxes from the transaction price;

(3) specify that the measurement date for noncash consideration is contract inception;

(4) provide a

practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before the beginning of the

earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and

allocating the transaction price to the satisfied and unsatisfied performance obligations;

(5) clarify that a completed contract for purposes

of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial

application, and (6) clarify that an entity that retrospectively applies the guidance in Topic 606 to each prior reporting period is not

required to disclose the effect of the accounting change for the period of adoption.

The amendments of this ASU are effective for fiscal

years beginning after December 15, 2017, and interim periods within those fiscal years.

There was no impact as a result of adopting this

ASU on the financial statements and related disclosures.

Based on the terms and conditions of the product arrangements, the Company believes

that its products and services can be accounted for separately as its products and services have value to the Company’s customers

on a stand-alone basis.

When a transaction involves more than one product or service, revenue is allocated to each deliverable based on

its relative fair value;

otherwise, revenue is recognized as products are delivered or as services are provided over the term of the customer

2016-12, Revenue from

Contracts with Customers (Topic 606):

Narrow-Scope Improvements and Practical Expedient, which is to (1) clarify the objective of the

collectability criterion for applying paragraph 606-10-25-7;

(2) permit an entity to exclude amounts collected from customers for all

sales (and other similar) taxes from the transaction price;

(3) specify that the measurement date for noncash consideration is contract

(4) provide a practical expedient that permits an entity to reflect the aggregate effect of all modifications that occur before

the beginning of the earliest period presented when identifying the satisfied and unsatisfied performance obligations, determining the

transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations;

(5) clarify that a

completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under

legacy GAAP before the date of initial application, and (6) clarify that an entity that retrospectively applies the guidance in Topic

606 to each prior reporting period is not required to disclose the effect of the accounting change for the period of adoption.

The amendments

of this ASU are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years.

no impact as a result of adopting this ASU on the financial statements and related disclosures.

Based on the terms and conditions of

the product arrangements, the Company believes that its products and services can be accounted for separately as its products and services

have value to the Company’s customers on a stand-alone basis.

When a transaction involves more than one product or service, revenue

is allocated to each deliverable based on its relative fair value;

otherwise, revenue is recognized as products are delivered or as services

are provided over the term of the customer contract.

Cost of Revenues

Cost of revenues consists primarily of materials and overhead costs

incurred internally and amounts incurred to contract manufacturers to produce our products, airtime and other implementation costs incurred

to install our products and train customer personnel, and customer service and third- party original equipment manufacturer costs to provide

continuing support to our customers.

Cost of revenues also includes direct labor attributable to revenue service arrangements.

Cost of revenues consists primarily

of materials and overhead costs incurred internally and amounts incurred to contract manufacturers to produce our products, airtime and

other implementation costs incurred to install our products and train customer personnel, and customer service and third- party original

equipment manufacturer costs to provide continuing support to our customers.

Cost of revenues also includes direct labor attributable

to revenue service arrangements.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations

of credit risk consist principally of cash and cash equivalents.

The Company has not experienced any losses related to its cash and does

not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

As of September 30, 2025, one customer accounted for 39 % of gross accounts receivable.

The Company accounts for its leases under ASC 842, Leases.

guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated

balance sheet as both a right of use asset and lease liability, calculated by discounting fixed lease payments over the lease term at

the rate implicit in the lease or the Company’s incremental borrowing rate.

Lease liabilities are increased by interest and reduced

by payments each period, and the right of use asset is amortized over the lease term.

For operating leases, interest on the lease liability

and the amortization of the right of use asset result in straight-line rent expense over the lease term.

For finance leases, interest

on the lease liability and the amortization of the right of use asset results in front-loaded expense over the lease term.

Variable lease

expenses are recorded when incurred.

In calculating the right of use asset and lease liability, the Company

has elected to combine lease and non-lease components.

The Company excludes short-term leases having initial terms of 12 months or less

from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term.

Financial instruments that potentially

subject the Company to concentrations of credit risk consist principally of cash and cash equivalents.

The Company has not experienced

any losses related to its cash and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated

with commercial banking relationships.

As of March 31, 2026, one customer accounted for 13 % of gross accounts receivable.

The Company accounts for its leases

under ASC 842, Leases.

Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases

and are recorded on the consolidated balance sheet as both a right of use asset and lease liability, calculated by discounting fixed lease

payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate.

Lease liabilities are

increased by interest and reduced by payments each period, and the right of use asset is amortized over the lease term.

For operating

leases, interest on the lease liability and the amortization of the right of use asset result in straight-line rent expense over the lease

For finance leases, interest on the lease liability and the amortization of the right of use asset results in front-loaded expense

over the lease term.

Variable lease expenses are recorded when incurred.

In calculating the right of use

asset and lease liability, the Company has elected to combine lease and non-lease components.

The Company excludes short-term leases having

initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line

basis over the lease term.

Derivative Financial Instruments

The Company evaluates the embedded conversion feature within its convertible

debt instruments under ASC 815-15 and ASC 815-40 to determine if the conversion feature meets the definition of a liability and, if so,

whether to bifurcate the conversion feature and account for it as a separate derivative liability.

For derivative financial instruments

that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each

reporting date, with changes in the fair value reported in the statements of operations.

For stock-based derivative financial instruments,

the Company uses a lattice model, in accordance with ASC 815-15, Derivative and Hedging, to value the derivative instruments at inception

and on subsequent valuation dates.

The classification of derivative instruments, including whether such instruments should be recorded

as liabilities or as equity, is evaluated at the end of each reporting period.

Derivative instrument liabilities are classified in the

balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument could be required within 12

months after the balance sheet date.

The Company evaluates the embedded

conversion feature within its convertible debt instruments under ASC 815-15 and ASC 815-40 to determine if the conversion feature meets

the definition of a liability and, if so, whether to bifurcate the conversion feature and account for it as a separate derivative liability.

For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair

value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations.

For stock-based

derivative financial instruments, the Company uses a lattice model, in accordance with ASC 815-15, Derivative and Hedging, to value the

derivative instruments at inception and on subsequent valuation dates.

The classification of derivative instruments, including whether

such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period.

Derivative instrument

liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement of the derivative instrument

could be required within 12 months after the balance sheet date.

Fair Value of Financial Instruments

The Company measures its financial assets and liabilities in accordance

with the requirements of FASB ASC 820, Fair Value Measurements and Disclosures.

As defined in FASB ASC 820, the fair value is the price

that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement

date (exit price).

The Company utilized the market data of similar entities in its industry or assumptions that market participants would

use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique.

The Company measures its financial

assets and liabilities in accordance with the requirements of FASB ASC 820, Fair Value Measurements and Disclosures.

As defined in FASB

ASC 820, the fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date (exit price).

The Company utilized the market data of similar entities in its industry

or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent

in the inputs to the valuation technique.

These inputs can be readily observable, market corroborated, or generally unobservable.

The Company classifies fair value balances based

on the observability of those inputs.

FASB ASC 820 established a fair value hierarchy that prioritizes the inputs used to measure fair

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level

1 measurement) and the lowest priority to unobservable inputs (level 3 measurement) as follows:

Level 1 – Quoted prices are available in active markets for identical

assets or liabilities as of the reporting date.

Active markets are those in which transactions for the asset or liability occur in sufficient

frequency and volume to provide pricing information on an ongoing basis.

Level 1 primarily consists of financial instruments such as exchange-traded

derivatives, marketable securities and listed equities.

Level 2 – Pricing inputs are other than quoted prices in active

markets included in level 1, which are either directly or indirectly observable as of the reported date and includes those financial instruments

that are valued using models or other valuation methodologies.

These models are primarily industry-standard models that consider various

assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices

for the underlying instruments, as well as other relevant economic measures.

Substantially all of these assumptions are observable in

the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels

at which transactions are executed in the marketplace.

Instruments in this category generally include non- exchange-traded derivatives

such as commodity swaps, interest rate swaps, options and collars.

Level 3 – Pricing inputs include significant inputs that are

generally less observable from objective sources.

These inputs may be used with internally developed methodologies that result in management’s

best estimate of fair value.

The Company’s derivative liability is a Level 3 liability measured

at fair value on a recurring basis.

Company classifies fair value balances based on the observability of those inputs.

FASB ASC 820 established a fair value hierarchy that

prioritizes the inputs used to measure fair value.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets

for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement) as follows:

Level 1 – Quoted prices are

available in active markets for identical assets or liabilities as of the reporting date.

Active markets are those in which transactions

for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 1 primarily

consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.

Level 2 – Pricing inputs are

other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reported

date and includes those financial instruments that are valued using models or other valuation methodologies.

These models are primarily

industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors,

and current market and contractual prices for the underlying instruments, as well as other relevant economic measures.

Substantially all

of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data

or are supported by observable levels at which transactions are executed in the marketplace.

Instruments in this category generally include

non- exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.

Level 3 – Pricing inputs

include significant inputs that are generally less observable from objective sources.

These inputs may be used with internally developed

methodologies that result in management’s best estimate of fair value.

The Company’s derivative liability

is a Level 3 liability measured at fair value on a recurring basis.

Equity Investments

The Company uses the equity method to account for investments in which

it has the ability to exercise significant influence over the investee’s operating and financial policies, or in which it holds

a partnership or limited liability company interest in an entity with specific ownership accounts, unless it has virtually no influence

over the investee’s operating and financial policies.

The Company follows the guidance in ASC 323-10-30-2, Joint Ventures, which

prescribes the use of the equity method for investments in joint ventures where the Company has significant influence.

Equity method investments

are recorded at cost and are adjusted to recognize (1) the Company’s share, based on percentage ownership or other contractual basis,

of the investee’s net income or loss after the date of investment, (2) amortization of the recorded investment that exceeds the

Company’s share of the book value of the investee’s net assets, (3) additional contributions made and dividends received,

and (4) impairments resulting from other-than- temporary declines in fair value.

Gain (loss) on equity investment includes realized gains

or losses upon the sale of the investment and are included as other income (expense) in the consolidated statements of operations and

comprehensive (loss).

Per ASC 323-10-30-2, Joint Ventures are accounted for using the equity

method, in which the Company initially records its investment at cost, including transaction costs.

Under the equity method, an investment

in common stock and in-substance common stock is presented on the balance sheet of an investor as a single amount.

However, any difference

between the cost of the investment and the underlying equity in net assets of an investee — commonly referred to as a basis difference

— should be accounted for as if the investee were a consolidated subsidiary.

The Company accounts for income taxes pursuant to the provision of

ASC 740-10, (“ASC 740-10”) which requires, among other things, an asset and liability approach to calculating deferred income

The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences

of temporary differences between the carrying amounts and the tax bases of assets and liabilities.

A valuation allowance is provided to

offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized.

The Company follows the provision of ASC 740-10 related to Accounting

for Uncertain Income Tax Positions.

When tax returns are filed, there may be uncertainty about the merits of positions taken or the amount

of the position that would be ultimately sustained.

In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized

in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not

that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.

Tax positions

taken are not offset or aggregated with other positions.

Tax positions that meet the more likely than not recognition threshold

are measured at the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable

taxing authority.

The portion of the benefit associated with tax positions taken that exceed the amount measured as described above should

be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties

that would be payable to the taxing authorities upon examination.

The Company believes its tax positions are all more likely than not

to be upheld upon examination.

The Company uses the equity method to account

for investments in which it has the ability to exercise significant influence over the investee’s operating and financial policies,

or in which it holds a partnership or limited liability company interest in an entity with specific ownership accounts, unless it has

virtually no influence over the investee’s operating and financial policies.

The Company follows the guidance in ASC 323-10-30-2,

Joint Ventures, which prescribes the use of the equity method for investments in joint ventures where the Company has significant influence.

Equity method investments are recorded at cost and are adjusted to recognize (1) the Company’s share, based on percentage ownership

or other contractual basis, of the investee’s net income or loss after the date of investment, (2) amortization of the recorded

investment that exceeds the Company’s share of the book value of the investee’s net assets, (3) additional contributions

made and dividends received, and (4) impairments resulting from other-than- temporary declines in fair value.

Gain (loss) on equity investment

includes realized gains or losses upon the sale of the investment and are included as other income (expense) in the consolidated statements

of operations and comprehensive (loss).

Per ASC 323-10-30-2, Joint Ventures

are accounted for using the equity method, in which the Company initially records its investment at cost, including transaction costs.

Under the equity method, an investment in common stock and in-substance common stock is presented on the balance sheet of an investor

as a single amount.

However, any difference between the cost of the investment and the underlying equity in net assets of an investee

— commonly referred to as a basis difference — should be accounted for as if the investee were a consolidated subsidiary.

The Company accounts for income

taxes pursuant to the provision of ASC 740-10, (“ASC 740-10”) which requires, among other things, an asset and liability approach

to calculating deferred income taxes.

The asset and liability approach requires the recognition of deferred tax assets and liabilities

for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.

A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that

the net deferred asset will not be realized.

The Company follows the provision

of ASC 740-10 related to Accounting for Uncertain Income Tax Positions.

When tax returns are filed, there may be uncertainty about the

merits of positions taken or the amount of the position that would be ultimately sustained.

In accordance with the guidance of ASC 740-10,

the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management

believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation

processes, if any.

Tax positions taken are not offset or aggregated with other positions.

Tax positions that meet the more likely than

not recognition threshold are measured at the largest amount of tax benefit that is more than 50 percent likely of being realized upon

settlement with the applicable taxing authority.

The portion of the benefit associated with tax positions taken that exceed the amount

measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with

any associated interest and penalties that would be payable to the taxing authorities upon examination.

The Company believes its tax positions

are all more likely than not to be upheld upon examination.

As such, the Company has not recorded a liability for uncertain tax benefits.

The Company has adopted ASC 740-10-25, Definition of Settlement which

provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously

unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion and examination by a taxing

authority without being legally extinguished.

For tax positions considered effectively settled, an entity would recognize the full amount

of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical

merits and the statute of limitations remains open.

The federal and state income tax returns of the Company are subject to examination

by the IRS and state taxing authorities, generally for three years after they are filed.

The Company does not anticipate a tax liability for the years 2025

and 2024, however may be subject to certain penalties.

The Company has filed tax returns in Canada for the year ended December 31, 2018,

and they are still subject to audit.

The Company has adopted ASC 740-10-25,

Definition of Settlement which provides guidance on how an entity should determine whether a tax position is effectively settled for the

purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion

and examination by a taxing authority without being legally extinguished.

For tax positions considered effectively settled, an entity

would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based

solely on the basis of its technical merits and the statute of limitations remains open.

The federal and state income tax returns of the

Company are subject to examination by the IRS and state taxing authorities, generally for three years after they are filed.

The Company does not anticipate

a tax liability for the years 2026 and 2025, however may be subject to certain penalties.

The Company has filed tax returns in Canada

for the year ended December 31, 2018, and they are still subject to audit.

Non-controlling Interests

Non-controlling interests are classified as a separate component of

equity in the Company's consolidated balance sheets and statements of changes in stockholders’ equity.

Net income (loss) and comprehensive

income (loss) attributable to non-controlling interests are reflected separately from consolidated net income (loss) and comprehensive

income (loss) in the consolidated statements of comprehensive income (loss) and statements of changes in stockholders’ equity.

change in ownership of a subsidiary while the controlling financial interest is retained is accounted for as an equity transaction between

the controlling and non-controlling interests.

In addition, when a subsidiary is deconsolidated, any retained non- controlling equity

investment in the former subsidiary will be initially measured at fair value and the difference between the carrying value and fair value

of the retained interest will be recorded as a gain or loss.

The Company has non-controlling interests via its subsidiaries TerraData,

Remote Intelligence and Wildlife Specialists.

During the nine months ended September 30, 2025 and 2024, the Company

recorded a loss of $ 11,747 and $ 5,598 respectively, attributable to non- controlling interests.

Non-controlling interests are

classified as a separate component of equity in the Company's consolidated balance sheets and statements of changes in stockholders’

Net income (loss) and comprehensive income (loss) attributable to non-controlling interests are reflected separately from consolidated

net income (loss) and comprehensive income (loss) in the consolidated statements of comprehensive income (loss) and statements of changes

in stockholders’ equity.

Any change in ownership of a subsidiary while the controlling financial interest is retained is accounted

for as an equity transaction between the controlling and non-controlling interests.

In addition, when a subsidiary is deconsolidated,

any retained non- controlling equity investment in the former subsidiary will be initially measured at fair value and the difference between

the carrying value and fair value of the retained interest will be recorded as a gain or loss.

The Company has non-controlling interests

via its subsidiaries TerraData, Remote Intelligence and Wildlife Specialists.

During the three months ended March

31, 2026 and 2025, the Company recorded a loss of $ 1,193 and $ 3,554 respectively, attributable to non- controlling interests.

Comprehensive Loss

Comprehensive loss includes net loss well as other changes in stockholders’

equity that result from transactions and economic events other than those with stockholders.

During the nine months ended September 30,

2025 and 2024, the Company’s only element of other comprehensive loss was foreign currency translation.

Comprehensive loss includes net

loss well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders.

During the three months ended March 31, 2026 and 2025, the Company’s only element of other comprehensive loss was foreign currency

Stock-based Compensation

Stock-based compensation is accounted for based on the requirements

of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee

and director services received in exchange for an award of equity instruments over the period the employee or director is required to

perform the services in exchange for the award (presumptively, the vesting period).

The ASC also requires measurement of the cost of employee

and director services received in exchange for an award based on the grant-date fair value of the award.

Pursuant to ASC Topic 718, for share-based payments to consultants

and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the

vesting period of the award.

Until the measurement date is reached, the total amount of compensation expense remains uncertain.

initially records compensation expense based on the fair value of the award at the reporting date.

Further, ASC Topic 718, provides guidance

about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic

718, such as the repricing of share options, which would revalue those options and the accounting for the cancellation of an equity award

whether a replacement award or other valuable consideration is issued in conjunction with the cancellation.

If not, the cancellation is

viewed as a replacement and not a modification, with a repurchase price of $ 0 .

Stock-based compensation is accounted

for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements

of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or

director is required to perform the services in exchange for the award (presumptively, the vesting period).

The ASC also requires measurement

of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.

Pursuant to ASC Topic 718, for

share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.”

The expense is recognized over the vesting period of the award.

Until the measurement date is reached, the total amount of compensation

expense remains uncertain.

The Company initially records compensation expense based on the fair value of the award at the reporting date.

Further, ASC Topic 718, provides guidance about which changes to the terms or conditions of a share-based payment award require an entity

to apply modification accounting in Topic 718, such as the repricing of share options, which would revalue those options and the accounting

for the cancellation of an equity award whether a replacement award or other valuable consideration is issued in conjunction with the

cancellation.

If not, the cancellation is viewed as a replacement and not a modification, with a repurchase price of $0.

Loss Per Common Share

The Company accounts for earnings per share pursuant to ASC 260, Earnings

per Share, which requires disclosure on the financial statements of “basic” and “diluted” earnings (loss) per

Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding

for the year.

Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares

outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year.

In periods where the Company

has a net loss, all dilutive securities are excluded.

Potentially dilutive items outstanding as of September 30, 2025 and 2024 are as

The Company accounts for earnings per share pursuant

to ASC 260, Earnings per Share, which requires disclosure on the financial statements of “basic” and “diluted”

earnings (loss) per share.

Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number

of common shares outstanding for the year.

Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted

average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each

In periods where the Company has a net loss, all dilutive securities are excluded.

Potentially dilutive items outstanding as of

September 30, 2025 and 2024 are as follows:

Schedule of anti-dilutive securities

1 unchanged sentence

Series D preferred stock

On January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments

– Credit Losses (Topic 326):

On January 1, 2023, the Company adopted

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Instruments (“ASC

This standard replaced

the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”)

CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience,

current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including

loan receivables and held-to-maturity debt securities, and some off-balance sheet credit exposures such as unfunded commitments to extend

Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance

for credit losses.

The Company adopted this new guidance on January 1, 2023 and the adoption did not have a material impact on the Company’s

consolidated financial statements and related disclosures.

Management does not believe that any other recently issued, but not

yet effective, accounting standards could have a material effect on the accompanying financial statements.

As new accounting pronouncements

are issued, the Company will adopt those that are applicable.

This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current

expected credit loss (“CECL”) methodology.

CECL requires an estimate of credit losses for the remaining estimated life of

the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to

financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities, and some off-balance sheet

credit exposures such as unfunded commitments to extend credit.

Financial assets measured at amortized cost will be presented at the net

amount expected to be collected by using an allowance for credit losses.

The Company adopted this new guidance on January 1, 2023 and

the adoption did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Management does not believe that any

other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements.

As new accounting pronouncements are issued, the Company will adopt those that are

NOTE 3 – LIQUIDITY AND GOING CONCERN

The Company generated net losses of $ 1,504,701 and $ 3,540,148 during

the nine months ended September 30, 2025 and 2024, respectively, and net cash provided/(used) in operating activities of $ 102,869

The Company generated net losses of $ 245,958

and $ 270,344 during the three months ended March 31,2026 and 2025, respectively, and net cash (used) in operating activities of $( 340,593 )

and $ 78,773 , respectively.

As of September 30, 2025, the Company’s current liabilities exceeded its current assets by $ 18,517,073

and had an accumulated deficit of $ 72,752,633 .

As of September 30, 2025, the Company had $ 44,499 of cash.

The Company will require additional funding during the next twelve

months to finance the growth of its current operations and achieve its strategic objectives.

These factors, as well as the uncertain conditions

that the Company faces relative to capital raising activities, create substantial doubt as to the Company’s ability to continue

as a going concern.

The Company is seeking to raise additional capital principally through private placement offerings and is targeting

strategic partners in an effort to finalize the development of its products and begin generating revenues.

The ability of the Company

to continue as a going concern is dependent upon the success of future capital offerings or alternative financing arrangements or expansion

of its operations.

The accompanying consolidated financial statements do not include any adjustments that might be necessary should the

Company be unable to continue as a going concern.

Management is actively pursuing additional sources of financing sufficient to generate

enough cash flow to fund its operations for twelve months from the issuance date of these consolidated financial statements.

management cannot make any assurances that such financing will be secured.

As of March 31, 2026, the Company’s current liabilities exceeded its current assets by $ 19,692,440 and

had an accumulated deficit of $ 74,471,258 .

As of March 31, 2026, the Company had $ 53,371 of cash.

The Company will require additional

funding during the next twelve months to finance the growth of its current operations and achieve its strategic objectives.

These factors,

as well as the uncertain conditions that the Company faces relative to capital raising activities, create substantial doubt as to the

Company’s ability to continue as a going concern.

The Company is seeking to raise additional capital principally through private

placement offerings and is targeting strategic partners in an effort to finalize the development of its products and begin generating

The ability of the Company to continue as a going concern is dependent upon the success of future capital offerings or alternative

financing arrangements or expansion of its operations.

The accompanying consolidated financial statements do not include any adjustments

that might be necessary should the Company be unable to continue as a going concern.

Management is actively pursuing additional sources

of financing sufficient to generate enough cash flow to fund its operations for twelve months from the issuance date of these consolidated

financial statements.

However, management cannot make any assurances that such financing will be secured.

NOTE 4 – BUSINESS ACQUISITIONS

Optilan India PVT Ltd and Optilan Communication & Security

Systems, Ltd.

On September 11, 2024, the Company closed a sale agreement with Joint

Liquidators, Optilan (UK) Limited incorporated and registered in England and Wales acting by the Joint Liquidators (Seller), purchasing

the right, title and interest of shares in Optilan India, PVT Ltd located in Kilpauk, Chennai India and Optilan Communication & Security

Systems, Ltd located in Ankara, Turkey along with the applicable intellectual property rights including (1) the user interface for sensor

systems, (2) The “Optilan.com” domain name and continued use of the “@optilan.com” email accounts.

agreed to pay $ 65,000 USD for both companies and the intellectual property rights.

The Company has accounted for the purchase using the acquisition method

of accounting for business combinations under ASC 805.

Accordingly, the purchase price has been allocated to the underlying assets and

liabilities in proportion to their respective actual values as of the purchase date.

The excess of the consideration transferred over

the actual estimated fair values of the net assets acquired was recorded as goodwill.

The following table summarizes the acquired assets

and assumed liabilities for the actual value of the assets and liabilities recognized at the date of acquisition:

Optilan India PVT Ltd and Optilan Communication

& Security Systems, Ltd.

On September 11, 2024, the Company closed a sale

agreement with Joint Liquidators, Optilan (UK) Limited incorporated and registered in England and Wales acting by the Joint Liquidators

(Seller), purchasing the right, title and interest of shares in Optilan India, PVT Ltd located in Kilpauk, Chennai India and Optilan

Communication & Security Systems, Ltd located in Ankara, Turkey along with the applicable intellectual property rights including

(1) the user interface for sensor systems, (2) The “Optilan.com” domain name and continued use of the “@optilan.com”

email accounts.

The Company agreed to pay $ 65,000 USD for both companies and the intellectual property rights.

The Company has accounted for the purchase using

the acquisition method of accounting for business combinations under ASC 805.

Accordingly, the purchase price has been allocated to the

underlying assets and liabilities in proportion to their respective actual values as of the purchase date.

The excess of the consideration

transferred over the actual estimated fair values of the net assets acquired was recorded as goodwill.

The following table summarizes

the acquired assets and assumed liabilities for the actual value of the assets and liabilities recognized at the date of acquisition:

Schedule of acquired assets and assumed liabilities

10 unchanged sentences

Acquisition Date

Measurement Period Adjustments

Measurement Period

Accounts receivable

6 unchanged sentences

The following table is a summary of the Company’s

timing of revenue recognition for the nine months ended September 30, 2025 and 2024:

timing of revenue recognition for the three months ended March 31, 2026 and 2025:

Schedule of timing of revenue recognition

2 unchanged sentences

Total revenue

The Company disaggregates revenue by source and geographic destination

to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The Company disaggregates revenue by

source and geographic destination to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic

Revenue by source consisted of the following

for the nine months ended September 30, 2025 and 2024:

for the three months ended March 31, 2026 and 2025:

Schedule of revenue by source

1 unchanged sentence

Revenue by geographic destination consisted of

the following for the nine months ended September 30, 2025 and 2024:

the following for the three months ended March 31, 2026 and 2025:

Schedule of revenue by geographic destination

23 unchanged sentences

Performance Obligations

A performance obligation is a contractual promise to transfer a distinct

good or service to the customer and is the unit of account under Accounting Standards Codification (“ASC”) Topic 606.

transaction price of a contract is allocated to distinct performance obligations and recognized as revenue when or as the performance

obligations are satisfied.

The Company’s contracts often require significant integrated services and, even when delivering multiple

distinct services, are generally accounted for as a single performance obligation.

Contract amendments and change orders are generally

not distinct from the existing contract due to the significant integrated service provided in the context of the contract and are accounted

for as a modification of the existing contract and performance obligation.

The majority of the Company’s performance obligations

are completed within one year.

When more than one contract is entered into with a customer on or close

to the same date, the Company evaluates whether those contracts should be combined and accounted for as a single contract as well as whether

those contracts should be accounted for as more than one performance obligation.

This evaluation requires significant judgment and is

based on the facts and circumstances of the various contracts, which could change the amount of revenue and profit recognition in a given

period depending upon the outcome of the evaluation.

A performance obligation is a contractual

promise to transfer a distinct good or service to the customer and is the unit of account under Accounting Standards Codification (“ASC”)

The transaction price of a contract is allocated to distinct performance obligations and recognized as revenue when or as the

performance obligations are satisfied.

The Company’s contracts often require significant integrated services and, even when delivering

multiple distinct services, are generally accounted for as a single performance obligation.

Contract amendments and change orders are

generally not distinct from the existing contract due to the significant integrated service provided in the context of the contract and

are accounted for as a modification of the existing contract and performance obligation.

The majority of the Company’s performance

obligations are completed within one year.

When more than

one contract is entered into with a customer on or close to the same date, the Company evaluates whether those contracts should be combined

and accounted for as a single contract as well as whether those contracts should be accounted for as more than one performance obligation.

This evaluation requires significant judgment and is based on the facts and circumstances of the various contracts, which could change

the amount of revenue and profit recognition in a given period depending upon the outcome of the

Contract Assets and Liabilities

7 unchanged sentences

and estimated earnings in excess of billings, which arise when revenue has been recorded but the amount has not been billed.

Contract assets and liabilities on September 30, 2025 are $ 0 .

Contract assets and liabilities on March 31, 2026 are $ 0 .

Variable Consideration

Transaction pricing for the Company’s contracts may include variable

consideration, such as unapproved change orders, claims, incentives and liquidated damages.

Management estimates variable consideration

for a performance obligation utilizing estimation methods that best predict the amount of consideration to which the Company will be entitled.

Variable consideration is included in the estimated transaction price to the extent it is probable that a significant reversal of cumulative

revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

Management’s estimates

of variable consideration and determination of whether to include estimated amounts in transaction price are based on past practices with

the customer, specific discussions, correspondence or preliminary negotiations with the customer, legal evaluations and all other relevant

information that is reasonably available.

The effect of a change in variable consideration on the transaction price of a performance obligation

is typically recognized as an adjustment to revenue on a cumulative catch-up basis.

To the extent unapproved change orders, claims and

liquidated damages reflected in transaction price are not resolved in the Company’s favor, or to the extent incentives reflected

in transaction price are not earned, there could be reductions in, or reversals of, previously recognized revenue.

Transaction pricing for the Company’s contracts

may include variable consideration, such as unapproved change orders, claims, incentives and liquidated damages.

Management estimates

variable consideration for a performance obligation utilizing estimation methods that best predict the amount of consideration to which

the Company will be entitled.

Variable consideration is included in the estimated transaction price to the extent it is probable that

a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration

Management’s estimates of variable consideration and determination of whether to include estimated amounts in transaction

price are based on past practices with the customer, specific discussions, correspondence or preliminary negotiations with the customer,

legal evaluations and all other relevant information that is reasonably available.

The effect of a change in variable consideration on

the transaction price of a performance obligation is typically recognized as an adjustment to revenue on a cumulative catch-up basis.

To the extent unapproved change orders, claims and liquidated damages reflected in transaction price are not resolved in the Company’s

favor, or to the extent incentives reflected in transaction price are not earned, there could be reductions in, or reversals of, previously

recognized revenue.

NOTE 6 – ACCOUNTS RECEIVABLE

1 unchanged sentence

Schedule of accounts receivable

September 30,

Accounts receivable

2 unchanged sentences

NOTE 7 – PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following:

Property and equipment, net consisted of the

Schedule of property and equipment

September 30,

Property and equipment

3 unchanged sentences

Property and equipment, net

Depreciation expenses was $ 64,199 and $ 95,709 for the nine months ended

September 30, 2025 and 2024, respectively.

Depreciation expenses was $ 0 and $ 17,254 for the

three months ended March 31, 2026 and 2025, respectively.

NOTE 8 - GOODWILL AND INTANGIBLE ASSETS

The following is a summary of activity of goodwill for the three months

ended September 30, 2025:

Schedule of goodwill activity

Balances at December 31, 2024

Foreign exchange translation

Balances at September 30, 2025

Patents - Intrusion Detection Intellectual Property

The Company relies on patent laws and restrictions on disclosure to

protect its intellectual property rights.

As of September 30, 2025 and 2024, the Company held three U.S.

and foreign patents on its intrusion

detection technology, which expire in calendar years 2025 through 2034 (depending on the payment of maintenance fees).

The DPTI issued patents cover a System and Method for Brillouin Analysis,

a System and Method for Resolution Enhancement of a Distributed Sensor, and a Flexible Fiber Optic Deformation System Sensor and Method.

Patents - Intrusion Detection Intellectual

The Company relies on patent laws and

restrictions on disclosure to protect its intellectual property rights.

As of March 31, 2026 and 2025, the Company held three U.S.

foreign patents on its intrusion detection technology, which expire in calendar years 2025 through 2034 (depending on the payment of maintenance

The DPTI issued patents cover a System and Method

for Brillouin Analysis, a System and Method for Resolution Enhancement of a Distributed Sensor, and a Flexible Fiber Optic Deformation

System Sensor and Method.

Maintenance of intellectual property rights and the protection thereof is important to our business.

Any patents that may be issued may

not sufficiently protect the Company's intellectual property and third parties may challenge any issued patents.

Other parties may independently

develop similar or competing technology or design around any patents that may be issued to the Company.

The Company cannot be certain

that the steps it has taken will prevent the misappropriation of its intellectual property, particularly in foreign countries where the

laws may not protect proprietary rights as fully as in the United States.

Further, the Company may be required to enforce its intellectual

property or other proprietary rights through litigation, which, regardless of success, could result in substantial costs and diversion

of management's attention.

Additionally, there may be existing patents of which the Company is unaware that could be pertinent to its

business, and it is not possible to know whether there are patent applications pending that the Company's products might infringe upon,

since these applications are often not publicly available until a patent is issued or published.

For the nine months ended September 30, 2025 and 2024, the Company

had patent amortization costs on its intrusion detection technology totaling $ 38,271 and $ 38,271 , respectively.

Patents costs are being

amortized over the remaining life of each patent, which is from 7 to 16 years .

The DPTI issued patents cover a System and Method for Brillouin Analysis,

a System and Method for Resolution Enhancement of a Distributed Sensor, and a Flexible Fiber Optic Deformation System Sensor and Method.

that may be issued may not sufficiently protect the Company's intellectual property and third parties may challenge any issued patents.

Other parties may independently develop similar or competing technology or design around any patents that may be issued to the Company.

The Company cannot be certain that the steps it has taken will prevent the misappropriation of its intellectual property, particularly

in foreign countries where the laws may not protect proprietary rights as fully as in the United States.

Further, the Company may be

required to enforce its intellectual property or other proprietary rights through litigation, which, regardless of success, could result

in substantial costs and diversion of management's attention.

Additionally, there may be existing patents of which the Company is unaware

that could be pertinent to its business, and it is not possible to know whether there are patent applications pending that the Company's

products might infringe upon, since these applications are often not publicly available until a patent is issued or published.

For the three months ended March 31,

2026 and 2025, the Company had patent amortization costs on its intrusion detection technology totaling $ 12,757 and $ 12,272 , respectively.

Patents costs are being amortized over the remaining life of each patent, which is from 7 to 16 years .

The DPTI issued patents cover a System

and Method for Brillouin Analysis, a System and Method for Resolution Enhancement of a Distributed Sensor, and a Flexible Fiber Optic

Deformation System Sensor and Method.

Maintenance of intellectual property rights and the protection thereof is important to our business.

Any patents that may be issued may

not sufficiently protect the Company's intellectual property and third parties may challenge any issued patents.

Other parties may independently

develop similar or competing technology or design around any patents that may be issued to the Company.

The Company cannot be certain

that the steps it has taken will prevent the misappropriation of its intellectual property, particularly in foreign countries where the

laws may not protect proprietary rights as fully as in the United States.

Further, the Company may be required to enforce its intellectual

property or other proprietary rights through litigation, which, regardless of success, could result in substantial costs and diversion

of management's attention.

Additionally, there may be existing patents of which the Company is unaware that could be pertinent to its

business, and it is not possible to know whether there are patent applications pending that the Company's products might infringe upon,

since these applications are often not publicly available until a patent is issued or published.

The following is a summary of the DPTI patents as of September 30,

2025 and 2024:

Any patents that may be issued may not sufficiently protect the Company's intellectual property and third parties may challenge any issued

Other parties may independently develop similar or competing technology or design around any patents that may be issued to the

The Company cannot be certain that the steps it has taken will prevent the misappropriation of its intellectual property, particularly

in foreign countries where the laws may not protect proprietary rights as fully as in the United States.

Further, the Company may be required

to enforce its intellectual property or other proprietary rights through litigation, which, regardless of success, could result in substantial

costs and diversion of management's attention.

Additionally, there may be existing patents of which the Company is unaware that could

be pertinent to its business, and it is not possible to know whether there are patent applications pending that the Company's products

might infringe upon, since these applications are often not publicly available until a patent is issued or published.

The following is a summary of the DPTI patents

as of March 31, 2026 and 2025:

Schedule of patents

accumulated amortization

Future expected amortization

of patents is as follows:

Future expected amortization of patents is as follows:

As of December 31,

1 unchanged sentence

Total patents

NOTE 9 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following as

of September 30, 2025 and September 30, 2024:

NOTE 9 – ACCOUNTS PAYABLE AND ACCRUED

Accounts payable and accrued expenses consists

of the following as of March 31, 2026 and December 31, 2025:

Schedule of accounts payable and accrued expenses

September 30,

Accounts payable

2 unchanged sentences

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 September 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.

Notes Payable current – convertible

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 March 31, 2026 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.

Management made the determination to use an expected life

rather than contractual life for the calculations for the matured debt as of September 30, 2025 and 2024.

As of September, 2025 and, 2024, there was $ 0 and $ 0 of convertible

debt principal outstanding, respectively.

During the nine months ended September 30, 2025 and 2024, $ 0 and $ 0 of the debt discount was

The summary of convertible notes are:

Schedule of convertible notes

September 30,

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 March 31, 2025 and 2024.

As of March 31, 2026 and 2025, there was $ 208,200

and $ 208,150 of convertible debt principal outstanding.

During the three months ended March 31, 2026 and 2025, $ 17,333 and $ 0 of the debt

discount was amortized.

The summary of notes payable current – convertible

Schedule of notes payable - convertible option

Principal Outstanding

unamortized debt discount

Convertible notes, net

During the three months ended September 30, 2025 and 2024, change in

fair value of the derivative liability was ($ 91,495 ) and ($ 117,526 ), respectively.

The following

is a summary of the derivative liability:

Notes payable current – convertible option, net

The table below details the Company's outstanding notes payable current

– convertible option and related derivative

Schedule of derivative liability

Derivative Liability

Vanquish Funding

During the three months ended March 31, 2026

and 2025, change in fair value of the derivative liability was $ 57,235 and $ 51,723 , respectively.

The following is a summary of the derivative

Schedule of derivative liability

Derivative Liability

Balances at December 31, 2025

Gain on issuance of debt

Issuance of convertible note - 1800 Diagonal Lending

Reclassification of convertible note – Vanquish funding

Issuance of convertible note – Vanquish funding

Conversion of note – Vanquish funding

Change in fair value

EMA settlement

Balances at September 30, 2025

Balances at March 31,

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

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

On September 5, 2025, the Company entered into

a promissory note for a principal of $ 57,000 , which was funded on September 10, 2025.

The note bears interest at a rate of 15 % per annum

and matures after nine months.

On March 3, 2026, the Company entered into a

promissory note for a principal of $ 65,550 , which was funded on March 6, 2026.

The note bears interest at a rate of 15 % per annum and

matures after six months.

Loans Payable

4 unchanged sentences

The following is a summary of the loans

payable at September 30, 2025 and December 31, 2024:

payable at March 31, 2026 and December 31, 2025:

Schedule of loans payable

September 30, 2025

December 31, 2024

RI - line of credit

9 unchanged sentences

Loans payable, non-current

Certain of the Company’s subsidiary debt

arrangements are guaranteed by former shareholders of the acquired entity.

The Company has not assumed these guarantees and has no legal

obligation related to such guarantees .

NOTE 11 – SECURED DEBENTURE

DPTI issued a convertible Debenture to the University (see Note 1)

in exchange for the Patents assigned to the Company, in the amount of Canadian $1,500,000, or US $1,491,923 on December 16, 2010, the

date of the Debenture.

in exchange for the Patents assigned to the Company, in the amount of

Canadian $1,500,000, or US $1,491,923 on December 16, 2010, the date

of the Debenture.

On April 24, 2017 DPTI issued a replacement secured term Debenture in the same CAD 1,500,000 amount as the original

8 unchanged sentences

The Company has raised funds in excess of the amount required for 2020, 2019 and 2018.

Beginning in 2023, The principal repayment amounts will be due quarterly

over a six-year period in the amount of Canadian Dollars 62,500.

Based on the exchange rate between the Canadian Dollar and the U.S.

on December 31, 2018, the quarterly principal repayment amounts will be US$48,447.

The Debenture is secured by the Patents assigned by

the University to DPTI by an Assignment Agreement on December 16, 2010.

DPTI has pledged the Patents and granted a lien on them pursuant

to an Escrow Agreement dated April 24, 2017, between DPTI and the University.

in 2023, The principal repayment amounts will be due quarterly over a six-year period in the amount of Canadian Dollars 62,500.

on the exchange rate between the Canadian Dollar and the U.S.

Dollar on December 31, 2018, the quarterly principal repayment amounts will

be US$48,447.

The Debenture is secured by the Patents assigned by the University to DPTI by an Assignment Agreement on December 16, 2010.

DPTI has pledged the Patents, and granted a lien on them pursuant to an Escrow Agreement dated April 24, 2017, between DPTI and the University.

The Debenture was initially recorded at the $1,491,923 equivalent US

8 unchanged sentences

To date, no royalties have been paid.

For the nine months ended September 30, 2025 and 2024, the Company

recorded interest expense of $ 22,648 and $ 12,008 , respectively.

As of September 30, 2025 and 2024, the outstanding balance of the debenture

liability totaled $ 673,594 and 1,110,300 , respectively.

Future minimum required

payments over the next five years and thereafter are as follows:

For the years ended March 31, 2026 and 2025, the Company recorded interest

expense of $ 3,610 and $ 3,914 , respectively.

As of March 31, 2026, and December 31, 2025,

the outstanding balance of the debenture liability totaled $ 545,388 and $ 614,756 , respectively.

Future minimum required payments over the next three years and thereafter

are as follows:

Schedule of future minimum required payments

Period ending September 30,

NOTE 12 – LEASES

The following was included

in our balance sheet as of September 30, 2025 and 2024:

Schedule of operating lease

Operating leases

ROU operating lease assets

Current portion of operating lease

Operating lease, net of current portion

Total operating lease liabilities

Operating Leases

On January 15, 2025, SVEA Cameron Esperson filed its Motion for Nonsuit

without Prejudice.

The dismissal was accepted by the court on January 16, 2025.

NOTE 13 – STOCKHOLDERS’ EQUITY (DEFICIT)

Period ending December 31,

NOTE 12 – STOCKHOLDERS’ EQUITY

Preferred Stock

1 unchanged sentence

a total of 2,000,000 shares of preferred stock, par value $ 0.01 per share, for all classes.

As of September 30, 2025 and December 2024

As of March 31, 2026 and December 31 2025

respectively, there were 88,335 and 88,335 total preferred shares issued and outstanding for all classes.

On October 13, 2025 the Company effected a

1:200 reverse stock split of its issued and outstanding shares of common stock.

As a result of the reverse stock split, every 200 shares

of the Company’s common stock issued and outstanding immediately prior to the effective time were automatically combined into (1)

issued and outstanding share, without any change in the par value of the common stock.

No fractional shares were issued in connection

with the reverse stock split.

Any fractional shares resulting from the reverse stock split were rounded up to the nearest whole share

and paid in cash at fair value.

All share and per-share amounts, including

those related to earnings per share, stock options, and any warrants for all periods presented in these consolidated financial statements

have been retroactively adjusted to reflect the reverse stock split.

The reverse stock split did not affect the total par value of common

stock, additional paid-in capital, accumulated deficit, or total stockholders’ equity as presented in these financial statements.

The reverse stock split was implemented primarily

to revise the share structure and qualify for OTCQB.

In accordance with the Company’s bylaws,

the Company has authorized a total of 30,000,000,000 shares of common stock, par value $ 0.0001 per share.

As of September 30, 2025 and

December 2024, there were 81,630,799 and 52,759,788 common shares issued, respectively.

In accordance with the Company’s bylaws, the Company has authorized

a total of 20,000,000,000 shares of common stock, par value $ 0.0001 per share.

As of March 31, 2026 and December 31, 2025, there were

115,191,608 and 90,904,606 common shares issued, respectively.

2026 Transactions

On November 6, 2024 the Company entered into

an Amendment to the 2023 Equity Financing Agreement with GHS, to which GHS agreed to Purchase $ 30,000,000 in shares of our Common Stock

over the course of 12 months at 92 % of the current market price.

The below table of puts from January 1, 2025

to September 30, 2025 were made by the Company under the 2024 EFA during 2025:

On November 6, 2024 the Company entered into an

Amendment to the 2023 Equity Financing Agreement with GHS, to which GHS agreed to Purchase $ 30,000,000 in shares of our Common Stock over

the course of 12 months at 92 % of the current market price.

The below table of puts from 1/03/2026 through

3/31/2026 were made by the Company under the 2024 EFA during 2025:

Schedule of equity financing agreement

Number of Common

Shares Issued

Total Proceeds, Net

of Discounts (4)

Effective Price per

Net Proceeds (4)

The RRA provides that we shall (i) use our best efforts to file with

the SEC a Registration Statement within 45 days of the date of the GHS Registration Rights Agreement;

and (ii) have the Registration Statement

declared effective by the SEC within 30 days after the date the GHS Registration Statement is filed with the SEC, but in no event more

than 90 days after the GHS Registration Statement is filed.

Number of Common Shares Issued

Total Proceeds, Net of Discounts

Effective Price per Share

The RRA provides that we shall (i) use our best

efforts to file with the SEC a Registration Statement within 45 days of the date of the GHS Registration Rights Agreement;

and (ii) have

the Registration Statement declared effective by the SEC within 30 days after the date the GHS Registration Statement is filed with the

SEC, but in no event more than 90 days after the GHS Registration Statement is filed.

Stock Options

As of September 30, 2025 and 2024, the Company had no outstanding stock

As of March 31, 2026 and December 2025, the Company had no outstanding

stock options.

NOTE 13 – INCOME TAXES

The provision for income taxes for the three months ended September

30, 2025 and 2024 differs from the amount which would be expected as a result of applying the statutory tax rates to the losses before

income taxes due primarily to the valuation allowance to fully reserve net deferred tax assets.

The following table summarizes the significant

differences between statutory rates for the three months ended September 30, 2025 and 2024:

Schedule of statutory rates

Statutory tax rate:

Foreign rate differential

Goodwill impairment

NOLs carryforward adjustment

Change in valuation allowance:

The Company’s deferred

tax assets and liabilities as of September 30, 2025 and 2024 are as follows:

Schedule of deferred tax assets and liabilities

Deferred Tax (Liabilities):

Net operating losses

Intangible assets

Right of use asset

Stock based compensation

Property and equipment

Valuation allowance

The domestic and foreign components of loss before (benefit) provision

for income taxes were as follows:

Schedule of provision for income taxes

$ ( 11,676,768 )

Deferred tax assets (liabilities)

The Company has approximately $ 26,485,942 of federal and state net

operating loss carryforwards as of September 30, 2025.

Of the $26.4 million of NOL's, $ 4.8 million will begin to expire in 2023 while

$ 15.9 million will not expire but will be limited to 80% utilization.

The Company also has net operating losses in the UK of $ 22,085,338

and $ 636,852 of net operating loss carryforwards in Canada which will begin to expire in 2038.

The Company records a tax valuation allowance when it is more likely

than not that it will not be able to recover the value of its deferred tax assets.

For the three months ended September 30, 2025 and 2024,

the Company calculated its estimated annualized effective tax rate at 0 % and 0 %, respectively, for both the United States, Canada and

The Company had no income tax expense on its losses for the three months ended September 30, 2025 and 2024, respectively.

The Company recognizes the financial statement benefit of a tax position

only after determining that the relevant tax authority would more likely than not sustain the position following an audit.

For tax positions

meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater

than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority.

The Company recognizes interest accrued

on uncertain tax positions as well as interest received from favorable tax settlements within interest expense.

The Company recognizes

penalties accrued on unrecognized tax benefits within selling, general and administrative expenses.

As of September 30, 2025 and 2024,

the Company had no uncertain tax positions.

The Company does not anticipate any significant changes to the total

amounts of unrecognized tax benefits in the next 12 months.

The Company files income tax returns in New Brunswick, Canada, and the U.S.

( 7,133,368 )

Total income (loss) before income taxes

$ ( 18,810,136 )

Provision for Income Taxes

Income tax expense (benefit) consisted of the

Total Current

Total Deferred

Total Provision

The Company recorded no income tax expense or

benefit for the three months ended March 31, 2026 due to the generation of losses and the application of a full valuation allowance against

deferred tax assets.

Effective Tax Rate Reconciliation

The reconciliation of income taxes computed at

federal statutory rate to the reported income tax provision is as follows:

Schedule effective income tax reconciliation

% of Pretax Income

Tax benefit at 21% (statutory rate)

$ ( 3,952,229 )

State taxes, net of federal benefit

Foreign rate differential

Valuation allowance

Total income tax expense

Deferred tax Assets and Valuation Allowance

The Company has deferred tax assets primarily

related to net operating loss carryforwards.

Management has determined that it is more likely

than not that these deferred tax assets will not be realized due to a lack of sufficient positive evidence, including cumulative losses.

Accordingly, the Company has recorded a full valuation allowance against its net deferred tax assets.

Net Operating Losses

As December 31, 2025, the Company has a net operating

loss (“NOL”) carryforward of approximately $ 26,485,942 .

federal NOLs may be carried forward indefinitely.

Utilization is limited to 80% of taxable income in future periods

The NOLs may be subject to limitation under Internal Revenue Cide Section 382 in the event of an ownership change.

Uncertain Tax Positions

The Company did no t have any material unrecognized

tax benefits as of March 31, 2026.

The Company files income tax returns in the United

States and foreign jurisdictions.

Tax years 2022 through 2025 remain subject to examination.

Foreign Earnings

The Company has not recorded a deferred tax liability

related to outside basis differences in foreign subsidiaries, as such amounts are not material.

The Company recognizes the financial statement

benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following

For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest

benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority.

recognizes interest accrued on uncertain tax positions as well as interest received from favorable tax settlements within interest expense.

The Company recognizes penalties accrued on unrecognized tax benefits within selling, general and administrative expenses.

31, 2026 and 2025 the Company had no uncertain tax positions.

The Company does not anticipate any significant

changes to the total amounts of unrecognized tax benefits in the next twelve months.

The Company files income tax returns in New Brunswick,

Canada, and the U.S.

federal, New York, and Delaware and the UK jurisdictions.

Tax years 2012 to current remain open to examination by Canadian authorities;

Tax years 2012 to current remain open to examination by

Canadian authorities;

the tax year 2020 remains open to examination by U.S.

NOTE 14 – SEGMENT INFORMATION

The Company operates as a single operating and

reportable segment.

The Company’s Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, reviews financial

information on a fully consolidated basis.

There are no distinct operating segments with separate financial performance metrics, resource

allocation decisions, or discrete profit/loss evaluations.

Revenue is modest and primarily service-based, with ongoing net losses, all

managed holistically.

NOTE 15 – COMMITMENTS AND CONTINGENCIES

74 unchanged sentences

Judgment in this matter.

On April 24, 2026, the Company filed an Ex Parte

Motion for Supplemental Proceedings to aid its collection of the monetary relief awarded in the Final Judgment.

Later that same day, the

Court entered an order scheduling a virtual hearing for May 14, 2026.

On May 14, 2026, the Court held the virtual hearing.

Neither counsel nor any other representative appeared for the Noteholders.

Later that same day, the Court entered an order providing that

the Company could file a Motion to Enforce the Order for Supplemental Proceedings with a request for either a finding of contempt, bench

warrant, or both, against the Noteholders.

On May 18, 2026, the Company filed its Motion

to Enforce the Order for Supplemental Proceedings and, therein, made a request for a finding of contempt and issuance of a bench warrant

against the Noteholders.

As of the date hereof, the Noteholders and their

50 unchanged sentences

On July 16, 2024, the parties submitted final

briefing on their respective motions for summary judgment and/or dismissal to the Court.

As of the date hereof, the Court has not issued a ruling on the parties

respective motions.

The Company remains committed to actively litigating its claims for relief against the Crown Bridge Defendants.

In addition to the foregoing Legal Proceedings,

we are also actively investigating potential legal claims, including but not limited to stock fraud, market manipulation, and/or defamation,

against certain Twitter accounts, websites, and social media channels.

The investigation is ongoing and, should potential claims be identified,

we will evaluate commencing formal litigation proceedings.

From time to time, we may become involved in litigation

relating to claims arising out of our operations in the normal course of business.

We are not currently involved in any pending legal

proceeding or litigation and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which we are

a party or to which any of our properties is subject, which would reasonably be likely to have a material adverse effect on our business,

financial condition and operating results.

16 – RELATED PARTY TRANSACTIONS

The Company follows subtopic 850-10 of the FASB Accounting Standards

Codification for the identification of related parties and disclosure of related party transactions.

Pursuant to Section 850-10-20 the

related parties include a) affiliates of the Company;

b) Entities for which investments in their equity securities would be required,

absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity

method by the investing entity;

c) trusts for the benefit of employees, such as pension and profit- sharing trusts that are managed by

or under the trusteeship of management;

briefing on their respective motions for summary judgment and/or dismissal on the choice-of-law issues to the Court.

On March 12, 2026, the Court issued an order ruling

in the Company’s favor on the motions for summary judgment on the choice-of-law issues.

On March 26, 2026, the Company filed a Motion

for Reconsideration of certain findings made by the Court in its March 12th order that it disagreed with.

As of the date hereof, the Court has not issued

a ruling on the March 26th Motion for Reconsideration.

The Company remains committed to actively litigating its claims for relief against

the Crown Bridge Defendants.

NOTE 16 – RELATED PARTY TRANSACTIONS

The Company follows subtopic 850-10 of the FASB

Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

Section 850-10-20 the related parties include a) affiliates of the Company;

b) Entities for which investments in their equity securities

would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted

for by the equity method by the investing entity;

c) trusts for the benefit of employees, such as pension and profit-sharing trusts that

are managed by or under the trusteeship of management;

d) principal owners of the Company;

e) management of the Company;

f) other parties with which

the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent

that one of the transacting parties might be prevented from fully pursuing its own separate interests;

and g) Other parties that can significantly

influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting

parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully

pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other

than compensation arrangements, expense allowances, and other similar items in the ordinary course of business.

However, disclosure of

transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements.

f) other parties

with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other

to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests;

and g) Other parties

that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in

one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might

be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party

transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business.

disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in

those statements.

The disclosures shall include:

a) the nature of the relationship(s) involved;

b) a description of the transactions, including transactions

to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other

information deemed necessary to an understanding of the effects of the transactions on the financial statements;

c) the dollar amounts

of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing

the terms from that used in the preceding period;

and d) amounts due from or to related parties as of the date of each balance sheet presented

and, if not otherwise apparent, the terms and manner of settlement.

On January 20, 2025, Optilan India Pvt, Ltd.

entered into a director’s loan agreement to lend funds whenever the company requires money for working capital over the period

of two years.

The loan is unsecured, and non-interest bearing with repayment being mutually agreed upon between Lender and Borrower.

Remote Intelligence and Wildlife Specialists Loan Payables

RI has a loan payable with the former majority shareholder, who is

a shareholder in the Company after the acquisition of 60% of RI’s membership interests.

The loan is unsecured, non-interest bearing

and due on demand.

As of both nine months ended September 30 2025 and 2024, the outstanding balance was $ 226,247 .

WS has a loan payable with the former majority shareholder, who is

a shareholder in the Company after the acquisition of 60% of WS’s membership interests.

The loan is unsecured, non-interest bearing

and due on demand.

As of both nine months ended September 30, 2025 and 2024, the outstanding balance was $ 135,500 .

b) a description of the transactions,

including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented,

and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements;

dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the

method of establishing the terms from that used in the preceding period;

and d) amounts due from or to related parties as of the date

of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

Remote Intelligence and Wildlife Specialists

Loan Payables

RI has a loan payable with the former majority

shareholder, who is a shareholder in the Company after the acquisition of 60% of RI’s membership interests.

The loan is unsecured,

non-interest bearing and due on demand.

As of both years three-months ended 2026 and 2025, the outstanding balance was $ 226,247 .

WS has a loan payable with the former majority

shareholder, who is a shareholder in the Company after the acquisition of 60% of WS’s membership interests.

The loan is unsecured,

non-interest bearing and due on demand.

As of both years three-month ended 2026 and 2025, the outstanding balance was $ 135,500 .

Optilan India Pvt, Ltd has loans payable with certain employees to

support working capital and operating activities.

The notes are unsecured, non-interest bearing and due on demand.

As of March 31, 2026,

and December 31, 2025 amounts due to employees totaled $ 2,715 and $ 3,875 , respectively.

NOTE 17 – SUBSEQUENT EVENTS

On October 1, 2025, the Company issued 572,892 shares of common stock

for a total consideration of $18,332.54.

On October 9, 2025, the Company issued 576,946 shares of common stock

for a total consideration of $18,462.28.

On October 28, 2025, the company issued 959,040 shares of common stock

for a total consideration of $17,569.60.

On April 2, 2026 the Company issued 2,011,019

shares of common stock for a total consideration of $14,961.98.

On April 14, 2026 the Company issued 1,467,652

shares of common stock for a total consideration of $11,623,80.

On April 27, 2026 the Company issued 3,453,487

shares of common stock for a total consideration of $20,997.20.

On May 15, 2026 the Company issued 3,203,400

shares of common stock for a total consideration of $56,123.56.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements