Madison Technologies Inc. 10-K

Item 8. Financial Statements and Supplementary Data. MADISON TECHNOLOGIES INC. DECEMBER 31, 2024 AND 2023 TABLE OF Contents Independent Auditor’s Report (PCAOB ID#: 5828 ) F-1 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets F-2 Consolidated Statements of Operations F-3 Consolidated Statements of Mezzanine Equity and Stockholders’ Deficiency F-4 Consolidated Statements of Cash Flows F-5 Notes to the Consolidated Financial Statements F-6 to F-37 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Madison Technologies Inc. Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Madison Technologies Inc. and its subsidiaries (collectively referred to as the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations, mezzanine equity and stockholders’ deficiency, and cash flows for each of the years in the two-year period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. Material Uncertainty Related to Going Concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has incurred recurring losses from operations, has negative cash flows from operating activities, working capital deficiency and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters. We have served as the Company’s auditor since 2024 Richmond Hill, Canada October 29 , 2025 CHARTERED PROFESSIONAL ACCOUNTANTS Authorized to practice public accounting by the Chartered Professional Accountants of Ontario SRCO Professional Corporation F- 1 MADISON TECHNOLOGIES INC. CONSOLIDATED Balance Sheets (Currency expressed in United States Dollars (“US$ or $”), except for number of shares) December 31, 2024 December 31, 2023 ASSETS CURRENT ASSETS Assets from discontinued operations (Note 10) $ — $ — Prepaid expense 130,568 — Total Current Assets — — Total Assets $ 130,568 $ — LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ DEFICIENCY CURRENT LIABILITIES Accounts payable and accrued liabilities (Note 4) $ 2,772,924 $ 1,838,691 Loan from a principal shareholder (Note 8) 394,617 — Promissory notes (Note 5) 1,064,834 1,064,834 Convertible notes (Note 6) 2,545,500 2,531,197 Interest payable on senior secured notes (Note 7) 6,398,894 4,926,854 Senior secured notes (Note 7) 7,340,093 7,224,170 Liabilities from discontinued operations (Note 10) — — Total liabilities 20,516,862 17,585,746 MEZZANINE EQUITY Preferred Stock – Series A, 50,000,000 shares authorized, $ 0.001 par value per share, stated value $ 100 per share, 100,000 shares designated, 0 Nil shares issued and outstanding, December 31, 2024 and 2023, respectively (Note 9) — — Preferred Stock - Series C, $ 0.001 par value; stated value $ 100 per share, 10,000 shares designated, 0 Nil issued and outstanding, December 31, 2024 and 2023, respectively (Note 9) — — Total Mezzanine Equity — — STOCKHOLDERS’ DEFICIENCY Preferred Stock - Series B, $ 0.001 par value; 100 shares designated, 100 shares issued and outstanding, December 31, 2024 and 2023, respectively (Note 9) — — Preferred Stock - Series D, $ 0.001 par value; convertible, stated value $ 3.32 per share, 230,000 shares designated, 155,000 shares issued and outstanding, December 31, 2024 and 2023, respectively (Note 9) 155 155 Preferred Stock- Series E, $ 0.001 par value; convertible, stated value $ 1,000 per share, 1,000 shares designated, 0 Nil issued and outstanding, December 31, 2024 and 2023, respectively; (Note 9) — — Preferred Stock - Series E-1, $ 0.001 par value; convertible, stated value $ 0.87 per share, 1,152,500 shares designated, 1,152,500 shares issued and outstanding, December 31, 2023 and 2022, respectively (Note 9) 1,153 1,153 Preferred Stock - Series F, $ 0.001 par value; convertible, stated value $ 1 per share, 1,000 shares designated, 0 Nil issued and outstanding, December 31, 2024 and 2023, respectively (Note 9) — — Preferred Stock - Series G, $ 0.001 par value; convertible, stated value $ 1,000 per share, 4,600 shares designated, 0 Nil issued and outstanding, December 31, 2024 and 2023, respectively (Note 9); — — Preferred Stock – Series H, $ 0.001 par value; convertible, stated value $ 1 per share, 39,895 shares designated, 39,895 issued and outstanding, December 31, 2024 and 2023, respectively (Note 9) 40 40 Common Stock - $ 0.001 par value; 6,000,000,000 shares authorized, 1,603,095,243 shares issued and outstanding, December 31, 2024 and 2023, respectively (Note 9) 1,603,095 1,603,095 Additional Paid in Capital (Note 9) 9,667,389 9,667,389 Accumulated deficit ( 31,658,127 ) ( 28,857,578 ) Total stockholders’ deficiency ( 20,386,294 ) ( 17,585,746 ) Total liabilities, mezzanine equity and stockholders’ deficiency $ 130,568 $ — See the accompanying Notes to the Consolidated Financial Statements. F- 2 MADISON TECHNOLOGIES INC. CONSOLIDATED STATEMENTS of Operations (Currency expressed in United States Dollars (“US$ or $”), except for number of shares) For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 Revenues $ — $ — Operating Expenses General and administrative 54,063 426,757 Professional fees 248,101 140,434 Total operating expenses 302,164 567,191 Loss before other expense ( 302,164 ) ( 567,191 ) Other income (expense) Amortized expense (Notes 5, 6 and 7) ( 130,226 ) ( 2,305,160 ) Interest expense (Notes 5, 6 and 7) ( 2,368,159 ) ( 2,419,238 ) Total non-operating expense ( 2,498,385 ) ( 4,724,398 ) Loss from continuing operations before income taxes ( 2,800,549 ) ( 5,291,589 ) Income tax expense (Note 11) — — Net loss from continuing operations $ ( 2,800,549 ) $ ( 5,291,589 ) Net loss from discontinued operations (Note 10) — ( 9,709 ) Net loss $ ( 2,800,549 ) $ ( 5,301,298 ) Loss from continuing operations per share, basic and diluted $ ( 0.0017 ) $ ( 0.0033 ) Loss from discontinued operations per share, basic and diluted $ ( 0.0000 ) $ ( 0.0000 ) Weighted average basic and diluted shares outstanding 1,603,095,243 1,603,095,243 See the accompanying Notes to the Consolidated Financial Statements. F- 3 MADISON TECHNOLOGIES INC. CONSOLIDATED Statements of MEZZANINE EQUITY AND stockholders’ DEFICIENCY For the Years Ended December 31, 2024 and 2023 (Currency expressed in United States Dollars (“US$ or $”), except for number of shares) Mezzanine Equity Common Stock Preferred Stock Additional Paid Accumulated Shares Amount Shares Amount Shares Amount In Capital Deficit Total # $ # $ # $ $ $ $ Balance, December 31, 2023 — — 1,603,095,243 1,603,095 1,347,495 1,348 9,667,389 ( 28,857,578 ) ( 17,585,746 ) Net loss for the year — — — — — — — ( 2,800,549 ) ( 2,800,549 ) Balance, December 31, 2024 — — 1,603,095,243 1,603,095 1,347,495 1,348 9,667,389 ( 31,658,127 ) ( 20,386,295 ) Balance, December 31, 2022 — — 1,603,095,243 1,603,095 1,347,495 1,348 9,579,714 ( 23,556,280 ) ( 12,372,123 ) Issuance of equity classified warrants (Note 6) — — — — — — 87,675 — 87,675 Net loss for the year — — — — — — — ( 5,301,298 ) ( 5,301,298 ) Balance, December 31, 2023 — — 1,603,095,243 1,603,095 1,347,495 1,348 9,667,389 ( 28,857,578 ) ( 17,585,746 ) See the accompanying Notes to the Consolidated Financial Statements. F- 4 MADISON TECHNOLOGIES INC. consolidated Statements of cash flows (Currency expressed in United States Dollars (“US$ or $”), except for number of shares) For the For the Year Ended Year Ended December 31, 2024 December 31, 2023 Cash flows from operating activities: Net loss from continuing operations for the period $ ( 2,800,549 ) $ ( 5,291,589 ) Adjustments to reconcile net loss to cash used in operating activities: Amortized expenses (Notes 5, 6 and 7) 130,226 2,305,160 Changes in non-cash working capital items: Prepaid expenses ( 130,568 ) 12,721 Accounts payable and accrued liabilities 934,233 1,026,814 Interest payable on senior secured notes 1,472,040 1,623,606 Net cash used in operating activities ( 394,617 ) ( 323,288 ) Net cash used in discontinued operating activities — ( 40,422 ) Cash flows from investing activities — — Net cash provided by (used in) provided by discontinued operation — — Cash flows from financing activities: Proceeds from convertible and promissory notes (Note 5 and 6) — 363,710 Loan from a principal shareholder 394,617 — Net cash provided by financing activities 394,617 363,710 Net cash provided by discontinued financing activities — — Net decrease in cash — — Cash, beginning of year — — Cash, end of year $ — $ — SUPPLEMENTAL DISCLOSURE Interest paid $ — $ — Taxes paid $ — $ — The following transactions did not involve cash: During the year ended December 31, 2023, senior secured notes principal balance of $ 9,159,907 was settled upon disposition of Sovryn to lender. (Note 10) (2024 - $ Nil ) See the accompanying Notes to the Consolidated Financial Statements F- 5 MADISON TECHNOLOGIES INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2024 and 2023 (Currency expressed in United States Dollars (“US$ or $”), except for number of shares) Note 1 Nature of Operations Madison Technologies Inc. (the “Company”) was incorporated on June 15, 1998 in the State of Nevada, and our shares of Common Stock are quoted on the Experts Market tier of the over-the-counter market operated by OTC Markets, Inc. Note 2 Going Concern The accompanying consolidated financial statements have been prepared assuming we will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. For the year ended December 31, 2024, we generated no revenues from continuing operations, incurred a net loss of $ 2,800,549 [2023 - $ 5,291,589 ] and had a working capital deficit and an accumulated deficit of $ 20,386,295 and $ 31,658,127 , respectively [2023 - $ 17,585,746 and $ 28,857,578 , respectively]. It is management’s opinion that these matters raise substantial doubt about our ability to continue as a going concern for a period of twelve months from the issuance date of these consolidated financial statements. Our ability to continue as a going concern is dependent upon management’s ability to raise additional capital as needed from the sales of stock or debt and further implement our business plan. However, the Company may not be able to secure such financing in a timely manner or on favourable terms, if at all. Furthermore, if the Company issues equity securities to raise additional funds, its existing stockholders may experience dilution, and the new equity securities may have rights, preferences and privileges senior to those of the Company’s existing stockholders. The accompanying consolidated financial statements do not include any adjustments that might be required should we be unable to continue as a going concern. Note 3 Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the ordinary course of business. Consolidation The accompanying consolidated financial statements include the accounts of our current and former wholly owned subsidiaries, Blockchain.tv, Inc. and SovRryn Holdings Inc (“Sovryn”) Sovryn is consolidated up until December 31, 2023. All the intercompany balances and transactions have been eliminated in the consolidation. Significant accounting estimates and assumptions The preparation of the consolidated financial statements requires the use of estimates and assumptions to be made in applying the accounting policies that affect the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities. The estimates and related assumptions are based on previous experiences and other factors considered reasonable under the circumstances, the results of which form the basis for making the assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Significant accounts that require estimates include promissory notes, convertible notes and senior secured notes due to the use of discount rates. ● Fair value of equity classified conversion feature and warrants In determining the fair values of the equity classified conversion feature and warrants pursuant to debt financing transactions, the Company applies a market-based valuation technique using the most recent private placement price as a proxy for fair value. This valuation approach is considered a Level 3 fair value measurement within the fair value hierarchy due to the use of unobservable inputs. F- 6 ● Provisions Provisions are recognized when the Company has a present obligation, legal or constructive, as a result of a previous event, if it is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the obligation. The amount recognized is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligations. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate of the expected future cash flows. ● Contingencies Contingencies can be either possible assets or possible liabilities arising from past events, which, by their nature, will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence and potential impact of contingencies inherently involves the exercise of significant judgment and the use of estimates regarding the outcome of future events. ● Going concern The Company evaluates its ability to continue as a going concern in accordance with ASC 205-40, Presentation of Financial Statements – Going Concern. This assessment requires significant judgment and involves the evaluation of relevant conditions and events that are known or reasonably knowable at the date the financial statements are issued, including the Company’s current financial condition, obligations due within one year, expected future cash flows, access to capital, and management’s plans. The assessment involves inherent uncertainty, as it requires management to project future conditions and the effectiveness of any plans intended to address potential liquidity shortfalls. If substantial doubt about the Company’s ability to continue as a going concern is identified, management evaluates whether its plans will mitigate that doubt, and appropriate disclosures are made in the financial statements. F- 7 Consolidation The accompanying consolidated financial statements include the accounts of our current and former wholly owned subsidiaries, Blockchain.tv, Inc. and SovRryn Holdings Inc (“Sovryn”). Blockchain.tv Inc. is dormant has not had operations since its inception. Sovryn is consolidated up until January 31, 2023 and recognized as a discontinued operation. All the intercompany balances and transactions have been eliminated in the consolidation. The functional and reporting currency of the Company and its subsidiaries are U.S. Dollar. Segment reporting Operating segments are defined as components of an entity where discrete financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We identified our Chief Executive Officer as the chief operating decision maker. We operate in one operating segment. Our operating decision maker allocates resources and assesses performance at the consolidated level. F- 8 Fair Value of Financial Instruments ASC 820 defines fair value, establishes a framework for measuring fair value and expands required disclosure about fair value measurements of assets and liabilities. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: ● Level 1 – Valuation based on quoted market prices in active markets for identical assets or liabilities. ● Level 2 – Valuation based on quoted market prices for similar assets and liabilities in active markets. ● Level 3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management’s best estimate of what market participants would use as fair value. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Fair value estimates presented herein are based on market assumptions and information available to management as of the reporting date. The carrying amounts of certain financial instruments approximate their fair values due to their short-term maturities or because their stated interest rates approximate market rates. These instruments include accounts payable and accrued expenses, interest payable on senior secured notes, promissory notes, convertible notes and senior secured notes. F- 9 Convertible notes and other debt instruments In connection with the issuance of promissory and convertible notes, in certain instances we issued common share purchase warrants (the “Warrants”) that entitle the holder to purchase shares of our Common Stock at a specified fixed exercise price at any time within a time period specified within each Warrant. We evaluated the embedded conversion feature, if any, and the warrants and concluded that they qualified as equity instruments under Accounting Standards Codification (ASC) 815, Derivatives and Hedging, and ASC 815-40, Contracts in Entity’s Own Equity. The fair value of the Warrants were separated from the promissory and convertible notes and accounted for as a reduction of the carrying amount of the note with an increase to additional paid-in capital. With respect to the embedded conversion features in the senior secured notes, although they qualify as derivatives under ASC 815, the Company concluded that no reliable basis exists to determine their fair value as of the reporting date. Accordingly, no value has been assigned to the conversion features, and the derivative liability recognized pertains solely to the freestanding warrants. The fair value of the Warrants that represented a discount was amortized and included in the consolidated statements of operation over the term of each note using the effective interest method. Series A and C Convertible Preferred Stock The Series A and C convertible preferred stock (“Series A Preferred Stock” and “Series C Preferred Stock”) were accounted for as mezzanine equity. Loss per share Net Loss Per Share The Company has adopted the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 260-10 which provides for calculation of “basic” and “diluted” earnings per share. Basic loss per share from continuing operation of common stock is computed by dividing net loss $ 2,800,549 [2023 - $ 5,291,588 ] from continuing operation by the weighted average number of shares of common stock 1,603,095,243 [2023 - $ 1,603,095,243 ], outstanding during the period. Basic loss per share from discontinuing operation of common stock is computed by dividing net loss from discontinuing operation by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share from continuing operation of common stock is computed similarly to basic loss per share from continuing operations except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents, if dilutive. Diluted loss per share from discontinuing operation of common stock is computed similarly to basic loss per share from discontinuing operations except the weighted average shares outstanding are increased to include additional shares from the assumed exercise of any common stock equivalents, if dilutive. F- 10 Credit losses In June 2016, the FASB issued ASU 326, “Financial Instruments – Credit Losses”. The ASU sets forth a “current expected credit loss” (CECL) model which requires us to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Recently, the FASB issued the final ASU to delay adoption for smaller reporting companies to calendar year 2023. We have adopted the ASU in year ended December 31, 2023. Related Party Transactions We follow FASB ASC subtopic 850-10, “Related Party Transactions”, for the identification of related parties and disclosure of related party transactions. F- 11 Pursuant to ASC 850-10-20, related parties include: a) our affiliates; 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) our principal owners; e) our management; f) other parties with which we 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. Material related party transactions are required to be disclosed in the consolidated financial statements, 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. 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 statements of operation 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 statements of operations 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. Discontinued operations Discontinued operations are components of an entity that either have been disposed or abandoned or is classified as held for sale. Additionally, in order to qualify as a discontinued operation, the disposal or abandonment must represent a strategic shift that has or will have a major effect on an entity’s operations and financial results. Income taxes The Company accounts for income taxes in accordance with ASC 740. The Company provides for Federal, State and Provincial income taxes payable, as well as for those deferred because of the timing differences between reporting income and expenses for consolidated financial statement purposes versus tax purposes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recoverable or settled. The effect of a change in tax rates is recognized as income or expense in the period of the change. A valuation allowance is established, when necessary, to reduce deferred income tax assets to the amount that is more likely than not to be realized. F- 12 Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) to improve the disclosures regarding a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. The Company is required to adopt the guidance in the fourth quarter of fiscal 2025, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures (“ASU 2023-09”) to provide disaggregated income tax disclosures on rate reconciliation and income taxes paid. The Company is required to adopt the guidance in the fourth quarter of fiscal 2026, though early adoption is permitted. The Company is currently evaluating the impact of this amendment on its consolidated financial statements. The Company continue to evaluate the impact of the new accounting pronouncement, including enhanced disclosure requirements, on our business processes, controls and systems. F- 13 Note 4 Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities as of December 31, 2024 and December 31, 2023 are summarized below: Schedule of Accounts Payable and Accrued Liabilities 2024 2023 Accounts payable $ 484,193 $ 446,077 Accrued expenses 264,922 293,209 Accrued interest 2,023,809 1,099,405 Total $ 2,772,924 $ 1,838,691 Note 5 Promissory Notes During the years ended December 31, 2021, 2022 and 2023, the Company issued several promissory notes with warrants. The Company evaluated the warrants and concluded that those warrants qualified as equity instruments under Accounting Standards Codification (ASC) 815, Derivatives and Hedging, and ASC 815-40, Contracts in Entity’s Own Equity. Due to the limited trading activity and pricing transparency of the Company’s Common Stock, observable market inputs for valuing the warrants were determined to be unreliable. Specifically: ● The Company’s Common Stock is listed on the OTC Expert Market, which restricts public quotation and limits visibility to investors. ● The average daily trading volume of the Company’s Common Stock is approximately $1,000, and the share price has historically been highly volatile in its thinly traded status. Due to these limitations, valuation techniques that depend on quoted market prices cannot be reliably applied. Accordingly, the Company applied a market-based valuation technique using the most recent private placement price of $0.018 per share (dated November 2, 2021) as a proxy for fair value. This valuation approach is considered a Level 3 fair value measurement within the fair value hierarchy due to the use of unobservable inputs. The fair value of the freestanding warrants as of the reporting date was estimated based on this Level 3 input, and the corresponding equity classified warrants has been recorded under additional paid-in capital. Management believes this approach provides the most reasonable estimate of fair value in the absence of observable market data. Significant unobservable input used in the valuation was the private placement price of $0.018/share. No sensitivity analysis is presented due to the absence of a reliable market range of inputs. Promissory note issued during year ended December 31, 2021 On December 28, 2021, the Company issued a promissory note with a principal amount and cash proceeds of $ 500,000 . The promissory note accrued interest at an annual rate of 12 %. Upon the occurrence of an event of default, the promissory note accrued default interest at an annual rate of 15 %. The promissory note matured on April 5, 2022. In connection with the issuance of the promissory note, the Company also issued common share purchase warrants (the "Warrants") that entitle the holder to purchase 500,000 shares of the Company’s Common Stock at an exercise price of $ 0.025 per share at any time until December 31, 2023. The fair value of the warrants of $ 9,130 was separated from the convertible note and accounted for as a reduction of the carrying amount of the promissory note with an increase to additional paid-in capital. The fair value of the warrants that represented a discount was amortized to consolidated statements of operation over the term of the promissory note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 135,372 and $ 135,002 , respectively, in the consolidated statements of operations. As of December 31, 2024 and 2023, $ 500,000 in principal was outstanding. Promissory notes issued during year ended December 31, 2022 (a) On January 14, 2022, the Company issued a promissory note with a principal amount and cash proceeds of $ 165,000 . The promissory note required a $ 15,000 fee payment on maturity date. The promissory note accrued interest at an annual rate of 10 %. Upon the occurrence of an event of default, the promissory note accrued default interest at an annual rate of 15 %. The convertible note matured on February 14, 2022. The fee payable of $ 15,000 was amortized to consolidated statements of operation over the term of the promissory note. F- 14 For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 41,358 and $ 41,246 , respectively, in the consolidated statements of operations. As of December 31, 2024 and 2023, $ 165,000 in principal was outstanding. (b) On January 14, 2022, the Company issued a promissory note with a principal amount and cash proceeds of $ 150,000 . The promissory note required a $ 15,000 fee payment on maturity date. The promissory note accrued interest at an annual rate of 10 %. Upon the occurrence of an event of default, the promissory note accrued default interest at an annual rate of 15 %. The convertible note matured on December 31, 2022. The fee payable of $ 15,000 was amortized to consolidated statements of operations over the term of the promissory note. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 37,603 and $ 37,500 , respectively, in the consolidated statements of operations. As of December 31, 2024 and 2023, $ 165,000 in principal was outstanding. (c) On April 27, 2022, the Company issued a promissory note with a principal amount of $ 125,000 for cash proceeds of $ 112,500 . Upon the occurrence of an event of default, the promissory note accrued default interest at an annual rate of 20 %. The promissory note matured on December 31, 2022. In connection with the issuance of the promissory note, the Company also issued common share purchase warrants that entitle the holder to purchase 2,500,000 shares of the Company’s Common Stock at an exercise price of $ 0.025 per share at any time until December 15, 2024. The fair value of the warrants of $ 36,222 was separated from the convertible note and accounted for as a reduction of the carrying amount of the promissory note with an increase to additional paid-in capital. The original issuance discount of $ 12,500 and the fair value of the warrants of $36,222 that represented a reduction of face value of the note was amortized to consolidated statements of operations over the term of the promissory note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 25,067 and $ 25,000 , respectively, in the consolidated statements of operations. As of December 31, 2024 and 2023, $ 125,000 in principal was outstanding. Promissory notes issued during year ended December 31, 2023 In February 2023, the Company issued a promissory note $ 44,950 to a third party that is non-interest bearing, unsecured and repayable on demand. On February 3, 2023, the Company entered into a securities purchase agreement with a lender pursuant to which the Company borrowed $ 88,760 and issued a promissory note that accrues interest a 12 % per annum and is repayable in 10 monthly instalments starting March 15, 2023. As of December 31, 2023, the outstanding balance was $ 79,884 , which was in default for failure to make required payments. Upon the occurrence of an event of default, the promissory note accrued default interest at an annual rate of 22 %. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 27,235 and $ 8,745 , respectively, in the consolidated statements of operations. F- 15 Note 6 Convertible Notes During the years ended December 31, 2021, 2022 and 2023, the Company issued several series of unsecured convertible notes with embedded conversion features and freestanding warrants. The Company evaluated the embedded conversion features and the warrants and concluded that they qualified as equity instruments under Accounting Standards Codification (ASC) 815, Derivatives and Hedging , and ASC 815-40, Contracts in Entity’s Own Equity . Due to the limited trading activity and pricing transparency of the Company’s Common Stock, observable market inputs for valuing those instruments were determined to be unreliable. Specifically: ● The Company’s Common Stock is listed on the OTC Expert Market, which restricts public quotation and limits visibility to investors. ● The average daily trading volume of the Company’s Common Stock is approximately $1,000, and the share price has historically been highly volatile in its thinly traded status. Accordingly, the Company applied a market-based valuation technique using the most recent private placement price of $0.018 per share (dated November 2, 2021) as a proxy for fair value. This valuation approach is considered a Level 3 fair value measurement within the fair value hierarchy due to the use of unobservable inputs. The fair value of the freestanding warrants as of the reporting date was estimated based on this Level 3 input, and the corresponding equity classified warrants has been recorded under additional paid-in capital. Management believes this approach provides the most reasonable estimate of fair value in the absence of observable market data. Significant unobservable input used in the valuation was the private placement price of $0.018/share. No sensitivity analysis is presented due to the absence of a reliable market range of inputs. Although the embedded conversion features meet the definition of equity classified instruments under ASC 815, the Company concluded that there is no reliable basis to estimate their fair value as of the reporting date. The features are highly sensitive to changes in various unobservable inputs, and due to the lack of active trading, volatility benchmarks, or comparable market data, any valuation would be purely speculative. Management assessed whether a Level 3 fair value estimate (e.g., using an option pricing model) could be developed, but concluded that input assumptions such as volatility and market-based discount rates were not supportable. As such, no value has been assigned to the embedded conversion features, and the recognized equity classified instruments pertains solely to the freestanding warrants. The Company will reassess the valuation of the conversion features in subsequent periods as market data becomes available. Our convertible notes payable, all of which are liabilities as of the years ended December 31, 2024 and 2023, are as follows: December 31, 2024 December 31, 2023 Series 1 $ 1,050,000 $ 1,050,000 Series 2 470,000 470,000 Series 3 208,000 208,000 Series 4 220,000 220,000 Series 5 542,500 542,500 Series 6 55,000 55,000 Principal outstanding total 2,545,500 2,545,500 Less discount — 14,303 Principal outstanding, net $ 2,545,500 $ 2,0531,197 Series 1 During the years ended December 31, 2021 and 2022, the Company issued convertible notes totaling $ 950,000 and $ 100,000 , respectively. Convertible notes issued during year ended December 31, 2021 Series 1-1 On August 31, 2021, the Company issued a series of convertible notes with total principal amount and cash proceeds of $ 950,000 . Those convertible notes accrued interest at an annual rate of 6 %. Upon the occurrence of an event of default, those convertible notes accrued default interest at an annual rate of 12 %. Those convertible notes matured on December 31, 2022. For the years ended December 31, 2024, and 2023, the Company recorded interest expense of $ 171,476 and $ 171,006 respectively, in the consolidated statements of operations. Convertible notes issued during year ended December 31, 2022 Series 1-2 On April 5, 2022, the Company issued a convertible note with total principal amount and cash proceeds of $ 100,000 . The convertible note accrued interest at an annual rate of 6 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 12 %. The convertible note matured on December 31, 2022. For the years ended December 31, 2024, and 2023, the Company recorded interest expense of $ 18,049 and $ 18,000 respectively, in the consolidated statements of operations. F- 16 Series 2 Convertible notes issued during year ended December 31, 2022 Series 2-1 On January 5, 2022, the Company issued a convertible note with a principal amount and cash proceeds of $ 250,000 . The convertible note accrued interest at an annual rate of 12 %. Upon the occurrence of an event of default, the note accrued default interest at an annual rate of 15 %. The convertible note matured on April 5, 2022. As of December 31, 2022, the discount was fully amortized. In connection with the issuance of the convertible note, the Company also issued common share purchase warrants (the "Warrants") that entitle the holder to purchase 6,250,000 shares of the Company’s Common Stock at an exercise price of $ 0.021 per share at any time until July 1, 2024. The fair value of the warrants of $ 80,221 was separated from the convertible note and accounted for as a reduction of the carrying amount of the convertible note with an increase to additional paid-in capital. The fair value of the warrants was amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 67,686 and $ 67,501 respectively, in the consolidated statements of operations. Convertible notes issued during year ended December 31, 2023 Series 2-4 On January 10, 2023, the Company issued a convertible note with a principal amount of $ 110,000 for cash proceeds of $ 100,000 . The convertible note accrued interest at an annual rate of 12 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 22 %. The convertible note matured on January 10, 2024. In connection with the issuance of the convertible note, the Company also issued common share purchase warrants that entitle the holder to purchase 20,000,000 shares of the Company’s Common Stock at an exercise price of $ 0.020 per share at any time until January 30, 2030. The fair values of the warrants of $ 87,675 were separated from the convertible note and accounted for as a reduction of the carrying amount of the convertible note with an increase to additional paid-in capital. The issuance of the convertible note resulted in an original issuance discount of $ 10,000 , calculated as the difference between the principal amount and the cash proceeds. The total of the original issuance discount and the allocated fair value of the warrants were amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. F- 17 For the years ended December 31, 2024 and 2023, the Company recognized amortization expense of $ 11,538 and $ 86,137 , respectively, in the consolidated statements of operations. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 36,837 and $ 18,372 , respectively, in the consolidated statements of operations. Series 2-5 On January 10, 2023, the Company issued a convertible note with a principal amount and cash proceeds of $ 110,000 . The convertible note accrued interest at an annual rate of 12 %. Upon the occurrence of an event of default, the note accrued default interest at an annual rate of 22 %. The convertible note matured on January 10, 2024. The note is in default. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 36,837 and $ 13,924 , respectively, in the consolidated statements of operations. F- 18 Series 3 Convertible notes issued during year ended December 31, 2022 Series 3-1 On February 11, 2022, the Company issued a convertible note with a principal amount of $ 137,500 for cash proceeds of $ 125,000 . The convertible note accrued interest at an annual rate of 11.25 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 22 %. The convertible note matured on February 11, 2023. In connection with the issuance of the convertible note, the Company also issued common share purchase warrants (the "Warrants") that entitle the holder to purchase 1,250,000 shares of the Company’s Common Stock at an exercise price of $ 0.10 per share at any time until February 11, 2027. The fair values of the warrants of $ 22,568 were separated from the convertible note and accounted for as a reduction of the carrying amount of the convertible note with an increase to additional paid-in capital. The issuance of the convertible note resulted in an original issuance discount of $ 12,500 , calculated as the difference between the principal amount and the cash proceeds. The total of the original issuance discount and the allocated fair value of the warrants were amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. On October 25, 2022, the noteholder converted $ 67,000 of note principal and $ 13,004 of accrued interest into 4,000,216 shares of the Company’s common stock. The fair value of the common shares issued determined using the market quote approximated the amounts of converted principal and interest and allocated into par value of $ 4,000 and additional paid-in capital of $ 76,004 respectively. F- 19 For the years ended December 31, 2024 and 2023, the Company recognized amortization expense of $ Nil and $ 2,149 in the consolidated statements of operations. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 31,062 and $ 30,635 in the consolidated statements of operations. Series 3-2 On February 11, 2022, the Company issued a convertible note with a principal amount of $ 137,500 for cash proceeds of $ 125,000 . The convertible note accrued interest at an annual rate of 11 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 15 %. The convertible note matured on February 18, 2023. In connection with the issuance of the convertible note, the Company also issued common share purchase warrants (the "Warrants") that entitle the holder to purchase 1,250,000 shares of the Company’s Common Stock at an exercise price of $ 0.10 per share at any time until February 11, 2027. The fair values of the warrants of $ 22,568 were separated from the convertible note and accounted for as a reduction of the carrying amount of the convertible note with an increase to additional paid-in capital. The issuance of the convertible note resulted in an original issuance discount of $ 12,500 , calculated as the difference between the principal amount and the cash proceeds. The total of the original issuance discount and the allocated fair value of the warrants were amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recognized amortization expense of $ Nil and $ 4,097 in the consolidated statements of operations. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 45,841 and $ 42,235 in the consolidated statements of operations. Series 4 Convertible notes issued during year ended December 31, 2022 Series 4-1 On May 5, 2022, the Company issued a convertible note with a principal amount of $ 110,000 for cash proceeds of $ 100,000 . The convertible note accrued interest at an annual rate of 12 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 22 %. The convertible note matured on May 5, 2023. In connection with the issuance of the convertible note, the Company also issued common share purchase warrants (the "Warrants") that entitle the holder to purchase 5,000,000 shares of the Company’s Common Stock at an exercise price of $ 0.02 per share at any time until May 5, 2029. The fair values of the warrants of $ 54,495 were separated from the convertible note and accounted for as a reduction of the carrying amount of the convertible note with an increase to additional paid-in capital. F- 20 The issuance of the convertible note resulted in an original issuance discount of $ 10,000 , calculated as the difference between the principal amount and the cash proceeds. The total of the original issuance discount and the allocated fair value of the warrants were amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recognized amortization expense of $ Nil and $ 28,042 in the consolidated statements of operations. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 37,500 and $ 29,111 in the consolidated statements of operations. Series 4-2 On June 24, 2022, the Company issued a convertible note with a principal amount of $ 110,000 for cash proceeds of $ 100,000 . The convertible note accrued interest at an annual rate of 12 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 22 %. The convertible note matured on May 5, 2023. In connection with the issuance of the convertible note, the Company also issued common share purchase warrants (the "Warrants") that entitle the holder to purchase 5,000,000 shares of the Company’s Common Stock at an exercise price of $ 0.02 per share at any time until June 24, 2029. The fair values of the warrants of $54,111 were separated from the convertible note and accounted for as a reduction of the carrying amount of the convertible note with an increase to additional paid-in capital. The issuance of the convertible note resulted in an original issuance discount of $ 10,000 , calculated as the difference between the principal amount and the cash proceeds. The total of the original issuance discount and the allocated fair value of the warrants were amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recognized amortization expense of $ Nil and $ 32,236 in the consolidated statements of operations. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 37,500 and $ 29,111 in the consolidated statements of operations. Series 5 Convertible notes issued during year ended December 31, 2022 Series 5-1 On May 5, 2022, the Company issued a convertible note with a principal amount of $ 82,500 for cash proceeds of $ 75,000 . The convertible note accrued interest at an annual rate of 12 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 22 %. The convertible note matured on May 5, 2023. F- 21 In connection with the issuance of the convertible note, the Company also issued common share purchase warrants (the "Warrants") that entitle the holder to purchase 3,750,000 shares of the Company’s Common Stock at an exercise price of $ 0.02 per share at any time until May 5, 2029. The fair values of the warrants of $40,872 were separated from the convertible note and accounted for as a reduction of the carrying amount of the convertible note with an increase to additional paid-in capital. The issuance of the convertible note resulted in an original issuance discount of $ 7,500 , calculated as the difference between the principal amount and the cash proceeds. The total of the original issuance discount and the allocated fair value of the warrants were amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recognized amortization expense of $ Nil and $ 21,032 in the consolidated statements of operations. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 28,134 and $ 21,839 in the consolidated statements of operations. Series 5-2 On May 5, 2022, the Company issued a convertible note with a principal amount of $ 110,000 for cash proceeds of $ 100,000 . The convertible note accrued interest at an annual rate of 11 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 22 %. The convertible note matured on May 5, 2023. In connection with the issuance of the convertible note, the Company also issued common share purchase warrants (the "Warrants") that entitle the holder to purchase 5,000,000 shares of the Company’s Common Stock at an exercise price of $ 0.02 per share at any time until May 5, 2029. The fair values of the warrants of $54,495 were separated from the convertible note and accounted for as a reduction of the carrying amount of the convertible note with an increase to additional paid-in capital. The issuance of the convertible note resulted in an original issuance discount of $ 10,000 , calculated as the difference between the principal amount and the cash proceeds. The total of the original issuance discount and the allocated fair value of the warrants were amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recognized amortization expense of $ Nil and $ 28,042 in the consolidated statements of operations. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 36,672 and $ 28,286 in the consolidated statements of operations. Series 5-3 On October 14, 2022, the Company issued a convertible note with a principal amount of $ 110,000 for cash proceeds of $ 110,000 . The convertible note accrued interest at an annual rate of 12 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 22 %. The convertible note matured on February 23, 2023. F- 22 In connection with the issuance of the convertible note, the Company also issued common share purchase warrants (the "Warrants") that entitle the holder to purchase 5,000,000 shares of the Company’s Common Stock at an exercise price of $ 0.02 per share at any time until May 5, 2029. The fair value of the warrants of $51,262 were separated from the convertible note and accounted for as a reduction of the carrying amount of the convertible note with an increase to additional paid-in capital. The fair value of the warrants was amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recognized amortization expense of $ Nil and $ 25,425 in the consolidated statements of operations. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 29,778 and $ 29,611 in the consolidated statements of operations. Series 5-4 On December 15, 2022, the Company issued a convertible note with a principal amount of $ 220,000 for cash proceeds of $ 200,000 . The convertible note accrued interest at an annual rate of 12 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 22 %. The convertible note matured on January 10, 2024. In connection with the issuance of the convertible note, the Company also issued common share purchase warrants (the "Warrants") that entitle the holder to purchase 10,000,000 shares of the Company’s Common Stock at an exercise price of $ 0.02 per share at any time until May 5, 2029. The fair values of the warrants of $73,111 were separated from the convertible note and accounted for as a reduction of the carrying amount of the convertible note with an increase to additional paid-in capital. The issuance of the convertible note resulted in an original issuance discount of $ 20,000 , calculated as the difference between the principal amount and the cash proceeds. The total of the original issuance discount and the allocated fair value of the warrants were being amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recognized amortization expense of $ 2,765 and $ 87,420 , respectively, in the consolidated statements of operations. The discount was fully amortized at December 31, 2024. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 73,680 and $ 26,399 in the consolidated statements of operations. Convertible notes issued during year ended December 31, 2023 Series 5-5 On February 2, 2023, the Company issued a convertible note with a principal amount of $ 20,000 for cash proceeds of $ 20,000 . The convertible note accrued interest at an annual rate of 12 %. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 22 %. The convertible note matured on December 31, 2023. F- 23 For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 6,823 and $ 2,190 , respectively, in the consolidated statements of operations. Series 6 Convertible notes issued during year ended December 31, 2022 Series 6-1 On September 16, 2022, the Company issued a convertible note with a principal amount of $ 55,000 for cash proceeds of $ 50,000 . The convertible note accrued interest at an annual rate of 6 % starting from January 1, 2023. Upon the occurrence of an event of default, the convertible note accrued default interest at an annual rate of 12 %. The convertible note matured on September 16, 2023. The original issuance discount of $ 5,000 and the fair value of the embedded conversion feature were amortized to consolidated statements of operations over the term of the convertible note using the effective interest method. For the years ended December 31, 2024 and 2023, the Company recognized amortization expense of $ Nil and $ 3,605 in the consolidated statements of operations. For the years ended December 31, 2024 and 2023, the Company recorded interest expense of $ 6,619 and $ 6,601 in the consolidated statements of operations. F- 24 Note 7 Senior Secured Notes On February 17, 2021, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors, LP (the “Investors”) pursuant to which it issued two convertible notes having an aggregate principal amount of $ 16,500,000 for an aggregate purchase price of $ 15,000,000 (collectively, the “Notes”). The Notes are secured by a blanket lien on all of the Company’s assets and the shares of the Company’s Common Stock and Preferred Stock (the “Pledged Assets”). In connection with the issuance of the Notes, the Company also issued 192,073,016 number of common share purchase warrants (the "Warrants") and 1,000 Preferred Series F Shares to the investors (Note 10). The Notes would mature on February 17, 2024, unless earlier converted, and accrue interest at a rate of 11 % per annum, subject to increase to 20 % per annum upon the occurrence of an event of default. Interest is payable in cash on a quarterly basis, commencing on March 31, 2021. Conversion Feature The Notes contain conversion features that allow the Investors to convert the Notes and unpaid interests into shares of the Company’s common stock. The conversion price is subject to the following: The conversion price on any conversion date will be the lower of (1) $50,000,000 divided by the total number of outstanding shares of preferred stock, common stock, and common stock equivalents (assuming full conversion or exercise of all securities convertible into or exercisable for equity), or (2) $1.00. Upon an event of default, the conversion price will be the lower of (1) 75% of the average VWAP of the Company’s common stock over the five (5) trading days immediately preceding the conversion date, or (2) $0.015 per share. On September 24, 2021, the Notes were amended to change the conversion price to $ 0.02 . F- 25 Warrants The Warrants entitle the Investors to purchase shares of the Company’s common stock. At the inception of the agreement, the exercise price of the Warrants was calculated as 125 % of the base price, where the base price was determined by dividing $50,000,000 by the total number of outstanding shares of preferred stock, common stock, and common stock equivalents (assuming the full conversion or exercise of all outstanding securities that are convertible into or exercisable for equity securities of the Company). The exercise price is subject to adjustment as provided in the Warrant agreement and may be paid on a cashless basis. On September 24, 2021, the exercise price of the Warrants was amended to $ 0.025 . The Company evaluated the conversion feature and warrants in accordance with Accounting Standards Codification (ASC) 815, Derivatives and Hedging. Initially, the conversion features and warrants were determined to be derivative liabilities. However, as the Company’s common stock is quoted on the OTC Expert Market, which lacks sufficient trading volume and transparency, management determined that reliable market inputs necessary to support a fair value measurement were not available. As a result, the fair value of the embedded conversion features was assessed to be nil. The fair values of the warrants of $3,464,529 were separated from the note and accounted for as a reduction of the carrying amount of the note with a recognition of derivative liabilities). On September 24, 2021, upon the amendment of the exercise price of the warrants to a fixed price, the Company re-evaluated the amended terms in accordance with ASC 815-40 Contracts In Entity’s Own Equity, derecognized the derivative liabilities related to those warrants, and recognized the Warrants in equity (“End of derivative warrants treatment”). The issuance of the Notes resulted in an original issuance discount of $ 1,500,000 . Additionally, the fair value of the Preferred Series F Shares issued in connection with the Notes issuance and the derivative liabilities recognized were $32,229 and $3,464,529 respectively. These amounts totalling $4,996,758 was recorded as a discount to the face value of the Notes. The discount is being amortized to consolidated statements of operations over the term of the notes using the effective interest method. On February 1, 2023, pursuant to an agreement with the lender of the Company’s senior secured notes, Sovryn was sold to the lender. The net assets of Sovryn at the time of disposition totalled $ 9,159,907 , which was used to partially settle the principal balance of the senior secured notes, which totalled $ 16,500,000 . The transaction was accounted for as a non-cash settlement. (Note 11) Schedule of senior secured notes issued Total $ Face value of senior secured notes issued 16,500,000 Debt discount ( 4,996,758 ) Day 1 value of senior secured notes issued (Restated) (Note 2) 11,503,242 Amortization expenses 1,262,697 Balance at December 31, 2021 12,765,939 Amortization expenses 1,631,127 Balance at December 31, 2022 (Restated) (Note 2) 14,397,066 Partial settlement of principal (Note 15) ( 9,159,907 ) Amortization expenses 1,987,011 Balance at December 31, 2023 7,224,170 Amortization expenses 115,923 Balance at December 31, 2024 7,340,093 The Company recorded interest expenses of $ 1,472,040 and $ 1,623,606 for the years ended December 31, 2024 and 2023, respectively. The Company recorded discount amortization expenses of $ 115,923 and $ 1,987,011 , respectively for the years ended December 31, 2024 and 2023. The interest payable on senior secured notes as on December 31, 2024 and 2023 amounts to $ 6,398,894 and $ 4,926,854 respectively. F- 26 Note 8 Related Party On March 1, 2022, the Company issued a warrant to Warren Zenna, a member of our Board of Directors at the time, to purchase up to 500,000 shares of our Common Stock at $ 0.025 per share at any time beginning September 1, 2022 and ending September 1, 2026. Using Black-Scholes, we estimated the value of such warrant to be approximately $ 7,641 . In February 2021, the Company entered into consulting agreements with GreenRock LLC to provide us with chief executive officer services. Mr. Falcone is the managing member of GreenRock LLC and was our former Chief Executive Officer until November 2023. Effective January 1, 2022, the Company entered into another management consulting agreement with GreenRock LLC, for a period of one year ending December 31, 2022, under which we provided monthly remuneration of $ 35,000 , plus expenses in connection with his duties, responsibilities and performance as chief executive officer. In the years ended December 31, 2024 and 2023, the Company incurred fees to GreenRock LLC $Nil and $ 70,000 respectively. As at year ended December 31, 2024, an amount of $ 394,617 was due to principal shareholder. This amount was received to support the Company's working capital requirement, and it is unsecured, non-interest bearing and payable on demand. Note 9 Stockholders’ Deficiency Preferred Stock As of December 31, 2024 and 2023, the Company is authorized to issue 50,000,000 shares of preferred stock, with designations, voting, and other rights and preferences to be determined by our Board of Directors, of which 48,460,905 remain available for designation and issuance. Series A Preferred Stock and Series B Preferred Stock On July 28, 2020, the Company filed a certificate of designations of Series A Convertible Preferred Stock (the “Certificate of Designations”) with the Nevada Secretary of State designating 100,000 shares of the Company’s shares of Preferred Stock as Series A Convertible Preferred Stock and setting forth the voting and other powers, preferences and relative, participating, optional or other rights of the Preferred Shares. Each share of Series A Preferred Stock has a par value of $ 0.001 per share and a stated value of $ 100 per share. Holders of the Series A Preferred Stock are entitled to vote on all matters submitted to the Company’s shareholders, with their voting power equivalent to the number of Common Stock shares they would hold if their preferred stock were converted. This voting right can be exercised through written consent or proxy. F- 27 The Series A Preferred Stock does not have redemption rights. The Series A Preferred Stock, with respect to the payment of dividends and payments upon the liquidation of the Company, ranks senior to all capital stock of the Company. The Series A Preferred Stockholders is entitled to receive cumulative quarterly dividends, payable in additional Series A Preferred Stock, at an annual rate of 3% of the Stated Value, when declared by the Board. The Board did not declare dividend since issuance of the Series A Preferred Shares. The Series A Preferred Stock is convertible by the holder into 3,420 shares of the Company’s Common Stock at any time after issuance. For the 24 months following issuance, the conversion ratio will be adjusted if the Company issues Common Stock (or related securities) that causes the total fully diluted Common Stock outstanding to exceed 360,000,000 shares. The adjusted conversion ratio will be calculated based on the total fully diluted shares after such issuance divided by 360,000,000 , multiplied by the current conversion ratio. In the event of a liquidation, dissolution, or winding up of the Company, or a Sale (defined as a sale of the majority of assets or certain mergers/consolidations), holders of Series A Preferred Stock are entitled to receive, prior to any distribution to junior securities, an amount equal to the Stated Value plus all accrued and unpaid dividends. If the Company’s assets are insufficient to pay this full amount, the remaining assets will be distributed proportionally among the Series A Preferred stockholders. The Company will provide at least 45 days' written notice of any such Liquidation. On July 28, 2020, the Company filed a certificate of designations of Series B Super Voting Preferred Stock (the “Certificate of Designations”) with the Nevada Secretary of State designating 100 shares of the Company’s shares of Preferred Stock as Series B Super Voting Preferred Stock and setting forth the voting and other powers, preferences and relative, participating, optional or other rights of the Preferred Shares. Each share of Series B Preferred Stock has a par value of $ 0.001 per share. The shares of Series B Super Voting Preferred Stock will carry a number of votes equal to 51% (representing majority voting power) of all voting shares of every class, including 51% of all of the issued and outstanding shares of common stock on the date of any shareholder vote, such that the holders of Super Voting Preferred Stock shall always possess the majority of voting rights, and shall always out vote all holders of Common Stock. The Series B Preferred Stock does not have redemption rights. The Series B Preferred Stock will not be entitled to dividends unless the Corporation pays cash dividends or dividends in other property to holders of outstanding shares of Common Stock. There is no mandatory conversion of Series B Super Voting Preferred Stock into Common Stock. On February 17, 2021, the 100 shares Series B Preferred Stock were transferred from Mr. Canouse (the Company’s former director and CEO), to the FFO 1 2021 Irrevocable Trust, a company that Mr. Falcone (the Company’s former director and CEO) is the trustee and has the voting and dispositive power. The 100 shares of Series B Preferred are included in the collateral for the Investor Notes. F- 28 In July 2020, pursuant to an acquisition agreement to acquire the Casa Zeta-Jones Brand License Agreement from Luxurie Legs, LLC, the Company issued 92,999 shares of Series A Preferred Stock and 100 shares of Series B Preferred Stock. The fair values of the Series A and Series B Preferred Stock issued were $ 216,150 and $ 47,553 , respectively, and were determined using a discounted cash flow method. The Company recognized an intangible asset as a result of this share issuance. The Company accounted for its Series A Preferred Stock as Mezzanine Equity in accordance with ASC 480, Distinguishing Liabilities from Equity. The embedded conversion feature of the preferred stock was evaluated under ASC 815, Derivatives and Hedging, and was separated from the host instrument. This embedded conversion feature was recognized as a derivative liability, with changes in its fair value recorded in the consolidated statements of operations at each reporting period end. Upon the issuance of the Series A Preferred Stock, the Company recognized derivative liabilities of $ 58,545 . For the year ended December 31, 2020, a gain of $ 20,657 resulting from the change in the fair value of these derivative liabilities was recognized in the consolidated statements of operations. The Series B Preferred Stock was accounted for as Permanent Equity in accordance with ASC 480 - Distinguishing Liabilities from Equity. The fair value of the Series B Preferred Stock was allocated to par value of $ Nil and additional paid-in capital of $ 47,553 . On February 16, 2021, the Company extinguished all outstanding shares of its Series A Preferred Stock. In exchange, the former holders received one-year options to purchase up to 300,000 shares of the Company’s then wholly-owned subsidiary, CZJ License, Inc., at an exercise price of $ 10 per share. The fair value of the options issued was $21,465 and was included in additional paid-in capital. This transaction resulted in the derecognition of both the derivative liabilities and the Series A Preferred Stock. The difference between the combined carrying value of the derecognized derivative liabilities and Series A Preferred Stock and the $21,465 fair value of the options issued resulted in a gain on extinguishment of $ 194,685 , which was recognized in the consolidated statements of operations for the year ended December 31, 2021. Separately, a loss of $ 20,657 resulting from the change in fair value of the derivative liabilities was recorded in the consolidated statements of operations for the year ended December 31, 2021. The options issued expired without exercise. The number of Series B Preferred Stock issued and outstanding as of December 31, 2024 and 2023 was 100 . Series C Preferred Stock On February 11, 2021, the Company filed a certificate of designations of Series C Convertible Preferred Stock (the “Certificate of Designations”) with the Nevada Secretary of State designating 10,000 shares of the Company’s shares of Preferred Stock as Series C Convertible Preferred Stock and setting forth the voting and other powers, preferences and relative, participating, optional or other rights of the Preferred Shares. Each share of Series C Preferred Stock has a par value of $ 0.001 per share and a stated value of $ 100 per share. Holders of the Series C Preferred Stock are entitled to vote on all matters submitted to the Company's shareholders, with their voting power equivalent to the number of Common Stock shares they would hold if their preferred stock were converted. This voting right can be exercised through written consent or proxy. The Series C Preferred Stock does not have redemption rights. The Series C Preferred Stockholders are entitled to receive cumulative quarterly dividends, payable in additional Series A Preferred Stock, at an annual rate of 2% of the Stated Value, when declared by the Board. The Board did not declare dividend since issuance of the Series A Preferred Shares. The Company accounted for its Series C Preferred Stock as Mezzanine Equity in accordance with ASC 480, Distinguishing Liabilities from Equity. The embedded conversion feature of the preferred stock was evaluated under ASC 815, Derivatives and Hedging, and was concluded to qualify for derivatives. The Company did not issue Series C Preferred Stock. As at December 31, 2024 and 2023, no shares of Series C Preferred Stock are outstanding. F- 29 Series D Preferred Stock On March 26, 2021, the Company filed a certificate of designations of Series D Convertible Preferred Stock (the “Certificate of Designations”) with the Nevada Secretary of State designating 230,000 shares of the Company’s shares of Preferred Stock as Series D Convertible Preferred Stock and setting forth the voting and other powers, preferences and relative, participating, optional or other rights of the Preferred Shares. Each share of Series C Preferred Stock has a par value of $ 0.001 per share and a stated value of $ 3.32 per share. The Series D Preferred Stock has no voting rights. The Series D Preferred Stock does not have redemption rights. The Series D are ranked equally with the Series E Preferred Stock and the Series F Preferred Stock and as senior to all previously issued series of Preferred Stock and the Common Stock. The Series D Preferred Stockholders is entitled to receive dividends when declared by the Board. The Board did not declare a dividend since the issuance of the Series D Preferred Shares. Each share of Series D Preferred Stock may be converted into 1,000 common shares, subject to a 4.99 % conversion limitation, which may be increased to a maximum of 9.99% by a holder by written notice to the Company. The Series D Preferred Stock was accounted for as Permanent Equity in accordance with ASC 480 - Distinguishing Liabilities from Equity. During the year ended December 31, 2021, the Company issued 230,000 shares of Series D Preferred Stock to settle several notes payable and accrued interest. The fair value of the Series D Preferred Stock issued was determined to be $ 1,006,035 by using debt-based valuation method, which was allocated to par value of $ 230 and additional paid-in capital of $ 1,005,805 . During the year ended December 31, 2021, 75,000 shares of the Company’s Series D Preferred Stock were converted into 75,000,000 shares of its Common Stock. As of December 31, 2024 and 2023, 155,000 shares of Series D Preferred Stock remain unconverted and outstanding. Series E Preferred Stock and Series E-1 Preferred Stock On March 26, 2021, the Company filed a certificate of designations of Series E Convertible Preferred Stock (the “Certificate of Designations”) with the Nevada Secretary of State designating 1,000 shares of the Company’s shares of Preferred Stock as Series E Convertible Preferred Stock and setting forth the voting and other powers, preferences and relative, participating, optional or other rights of the Preferred Shares. Each share of Series E Preferred Stock has a par value of $ 0.001 per share and a stated value of $ 1,000 per share. The Series E are ranked equally with the Series D Preferred Stock and the Series F Preferred Stock and as senior to all previously issued series of Preferred Stock and the Common Stock. Each Holder of Series E Preferred Stock is entitled to vote on an as-converted basis, with the number of votes equal to the underlying Common Stock shares their Series E Preferred Stock would represent on the voting record date, and shall otherwise have the same voting rights as Common Stock. The Series E Preferred Stock does not have redemption rights. The Series E Preferred Stockholders is entitled to receive dividends when declared by the Board. The Board did not declare dividend since issuance of the Series E Preferred Shares. F- 30 The Company accounted for its Series E Preferred Stock as permanent equity in accordance with ASC 480, Distinguishing Liabilities from Equity. The embedded conversion feature of the preferred stock was evaluated under ASC 815, Derivatives and Hedging, and was separated from the host instrument. The original embedded conversion feature was recognized as a derivative liability, with changes in its fair value recorded in the consolidated statements of operations at each reporting period end. Upon the issuance of the Series E Preferred Stock, the Company recognized derivative liabilities of $744. Subsequent to the issuance date, the Company evaluated an amendment to the conversion rate and determined that the amended conversion feature did not result in the recognition of a new derivative liability or a significant modification requiring remeasurement under ASC 815. On September 16, 2021, the Company filed a certificate of designations of Series E-1 Convertible Preferred Stock (the “Certificate of Designations”) with the Nevada Secretary of State designating 1,152,500 shares of the Company’s shares of Preferred Stock as Series E-1 Convertible Preferred Stock and setting forth the voting and other powers, preferences and relative, participating, optional or other rights of the Preferred Shares. Each share of Series E Preferred Stock has a par value of $0.001per share and a stated value of $ 0.87 per share. The Series E-1 are ranked equally with the Series D Preferred Stock and the Series F Preferred Stock and as senior to all previously issued series of Preferred Stock and the Common Stock. Each Holder of Series E-1 Preferred Stock is entitled to vote on an as-converted basis, with the number of votes equal to the underlying Common Stock shares their Series E-1 Preferred Stock would represent on the voting record date and shall otherwise have the same voting rights as Common Stock. The Series E-1 Preferred Stock does not have redemption rights. The Series E-1 Preferred Stockholders is entitled to receive dividends when declared by the Board. The Board did not declare dividend since issuance of the Series E-1 Preferred Shares. The holder of the Series E-1 Preferred Stock may convert Series E-1 Preferred Shares into Common Stock at conversion rate of 1:1,000. The Series E-1 Preferred Stock was accounted for as Permanent Equity in accordance with ASC 480 - Distinguishing Liabilities from Equity. The fair value of the Series E-1 Preferred Stock was allocated to par value of $ 1 and additional paid-in capital of $ 386,220 . On October 11, 2021, 1,000 shares of Series E Preferred Stock were exchanged for 1,152,500 Series E-1 Preferred shares and 1,091,388,889 shares of Common Stock. We valued the exchange at the same $ 386,221 value as was assigned to the 1,000 shares of Series E Preferred Stock. Upon the exchange of the Series E Preferred Stock for Series E-1 Preferred Stock, the Company derecognized the related derivative liabilities during year ended December 31, 2021. As at December 31, 2024 and 2023, no shares of Series E Preferred Stock are outstanding. As of December 31, 2024 and 2023, 1,152,000 shares of Series E-1 Preferred Stock are outstanding. Series F Preferred Stock During year ended December 31, 2021, the Company filed a certificate of designations of Series F Convertible Preferred Stock (the “Certificate of Designations”) with the Nevada Secretary of State designating 1,000 shares of the Company’s shares of Preferred Stock as Series F Convertible Preferred Stock and setting forth the voting and other powers, preferences and relative, participating, optional or other rights of the Preferred Shares. Each share of Series E Preferred Stock has a par value of $ 0.001 per share and a stated value of $ 1.00 per share. 1,000 shares of Series F Preferred Stock were issued along with the Senior Secured Notes (Note 8) The Series F Preferred Stock are ranked equally with the Series D Preferred Stock and the Series E Preferred Stock and as senior to all previously issued series of Preferred Stock and the Common Stock. F- 31 Each Holder of Series F Preferred Stock is entitled to vote on an as-converted basis, with the number of votes equal to the underlying Common Stock shares their Series F Preferred Stock would represent on the voting record date and shall otherwise have the same voting rights as Common Stock. The Series F Preferred Stock does not have redemption rights. The Series F Preferred Stockholders is entitled to receive dividends when declared by the Board. The Board did not declare dividends since the issuance of the Series F Preferred Shares. The Company accounted for its Series F Preferred Stock as permanent equity in accordance with ASC 480, Distinguishing Liabilities from Equity. The fair value of the Series F Preferred Stock issued was determined to be $ 32,229 by using fully-diluted method, which was allocated to par value of $ Nil and additional paid-in capital of $ 32,229 . On October 11, 2021, the 1,000 shares of Series F Preferred Stock were converted into 192,073,017 shares of Common Stock. Series G Preferred Stock On March 26, 2021, the Company filed a certificate of designations of Series G Convertible Preferred Stock (the “Certificate of Designations”) with the Nevada Secretary of State designating 3,000 shares of the Company’s shares of Preferred Stock as Series G Convertible Preferred Stock and setting forth the voting and other powers, preferences and relative, participating, optional or other rights of the Preferred Shares. Each share of Series E Preferred Stock has a par value of $ 0.001 per share and a stated value of $ 1,000 per share. On August 18, 2021, the Company filed an amendment of certificate of designations and changed the designed number of Series G Convertible Preferred Stock from 3,000 to 4,600 . The Series G are ranked equally with the Series D Preferred Stock and the Series E Preferred Stock and as senior to all previously issued series of Preferred Stock and the Common Stock. Each Holder of Series G Preferred Stock is entitled to vote on an as-converted basis, with the number of votes equal to the underlying Common Stock shares their Series E Preferred Stock would represent on the voting record date and shall otherwise have the same voting rights as Common Stock. The Series G Preferred Stock does not have redemption rights. The Series G Preferred Stockholders is entitled to receive dividends when declared by the Board. The Board did not declare dividend since issuance of the Series G Preferred Shares. During year ended December 31, 2021, the Company received $ 4,600,000 in subscriptions pursuant to the issuance of 4,600 of shares Series G Preferred Stock. The proceeds received was allocated into par value and additional paid-in capital of $ 5 and $ 4,599,995 , respectively. On November 2, 2021, all the 4,600 shares of Series G Preferred Stock were converted into 255,555,556 shares of the Company’s Common Stock with a conversion price of $0.018 (Note 8). Upon conversion, the amount previously allocated into Series G par value of $5 was reclassified from Series G Preferred Stock to Common Stock’s par value with an additional increase of $255,551 in Common Stock’s par value and a decrease of 250,956 in additional paid-in capital. The Company accounted for its Series G Preferred Stock as permanent equity in accordance with ASC 480, Distinguishing Liabilities from Equity. The embedded conversion feature of the preferred stock was evaluated under ASC 815, Derivatives and Hedging, and was separated from the host instrument. The original embedded conversion feature was recognized as a derivative liability, with changes in its fair value recorded in the consolidated statements of operations at each reporting period end. Upon the issuance of the Series G Preferred Stock, the Company recognized derivative liabilities of $354,000. Subsequent to the issuance date, the Company evaluated an amendment to the conversion rate and determined that the amended conversion feature did not result in the recognition of a new derivative liability or a significant modification requiring remeasurement under ASC 815. Upon conversion to common stock, the abovementioned derivative liabilities were derecognized during the year ended December 31, 2021. F- 32 Series H Preferred Stock On November 5, 2021, the Company filed a certificate of designations of Series H Convertible Preferred Stock (the “Certificate of Designations”) with the Nevada Secretary of State designating 39,895 shares of the Company’s shares of Preferred Stock as Series H Convertible Preferred Stock and setting forth the voting and other powers, preferences and relative, participating, optional or other rights of the Preferred Shares. Each share of Series H Preferred Stock has a par value of $ 0.001 per share and a stated value of $ 1.00 per share. Each Holder of Series H Preferred Stock is entitled to vote on an as-converted basis, with the number of votes equal to the underlying Common Stock shares their Series E Preferred Stock would represent on the voting record date and shall otherwise have the same voting rights as Common Stock. The Series H Preferred Stock does not have redemption rights. The Series H Preferred Stockholders are entitled to receive dividends when declared by the Board. The Board did not declare dividends since the issuance of the Series H Preferred Shares. The Series H Preferred Stock allowed holders to convert into common stock by a conversion ratio of 1:1,000. On November 11, 2021, pursuant to an exchange agreement that we entered into with the Investors, 39,895,000 shares of Common Stock held by the Investors were exchanged for 39,895 shares of Series H Preferred Stock and the Company cancelled the 39,895,000 shares of common stock. The Company valued the 39,895,000 shares and 39,895 shares of Series H Preferred Stock at $ 3,989,500 . Upon exchange, $40 was reclassified from the amount previously allocated into Common Stock par value into Series H Preferred Stock’s par value with the remaining $ 39,855 reclassified into in additional paid-in capital. At December 31, 2024 and 2023, 39,895 shares of Series H Preferred Stock remain outstanding. Common Stock No issuances of Common Stock occurred in 2024 and 2023. On August 14, 2021, our shareholders approved an increase in the authorized number of shares of Common Stock to 6,000,000,000, from 500,000,000 , which became effective the same day. As of December 31, 2024 and 2023, there were 1,603,095,243 shares outstanding, respectively. F- 33 Warrants We issued warrants issued as loan incentives and valued the warrants on their respective grant dates using the Black-Scholes option pricing model. Warrant values per share ranged from $0.023 to $0.002. For the year ended December 31, 2023, a summary of our warrant activity is as follows: Summary of our warrant activity is as follows Number of Warrants Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Weighted- Average Grant- Date Fair Value Outstanding and exercisable at December 31, 2022 234,423,017 $ 0.021 4.45 $ 3,966,694 Issued 20,000,000 0.020 6.03 87,675 Expired ( 500,000 ) — — — Outstanding and exercisable at December 31, 2023 253,923,017 $ 0.021 4.59 $ 3,963,981 F- 34 For the year ended December 31, 2024, a summary of our warrant activity is as follows: Number of Warrants Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Weighted- Average Grant- Date Fair Value Outstanding and exercisable at January 1, 2023 253,923,017 $ 0.021 4.59 $ 3,963,981 Expired ( 10,600,000 ) — — — Outstanding and exercisable at December 31, 2024 243,323,017 $ 0.021 2.05 $ 1,963,079 In determining the fair value of these equity-classified features, the Company considered the fact that its common stock is quoted on the OTC Expert Market, where trading volume is minimal and pricing is not reliably observable. Due to the absence of active market inputs, the Company determined that a quoted market price could not be used to value the conversion features. Instead, the Company referred to the most recent observable transaction price from a private placement conducted in 2021, in which it issued 4,600 shares of Series G Preferred Stock for total proceeds of $ 4,600,000 . On November 2, 2021, these preferred shares were converted into 255,555,556 shares of common stock, implying an effective per-share price of $ 0.018 . The Company used this price as the best available input to support the fair value assessment. Note 10 Discontinued Operations In the fourth quarter of 2022, management determined that Sovryn’s television broadcast business was not an efficient use of resources in light of the Company’s strategic focus on developing and launching its core business, BCTV. As a result, management initiated a plan to exit the Sovryn business and reallocate resources toward BCTV, including repayment of senior debt associated with the acquisition and operation of Sovryn. Accordingly, the operations of Sovryn have been classified as a discontinued operation in the accompanying consolidated financial statements for the years ended December 31 2023, in accordance with ASC 205-20. On February 1, 2023, pursuant to an agreement with the lender of the Company’s senior secured notes, Sovryn was sold to the lender. The net assets of Sovryn at the time of disposition totalled $ 9,159,907 , which was used to partially settle the principal balance of the senior secured notes, which totalled $16,500,000. The transaction was accounted for as a non-cash settlement. Sovryn’s operating results prior to disposition, as well as any related expenses, were recorded as part of the net loss from discontinued operations and included in the consolidated statements of operations. The following is a summary of Sovryn for the years ended December 31, 2023: Schedule of Previous Year Assets Liabilities and Expenses December 31, 2023 Assets Current assets $ — Accounts receivable, net — Prepaid expenses — Property, equipment and right-of-use assets — Intangible assets — Total Asset — Liabilities Accounts payable and accrued liabilities — Lease liability obligations — Total Liabilities — Revenues 163,620 General and administrative expense ( 9,170 ) Television operation expense — Amortization expense — Professional fees ( 163,473 ) Finance costs ( 686 ) Gain on partial settlement of senior secured notes (Note 8) 9,159,907 Loss on disposition of subsidiary ( 9,159,907 ) Impairment loss on long-lived assets — Income tax expense — Loss from discontinued operations $ ( 9,709 ) F- 35 Note 11 Income Taxes Income tax recovery differs from that which would be expected from applying the effective tax rates to the net loss as follows: Schedule of Income Tax Expense December 31, December 31, 2024 2023 Net loss for the year $ ( 2,800,549 ) $ ( 5,301,298 ) Statutory and effective tax rates 21.0 % 21.0 % Income taxes expenses (recovery) at the effective rate $ ( 588,115 ) $ ( 1,113,273 ) Effect of change in tax rates — — Permanent differences — — Valuation allowance 588,115 1,113,273 Income tax expense and income tax liability $ — $ — As at December 31, 2024 and 2023 the tax effect of the temporary timing differences that give rise to significant components of deferred income tax asset are noted below. A valuation allowance has been recorded as management believes it is more likely than not that the deferred income tax asset will not be realized. Schedule of Deferred Income Tax Asset December 31, December 31, 2024 2023 Cumulative net losses carried forward $ 31,658,127 $ 28,857,578 Deferred tax assets $ 6,648,207 $ 6,060,091 Valuation allowance ( 6,648,207 ) ( 6,060,091 ) Deferred taxes recognized $ — $ — We have incurred cumulative net losses in excess of $ 32 million since inception and we have not previously filed U.S. corporate income tax returns. Management estimates that we have no income tax liability. Based on our lack of profitability, management has not recognized net deferred tax assets for past losses. F- 36 Note 12 Contingency and Commitments On February 17, 2024, Agile Capital Funding LLC (“Agile”) filed a Confession of Judgment executed by Philip Falcone with the Supreme Court of the State of New York, County of New York. The filing stated that Sovryn Holdings Inc. (“Sovryn”) and Madison Technologies Inc. (“Madison”) owe Agile an amount of approximately $ 190,444 as of February 17, 2024, representing funds received on January 30, 2023, net of repayments, together with accrued interest and collection fees. Management has reviewed this matter and concluded that Madison has no obligation arising from this Confession of Judgment. The funds in question were received by Sovryn, which was a subsidiary of Madison at the time and was sold to Arena Group Holdings Inc. in February 2023, including all of Sovryn’s assets and liabilities. Accordingly, management believes that the Confession of Judgment relates to obligations of Sovryn prior to its sale. Madison has not received any demand or claim for payment in connection with this matter. Based on the information available, management believes it is unlikely that this matter will result in any obligation for Madison. No amount has been recognized in the financial statements, as any potential liability, if any, cannot be reasonably determined at this time. Our principal executive office, at which minimal operations are conducted and which we do not own or lease, is located at 2500 Westchester Avenue, Suite 401, Purchase, New York. We do not have an employment agreement with our Chief Executive Officer. Note 13 Subsequent Events The Company has evaluated subsequent events through October 29, 2025, the date the financial statements were available to be issued. Subsequent to the year-end, the Company received $ 247,575 in additional funding from its principal shareholder, Arena. These funds were provided to support the Company’s ongoing operations and working capital requirements. Management believes that this continued financial support from Arena demonstrates the shareholder’s commitment and provides the Company with sufficient liquidity to continue operations for the foreseeable future. Other than the above, management has determined that there are no other subsequent events. F- 37 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. There are no disagreements with our accountants on accounting and financial disclosure. Our independent registered public accounting firm since May 1, 2024, is SRCO Professional Corporation, Park Place Corporate Centre, 15 Wertheim Court, Suite 409, Richmond Hill, Ontario, Canada L4B 3H7. From May 21, 2024 to date, our independent registered public accounting firm is SRCO Professional Corporation (“SRCO”). With respect to the fiscal years ended December 31, 2022 and December 31, 2023, respectively, and the subsequent interim period to date, there were no disagreements between SRCO and us on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of SRCO, would have caused SRCO to make reference to the subject matter of the disagreement in their reports on our consolidated financial statements for such years. From March 27, 2022 to May 20, 2024, our independent registered public accounting firm was BF Borgers CPA PC, 5400 W Cedar Ave, Lakewood, CO 80226. Our Board of Directors dismissed BF Borgers CPA PC. During the fiscal years ended December 31, 2021 and December 31, 2022, respectively, and the subsequent interim period through September 30, 2023, there were no disagreements between BF Borgers CPA PC and us on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of BF Borgers CPA PC , would have caused BF Borgers CPA PC to make reference to the subject matter of the disagreement in their reports on our consolidated financial statements for such years.