Mitesco, Inc. 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA MITESCO, INC. INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS PAGE F-2 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB 6920 ) F-4 CONSOLIDATED BALANCE SHEETS F-5 CONSOLIDATED STATEMENTS OF OPERATIONS F-6 CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT F-7 CONSOLIDATED STATEMENTS OF CASH FLOWS F-9 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F- 1 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Mitesco, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Mitesco, Inc. (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. Substantial Doubt about the Company’s ability to Continue as a Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2, the Company has incurred net losses and working capital deficits. These factors, and the need for additional financing in order for the Company to meet its business plans raises substantial doubt about the Company’s ability to continue as a going concern. Our opinion is not modified with respect to that matter. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s 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 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 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 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 financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below 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. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. F- 2 Table of Contents Derivatives As described in Note 3 and Note 11 of the Company’s consolidated financial statements, during the years ended December 31, 2025 and 2024, the Company analyzes the conversion option of notes payable for derivative accounting under ASC 815, Derivative and Hedging . If the conversion feature within convertible debt meets the requirements to be treated as a derivative, the Company estimates and records the fair value of the derivative liability. The derivative liability is revalued at the end of each reporting period. We identified the Company’s application of the accounting for derivative liabilities as a critical audit matter. The principal considerations for our determination of this critical audit matter related to the high degree of subjectivity in the Company’s judgments in determining the qualitative inputs of the estimate. Auditing these judgments and assumptions by the Company involves auditor judgment due to the nature and extent of audit evidence and effort required to address these matters. Our audit procedures related to the accounting for and valuation of derivative liabilities included the following, among others: - Obtaining an understanding of and evaluating management’s process for accounting for and determining the fair value of the derivatives. - Evaluating the appropriateness of the valuation methods and assumptions utilized to determine the fair value of the derivative financial instruments. - Evaluating the professional credentials of management’s valuation specialist. - Utilizing a valuation specialist with the skills and knowledge to assist in (i) evaluating management’s methodology to determine fair value (ii) testing the mathematical accuracy of the models; and (iii) evaluating the reasonableness of the significant assumptions related to volatility. - Testing the completeness and accuracy of the underlying data utilized by management in the models. /s/ Astra Audit & Advisory LLC Astra Audit & Advisory LLC We have served as the Company’s auditor since 2024. Tampa, Florida April 15, 2026 F- 3 Table of Contents MITESCO, INC. CONSOLIDATED BALANCE SHEETS December 31, December 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $ 100,857 $ 3,402 Accounts receivable 27,600 29,700 Prepaid expenses and other current assets 3,651 4,968 Total current assets 132,108 38,070 Intangible assets, net - 151,771 Total Assets $ 132,108 $ 189,841 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities Accounts payable and accrued liabilities $ 4,027,183 $ 4,167,061 Accrued interest 398,356 374,376 Accrued interest - related parties - 22,547 Derivative liabilities 399,160 4,685,675 Deferred Revenue 10,000 - Royalty payable - 150,000 Lease liability - operating leases, current 99,477 99,477 Notes payable, net of discounts 639,416 548,137 Notes Payable, Related Parties, Net - 64,044 SBA loan payable 367,801 393,761 Convertible Notes Payable, Net 503,341 - Other current liabilities 96,136 96,136 Preferred stock dividends payable 26,314 - Preferred stock dividends payable - related parties - 14,439 Legal settlements 3,387,536 2,666,675 Series A preferred stock liability, current 9,447,335 5,160,815 Total current liabilities 19,402,055 18,443,143 Series A preferred stock liability, non-current 4,202,644 8,162,644 Total liabilities 23,604,699 26,605,787 Commitments and contingencies (Note 16) Stockholders’ deficit Preferred stock, $0.01 par value, 100,000,000 shares authorized; 500,000 shares designated Series A; 10,000,000 shares designated Series D; 140,000 shares designated as Series F, and 27,324 shares designated Series X. Preferred stock, Series D, $ 0.01 par value, no share and 25,000 shares issued and outstanding as of December 31, 2025, and December 31, 2024, respectively - 250 Preferred stock, Series F, $ 0.01 par value, no shares issued and outstanding as of December 31, 2025 and December 31, 2024 - - Preferred stock, Series X, $ 0.01 par value, 42,103 and 19,703 shares issued and outstanding at December 31, 2025, and December 31, 2024. 421 197 Common stock, $ 0.01 par value, 500,000,000 shares authorized, 15,093,055 and 9,762,258 shares issued and outstanding as of December 31, 2025, and 2024, respectively 150,931 97,623 Additional paid-in capital 39,732,684 37,341,335 Accumulated deficit ( 63,356,627 ) ( 63,855,351 ) Total stockholders’ deficit ( 23,472,591 ) ( 26,415,946 ) Total liabilities and stockholders’ deficit $ 132,108 $ 189,841 The accompanying notes are an integral part of these audited consolidated financial statements. F- 4 Table of Contents MITESCO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended December 31, 2025 2024 Revenue $ 38,700 $ 43,700 Operating expenses: Cost of operations 29,953 15,922 General and administrative 1,692,042 1,191,319 Software development 81,717 - Impairment of intangible assets 113,021 - Total operating expenses 1,916,733 1,207,241 Net Operating Loss ( 1,878,033 ) ( 1,163,541 ) Other income (expense): Interest expense ( 1,470,101 ) ( 409,745 ) Interest expense - related parties ( 5,797 ) ( 28,474 ) Gain on termination of operating lease - 869,690 Gain on settlement of notes payable - 515,964 Loss on legal settlement ( 500,000 ) - Gain on settlement of accounts liabilities 562,793 2,289,283 Loss on redemption of Series A preferred ( 646,653 ) - Change in fair value of contingent considerations 150,000 - Gain (loss) on revaluation of derivative liabilities 4,286,515 ( 4,585,124 ) Total other income (expense) 2,376,757 ( 1,348,406 ) Consolidated net income (loss) before taxes 498,724 ( 2,511,947 ) Provision for income taxes - - Consolidated net income (loss) after taxes 498,724 ( 2,511,947 ) Preferred stock dividends ( 68,923 ) ( 893,828 ) Preferred stock dividends - related parties ( 388 ) ( 139,901 ) Deemed contribution - 703,420 Net income (loss) available to common shareholders $ 429,413 $ ( 2,842,256 ) Basic Net income (loss) per common share $ 0.04 $ ( 0.42 ) Dilutive Net loss per common share ( 0.14 ) ( 0.42 ) Weighted average shares outstanding - basic 12,081,634 6,733,863 Weighted average shares outstanding - diluted 26,250,928 6,733,863 The accompanying notes are an integral part of these audited consolidated financial statements. F- 5 Table of Contents MITESCO, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS ’ DEFICIT FOR THE YEAR ENDED DECEMBER 31, 2025 and 2024 Preferred Stock Series D Preferred Stock Series F Preferred Stock Series X Common Stock Additional Paid-in Accumulated Shares Amount Shares Amount Shares Amount Shares Amount capital Deficit Total Balance, December 31, 2023 250,000 $ 2,500 20,057 $ 201 24,227 $ 242 5,567,957 $ 55,680 $ 47,856,444 $ ( 62,046,824 ) $ ( 14,131,757 ) Shares issued for compensation - - - - - - 1,575,000 15,750 506,266 - 522,016 Series X shares issued as compensation - - - - 7,200 72 - - 179,928 - 180,000 Conversion of accounts payable to common stock - - - - - - 237,349 2,373 59,955 - 62,328 Conversion of debt to common stock by a related party - - - - - - 79,298 793 362,067 - 362,860 Conversion of debt to common stock - - - - - - 154,107 1,541 40,067 - 41,608 Conversion of Series F Preferred Stock and accrued dividends to common stock - - ( 8,333 ) ( 84 ) - - 1,889,835 18,899 968,676 - 987,491 Conversion of Series D Preferred Stock and accrued dividends to common stock ( 100,000 ) ( 1,000 ) - - - - 30,802 308 100,857 - 100,165 Conversion of Series X Preferred Stock to common stock - - - - ( 11,724 ) ( 117 ) 86,788 868 ( 751 ) - - Exchange of Series D and Series F Preferred for Series A Preferred ( 125,000 ) ( 1,250 ) ( 11,724 ) ( 117 ) - - - - ( 11,853,882 ) 703,420 ( 11,151,829 ) Preferred stock dividends - - - - - - - - ( 1,033,729 ) - ( 1,033,729 ) Shares issued for Series X dividends - - - - - - 141,122 1,411 103,043 - 104,454 Release of true-up obligation on commitment shares - - - - - - - - 152,945 - 152,945 Establishment of derivative liability of conversion feature upon default - - - - - - - - ( 100,551 ) - ( 100,551 ) Net income - - - - - - - - - ( 2,511,947 ) ( 2,511,947 ) Balance, December 31, 2024 25,000 250 - - 19,703 $ 197 9,762,258 97,623 37,341,335 ( 63,855,351 ) ( 26,415,946 ) Shares issued for compensation - - - - - - 1,225,000 12,250 252,400 - 264,650 Series X shares issued as compensation - - - - 22,400 224 - - 559,776 - 560,000 Shares issued for conversion of Series D preferred shares and debt to common stock ( 25,000 ) ( 250 ) - - - - 150,000 1,500 41,035 - 42,285 Shares issued for redemption of Series A preferred shares - - - - - - 3,794,755 37,948 1,566,450 - 1,604,398 Shares issued for Series X dividends - - - - - - 161,042 1,610 40,999 - 42,609 Preferred stock dividends - - - - - - - - ( 69,311 ) - ( 69,311 ) Net income - - - - - - - - - 498,724 498,724 Balance, December 31, 2025 - $ - - $ - 42,103 $ 421 15,093,055 $ 150,931 $ 39,732,684 $ ( 63,356,627 ) $ ( 23,472,591 ) The accompanying notes are an integral part of these audited consolidated financial statements. F- 6 Table of Contents MITESCO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 498,724 $ ( 2,511,947 ) Adjustments to reconcile net loss to net cash used in operating activities: Amortization of intangible assets 38,750 3,229 Original issue discount charged to interest expense 11,091 - Share Based compensation 824,650 702,016 Accretion of Series A recorded as interest expense 1,159,265 - Loss on redemption of Series A Preferred 646,653 - Loss on legal settlement 500,000 - Gain (loss) on lease terminations - ( 869,690 ) Gain on settlement of notes payable - ( 515,964 ) Gain on settlement of accounts payable - ( 2,289,283 ) (Gain) loss on revaluation of derivative liabilities ( 4,286,515 ) 4,585,124 Gain on settlement of liabilities ( 562,793 ) - Impairment of intangible assets 113,021 - Change in fair value of contingent considerations ( 150,000 ) - Bad debt expense 8,700 - Changes in assets and liabilities: Accounts receivable ( 6,600 ) ( 29,700 ) Prepaid expenses and other current assets 1,317 ( 4,968 ) Accounts payable and accrued liabilities 416,151 195,578 Deferred Revenue 10,000 - Accrued interest 73,703 187,215 Accrued interest - related parties 2,298 33,981 Net cash used in operating activities ( 701,585 ) ( 514,409 ) CASH FLOWS FROM INVESTING ACTIVITIES Cash paid for acquisition of business - ( 5,000 ) Net cash used in investing activities - ( 5,000 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from sales of Series A Preferred Stock 125,000 - Principal payments on SBA Loan ( 25,960 ) ( 28,027 ) Proceeds from convertible notes payable 500,000 - Proceeds from notes payable, net of discounts 200,000 548,000 Net cash provided by financing activities 799,040 519,973 Net change in cash and cash equivalents 97,455 564 Cash and cash equivalents at beginning of period 3,402 2,838 Cash and cash equivalents at end of period $ 100,857 $ 3,402 The accompanying notes are an integral part of these audited consolidated financial statements. F- 7 Table of Contents MITESCO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2025 2024 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Interest paid $ 3,845 $ 4,128 Income taxes paid $ - $ - Supplemental disclosure of financing cash flow information: Shares issued for Series X dividends $ 42,609 $ 104,454 Preferred stock dividend $ 69,311 $ 1,033,729 Shares issued for redemption of Series A shares $ 1,604,398 $ - Shares issued for settlement of Series D, notes payable, and accrued liabilities – related party $ 267,423 $ - Conversion of accounts payable to common stock $ 171,712 $ 62,328 Conversion of notes payable and accrued interest to common stock $ 166,194 $ 363,608 Conversion of notes payable to common stock - related party $ - $ 969,469 Conversion of Series F Preferred Stock and accrued dividends to common stock $ - $ 987,575 Conversion of Series D Preferred Stock and accrued dividends to common stock $ - $ 101,165 Conversion of Series X Preferred Stock and accrued dividends to common stock $ - $ 117 Conversion of Series F and Series D preferred stock to Series A preferred stock $ - $ 12,774,079 Conversion of Notes Payable and accrued interest to Series A preferred stock $ - $ 580,132 Royalty payable issued for purchase of business $ - $ 150,000 Release of true-up obligation on commitment shares $ - $ 152,945 Establishment of derivative liability of conversion feature upon default $ - $ 100,551 The accompanying notes are an integral part of these audited consolidated financial statements. F- 8 Table of Contents MITESCO, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 Note 1: Description of Business Company Overview Mitesco, Inc. (the “Company,” “we,” “us,” or “our”) was formed in the state of Delaware on January 18, 2012. On December 9, 2015, we restructured our operations and acquired Newco4pharmacy, LLC, a development stage company which sought to acquire compounding pharmacy businesses. As a part of the restructuring, we completed a “spin out” of our former business line. On April 24, 2020, we changed our name to Mitesco, Inc. and the Company completed a move of its corporate status to Nevada from Delaware in order to effect reduced costs. From 2020 through 2022, our operations were focused on establishing medical clinics utilizing Nurse Practitioners under The Good Clinic name and development and acquisition of telemedicine technology. We opened our first The Good Clinic in Minneapolis, Minnesota in the first quarter of 2021 and had six operating clinics during the year ended December 31, 2022, with two additional sites under contract. In the fourth quarter of fiscal 2022, we made the strategic decision to close the entire clinic operation and release our staff due to a lack of profitability. We are a holding company seeking to provide products, services and technology. We have a number of near-term opportunities that we hope to pursue, assuming the capital markets make sufficient funding available at reasonable rates. During the first quarter of 2024 we recruited a number of individuals to a newly formed Advisory Board, who might assist the Company in determining the viability of certain ventures going forward. These individuals have a background in data center services, cyber and data security and software applications related to infrastructure design, implementation and management including geographical information systems (GIS). In June 2024 we announced the formation of two (2) new wholly owned business units, Centcore, LLC, who is providing data center services including cloud computing and application hosting, and Vero Technology Ventures, LLC, whose aim is to seek investment and acquisition opportunities, generally in the areas of cloud computing and data center related applications. Centcore has two (2) areas of focus. The first, generic data center services, is aimed at hosting applications for a specific user, sometimes referred to as “managed services offerings” or MSO, where the client moves the software licensed from various vendors, or internally developed, into our data center where we maintain the computing, communications and backup environment. The second focus involves hosting application software developed by software vendors, from which they will sell the use of the software by their end user clients on a “cloud” basis. By taking this approach, we hope to gain the business of the vendor, and their clients, perhaps allowing us to grow at a faster rate with lower cost of sales. We have developed the “Centcore Partner Program” where we will help promote the software vendors who are hosting in our data centers. If we are successful helping the vendor grow his business, we will have provided a “value added service”, and benefit from increased utilization of our computing resources by not only the vendor, but also his new end user clients. Our initial focus for this area is on software providers who serve the “infrastructure” market doing design, engineering, construction and maintenance of significant assets. We desire to create “life cycle” relationships with both the design teams, and owners which may include private owners such as manufacturers and utilities, or publicly owned assets for municipalities, states or federal governments, domestically and internationally. We have retained proven professionals in the data center, cyber security and infrastructure services areas to support our needs on a per hour basis, which we believe will allow us to control our costs relative to business activity, without significant staffing internally. The Vero Technology Ventures (“VTV”) subsidiary is actively reviewing potential early-stage cloud computing solution vendors and is developing its own artificial intelligence (A.I.) based application set. VTV is currently involved with the formation of a new software development project aimed at applying artificial intelligence (A.I.) to the sales process for various businesses including residential real estate using cloud computing-based software. This initial effort of project development has been dubbed “Robo Agent.” Later versions may include similar functionality focused on other markets, generally in a “business to consumer” (B2C) selling situation. In August 2025 we retained a highly qualified executive to begin development of our Robo Agent product set on a consulting basis at a rate of $ 10,000 per month. We have also recruited three (3) additional contract programmers to accelerate the overall process. In September 2025 we received a contract for development of a new application intended to affect the listing and sale of properties and products specifically related to sports, and the pickleball arena initially. F- 9 Table of Contents Note 2: Going Concern As of December 31, 2025, the Company had cash and cash equivalents of approximately $ 100,857 current liabilities of approximately $ 19.4 million, and has incurred significant losses from the previous clinic operations. As previously noted, we made a strategic decision to reduce our capital needs by closing our entire clinic operations in the fourth quarter of 2022 and releasing our entire staff, due to lack of profitability. The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding to execute its business plan. As a result of these factors, there is substantial doubt about the ability of the Company to continue as a going concern for one year from the date the financial statements are issued. The Company’s continuance is dependent on raising capital and generating revenues sufficient to sustain operations. However, as of the date of these consolidated financial statements, no formal agreement exists. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts classified as liabilities that might be necessary should the Company be forced to take any such actions. Note 3: Summary of Significant Accounting Policies Basis of Presentation – The consolidated financial statements are prepared in conformity with accounting principles accepted in the United States of America (“GAAP”). Principles of Consolidation – The accompanying consolidated financial statements include the accounts of Mitesco, Inc., and its wholly owned subsidiaries Mitesco NA, LLC, The Good Clinic, LLC, Vero Technology Ventures, LLC, and Centcore, LLC. In addition, we relied on the operating activities of certain legal entities in which we did not maintain a controlling ownership interest, but over which we had indirect influence and of which we were considered the primary beneficiary. These entities are typically subject to nominee ownership and transfer restriction agreements that effectively transfer the majority of the economic risks and rewards of their ownership to the Company. The Company’s management, restrictions and other agreements concerning such nominee-owned entities typically include both financial terms and protective and participating rights to the entities’ operating, strategic and non-clinical governance decisions which transfer substantial powers over and economic responsibility for these entities to the Company. As such, the Company applies the guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 – Consolidation (“ASC 810”), to determine when an entity that is insufficiently capitalized or not controlled through its voting interests, referred to as a variable interest entity should be consolidated. All intercompany balances and transactions have been eliminated. Use of Estimates - The preparation of these financial statements requires our management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and related notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Cash - The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Property and Equipment - Property and equipment is recorded at the lower of cost or estimated net recoverable amount and is depreciated using the straight-line method over its estimated useful life. Property acquired in a business combination is recorded at estimated initial fair value. Property and equipment are depreciated using the straight-line method based on the lesser of the estimated useful lives of the assets or the lease term based upon the following life expectancy: Years Office equipment 3 to 5 Furniture & fixtures 3 to 7 Machinery & equipment 3 to 10 Leasehold improvements Term of lease Revenue Recognition – The Company recognizes revenue in accordance with ASC 606 when it has satisfied the performance obligations under an arrangement with the customer reflecting the terms and conditions under which products or services will be provided, the fee is fixed or determinable, and collection of any related receivable is probable. ASC Topic 606, “Revenue from Contracts with Customers” establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to performance obligations in the contract; and 5) recognize revenue as the performance obligation is satisfied. F- 10 Table of Contents Our revenues generally relate to data center services. Revenues are recorded during the period our obligations to provide services are satisfied. The Company’s performance obligation for its revenue stream is to provide the access to its data centers to the customer, and revenues associated with completed sales are recognized rateably over the contractual term as services are provided to the customer. There is no significant financing component to the Company’s sales. In September 2025 we received a contract for development of a new application intended to effect the listing and sale of properties and products specifically related to sports. We expect this project to be executed using both internal and external resources and to be completed in late FY2026. As of December 31, 2025, we have received an upfront fee of $ 10,000 , which is reflected as deferred revenue as no performance obligations under the contract have been satisfied. Capitalized Software Development Costs - Software development costs primarily consist of personnel costs. We capitalize software development costs upon the establishment of technological feasibility and prior to the availability of the product for general release to clients for software sold to third parties. During the years ended December 31, 2025, and 2024 no costs have been capitalized as we have not yet reached technological feasibility. We begin to amortize capitalized costs when a product is available for general release to clients. Amortization expense is determined on a product-by-product basis at a rate not less than straight-line basis over the software’s remaining estimated economic life. Software Research and Development Costs - Research and development costs are expensed as incurred and include compensation costs for engineering and product management personnel, third-party contractor expenses, software development tools and other expenses related to researching and developing new solutions or upgrading and enhancing existing solutions that do not qualify for capitalization. We expensed research and development costs of $ 81,717 in 2025, and $ 0 in 2024. Stock-Based Compensation - We recognize the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which performance is required. Share-based compensation cost for stock options is estimated at the grant date based on each option’s fair-value as calculated by the Black-Scholes-Merton (“BSM”) option-pricing model. Share-based compensation arrangements may include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. Convertible Instruments - The Company reviews the terms of convertible debt and equity instruments to determine whether there are conversion features or embedded derivative instruments including embedded conversion options that are required to be bifurcated and accounted for separately as a derivative financial instrument. In circumstances where the convertible instrument contains more than one embedded derivative instrument, including conversion options that are required to be bifurcated, the bifurcated derivative instruments are accounted for as a single compound instrument. Also, in connection with the sale of convertible debt and equity instruments, the Company may issue free standing warrants that may, depending on their terms, be accounted for as derivative instrument liabilities, rather than as equity. When convertible debt or equity instruments contain embedded derivative instruments that are to be bifurcated and accounted for separately, the total proceeds allocated to the convertible host instruments are first allocated to the fair value of the bifurcated derivative instrument. The remaining proceeds, if any, are then allocated to the convertible instruments themselves, usually resulting in those instruments being recorded at a discount from their face amount. When the Company issues debt securities, which bear interest at rates that are lower than market rates, the Company recognizes a discount, which is offset against the carrying value of the debt. Such a discount from the face value of the debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to income. In addition, certain conversion features are recognized as beneficial conversion features to the extent the conversion price as defined in the convertible note is less than the closing stock price on the issuance of the convertible notes. Derivative Financial Instruments - Derivatives are recorded on the consolidated balance sheet at fair value. The conversion features of the convertible notes are embedded derivatives and are separately valued and accounted for on the consolidated balance sheet with changes in fair value recognized during the period of change as a separate component of other income/expense. Fair values for exchange-traded securities and derivatives are based on quoted market prices. The pricing model the Company uses for determining the fair value of its derivatives is the Monte Carlo Model. Valuations derived from this model are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as discount rates and stock price volatilities. Per Share Data - Basic income (loss) per share is computed by dividing net loss by the weighted average number of common shares outstanding for the year. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to warrants, options, and convertible instruments. As of December 31, 2025 the effect of 3,333,375 shares issuable upon the conversion of Series A preferred shares, 14,131,738 shares issuable upon the conversion of convertible notes, and 37,556 shares issuable upon exercise of the outstanding warrant and common stock options were anti-dilutive and not included in the computation of dilutive earnings per share. As of December 31, 2024 the effect of 3,518,738 shares issuable upon the conversion of Series A preferred shares, 1,252 shares issuable upon conversions of the Series D preferred shares, 11,969,780 shares issuable upon the conversion of convertible notes, and 54,434 shares issuable upon exercise of the outstanding warrant and common stock options were anti-dilutive and not included in the computation of dilutive earnings per share. F- 11 Table of Contents Income Taxes - The Company accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. In estimating future tax consequences, the Company considers all expected future events other than enactments of changes in the tax laws or rates. The Company has a sizable tax loss carryforward at this time and as a result it is unlikely that it will have a need for payment of taxes in the near term. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all the deferred tax assets will not be realized. The Company has determined that a valuation allowance is needed due to recent taxable net operating losses and the limited taxable income in the carryback periods. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and certain tax loss carryforwards, less any valuation allowance. The Company accounts for uncertain tax positions as required in that a position taken or expected to be taken in a tax return is recognized in the consolidated financial statements when it is more likely than not (i.e., a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% of being realized upon ultimate settlement. The Company does not have any material unrecognized tax benefits. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as components of interest expense and other expense, respectively, in arrival at pretax income or loss. The Company does not have any interest and penalties accrued. The Company is no longer subject to U.S. federal, state, and local income tax examinations for the years before 2012. Long-lived Assets The Company amortizes acquired definite-lived intangible assets over their estimated useful lives. Other indefinite-lived intangible assets are not amortized but subject to annual impairment tests. In accordance with ASC 360 “Property Plant and Equipment,” the Company reviews the carrying value of intangibles subject to amortization and long-lived assets for impairment throughout the year or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment of Long-Lived Assets - Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheet and reported at the lower of the carrying amount or fair value, less costs to sell and are no longer depreciated. The assets and liabilities of a disposal group classified as held-for-sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheet, if material. Financial Instruments and Fair Values - The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument. In determining fair value, we use various valuation methodologies and prioritize the use of observable inputs. We assess the inputs used to measure fair value using a three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market: Level 1 – inputs include exchange quoted prices for identical instruments and are the most observable. Level 2 – inputs include brokered and/or quoted prices for similar assets and observable inputs such as interest rates. Level 3 – inputs include data not observable in the market and reflect management judgment about the assumptions market participants would use in pricing the asset or liability. The use of observable and unobservable inputs and their significance in measuring fair value are reflected in our hierarchy assessment. The carrying amount of cash, prepaid assets, accounts payable and accrued liabilities approximate fair value due to the short-term maturities of these instruments. Because cash and cash equivalents are readily liquidated, management classifies these values as Level 1. The fair value of the derivative liabilities approximates their book value as the instruments are short-term in nature and contain market rates of interest. Because there is no ready market or observable transactions, management classifies the derivative liabilities as Level 3. F- 12 Table of Contents Segments The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company’s Chief Operating Decision Maker (“CODM”) is its Chief Executive Officer. The CODM allocates resources and evaluates the performance of the Company at the consolidated level using information about its revenues, gross profit, and income from operations. All significant operating decisions are based upon an analysis of the Company as one operating segment, which is the same as its reporting segment. Recent Accounting Standards In December 2023, the FASB issued ASU 2023-09 , Income Taxes ( Topic 740 ) : Improvements to Income Tax Disclosures, which expands the disclosures required for income taxes. This ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendment should be applied on a prospective basis while retrospective application is permitted. The Company adopted this standard effective January 1, 2025, which did not have a material impact on the Company’s consolidated financial statements. In November 2024, the FASB issued ASU 2024-03 , Disaggregation of Income Statement Expenses , and in January 2025, the FASB issued ASU 2025-01 , Clarifying the Effective Date (“ASU 2025-01”). The amendments are intended to enhance disclosures regarding an entity’s costs and expenses by requiring additional disaggregated information disclosures about certain income statement expense line items. The amendments, as clarified by ASU 2025-01, are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the effect of this pronouncement on its disclosures. In July 2025, the FASB issued ASU 2025-05 , Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 amends ASC, Financial Instruments – Credit Losses (Topic 326) (“ASC Topic 326”) to simplify how entities measure credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC, Revenue from Contracts with Customers (Topic 606) (“ASC Topic 606”). This update allows entities to assume that current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when estimating expected credit losses. ASU 2025-05 is effective for interim and annual periods beginning after December 15, 2025. Early adoption is permitted. The Company has not yet adopted ASU 2025-05 but does not expect the adoption of this standard to have a material impact on the Company’s consolidated financial statements. There are various other updates recently issued, most of which represent technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Note 4: Business Acquisition On December 6, 2024, the Company entered into an Exclusive Source Code License agreement (the “License Agreement”) between AgingTopic, LLC (“AgingTopic”) and the Company where the Company has acquired, subject to certain payment milestones, the source code and business activities of AgingTopic, which constitutes substantially all of AgingTopic’s assets utilized in the creation of advertising revenue from blog postings.. The agreement calls for a $ 5,000 cash payment upon execution, and certain royalty payments up to a maximum of $ 150,000 , at which time it becomes a fully paid-up license. The royalty payments are to be repaid at 30% of net collection up to the first $50,000 has been repaid, after which the remaining $100,000 will be repaid based on 15% of net collections. After the payment of the $150,000 license fee, the Company will then pay a commission of 2.5% of net collections until 36 months after the date of the agreement. This acquisition closed on December 6, 2024. The acquisition of AgingTopic is being accounted for as a business combination under ASC 805. The royalty payable is accounted for as a contingent consideration liability under ASC 805, with changes in fair value of the expected royalty amount recognized in current earnings. AgingTopic had not yet generated revenues prior to the time of acquisition. As of December 31, 2025, Company determined it would not actively pursue the development of the AgingTopic Business and as such considered the payment of the royalty payments as remote and recorded a $ 150,000 gain on the change in fair value of contingent consideration during the year ended December 31, 2025. Note 5: Intangible assets The following table represents the balances of intangible assets as of December 31, 2025 and 2024; December 31, 2025 December 31, 2024 Website Domains $ - $ 155,000 Total Intangible assets - 155,000 Accumulated Amortization – website domains - ( 3,229 ) Net intangible assets $ - $ 151,771 On December 6, 2024, the Company closed on its acquisition of the AgingTopic Business and allocated the entire $ 155,000 purchase price to domain name assets with an estimated life of 4 years. See Note 4 for additional details. During the year ended December 31, 2025, the Company determined it would not actively pursue the development of the AgingTopic business and as such recorded an impairment expense of $ 113,021 . The Company recorded amortization expense of $ 38,750 and $ 3,229 for the years ended December 31, 2025 and 2024. F- 13 Table of Contents Note 6: Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consisted of the following at December 31, 2025, and 2024: December 31, December 31, 2025 2024 Trade accounts payable $ 3,872,746 $ 3,677,455 Accrued payroll and payroll taxes 154,437 489,606 Total accounts payable and accrued liabilities $ 4,027,183 $ 4,167,061 Note 7: Right to Use Assets and Lease Liabilities – Operating Leases The Company had operating leases for its clinics for which the Company is currently in negotiations with the Lessors to settle the remaining amounts owed after closing the clinic facilities. The Company’s lease expense was entirely comprised of operating leases and is reported as a component of discontinued operations as a result of the closing of the clinics and the subsequent sale of the assets. Operating lease liabilities are summarized below: December 31, 2025 December 31, 2024 Lease liability $ 99,477 $ 99,477 Less: current portion ( 99,477 ) ( 99,477 ) Lease liability, non-current $ - $ - As a result of closing the facilities, the Company has made no further lease payments during the year ending December 31, 2024, or the year ending December 31, 2025. As of December 31, 2025, the Company has either settled amounts owed or entered into default judgements for all leases except for the office lease, noted in the above table, which we believe is nominal. For all leases for which a legal settlement has been entered into, all amounts have been reclassified to legal settlements as of December 31, 2025. Note 8: SBA Loan Payable PPP Loan Conversion to SBA Loan During March 2020, in response to the COVID-19 crisis, the federal government announced plans to offer loans to small businesses in various forms, including the Payroll Protection Program, or (“PPP”), established as part of the Corona Virus Aid, Relief and Economic Security Act (“CARES Act”) and administered by the U.S. Small Business Administration (the “SBA”). On April 25, 2020, the Company entered an unsecured Promissory Note with Bank of America for a loan in the original principal amount of $ 460,400 , and the Company received the full amount of the loan proceeds on May 4, 2020 (the “PPP Loan”). The PPP Loan bears interest at the rate of 1 % per year. On July 12, 2023, the Company received confirmation of a payment plan arrangement from the SBA. Pursuant to this payment plan, the Company agreed to pay a minimum of $ 2,595 each month until the loan is paid in full in July 2028. The SBA confirmed the balance due on the loan, including principal and interest, was $ 467,117 . The Company will amortize the balance due on the loan including interest at the original PPP loan rate of 1% per annum; a gain on restructuring of debt in the amount of $ 40,622 was recorded on this transaction during the year ended December 31, 2023, and the balance of the loan was recorded at the amount of $ 433,343 representing the net cash flows discounted at 1 %. During the years ended December 31, 2025 and 2024, the Company made principal payments of $ 25,960 and $ 28,027 on this loan and recorded interest in the amount of $ 3,845 and $ 4,128 , respectively. The balance as of December 31, 2025, was $ 367,801 . Note 9: Notes Payable and Convertible Notes Payable Notes Payable The following table summarizes the outstanding notes payable as of December 31, 2025 and 2024, respectively: December 31, 2025 December 31, 2024 Kishon Note $ 431,666 $ 431,666 Finnegan Note 1 - 51,765 Finnegan Note 2 - 32,353 Finnegan Note 3 - 32,353 2025 Bridge Notes 207,750 - Total Notes Payable 639,416 548,137 Current Portion ( 639,416 ) ( 548,137 ) Long-term portion $ - $ - F- 14 Table of Contents Kishon Note On May 10, 2022, the Company entered into a Securities Purchase Agreement (the “Kishon Agreement”) with Kishon Investments, LLC (“Kishon”) with respect to the sale and issuance to Kishon of: (i) an initial commitment fee in the amount of $ 159,259 in the form of 12,741 shares (the “Kishon Commitment Fee Shares”) of the Company’s Common Stock, (ii) a promissory note in the aggregate principal amount of $277,777 (the “Kishon Note”), and (iii) Common Stock Purchase Warrants to purchase 5,556 shares of the Company’s common stock (the “Kishon Warrants”). Should Kishon receive net proceeds of less than $159,259 from the sale of the Kishon Commitment Fee Shares, the Company will issue additional shares to Kishon or pay the shortfall amount to Kishon in cash. The terms of the Kishon Agreement resulted in the Company recording a derivative liability in the initial amount of $ 27,793 . The Kishon Note was issued in the principal amount of $ 277,777 for a purchase price of $ 250,000 resulting in an original issue discount of $ 27,777 . The Kishon Note has a due date of November 10, 2022 , and bears interest at the rate of 10 % per year for the first six months and 12 % thereafter. In the event of default as defined in the Kishon Note this rate will increase to 18 %, and the Kishon Note will become convertible at a price per share equal to the lowest trading price during the previous twenty trading days prior to the conversion date. The Kishon Note entered default status on November 11, 2022. The Kishon Commitment Fee Shares and Kishon Warrants resulted in a discount to the Kishon Note in the amount of $ 138,492 . During the year ended December 31, 2023, a default penalty in the amount of $ 138,889 and an additional fee in the amount of $ 15,000 were added to the principal amount of the Kishon Note. During the year ended December 31, 2024, as a result of the variable price of the conversion feature, the Company recorded an initial derivative liability of $ 100,551 upon bifurcating the conversion feature pursuant to ASC815. See Note 11 to these financials for further discussion. At December 31, 2025, principal and interest in the amount of $ 431,666 and $ 244,524 , respectively, were due on the Kishon Note. At December 31, 2024, principal and interest in the amount of $ 431,666 and $ 166,823 , respectively, were due on the Kishon Note. This note was in default at December 31, 2025. Finnegan Note 1 On May 23, 2022, the Company issued a 10 % Promissory Note in the principal amount of $ 47,059 to Jessica Finnegan (the “Finnegan Note 1”). Finnegan Note 1 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 20, 2022 , as extended, or (ii) five (5) business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of Finnegan Note 1 was $ 40,000 ; the amount payable at maturity will be $47,059 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Finnegan Note 1, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18 %. Finnegan Note 1 entered default status on November 21, 2022, and the interest rate increased to 18%. The Finnegan Note 1 contains a “most favored nations” clause that provides that, so long as the note is outstanding, if the Company issues any new security which Ms. Finnegan reasonably believes contains a term that is more favorable than those in the Finnegan Note 1, the Company shall notify Ms. Finnegan of such term, and such term, at the option of Ms. Finnegan, shall become a part of the Finnegan Note 1. In addition, Ms. Finnegan received five-year warrants to purchase 386 shares of common stock at a price of $ 25.00 per share with a fair value of $ 2,000 at the date of issuance, and 1,930 shares of common stock with a value of $ 3,240 ; these amounts were recorded as discounts to Finnegan Note 1. Finnegan Note 2 On May 26, 2022, the Company issued a 10 % Promissory Note in the principal amount of $ 29,412 to Jessica Finnegan (the “Finnegan Note 2”). Finnegan Note 2 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022 , or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Finnegan Note 2 was $ 25,000 ; the amount payable at maturity will be $29,412 plus 10% of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Finnegan Note 2, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18 %. Finnegan Note 2 entered default status on December 1, 2022, and the interest rate increased to 18%. The Finnegan Note 2 contains a “most favored nations” clause that provides that, so long as the note is outstanding, if the Company issues any new security which Ms. Finnegan reasonably believes contains a term that is more favorable than those in the Finnegan Note 2, the Company shall notify Ms. Finnegan of such term, and such term, at the option of Ms. Finnegan, shall become a part of the Finnegan Note 2. In addition, Ms. Finnegan received five-year warrants to purchase 242 shares of common stock at a price of $ 25.00 per share with a fair value of $ 1,250 at the date of issuance, and 242 shares of common stock with a value of $ 2,025 ; these amounts were recorded as discounts to the Finnegan Note 2. F- 15 Table of Contents Finnegan Note 3 On August 4, 2022, the Company issued a 10 % Promissory Note in the principal amount of $ 29,412 (the “Finnegan Note 3”) to Jessica, Kevin C., Brody, Isabella and Jack Finnegan (collectively, the “Finnegans”). Finnegan Note 3 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) February 3, 2023 , or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of Finnegan Note 3 was $ 25,000 ; the amount payable at maturity will be $29,412 plus 10 % of that amount plus any accrued and unpaid interest. Following an event of default as defined in Finnegan Note 3, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18 %. The Finnegan Note 3 contains a “most favored nations” clause that provides that, so long as the note is outstanding, if the Company issues any new security which The Finnegans reasonably believes contains a term that is more favorable than those in the Finnegan Note 3, the Company shall notify The Finnegans of such term, and such term, at the option of The Finnegans, shall become a part of the Finnegan Note 3. In addition, The Finnegans received five-year warrants to purchase 242 shares of common stock at a price of $ 25.00 per share with a fair value of $ 850 at the date of issuance, and 242 shares of common stock with a value of $ 1,100 ; these amounts were recorded as discounts to the Finnegan Note 3. On April 24, 2025, the Company entered into an Obligation Exchange Agreement with Finnegan whereby Finnegan agreed to settle the above notes, accrued interest and other obligations in consideration of the issuance of 75,000 shares of restricted common stock for each of the holders. As a result of the exchange, which was accounted for as a troubled debt restricting, the Company recorded a gain on settlement of liabilities of $ 303,638 . At December 31, 2025, all principal and accrued interest were fully satisfied and retired on these notes. At December 31, 2024, principal and accrued interest in the amount of $ 105,883 and $ 44,957 , respectively, were due on these notes. 2025 Bridge Notes On May 6, 2025, the Company entered into a short term note payable agreement with one of its investors and received cash proceeds of $ 25,000 . The note is bears interest at 10 % per annum and matures 10 days after issuance, May 17, 2025. In the event of default, the Company is required to pay 120 % of the principal balance. This note has been exchanged for a 12 month note without penalty with an original issue discount of 5%, bears no interest on the unpaid principal balance of Notes unless and until an event of default has occurred and in the event of default, accrue interest at a rate equal to 15 % or, if less, the highest amount permitted by law payable from and after the occurrence and during the continuance of any event of default until the event of default is cured, and have a twelve month term. The total face value of the Notes in aggregate is $ 26,250 . An event of default includes, among others, failure to pay the debt on maturity date, breach of representation or warranty, occurrence of a material adverse event, failure to comply with reporting obligations with the Securities and Exchange Commission, or the loss of trading of Company’s common stock on the OTC Markets. In the event of default, the Notes are convertible at the election of the noteholder, into common stock of the Company at the average VWAP price for the preceding five business days but in no event can the holder elect to convert to the extent they would beneficially own more than 4.99 % of the outstanding shares. The obligations under the are guaranteed by the subsidiaries of the Company and include a pledge of the securities the Company’s subsidiaries and a first priority senior security interest in all the Company’s assets. On May 19, 2025, the Company entered into Senior Secured 5% Original Issue Discount Promissory Notes with three of its institutional investors for gross proceeds of $ 75,000 . (“Notes”). The Notes are issued with an original issue discount (OID) of 5%, bear no interest on the unpaid principal balance of Notes unless and until an event of default has occurred and in the event of default, accrue interest at a rate equal to 15 % or, if less, the highest amount permitted by law payable from and after the occurrence and during the continuance of any event of default until the event of default is cured, and have a twelve month term. The total face value of the Notes in aggregate is $ 76,500 . An event of default includes, among others, failure to pay the debt on maturity date, breach of representation or warranty, occurrence of a material adverse event, failure to comply with reporting obligations with the Securities and Exchange Commission, or the loss of trading of Company’s common stock on the OTC Markets. In the event of default, the Notes are convertible at the election of the noteholder, into common stock of the Company at the average VWAP price for the preceding five business days but in no event can the holder elect to convert to the extent they would beneficially own more than 4.99 % of the outstanding shares. The obligations under the are guaranteed by the subsidiaries of the Company and include a pledge of the securities the Company’s subsidiaries and a first priority senior security interest in all the Company’s assets. On July 21, 2025, the Company entered into Senior Secured 5 % Original Issue Discount Promissory Notes with two of its institutional investors for gross proceeds of $ 100,000 . (“Notes”). The Notes are issued with an original issue discount (OID) of 5%, bear no interest on the unpaid principal balance of Notes unless and until an event of default has occurred and in the event of default, accrue interest at a rate equal to 15 % or, if less, the highest amount permitted by law payable from and after the occurrence and during the continuance of any event of default until the event of default is cured, and have a twelve month term. The total face value of the Notes in aggregate is $ 105,000 . An event of default includes, among others, failure to pay the debt on maturity date, breach of representation or warranty, occurrence of a material adverse event, failure to comply with reporting obligations with the Securities and Exchange Commission, or the loss of trading of Company’s common stock on the OTC Markets. In the event of default, the Notes are convertible at the election of the noteholder, into common stock of the Company at the average VWAP price for the preceding five business days but in no event can the holder elect to convert to the extent they would beneficially own more than 4.99 % of the outstanding shares. The obligations under the are guaranteed by the subsidiaries of the Company and include a pledge of the securities the Company’s subsidiaries and a first priority senior security interest in all the Company’s assets. Aggregate interest expense on the notes payable was $ 78,622 and $ 195,838 for the years ended December 31, 2025 and 2024, respectively. Accrued interest on notes payable was $ 244,524 and $ 374,376 for the years ended December 31, 2025 and 2024, respectively. Convertible Notes Payable On October 31, 2025, the Company entered into a Senior Secured 10 % Original Issue Discount Convertible Promissory Note with an C/M Capital Master Fund, L.P. with a potential total funding of $ 1 million, with an initial funding of $ 250,000 . Under the terms of the 18 month note, the Company is obligated to repay a total of $ 275,000 as the note includes a 10 % original issue discount. The note bears no interest unless in default, and may be converted into common stock of the Company at $ 0.15 per share at any time after issuance, but in no event can the holder elect to convert to the extent they would beneficially own more than 4.99 % of the outstanding shares. The conversion rate is subject to adjustment for stock splits, dividends and other distributions. In the event the Company issues new securities with an issuance price lower than the conversion rate in effect, the conversion rate will be reduced to the lower of the issuance price or the VWAP on trading date following disclosure of the dilutive issuance. The note may be prepaid at 110 % of the then outstanding principal amount owed at the time of repayment. The obligations under the note are guaranteed by the subsidiaries of the Company and include a pledge of the securities the Company’s subsidiaries and a first priority senior security interest in all the Company’s assets. F- 16 Table of Contents On December 19, 2025, the Company entered into a Senior Secured 10 % Original Issue Discount Convertible Promissory Note with an C/M Capital Master Fund, L.P. with a potential total funding of $ 1 million, with an initial funding of $ 150,000 . Under the terms of the 18 month note, the Company is obligated to repay a total of $ 165,000 as the note includes a 10 % original issue discount. The note bears no interest unless in default, and may be converted into common stock of the Company at $ 0.15 per share at any time after issuance, but in no event can the holder elect to convert to the extent they would beneficially own more than 4.99 % of the outstanding shares. The conversion rate is subject to adjustment for stock splits, dividends and other distributions. In the event the Company issues new securities with an issuance price lower than the conversion rate in effect, the conversion rate will be reduced to the lower of the issuance price or the VWAP on trading date following disclosure of the dilutive issuance. The note may be prepaid at 110 % of the then outstanding principal amount owed at the time of repayment. The obligations under the note are guaranteed by the subsidiaries of the Company and include a pledge of the securities the Company’s subsidiaries and a first priority senior security interest in all the Company’s assets. On December 19, 2025, the Company entered into a Senior Secured 10 % Original Issue Discount Convertible Promissory Note with an WVP Emerging Manager Onshore Fund, LLC, with a potential total funding of $ 1 million, with an initial funding of $ 100,000 . Under the terms of the 18 month note, the Company is obligated to repay a total of $ 110,000 as the note includes a 10 % original issue discount. The note bears no interest unless in default, and may be converted into common stock of the Company at $ 0.15 per share at any time after issuance, but in no event can the holder elect to convert to the extent they would beneficially own more than 4.99 % of the outstanding shares. The conversion rate is subject to adjustment for stock splits, dividends and other distributions. In the event the Company issues new securities with an issuance price lower than the conversion rate in effect, the conversion rate will be reduced to the lower of the issuance price or the VWAP on trading date following disclosure of the dilutive issuance. The note may be prepaid at 110 % of the then outstanding principal amount owed at the time of repayment. The obligations under the note are guaranteed by the subsidiaries of the Company and include a pledge of the securities the Company’s subsidiaries and a first priority senior security interest in all the Company’s assets. Note 10: Notes Payable – Related Parties The following table summarizes the outstanding related party notes payable as of December 31, 2025 and 2024, respectively; December 31, 2025 December 31, 2024 Lindstrom Note - 45,294 Lindstrom Note 2 18,750 Notes Payable - 64,044 Current Portion, net of discount $ - $ 64,044 Long-term portion, net of discount - - Lindstrom Note On May 26, 2022, the Company issued a 10% Promissory Note in the principal amount of $ 41,176 in a related party transaction to Jenny Lindstrom, who was the Company’s Chief Legal Officer (the “Lindstrom Note 1”). The Lindstrom Note 1 bears interest at the rate of 10% per annum accrued monthly and has a maturity date that is the earlier of (i) November 30, 2022 , or (ii) five business days after the date on which the Company successfully lists its shares of common stock on Nasdaq or NYSE. The purchase price of the Lindstrom Note 1 was $ 35,000 ; the amount payable at maturity will be $41,176 plus 10 % of that amount plus any accrued and unpaid interest. Following an event of default as defined in the Lindstrom Note 1, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18%. The Lindstrom Note 1 entered default status on December 1, 2022, and the interest rate increased to 18 %. The Lindstrom Note 1 contains a “most favored nations” clause that provides that, so long as the note is outstanding, if the Company issues any new security which Ms. Lindstrom reasonably believes contains a term that is more favorable than those in the Lindstrom Note 1, the Company shall notify Ms. Lindstrom of such term, and such term, at the option of Ms. Lindstrom, shall become a part of the Lindstrom Note 1. In addition, Ms. Lindstrom received five-year warrants to purchase 338 shares of common stock at a price of $ 25.00 per share with a fair value of $ 1,750 at the date of issuance, and 338 shares of common stock with a value of $ 2,835 ; these amounts were recorded as discounts to the Lindstrom Note 1. Lindstrom Note 2 On November 29, 2022, the Company issued a promissory note (the “Lindstrom Note 2”) in a related party transactions to Jenny Lindstrom, who was the Company’s former Vice President and Chief Legal Officer. The Lindstrom Note 2 has a due date of May 28, 2023 , and bears interest at the rate of 10 % per annum which will accrue from the date of the note. Following an event of default as defined, the principal amount shall bear interest for each day until paid at a rate per annum equal to the lesser of the maximum interest permitted by applicable law and 18 %. The Lindstrom Note 2 contains a “most favored nations” clause that provides that, so long as the note is outstanding, if the Company issues any new security which Ms. Lindstrom reasonably believes contains a term that is more favorable than those in the Lindstrom Note 2, the Company shall notify Ms. Lindstrom of such term, and such term, at the option of Ms. Lindstrom, shall become a part of the Lindstrom Note 2. In addition, Lindstrom received a five-year warrant to purchase 750 shares of the Company’s common stock at a price equal to the price of any warrant included in an offering in connection with listing at the Nasdaq Global Market. This warrant has been cancelled in conjunction with the satisfaction of the notes. On April 24, 2025 , the Company entered into an Obligation Exchange Agreement with Lindstrom whereby Lindstrom agreed to settle the above notes, accrued interest and other obligations in consideration of the issuance of 75,000 shares of restricted common stock for each of the holders. As a result of the exchange, which was accounted for as a troubled debt restricting, the Company recorded a gain on settlement of liabilities of $ 249,765 . At December 31, 2025, all principal and accrued interest were fully satisfied and retired on these notes. At December 31, 2024, there was principal and interest in the aggregate amount of $ 64,044 and $ 22,548 , respectively, due on these notes. Aggregate interest expense on the notes payable – related parties was $ 2,297 and $ 33,980 for the years ended December 31, 2025 and 2024, respectively. Accrued interest on notes payable – related parties were $ 0 and $ 22,547 for the years ended December 31, 2025 and 2024, respectively . Note 11: Derivative Liabilities Certain of the Company’s convertible notes and warrants contain features that create derivative liabilities. The pricing model the Company uses for determining fair value of its derivatives is the Monte Carlo Model. Valuations derived from this model are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves management’s judgment and may impact net income. The derivative components of these notes are valued at issuance, at conversion, at restructuring, and at each period end. F- 17 Table of Contents Derivative liability activity for the years ended December 31, 2025 and 2024, is summarized in the table below: December 31, 2023 $ 152,945 True-up features settled ( 152,945 ) Establishment upon default provisions 100,551 Loss on revaluation 4,585,124 December 31, 2024 $ 4,685,675 Gain on revaluation ( 4,286,515 ) December 31, 2025 $ 399,160 The following assumptions were used for the valuation of the derivative liability associated with this obligation: ● The stock price on the date of valuation represents the fair market value of the stock ● The notes convert with variable conversion prices based on the percentages of the lowest trades over the prior 30 trading days ● The holder would automatically convert the note immediately (based on ownership or trading volume limitations) if the registration were effective and the Company was not in default Note 12: Series A preferred stock On October 28, 2024, the Company filed a Certificate of Designation, Preferences and Rights of the Series A Preferred Stock with the Nevada Secretary of State (the “Certificate of Designation”). The Company authorized 3,000,000 shares of Series A Preferred Stock, par value $ 0.01 per share. Each share of Series A Preferred Stock has a stated value equal to $ 25 . The Series A Shares may be converted into shares of common stock by dividing the stated value by $4.00 (the “Conversion Price”). The Series A Shares may be converted at the option of the holder at any time, or mandatorily by the Company if certain conditions set forth in the Certificate of Designation are met. Unless prior conversion has occurred, shares of Series A Preferred Stock will be redeemed by the Company, using Common Stock, or cash, 1/36 th of the remaining amounts monthly beginning in January 2025. The cash redemption shall be at 105% of the original price of Series A Preferred Stock (as adjusted) whereas Common Stock redemption shall be at a 10% discount to the average of the five lowest closing prices over a 30-trading day period. The Company intends to accrue the redemption shares monthly and issue any shares to be used thereunder quarterly to reduce its expense. Holders of shares of the Series A Preferred Stock are not entitled to receive any dividends, and the security bears no interest. The Series A Preferred Stock will rank, with respect to rights to the payment of dividends and the distribution of assets in the event of any liquidation, dissolution or winding up of the Company, (i) senior to all classes or series of the Company’s Common Stock, and to all other equity securities issued by the Company; and (ii) effectively junior to all existing and future indebtedness (including indebtedness convertible into our Common Stock or preferred stock) of the Company and to any indebtedness and other liabilities of (as well as any preferred equity interest held by others in) existing subsidiaries of the Company. In addition to any other rights provided by law, except where the vote or written consent of the holders of a greater number of shares is required by law or by another provision of the Articles of Incorporation, without first obtaining the affirmative vote at a meeting duly called for such purpose or the written consent without a meeting of the majority of the outstanding Series A Preferred Stock, voting together as a single class, the Company shall not: (a) amend or repeal any provision of, or add any provision to, its Articles of Incorporation or bylaws, or file any certificate of designations or certificate of amendment, if such action would adversely alter or change in any respect the preferences, rights, privileges or powers, or restrictions provided for the benefit, of the Series A Preferred Stock, regardless of whether any such action shall be by means of amendment to the Articles of Incorporation or by merger, consolidation or otherwise; or (b) without limiting the provisions of the Certificate of Designation, circumvent a right of the Series A Preferred Stock. As a result of the mandatory redemption features requiring the Company to repay the Series A in either cash of shares of Common Stock of the Company, under ASC 480, the Company is required to record the full redemption value of the Series A preferred shares as a liability on the accompanying balance sheet. The Company has recorded the redemption value based on the 10 % premium required if the Company were to repay in shares of Common Stock due to the current expected cash flows of the Company. During the year ended December 31, 2025, the Company issued 5,000 shares of Series A preferred stock in exchange for $ 125,000 in cash proceeds. During the year ended December 31, 2025, the Company redeemed 34,658 shares of Series A preferred for 3,794,802 shares of common stock with a fair value of $ 1,604,399 , which resulted in a loss on settlement of $ 643,666 . During the year ended December 31, 2025, the Company recognized $ 1,158,584 in interest expense related to the accretion of the Series A preferred shares based on the change in fair value. As of December 31, 2025, the Company has 533,340 shares of the Series A preferred shares outstanding. F- 18 Table of Contents The following table provides the maturities of Series A preferred stock redemptions at December 31, 2025: Series A Preferred Stock 2026 $ 9,447,335 2027 5,206,648 2028 5,347 2029 - 2030 and thereafter - Total future undiscounted redemption payments 14,659,330 Less: Interest ( 1,009,351 ) Present value of redemption payments 13,649,979 Current portion ( 9,447,335 ) Long term portion $ 4,202,644 Note 13: Stockholders ’ Deficit Common Stock The Company has authorized 500,000,000 shares of common stock, par value $ 0.01 ; 15,093,055 were issued and outstanding at December 31, 2025. Common Stock Transactions During the Year Ended December 31, 2025 During the year ended December 31, 2025, the Company issued 161,042 shares of common stock for dividends payable on its Series X Preferred Stock as discussed in further detail below. The price per share used in determining the number of shares issued was the stock price on the 15 th day of each month to determine the number of shares issuable. During the year ended December 31, 2025, the Company issued 3,794,755 shares of its restricted common stock for the redemption of Series A shares as discussed in further detail above in Note 12. During the year ended December 31, 2025, the Company recorded stock-based compensation of $ 12,500 related to equity awards issued in prior periods. As of December 31, 2025, the Company expects to record additional compensation expense of $ 0 related to unvested awards. During the year ended December 31, 2025, the Company issued 1,225,000 shares to consultants for services performed with a fair value of $ 252,150 which was recorded as stock-based compensation. During the year ended December 31, 2025, the Company entered into Obligation Exchange Agreements with two of its creditors, Finnegan and Lindstrom as discussed above in Notes 9 and 10. The agreements call for the cancellation of notes, accrued interest and other obligations in consideration of the issuance of 75,000 shares of restricted common stock for each of the holders, which resulted in an aggregate gain on the settlement of liabilities of $ 562,793 . Common Stock Transactions During the Year Ended December 31, 2024 During the year ended December 31, 2024, the Company issued 141,122 shares of common stock for dividends payable on its Series X Preferred Stock as discussed in further detail below. The price per share used in determining the number of shares issued was $ .80 through September 30, 2024, and not the lower price that is called for in the certificate of designation, and then the Company used the stock price on the 15 th day of each month to determine the number of shares issuable for the final three months of 2024. During the year ended December 31, 2024, the Company issued 525,000 shares of common stock in aggregate to its advisory board consisting of seven (7) individuals, with 75,000 shares issued to each. The Company recorded a compensation expense of $ 212,513 based on the closing stock price on the date of issuance. During the year ended December 31, 2024, the Company issued 750,000 shares of common stock in aggregate to its board of directors consisting of three (3) individuals, with 250,000 shares issued to each. The Company recorded a compensation expense of $ 228,000 based on the closing stock price on the date of issuance. During the year ended December 31, 2024, the Company issued 300,000 shares of common stock to outside consultants for services performed. The Company recorded a compensation expense of $ 94,000 based on the closing stock price on the date of issuance. During the year ended December 31, 2024, the Company issued 237,349 shares of common stock for the settlement of outstanding payables with unrelated third parties. The Company valued the shares based on the closing stock price on the date of issuance and recorded a gain on settlement of $ 1,040,863 . During the year ended December 31, 2024, the Company issued 154,107 shares of common stock for the settlement of outstanding notes payables and accrued interest with unrelated third parties. The Company valued the shares based on the closing stock price on the date of issuance and recorded a gain on settlement of $ 485,212 . During the year ended December 31, 2024, the Company issued 79,298 shares of common stock for the settlement of outstanding notes payables and accrued interest with related parties. The Company recorded the settlement as contributions of capital and no gain or loss was recorded. During the year ended December 31, 2024, the Company issued 2,007,425 shares of common stock for the conversion of Series D, Series F, and Series X preferred shares along with associated accrued dividends. The Company recorded the settlement as contributions of capital and no gain or loss was recorded. Preferred Stock We are authorized to issue 100,000,000 shares of Preferred Stock with such rights designations and preferences as determined by our Board of Directors. We have designated 3,000,000 shares of Series A Preferred (see Note 12), 10,000,000 shares of Series D Preferred, 10,000 shares of Series E Preferred, 140,000 shares of Series F Preferred, and 42,103 shares as Series X Preferred Stock. F- 19 Table of Contents Series D Preferred Stock The Series D Preferred Stock has a par value of $ 0.01 per share, no stated maturity, a liquidation preference of 100% of the stated value plus accrued but unpaid dividends, accrued dividends at the rate of 6 % on $ 1.05 per share and converts into common shares at a rate of $ 0.25 per share. The Series D ranks senior to all other preferred stock of the Company except in relation to the Series X Cumulative Redeemable Perpetual Preferred Stock, which ranks Pari passu to the Series C Preferred Stock. Each holder of our Series D Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Series D preferred Stock held by such holder. The Company had 25,000 shares of Series D Preferred Stock outstanding at December 31, 2025. Series D Preferred Stock Transactions During the Year Ended December 31, 2025 During the year ended December 31, 2025, the Company entered into an Obligation Exchange Agreements with Lindstrom whereby the outstanding Series D Preferred Stock and all accrued dividends were exchanged for shares of Company common stock. The Company accrued dividends in the amount of $ 388 on the Series D Preferred Stock for the year ended December 31,2025. As of December 31, 2025 the Company had $ 0 in accrued dividends on the Series D Preferred Stock, respectively. Series D Preferred Stock Transactions During the Year Ended December 31, 2024 During the year ended December 31, 2024, a holder of 100,000 shares of Series D preferred shares along with $ 18,175 of accrued dividends agreed to convert the shares into 30,802 common shares at a conversion rate of $ 4 per common share. The Company recorded the settlement as contributions of capital and no gain or loss was recorded. The Company accrued dividends in the amount of $ 14,172 on the Series D Preferred Stock for the year ended December 31, 2024. As of December 31, 2024, the Company had $ 5,049 in accrued dividends on the Series D Preferred Stock. Series F Preferred Stock On March 23, 2023, the Company filed a Certificate of Designations, Preferences and Rights of Series F 12% PIK $ 0.01 par value Convertible Perpetual Preferred Stock with the Delaware Secretary of State. The number of shares of Series F Preferred Stock designated is 140,000 and each share of Series F Preferred Stock has a liquidation preference of $ 1,000 . The Series F Preferred Stock will rank senior to the Corporation’s Common Stock and on parity with all Preferred Stock of the Corporation with terms specifically providing that such Preferred Stock rank on parity with the Series F Preferred Stock with respect to rights to the distribution of assets upon any liquidation, dissolution or winding up of the Corporation; and (iii) junior to all Preferred Stock of the Corporation with terms specifically providing that such Preferred Stock rank senior to the Series F Preferred Stock with respect to rights to the distribution of assets upon any liquidation, dissolution or winding up of the Company. Holders of shares of the Series F Preferred Stock are entitled to receive payment-in-kind dividends payable only in additional shares of Series F Preferred Stock (“PIK Dividends”) at rate of 12% per annum. The Series F Preferred Stock will be convertible into common stock of the Company upon the listing of the Company’s stock on any of the following trading markets: the NYSE, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, or the Nasdaq Global Select Market. The conversion price will be calculated as 65% of the volume-weighted average price of the Company’s common stock on the conversion date. The number of shares issuable upon conversion will be calculated as the liquidation preference of the Series F Preferred stock plus any accrued but unpaid dividends divided by the conversion price. There are no shares of Series F shares outstanding as of December 31, 2025 or 2024. Series F Preferred Stock Transactions During the Year Ended December 31, 2024 On May 17, 2024, the holders of approximately 54.90 % of the Series F Preferred shares, having met in person on May 8, 2024, have granted consent to the following modification to the terms of the Series F Preferred, effective May 15, 2024 all dividends, and any obligation to pay dividends shall cease. Any dividends accrued until May 15, 2024, shall be issued as noted in the original certificate of designation. During the year ended December 31, 2024, holders of 8,333 shares of Series F preferred shares along with $ 899,607 of accrued dividends and 87,884 of accrued compensation, agreed to convert the shares into 1,889,835 common shares at a conversion rate of $ 4 per common share. The Company recorded the settlement as contributions of capital and no gain or loss was recorded. The Company accrued dividends in the amount of $ 941,713 on the Series F Preferred Stock for the year ended December 31, 2024. As of December 31, 2024, the Company had $ 0 in accrued dividends on the Series F Preferred Stock. Series X Preferred Stock The Company has 42,103 and 19,703 shares of its 10% Series X Cumulative Redeemable Perpetual Preferred Stock (the “Series X Preferred Stock”) outstanding as of December 31, 2025 and 2024, respectively. The Series X Preferred Stock has a par value of $ 0.01 per share, no stated maturity, a liquidation preference of $ 25.00 per share, and will not be subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless the Company decides to redeem or otherwise repurchase the Series X Preferred Stock; the Series X Preferred Stock is not redeemable prior to November 4, 2020. The Series X Preferred Stock will rank senior to all classes of the Company’s common and preferred stock and accrues dividends at the rate of 10% per annum on $25.00 per share. The Company reserves the right to pay the dividends in shares of the Company’s common stock at a price equal to the average closing price over the five days prior to the date of the dividend declaration. Beginning in October 2024, the Company elected to use the closing stock price on the 15 th of each month. Each one share of the Series X Preferred Stock is entitled to 400 votes on all matters submitted to a vote of our shareholders. Series X Preferred Stock Transactions During the Year Ended December 31, 2025 During the year ended December 31, 2025, the Company issued 2,400 shares of Series X Preferred Stock to the newly elected director of the Company for compensation in lieu of services in the amount of $ 60,000 . F- 20 Table of Contents During the year ended December 31, 2025, the Company issued 20,000 shares of Series X Preferred Stock to an institutional investor and consultant for compensation in lieu of services in the amount of $ 500,000 . The Company accrued dividends in the amount of $ 68,923 on the Series X Preferred Stock for the year ended December 31, 2025. As of December 31, 2025 the Company had $ 0 in accrued dividends on the Series X Preferred Stock During the year ended December 31, 2024, the Company issued 7,200 shares of Series X Preferred Stock to the officers and directors of the Company for compensation in lieu of services in the amount of $ 180,000 in aggregate, or $ 60,000 for each of the three (3) directors. Series X Preferred Stock Transactions During the Year Ended December 31, 2024 During the year ended December 31, 2024, the Company issued 141,122 shares of restricted common stock for the payment of dividends due for its Series X Preferred stock as noted above. During the year ended December 31, 2024, holders of 11,724 shares of Series X preferred shares agreed to convert the shares into 86,788 common shares at a conversion rate of $ 4 per common share. The Company recorded the settlement as contributions of capital and no gain or loss was recorded. The Company accrued dividends in the amount of $ 71,240 on the Series X Preferred Stock for the year ended December 31, 2024. As of December 31, 2024, the Company had $ 0 in accrued dividends on the Series X Preferred Stock. Stock Options On January 21, 2021, the Company filed a Form S-8 containing the Mitesco Omnibus Securities and Incentive Plan (“the Plan”) with the SEC. In Sections 4.2 and 4.3 of the Plan it is noted that the Board of Directors has the authority for the administration of the Plan. On January 7, 2024, the Board of Directors voted to a) cancel, revoke and terminate any previously issued options that have not already been exercised. For a number of technical reasons, the Plan is no longer valid, and in addition to cancellation of any outstanding options, the Board has voted to formally terminate the Plan as of January 7, 2024. The following table summarizes the transactions involving options to purchase shares of the Company’s common stock: Shares Weighted- Average Exercise Price ($) Outstanding at December 31, 2023 100,934 $ 10.05 Granted - - Cancelled/Expired ( 100,934 ) $ 10.05 Exercised - - Outstanding at December 31, 2024 - $ - Granted - - Cancelled/Expired - Exercised - - Outstanding at December 31, 2025 - $ - Options vested and exercisable - $ - Warrants The Company has announced that it intends to cancel all outstanding warrants, and certain language to complete this has been added to all documents related to the conversion of outstanding debts, notes, accounts payable and other senior securities. The following table summarizes the warrants outstanding on December 31, 2025, and the related prices for the warrants to purchase shares of the Company’s common stock: Weighted Weighted Weighted Average average average Exercise exercise Range of Number of remaining price of Number of price of exercise warrants contractual outstanding warrants exercisable prices outstanding life (years) warrants exercisable warrants 25.00 5,556 1.36 25.00 5,556 25.00 $ 37.50 32,000 0.99 37.50 32,000 37.50 37,556 1.05 $ 35.65 37,556 $ 35.65 F- 21 Table of Contents The following table summarizes the transactions involving options to purchase shares of the Company’s common stock: Shares Weighted- Average Exercise Price ($) Outstanding at December 31, 2023 673,208 $ 30.64 Granted - $ - Cancelled ( 632,441 ) $ ( 29.87 ) Outstanding at December 31, 2024 40,767 $ 35.13 Granted - $ - Cancelled ( 3,211 ) $ ( 29.09 ) Exercised - $ - Outstanding at December 31, 2025 37,556 $ 35.65 At December 31, 2025, there was no intrinsic value on the issued or vested warrants. During the years end December 31, 2025 and 2024, in connection with the settlements of debt, Series D preferred and Series F preferred, the investors also agreed to cancel 3,211 and 632,441 outstanding warrants, respectively, in connections with the settlement transactions. Note 14: Fair Value of Financial Instruments The following summarizes the Company’s derivative financial liabilities that are recorded at fair value on a recurring basis at December 31, 2025, and December 31, 2024. December 31, 2025 Level 1 Level 2 Level 3 Total Liabilities Derivative liabilities $ - $ - $ 399,160 $ 399,160 December 31, 2024 Level 1 Level 2 Level 3 Total Liabilities Derivative liabilities $ - $ - $ 4,685,675 $ 4,685,675 Note 15: Income Taxes Deferred income taxes result from the temporary differences primarily attributable to amortization of intangible assets and debt discount and an accumulation of net operating loss carryforwards for income tax purposes with a valuation allowance against the carryforwards for book purposes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Included in deferred tax assets are Federal and State net operating loss carryforwards of approximately $ 64.5 million and $ 19.3 million, respectively, which will expire through 2040. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Due to significant changes in the Company’s ownership, the Company’s future use of its existing net operating losses may be limited. F- 22 Table of Contents For the years ended December 31, 2025 and 2024, the expected tax expense (benefit) based on the U. S. federal statutory rate is reconciled with the actual tax provision (benefit) as follows: For the Years Ended December 31, 2025 2024 Expected tax at statutory rates Federal $ 105,000 21 % $ ( 528,000 ) 21 % State ( 49,000 ) ( 10 )% 246,000 ( 10 )% Permanent Differences ( 53,000 ) ( 20 )% ( 4,000 ) 0 % Temporary difference for derivative gain ( 900,000 ) ( 180 )% 945,000 ( 38 )% Temporary difference for stock compensation 173,000 35 % 147,000 ( 6 )% Other 99,000 19 % 474,000 ( 18 )% Prior Year True-Ups - 0 % - 0 % Current Year Change in Valuation Allowance Federal 1,295,000 260 % ( 2,051,000 ) 82 % State ( 670,000 ) ( 125 )% 771,000 ( 31 )% Income tax expense $ - 0 % $ - 0 % Deferred income taxes reflect the tax impact of temporary differences between the amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. Deferred income taxes include the net tax effects of net operating loss (NOL) carryforwards and the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2025 and 2024, significant components of the Company’s deferred tax assets are as follows: As of December 31, 2025 December 31, 2024 Deferred Tax Assets (Liabilities): Accrued payroll $ 141,000 $ 141,000 ASC842-ROU (Liability) 822,000 822,000 Loss from derivatives ( 57,000 ) ( 869,000 ) Stock based compensation ( 460,000 ) ( 304,000 ) Depreciation 3,000 3,000 Net operating loss 13,102,000 12,462,000 Net deferred tax assets (liabilities) 13,551,000 12,255,000 Valuation allowance ( 13,551,000 ) ( 12,255,000 ) Net deferred tax assets (liabilities) $ - $ - Note 16: Commitments and Contingencies Legal From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. On June 23, 2022, The Good Clinic LLC was notified that a former employee had filed a lawsuit for wrongful termination. The Good Clinic believes the lawsuit is without merit. Mitesco (Company) was not named in the suit. We have settled this matter as of January 11, 2024, for total consideration consisting of a cash payment of $ 3,000 . On October 25, 2022, the Company was notified that a vendor filed a lawsuit related to a contract dispute naming both The Good Clinic and The CEO of the Good Clinic. This suit was settled on May 5, 2023, and dismissed with prejudice on May 12, 2023. The settlement included the issuance of the Company’s restricted common stock. As a part of the settlement the Company issued 2,552 shares of its restricted common stock to the plaintiff and it issued to the CEO of The Good Clinic 19,622 of its restricted common stock, plus $ 3,000 in cash for reimbursement of expenses related to settling the suit with the vendor. The Company has a number of legal situations involved with the winding down of its clinic’s business activities. These include claims regarding certain construction contracts and cancellation of leases as noted below: Nordhaus Clinic On November 1, 2020, we entered into an agreement to open a clinic in Minneapolis, Minnesota. The initial lease term is eight years . Fixed rent payments under the initial term are approximately $ 511,000 . On November 6, 2023, the Company received a termination notice from the landlord indicating the lease had been terminated. No additional claims have been received by the landlord and the Company believes no additional amounts are owed. F- 23 Table of Contents Egan Clinic a.k.a. Vikings On October 14, 2021, we entered into an agreement to open a clinic in Eagan, Minnesota, which began operations in the fourth quarter of 2021. The initial lease term is for 96 months. Fixed rent payments under the initial term are approximately $ 767,000 . A Summary Judgment was granted on December 4, 2023, in the amount of $ 488,491 , and the entry of final judgment was entered on December 15, 2023, and the Company has released the property back to the leaseholder. St. Paul Clinic a.k.a. The Grove On August 31, 2021, we entered into an agreement to open a clinic in St. Paul, Minnesota, which began operations in the fourth quarter of 2021. The initial lease term is for 114 months. Fixed rent payments under the initial term are approximately $ 1,153,000 . A stipulation for Judgment was filed on December 21, 2023, in the amount of $415,266. The stipulated judgment includes $178,542 in unpaid back rent, $172,124 in resolution of mechanics’ liens, and $64,600 in attorneys’ fees. Final entry of judgment by the Court was entered against the Company on January 19, 2024, and the Company has released the property back to the leaseholder. St. Louis Park Clinic a.k.a. Excelsior & Grand On May 24, 2021, we entered into an agreement to open a clinic in St. Louis Park, Minnesota, which began operations in the third quarter of 2021. The initial lease term is seven years . Fixed rent payments under the initial term are approximately $ 673,000 . The Company agreed to and executed a Confession of Judgment in the amount of $ 425,351 on April 2, 2024, and has released the property back to the leaseholder. We received the fully executed and recorded judgement on April 10, 2024. Eden Prairie Clinic a.k.a. TP Elevate On June 8, 2021, we entered into an agreement to open a clinic in Eden Prairie, Minnesota, which began operation in the third quarter of 2021. The initial lease term is eight years . Fixed rent payments under the initial term are approximately $ 620,000 . The Company has surrendered possession of the property and is currently in negotiations for the amounts owed and is in the process of settling the remaining amounts owed. Maple Grove Clinic a.k.a. Arbor Lakes On October 8, 2021, we entered into an agreement to open a clinic in Maple Grove, Minnesota which began operation in the fourth quarter of 2021. The initial lease term is for 108 months. Fixed rent payments under the initial term are approximately $ 1,153,127 . On October 22, 2022, the Company entered into a settlement agreement with the leaseholder for $ 219,576 and the Company released the property back to the leaseholder. Radiant Clinic a.k.a. LMC Welton On September 9, 2021, we entered into an agreement to open a clinic in Denver, Colorado, which was expected to begin operation in the first quarter of 2023 but possession of which has been relinquished to the landlords. The initial lease term is for 90 months. Fixed rent payments under the initial term are approximately $ 782,000 . As of April 10, 2024, the Company has settled the amounts owed to the leaseholder and full resolution of all liens for approximately $ 530,000 and the Company has released the property back to the leaseholder. F- 24 Table of Contents Quincy Clinic a.k.a. 1776 Curtis On September 28, 2021, we entered into an agreement to open a clinic in Denver, Colorado, which was expected to begin operation in the first quarter of 2023 but possession of which has been relinquished to the landlords. The initial lease term is for 94 months. Fixed rent payments under the initial term are approximately $ 1,079,000 . A Final Judgment was granted on November 14, 2023, in the amount of $ 348,764 including interest, fees and other costs. The Company has released the property back to the leaseholder . LOCATION PROPERTY NAME ORIGINAL OBLIGATION SETTLEMENT AMOUNT DATE OF AWARD INTEREST RATE INTEREST ACCRUED ON SETTLEMENT TOTAL SETTLEMENT OBLIGATION TYPE OF SETTLEMENT WAYZETTA, MN WAZETTA BAY $ 407,000 $ 25,000 NA - - $ 25,000 CASH PAYMENT OBLIGATION EAGAN, MN VIKINGS $ 767,000 $ 488,491 12/7/2023 10 % $ 101,044 $ 589,535 DEFAULT JUDGEMENT ST. LOUIS PARK, MN EXCELSIOR $ 673,000 $ 425,350 5/22/2024 10 % $ 68,522 $ 493,872 DEFAULT JUDGEMENT ST. PAUL, MN CONTINENTAL 560 $ 1,153,000 $ 415,606 1/22/2024 10 % $ 80,730 $ 496,336 DEFAULT JUDGEMENT MAPLE GROVE, MN BUTTNICK $ 1,153,127 $ 219,000 10/3/2022 10 % $ 71,100 $ 290,100 SETTLEMENT AGREEMENT DENVER, CO RADIANT $ 782,000 $ 530,557 - - $ 530,557 DISMISSED DENVER, CO QUINCY(1) $ 1,079,000 $ 848,764 11/14/2023 12 % 113,372 $ 962,136 DEFAULT JUDGEMENT TOTAL $ 6,014,127 $ 2,952,768 $ 434,768 $ 3,387,536 Note 17: Subsequent Events Series X Preferred Stock dividend payments for Q4 FY2025 In January 2026, the Company has issued a total of 157,061 shares of restricted common stock for the payment of $ 26,314 in accrued dividends on its Series X Preferred shares for Q4 FY2025. The issuances were as follows: Leath – 8,787 shares, Balencic – 8,787 shares, Mitchell – 8,787 , Clifton – 2,941 shares, Anglo Irish – 70,035 shares. Series A Preferred Stock redemptions for Q4 FY2025 In January 2026, the Company issued a total of 2,228,147 shares in redemption of $ 257,700 of its Series A Preferred Stock for Q4. The issuances were as follows: Pinz Capital – 254,468 shares, GS Capital – 437,393 shares (reduced from allowable to stay under 5 % in total holdings), Jefferson Street – 122,917 shares, AJB – 751,810 shares (reduced from allowable to stay under 5 % in total holdings), Cavalry/Mercer/CM – 661,560 shares in aggregate (reduced from allowable to stay under 5 % total holdings). These issuances resulted in the reduction of Series A Preferred stock of $ 184,695 , and the remaining outstanding face value, after giving effect to these issuances of the Series A Preferred shares, is $ 13,156,724 . In April 2026, the Company issued a total of 2,922,915 shares in redemption of $ 201,400 of its Series A Preferred Stock for Q1. The issuances were as follows: Pinz Capital – 352,424 shares, GS Capital – 874,810 shares (reduced from allowable to stay under 5 % in total holdings), Jefferson Street – 208,743 shares, AJB – 874,810 shares (reduced from allowable to stay under 5 % in total holdings), Cavalry/Mercer/CM – 612,128 shares in aggregate (reduced from allowable to stay under 5 % total holdings). These issuances resulted in the reduction of Series A Preferred stock of $ 201,400 , and the remaining outstanding face value, after giving effect to these issuances of the Series A Preferred shares, is $ 12,927,475 . F-Issuances related to consultants In January 2026, The Company has issued 125,000 shares of restricted common stock to an individual who was involved with the development of its Robo Agent software application as consideration for their services. It has also issued 250,000 shares to a firm involved with the planned “uplist” of its common stock to a senior exchange. Bridge Notes On February 20, 2026, the Company entered into a third Senior Secured 10 % Original Issue Discount Convertible Promissory Note (the “February 2026 Bridge Note”) with C/M Capital Master Fund, L.P. and WVP Emerging Manager Onshore Fund, LLC, with a potential total funding of $ 1 million, with an additional funding of $ 125,000 . Under the terms of the 18 month note, the Company is obligated to repay a total of $137,500 as the note includes a 10% original issue discount. The note bears no interest unless in default and may be converted into common stock of the Company at $0.15 per share, subject to certain adjustments. The obligations under the 2026 Bridge Note is guaranteed by the subsidiaries of the Company and include a pledge of the securities the Company’s subsidiaries and a first priority senior security interest in all the Company’s assets. On April 10, 2026 the Company entered into a 10 % Original Issue Discount Convertible Promissory Note (the “April 2026 Bridge Note”) with Pinz Capital. with a $ 50,000 purchase price. The note bears interest of 10 %, and has a maturity date of 12 months from the date of the note. Under the terms of the note, the Company is obligated to repay a total of $55,000 as the note includes a 10% original issue discount. The note may be converted into common stock of the Company at the lessor of $0.15 per share or 65% of the lowest trading price for the prior ten trading days , subject to certain adjustments. F- 25 Table of Contents ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None