Full Press Release Details
| September 30, | Convertible Debt Transactions | Warrant Conversion Transaction | Pipe Investment Transaction | Pro Forma December 1, | December 31, | |||||||||||||||||||
| 2025 | (A) | (B) | (C) | 2025 | 2024 | |||||||||||||||||||
| (Audited) | ||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||
| Cash | 472,759 | 1,500,003 | 5,520,069 | 7,492,831 | 326,115 | |||||||||||||||||||
| Accounts receivable, net of allowance for credit losses | 2,578,490 | 2,578,490 | 1,716,370 | |||||||||||||||||||||
| Due from related party | 284,614 | 284,614 | 531,656 | |||||||||||||||||||||
| Prepaids and other current assets | 382,522 | 382,522 | 446,826 | |||||||||||||||||||||
| Total current assets | $ | 3,718,385 | - | 1,500,003 | 5,520,069 | $ | 10,738,457 | $ | 3,020,967 | |||||||||||||||
| Right-of-use assets, net | 315,679 | 315,679 | 379,585 | |||||||||||||||||||||
| Intangible assets, net | 9,337,504 | 9,337,504 | 10,995,000 | |||||||||||||||||||||
| Goodwill | 4,916,694 | 4,916,694 | 4,916,694 | |||||||||||||||||||||
| Fixed assets, net | 418,860 | 418,860 | 680,242 | |||||||||||||||||||||
| Total assets | $ | 18,707,122 | - | 1,500,003 | 5,520,069 | $ | 25,727,194 | $ | 19,992,488 | |||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||
| Accounts payable and accrued liabilities | 11,716,584 | (885,871 | ) | 10,830,713 | 9,343,659 | |||||||||||||||||||
| Deferred revenue | 1,150,093 | 1,150,093 | 417,815 | |||||||||||||||||||||
| Due to related party | 51,900 | 51,900 | 51,900 | |||||||||||||||||||||
| Operating lease liabilities | 85,575 | 85,575 | 72,836 | |||||||||||||||||||||
| Financing lease liabilities | 184,106 | 184,106 | 328,833 | |||||||||||||||||||||
| Factoring payable | 122,220 | 122,220 | 179,007 | |||||||||||||||||||||
| Encompass Purchase liability | 265,578 | 265,578 | 263,918 | |||||||||||||||||||||
| Equity Line of Credit | 42,394 | 42,394 | 80,000 | |||||||||||||||||||||
| Quantum convertible note, related party at fair value | 3,828,125 | (3,448,125 | ) | 380,000 | 3,248,000 | |||||||||||||||||||
| September 2024 Convertible Note, at fair value | 2,043,760 | (2,043,760 | ) | - | 2,094,000 | |||||||||||||||||||
| May 2025 Convertible Note | - | - | ||||||||||||||||||||||
| Loan payable, related party | 471,651 | 471,651 | 471,651 | |||||||||||||||||||||
| Line of credit | 456,097 | 456,097 | 456,097 | |||||||||||||||||||||
| Notes payable, net of discount | 1,944,710 | (672,254 | ) | 1,272,456 | 433,983 | |||||||||||||||||||
| Common stock issuance obligation | 31,227 | 31,227 | 69,621 | |||||||||||||||||||||
| Exchange Note, at fair value | 1,028,158 | (1,028,158 | ) | - | 1,499,000 | |||||||||||||||||||
| Total current liabilities | $ | 23,422,178 | (8,078,168 | ) | - | - | $ | 15,344,010 | $ | 19,010,320 | ||||||||||||||
| Notes payable, less current portion, net of discount | 589,374 | 589,374 | 593,941 | |||||||||||||||||||||
| Operating lease liabilities, less current portion | 203,689 | 203,689 | 269,338 | |||||||||||||||||||||
| Deferred revenue, net of current portion | - | - | 69,999 | |||||||||||||||||||||
| Deferred tax liability | 67,379 | 67,379 | 67,378 | |||||||||||||||||||||
| Total liabilities | $ | 24,282,620 | (8,078,168 | ) | - | - | $ | 16,204,452 | $ | 20,010,976 | ||||||||||||||
| Stockholders' equity (deficit) | ||||||||||||||||||||||||
| Preferred stock, $0.0001 par value, 10,000,000 shares authorized; 6,158 and 6,158 shares issued and outstanding as of December 1, 2025 and 2024, respectively | 1 | 1 | 1 | |||||||||||||||||||||
| Common stock, $0.0001 par value; 100,000,000 shares authorized 39,440,816 and 16,297,190 shares issued and outstanding as of December 1, 2025 and 2024, respectively | 1,703 | 1,103 | 155 | 984 | 3,945 | 1,630 | ||||||||||||||||||
| Additional paid-in capital | 68,989,139 | 9,040,732 | 1,499,848 | 5,999,016 | 85,528,735 | 67,683,754 | ||||||||||||||||||
| Accumulated deficit | (74,566,341 | ) | (963,667 | ) | (479,931 | ) | (76,009,939 | ) | (67,703,873 | ) | ||||||||||||||
| Total stockholders' equity (deficit) | $ | (5,575,498 | ) | 8,078,168 | 1,500,003 | 5,520,069 | $ | 9,522,742 | $ | (18,488 | ) | |||||||||||||
| Total liabilities and stockholders' equity (deficit) | $ | 18,707,122 | - | 1,500,003 | 5,520,069 | $ | 25,727,194 | $ | 19,992,488 |
Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet
The adjustments included in the unaudited pro forma condensed combined
balance sheet as of December 1, 2025 are as follows: