MYSE 10-K & 10-Q changes, risk factors and insider trading

We are focused on the mobile application industry,and social specificallysharing theplatform mobile messaging market,industries, which is already saturated with established companies. Many of these companies, including Apple Inc., Alphabet Inc., Facebook, Inc., and Snap Inc., TikTok, iCloud Shared Photo, Pinterest, Google Photos, Amazon Drive, Photobucket and Shutterfly, already have an established market in our industry. Most of these companies have significantly greater financial and other resources than us and have been developing their products and services longer than we have been developing ours.

The application also enables users to hide secret and encrypted messages behind a cover, which messages can only be unlocked by the recipient and which are automatically destroyed after a fixed number of views or fixed amount of time. Users can decide how long their messages last on the recipient’s device. The application also includes a screen shotscreenshot protection system, which makes it virtually impossible for the recipient to screenshot a message or picture before it gets destroyed. In addition, users can delete entire conversations at any time, making it like the conversation never even happened.

WeIn recentlyMarch 2025, we launched our Myseum social media platform, platform, an innovative social media platform that brings a fresh approach to digital media and content management, allowing users to create a digital legacy that can be easily shared today and with future generations. Backed by AIProprietary technology and proprietary software,technology, the multi-tiered social media ecosystem enables individuals, families, and other groups to store and share digital content such as messages, photos, videos, and documents within a highly secure and private family library. Myseum allows users to create amazing albums and galleries for everyone to see, create special private and secure galleries with limited access, personalize a user’s newsfeed with updates from other Myseums and leave time released video messages for both now and future generations.

In October 2024, our majority owned subsidiary, Dragon Interact, Inc. (“Dragon”), entered into a Share Exchange Agreement with RPM Interactive, Inc., a Florida corporation (“RPM”), pursuant to which Dragon acquired 100% of the equity interests of RPM, including all assets of RPM in consideration for the issuance of 3,500,000 restricted shares of Dragon’s common stock. RPM’s assets included an artificial intelligence (“AI”) tool used for publishing AI-generated consumer gaming and podcasting/vodcasting applications and certain intellectual property. As part of the acquisition, Dragon has changed its corporate name to RPM Interactive, Inc. (“RPM Interactive”) and shifted its focus to developing AI-driven podcast and gaming technologies.

Following the acquisition, in January 2025, we returned 3,500,000 shares of the RPM Interactive common stock held by us to RPMRPM, Interactive, which shares were cancelled and are no longer outstanding on RPM Interactive’s RPM’s stock ledger. Following these transactions, we hold 9,000,000held 12,500,000 shares of the RPM Interactive’sRPM’s common stock, or approximately 34% of its outstanding shares.

Prior otto the acquisition of RPM, we had developed and launched, in November 2022, the Habytat, a virtual space that blends real world and virtual realities into one, in real time, using emerging technology like virtual and augmented reality, to create a highly immersive 3D environment. We had further contemplated spinning-off our Habytat platform business into a new standalone public company pursuant to a distribution of the shares of the our shareholders.shares. As discussed above, following our acquisition of RPM in October 2024, we ceased our development of the Habytat platform and are evaluating ways to utilize the technology that had been developed by our subsidiary.

WeThe capitalizeCompany capitalizes costs to develop or purchase internal-use software in accordance with ASC section 350-40, Intangibles — Goodwill and Other — Internal-Use Software. Software. Costs incurred to develop internal-use software are expensed as incurred during the preliminary project stage. Internal-use software development costs are capitalized upon purchase and during the application development stage, which is after: (i) the preliminary project stage is completed; and (ii) management authorizes and commits to funding the project and it is probable the project will be completed and used to perform the intended function. Capitalization ceases at the point where the software project is substantially complete and ready for its intended use, and after all substantial testing is completed. Upgrades and enhancements are capitalized if it is probable that those expenditures will result in additional functionality. Amortization is provided for on a straight-line basis over the expected useful life of the internal-use software development costs and related upgrades and enhancements. When the existing software is replaced with new software, the unamortized costs of the old software are expensed when the new software is ready for its intended use. Software development costs incurred during the year ended December 31, 2024 and 2023 were expensed since the Metaverse software development project is in the preliminary project stage. Such costs are included in research and development costs on the accompanying consolidated statement of operations.

Based on the Company’s analysis, on February 14, 2023, Metabizz, LLC, a Florida corporation, and Metabizz SAS, a company incorporated under the laws of Columbia (collectively “Metabizz”), were determined to be VIE entities in accordance with ASC 810-10-25-22 because the equity owners in Metabizz did not have the characteristics of a controlling financial interest and the initial equity investments in these entities may be or wereare insufficient to meet or sustain its operations without additional subordinated financial support from DatChat.Myseum. The equity owners of Metabizz had only a nominal equity investment at risk, and the Company absorbed or received a majority of the entity’s expected losses or benefits. The Company participated significantly in the design of Metabizz. The Company previously provided working capital advances to Metabizz to allow Metabizz to fund its day-to-day obligations. Substantially all of the activities of Metabizz were conducted for the Company’s benefit, benefit, as evidenced by the fact that the operations of Metabizz consisted of development of software and technologies to be used by RPM Interactive and the Company provided working capital to Metabizz to pay employees and independent contractors to perform the development services on behalf of the Company. Repayment of the working capital advances is not guaranteed by the equity owner of Metabizz and creditors of Metabizz do not have recourse against the Company. Accordingly, the Company was required to consolidate the assets, liabilities, revenues and expenses of Metabizz using the fair value method. Additionally, the managing partner of Metabizz was also the Chief Innovation Officer of RPM Interactive.RPM. Since Metabizz, LLC and Metabizz SAS were considered VIE’s, any noncontrolling interest eliminated in consolidation. On March 31, 2024, based on the Company’s analysis, the Company deconsolidated Metabizz, LLC and Metabizz SAS. During the three months ended March 31, 2024, the Company ceased doing business with Metabizz, LLC and Metabizz SAS and began paying technology professionals directly. In connection with the initial consolidationdeconsolidation of Metabizz, onLLC Februaryand 14,Metabizz 2023SAS, (during the initialyear consolidationended date),December 31, 2024, the Company recorded recorded a gain on initial consolidationdeconsolidation of variable interest entities of $42,737.$107.

OnImmediately following the August 27, 2024, the Company entered into an2024 Asset Purchase Agreement with the Seller, pursuant to which it acquired from Seller the Assets (See Note 1) in consideration for the transfer by, the Company ofowned 8,000,000 restricted shares46.7% of commonRPM. stock of RPM Interactive. Accordingly, as of September 30, 2024, the Company owned 45.5% of RPM Interactive. On August 27, 2024, basedBased on the Company’s analysis, on August 27, 2024, the Company determined that RPM Interactive met the definition of a VIE under the VIE model, which provides for situations in which control may be demonstrated other than by the possession of voting rights in RPMRPM. Interactive.Until Basedthe date of sale on Company’sDecember analysis,12, 2025, the Company continues continued to have the power to direct the activities of RPM Interactive that most significantly impact RPM Interactive’sRPM’s economic performance and the obligation to absorb absorb losses of RPM Interactive that could potentially be significant to RPM Interactive or the right to receive benefits from RPM Interactive that could potentially be significant to RPM. Immediately prior to the sale and deconsolidation, the Company retained approximately 33.7% ownership of RPM. As of December 31, 2024, the Company retained approximately 39.7%. As a result of the sale and deconsolidation on December 12, 2025, the Company no longer consolidates RPM Interactive.and does not hold a variable interest in any entity.

Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718,718 – “Compensation — –Stock Compensation”, (“ASC 718”), which requires recognition in the consolidated financial statements of the cost of employee, non-employee and director services received in exchange for an award of equity instruments over the period the employee, non-employeeemployee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC 718 also requires measurement of the cost of employee, non-employee,employee and director services received in exchange for an award based on the grant-date fair value of the award. The fairCompany valuehas ofelected eachto optionaccount grantedfor is estimatedforfeitures as of the date of grant using the Black-Scholes-Merton option-pricing model, net of actual forfeitures. The fair value is amortized as compensation cost on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. The Black-Scholes-Merton option-pricing model includes various assumptions, including the fair market value of our common stock, the expected life of stock options, the expected volatility, and the expected risk-free interest rate, among others. These assumptions reflect our best estimates, but they involve inherent uncertainties based on market conditions generally outside of our control. As a result, if other assumptions had been used, stock-based compensation expense, as determined in accordance with authoritative guidance, could have been materially impacted. Furthermore, if we use different assumptions on future grants, stock-based compensation expense could be materially affected in future periods.occur.

For the year ended December 31, 2024,2025, operating expenses amounted to $5,281,339 $5,490,608 as compared to $8,784,703$3,217,603 for the year ended December 31 2023,2024, aan decreaseincrease of $3,503,364,$2,273,005, or 39.9%.70.6%. For the years ended December 31 20242025 and 2023,2024, operating expenses consisted of the following:

During the year ended December 31, 20242025 and 2023,2024, compensation and related expenses amounted to $2,320,127$3,108,633 and $4,760,180,$1,794,611, respectively, aan decreaseincrease of $2,440,053,$1,314,022, or 51.3%.73.2%. The decreaseincrease was attributable to aan decreaseincrease in stock-based compensation of $1,985,961$723,890 due to the issuance of new stock options in 2025, an increase in bonus of $50,000, and aan decreaseoverall increase in other compensation and other related expenses of $454,092$540,132 as a result of a decrease in the allocation of compensation and related expenses to aRPM, reductionwhich is included in staff.loss from discontinued operations.

During the years ended December 31, 20242025 and 2023, 2024, marketing and advertising expenses amounted to $128,656$238,992 and $388,444,$84,163, respectively, aan decreaseincrease of $259,788,$154,829, or 67.0%,184.0%, primarily due to an overall decreaseincrease in promotions, branding and digital marketing strategies and social media ads.advertisements.

During the years ended December 31, 20242025 and 2023, 2024, we reported professional and consulting expenses of $1,031,898$1,412,792 and $1,324,640,$582,267, respectively, aan decreaseincrease of $292,742,$830,525, or 22.1%.142.6%. The decrease isincrease was attributable to a decreasean increase in consultinglegal fees of $96,202,$400,931, whichan includesincrease ain decreaseinvestor relations fees of $217,850, an increase in accounting fees of $24,776, an increase in stock-based consulting fees of $144,818, offset by$19,135, an increase in other consulting fees of $48,616, a decrease in investor relations fees of $224,026, a decrease in legal fees of $27,195,$9,908, and aan decreaseincrease in other professional fees of $43,970,$157,925, offsetprimarily bydue anto increasea decrease in accountingthe feesallocation of $98,651.professional and consulting expenses to RPM, which is included in loss from discontinued operations.

Research and development costsexpenses

During the years ended December 31, 20242025 and 2023,2024, we incurred $857,668$0 and $1,351,415$166,667 in research and development costs,expenses, a decrease of $493,747,$166,667, or 36.5%.100.0%. Research and development costsexpenses in 2024 were incurred in connection with ouran MetaverseAsset Purchase Agreement dated August 27, 2024 pursuant to which we acquired certain software developmentand project,recorded includingresearch theand development of Habytat which is in the preliminary stage. During the year ended December 31, 2024, we ceased development of our Metaverse software.expense.

During the years ended December 31, 20242025 and 2023, 2024, general and administrative expenses amounted to $942,990$730,191 and $892,972,$589,895, respectively, an increase of $50,018,$140,296, or 5.6%.23.8%. The increasesincrease are was primarily attributable to an increase in computer and internettravel expenses of approximately$57,566, $54,000.an increase in internet and computer expenses of $52,892, and an increase in other general and administrative expenses of $96,449. These increases were offset by a decrease in settlement expense of $66,611 recorded in connection with the Ambassador Settlement discussed elsewhere.

Other income (expenses) primarily consisted of interest income, gain on initial consolidationextinguishment of variable interest entities, a forerign curreny exchange loss, a gain on deconsolidation of variable interest entities, and realized gains on short-term investments.liabilities. During the years ended December 31, 20242025 and 2023,2024, we reported other income, net of $255,896$235,412 and $379,061,$268,752, respectively.respectively, a decrease of $33,340, or 12.4%.

Due to the foregoing reasons, during the years ended December 31, 2024 2025 and 2023,2024, our net loss was $5,025,007$3,040,119 and $8,404,970,$5,025,007, respectively, a decrease of $3,379,963,$1,984,888, or 40.2%.39.5%. During the year ended December 31, 2024 and 2023, we adjusted net loss for the net loss of subsidiary attributable to noncontrolling interest by $785,847 and $0, respectively Accordingly, during the years ended December 31, 20242025 and 2023,2024, our net loss attributable to commonMyseum, Inc. shareholders was $4,239,160, or $(1.43) per common share (basic$2,607,272 and diluted) and $8,404,970, or $(4.14) per common share (basic and diluted),$4,239,160, respectively, a decrease of $4,165,810, $1,631,888, or 49.6%.38.5%.

Net cash used in operating activities totaled $4,388,385$4,267,074 and $6,529,277$4,811,145 for the years ended December 31, 20242025 and 2023,2024, respectively, aan decreaseincrease of $2,140,892.$544,071.

Net cash flow used in operating activities for the year ended December 31, 20242025 primarily reflected a net loss of $5,025,007,$3,040,119 adjusted for the add-back (reduction) of non-cash items consisting of depreciation and amortization of $23,129,$41,430, amortization of right of use assets of $73,977,$33,590, accretion of stock-based stock option and common stock expense of $123,300, a non-cash$866,325, gain fromon deconsolidation of variable interest entities of $(1072,875,892), foreignand currencygain exchangeon lossextinguishment of liabilities of $12,965, and non-cash research and development expense of $166,667,$(62,658), offset by changes in operating assets and liabilities primarily consisting of a decrease in accounts receivable of $124, an increase in prepaid expenses of $9,649,$117,519, a decrease in assets of discontinued operations of $446,670, an increase in accounts payable and accrued expenses of $307,568,$493,667, a decrease in contract liabilities of $29, a decrease in liabilities of discontinued operations of $26,845, and a decrease in operating lease liabilities of $83,674.$25,818.

Risk factors that affect our business and financial results are discussed in Part I, Item 1A “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025 as filed with the SEC on March 30, 2026 (“Annual Report”). Except as set forth below, thereThere have been no material changes in our risk factors from those previously disclosed in our Annual Report. You should carefully consider the risks described in our Annual Report, which could materially affect our business, financial condition or future results. The risks described in our Annual Report are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and/or operating results. If any of the risks actually occur, our business, financial financial condition, and/or results of operations could be negatively affected.

You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited consolidated financial statements and the related notes appearing elsewhere in this Quarterly Report on Form 10-Q and the audited financial statements and related notes for the year ended December 31, 2025 included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC. In addition to historical historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q. All amounts in this report are in U.S. dollars, unless otherwise noted.

During the three months ended MarchJune 31,30, 2026 and 2025, we generated revenues of $73$37 and $83,$78, respectively,respectively. whichDuring the six months ended June 30, 2026 and 2025, we generated revenues of $110 and $161, respectively. Revenue consisted of subscription revenues.

For the three months ended MarchJune 31,30, 2026, operating expenses amounted to $1,685,543$2,152,348 as compared to $1,434,044$1,194,239 for the three months ended MarchJune 3130, 2025, an increase of $251,499,$958,109, or 17.5%.80.2%. For the six months ended June 30, 2026, operating expenses amounted to $3,837,891 as compared to $2,628,283 for the six months ended June 30, 2025, an increase of $1,209,659, or 46.0%. For the three and six months ended MarchJune 3130, 2026 and 2025, operating expenses consisted of the following:

During the three months ended MarchJune 31,30, 2026 and 2025, compensation and related expenses amounted to $796,541$1,187,674 and $916,162,$660,534, respectively, aan decreaseincrease of $119,621,$527,140, or 13.1%.79.8%. The decreaseincrease was attributable to aan decreaseincrease in bonus of $350,000, offset by an increase in stock-based compensation of $70,806 due to the accretion of stock-based option expense issuance for new stock options issued in 2025,$71,250, and an overall increase in compensation and other related expenses of $159,573$105,890 partially as a result of a decrease in the allocation of compensation and related expenses to RPM, which is included in loss from discontinued operations.

During the three months ended MarchJune 31,30, 2026 and 2025, marketing and advertising expenses amounted to $231,739$131,451 and $33,837,$59,121, respectively, an increase of $197,902,$72,330, or 584.9%,122.3%. During the six months ended June 30, 2026 and 2025, marketing and advertising expenses amounted to $363,190 and $92,958, respectively, an increase of $270,232, or 290.7%. The increases were primarily due to an overall increase in promotions, branding and digital marketing strategies and social media advertisements.

During the three months ended MarchJune 31,30, 2026 and 2025, we reported professional and consulting expenses of $517,182$671,720 and $330,598,$274,225, respectively, an increase of $186,584,$397,495, or 56.4%.145.0%. The increase was attributable to an increase in investor relations fees of $33,028, an increase in stock-based consulting fees of $163,766, $367,258, an increase in other consulting fees of $34,500,$118,100, and an increase in other professional fees of $32,142,$29,605, primarily due to a decrease in the allocation of professional and consulting expenses to RPM, which is included in loss from discontinued operations, offset by a decrease in investor relations of $101,472 and a decrease in legal fees of $76,852.$15,996.

During the three months ended MarchJune 31,30, 2026 and 2025, general and administrative expenses amounted to $140,081$161,503 and $153,447,$200,359, respectively, a decrease of $13,366,$38,856, or 8.7%.19.4%. The decrease was primarily attributable to a decrease in settlementcomputer expenseand internet expenses of $9,719$28,463, recordeda decrease in connectiontravel withexpenses of $16,050, and a decrease in proxy meeting expenses of $10,000, offset by an increase in other general and administrative expenses of $15,657 primarily due to a decrease in the Ambassadorallocation Settlementof discussed elsewhere.general and administrative expenses to RPM, which is included in loss from discontinued operations.

During the three months ended MarchJune 31,30, 2026, loss from operations amounted to $1,685,470$2,152,311 as compared to $1,433,961$1,194,161 during the three months ended March 31,June 30, 2025, an increase of $251,509, $958,150, or 17.5%.80.2%. During the six months ended June 30, 2026, loss from operations amounted to $3,837,781 as compared to $2,628,122 during the six months ended June 30, 2025, an increase of $1,209,659, or 46.0%. The increase was primarily a result of the changes in operating expenses discussed above.

Other income (expenses) primarily consisted of interest income and an unrealized loss on equity securities. During the three months ended MarchJune 31,30, 2026,2026 and 2025, we reported other other(expenses) expense,income, net primarilyof consisted$(898,053) and $49,639, respectively, a negative change of $947,692, or 1,909.2%. The negative change was primarily due to an increase in unrealized loss on equity securities of $1,194,000$910,000 that are primarily related to the decrease in the valuation of the fair value of the Avalon Series E Preferred Stock caused by the decrease in Avalon’s quoted common share price, offsetand bya decrease in interest income, net of $17,860.$37,692.

For the three and six months ended MarchJune 31,30, 2026, there were no loss from discontinued operationsoperations. amountedFor tothe $0three asand comparedsix tomonths aended June 30, 2025, loss from discontinued operations amounted ofto $226,485$212,667 forand the$439,152, three months ended March 31 2025, a decrease of $226,485, or 100.0%.respectively. The following table summarizes the results of the discontinued operations for the three and six months ended MarchJune 31,30, 2026 and 2025:

Due to the foregoing reasons, during the three months ended MarchJune 31,30, 2026 and 2025, our net loss was $2,861,610$3,050,364 and $1,619,110,$1,357,189, respectively, an increase of $1,242,500,$1,693,175, or 76.7%.124.8%. During During the three months ended MarchJune 31,30, 2026 and 2025, our net loss attributable to Myseum.AI, Inc. shareholders was $2,861,610$3,050,364 and $1,473,196,$1,216,872, respectively, an increase of $1,388,414,$1,833,492, or 94.2%.150.7%.

During the three and six months ended MarchJune 31, 30, 2026, our total basic and diluted net loss per common share attributable to Myseum.AI, Inc. shareholders was $(0.67). During the three months ended March 31, 2025, our total basic and diluted net loss per common share attributable to Myseum.AI, Inc. shareholders was $(0.36).$0.61 and $1.28, respectively. During the three and six months ended June 30, 2025, our total basic and diluted net loss per common share attributable to Myseum.AI, Inc. shareholders was $0.29 and $0.65, respectively.

Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. On MarchJune 31,30, 2026, we had a cash balance of $777,159,$1,874,149, short-term investments of $1,591,377,$2,056,196, and working capital of $1,935,521.$3,373,096. Short-term investments include U.S. Treasury zero coupon bills that are all highly rated and have initial maturities between one and fivefour months. During the threesix months ended MarchJune 31,30, 2026, we incurred a net loss of $2,861,610$5,911,974 and used net cash in operations of $1,251,131.$2,762,657. Additionally, the Companywe had nominal revenues in 2026.

-2727-- Our primary uses of cash hashave been for research and development, compensation and related expenses, fees paid to third parties for professional services, marketing and advertising expenses, and general and administrative expenses. All funds received have been expended in the furtherance of growing the business. We received funds from the sale of our common stock, sale of common stock of RPM, and the exercise of warrants. The following trends are reasonably likely to result in changes in our liquidity over the near to long term:

Net cash used in operating activities totaled $1,251,131$2,762,657 and $1,190,485$2,482,210 for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively, an increase of $60,646.$280,447.

Net cash flow used in operating activities for the threesix months ended June March 31,30, 2026 primarily reflected a net loss of $2,861,610$5,911,974 adjusted for the add-back of non-cash items consisting of depreciation and amortization of $4,264,$8,528, amortization of right of use assets of $12,231,$24,879, accretion of stock-based stock option, compensatory warrants, warrants, and common stock expense of $389,627,$986,747, reversalchanges ofin short-term investmentaccrued interest income discount of $43,692,$52,043, and an unrealized loss on equity securities of $1,194,000, $2,104,000, offset by changes in operating assets and liabilities primarily consisting of ana increasedecrease in accounts receivable of $31, a decrease in prepaid expenses of $19,608,$149,158, a decrease in accounts payable and accrued expenses of $2,000,$151,813, a decrease in contract liabilities of $4,$10, and a decrease in operating lease liabilities of $11,723.$24,246.

Net cash flow used in operating activities for the threesix months ended MarchJune 31,30, 2025 primarily reflected a net loss of $1,619,110$2,976,299 adjusted for the add-back of non-cash items consisting of depreciation and amortization of $5,541,$11,209, amortization of right of use assets of $10,318, and accretion of stock-based stock option and common stock expense of $155,054,$313,666, offset by changes in operating assets and liabilities primarily consisting of an increase in accounts receivable of $40,$13, ana increasedecrease in prepaid expenses of $21,934,$55,128, a decrease in assets of discontinued operations of $220,879,$139,898, a decrease in accounts payable and accrued expenses of $4,361,$132,181, an increase in contract liabilities of $33,$17, a decrease in operating lease liabilities of $3,562, and an increase in liabilities of discontinued operations of $73,453.$99,609.

Net cash provided by (used in) by investing activities amounted to $1,346,840$873,670 and $(2,905,3322,358,664) for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively, a negativepositive change of $4,447,090.$3,232,334.

During the threesix months ended MarchJune 31,30, 2026, cash cash flows provided by investing activities comprised of gross proceeds from the sale of short-term investments of $2,437,334,$4,017,475, offset by purchases of short-term investments of $1,090,494.$3,143,805.

During the threesix months ended MarchJune 31,30, 2025, we we purchased short-term investments of $4,314,310$5,317,735 and received gross proceeds from the sale of short-term investments of $1,481,603.$2,963,546. Additionally, Additionally, we capitalizedpurchased internal-useproperty softwareand equipment of $72,625.$4,475.

Net cash usedprovided inby financing activities totaled $67,590$3,014,106 for the threesix months ended MarchJune 31,30, 2026 as compared to net cash provided by financing activities of $4,379,500$4,477,972 for the threesix months ended MarchJune 31,30, 2025, a decrease of $4,447,090.$1,463,866.

-2828-- During the threesix months ended MarchJune 31,30, 2025,2026, cash flows provided by financing weactivities receivedcomprised $4,532,000of proceeds from the sale of common stock, net,net andof paid$3,208,239 offset by payments of deferred offering costs of $152,500.$194,133.