{"url_path":"/sec/ceti/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 CONSOLIDATED","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-20","source_url":"https://www.sec.gov/Archives/edgar/data/1935092/0001079973-26-000703-index.html","accession_number":"0001079973-26-000703","cik":"0001935092","ticker":"CETI","issuer_name":"Cyber Enviro-Tech, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1935092/0001079973-26-000703-index.html","primary_entity_key":"0001935092","primary_entity_name":"Cyber Enviro-Tech, Inc."},"word_count":11926,"has_tables":true,"body_markdown":"**ITEM 8. CONSOLIDATED\nFINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.**\n\nOur consolidated financial statements for\nthe fiscal years ended December 31, 2025 and 2024 are attached hereto.\n\n** **\n\n**TABLE OF CONTENTS**\n\n** **\n\nConsolidated\nFinancial Statements\n \nPage\nNumber\n\n[Report of Independent Registered Public\nAccounting Firm (PCAOB ID 6920)](#a_013)\n \nF-2\n\n[Consolidated Balance Sheets as\nof December 31, 2025 and 2024](#a_014)\n \nF-3\n\n[Consolidated Statements of Operations\nfor the years ended December 31, 2025 and 2024](#a_015)\n \nF-4\n\n[Consolidated Statements of Stockholders’\nDeficit for the years ended December 31, 2025 and 2024](#a_016) \n \nF-5\n\n[Consolidated Statements of Cash Flows\nfor the years ended December 31, 2025 and 2024](#a_017)\n \nF-6\n\n[Notes to Consolidated Financial Statements](#a_018)\n \nF-7 to F-19\n\n \n\n \n\nF-1 \n\n \n\n** **\n\n** **\n\n** **\n\n** **\n\n** REPORT OF INDEPENDENT\nREGISTERED PUBLIC ACCOUNTING FIRM**\n\n \n\n \n\nTo the Board of Directors and\n\nStockholders of Cyber Enviro-Tech, Inc.\n\n \n\n**Opinion on the Financial Statements**\n\n \n\nWe have audited the accompanying consolidated balance sheets of Cyber\nEnviro-Tech, Inc. (the Company) as of December 31, 2025 and 2024, and the related consolidated statements of operations, stockholders’ deficit, and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes and schedules\n(collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly,\nin all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and\nits cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with accounting principles generally\naccepted in the United States of America.\n\n \n\n**Substantial Doubt about the Company’s Ability to Continue as\na Going Concern**\n\n \n\nThe accompanying consolidated financial statements have been prepared\nassuming that the Company will continue as a going concern. As discussed in Note 3, the Company has not begun to generate sufficient\nrevenues to fund operations and will need additional financing in order to execute its business plan. These conditions raise substantial\ndoubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments\nthat might result from the outcome of this uncertainty.\n\n \n\n**Basis for Opinion**\n\n \n\nThese consolidated financial statements are the responsibility of the\nCompany’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based\non our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB)\nand are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable\nrules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted our audits in accordance with the standards of the PCAOB.\nThose standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements\nare free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform,\nan audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal\ncontrol over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal\ncontrol over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur audits included performing procedures to assess the risks of material\nmisstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those\nrisks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial\nstatements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well\nas evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis\nfor our opinion.\n\n \n\n \n\n \n\n \n\n \n\nWe have served as the Company’s auditor since 2024.\n\n \n\n Astra Audit & Advisory\n\n \n\nTampa, Florida\n\n \n\nMay 19, 2026\n\n \n\n \n\n \n\nF-2 \n\n \n\n \n\n**CYBER ENVIRO-TECH, INC.**\n\n**CONSOLIDATED BALANCE SHEETS**\n\n**AS OF DECEMBER 31, 2025 AND 2024 **\n\n  \n   \n  \n\n  \nDecember 31, 2025  \nDecember 31, 2024 \n\nASSETS \n    \n   \n\nCurrent Assets: \n    \n   \n\nCash and cash equivalents \n$50,230  \n$59,411 \n\nAccounts receivable \n —  \n — \n\nLoans receivable \n 215,000  \n 190,000 \n\nInvestment in WTXR \n 203,368  \n — \n\nPrepaid expenses and other current assets \n 269,519  \n 457,768 \n\nTotal current assets \n 738,117  \n 707,179 \n\n  \n    \n   \n\nProperty and equipment, net \n 1,151,231  \n 776,560 \n\nLong term deposit \n 100,000  \n — \n\nAssets of discontinued operations, non-current \n —  \n 2,081,952 \n\nTotal Assets \n$1,989,348  \n$3,565,691 \n\n  \n    \n   \n\nLIABILITIES AND STOCKHOLDERS’ DEFICIT \n    \n   \n\nCurrent Liabilities: \n    \n   \n\nAccounts payable \n$359,490  \n$105,042 \n\nAccounts payable - related parties \n 210,170  \n 137,690 \n\nAccrued interest \n 309,487  \n 204,760 \n\nNote payable, current maturities \n 199,001  \n 188,061 \n\nNote payable, related party, net of discount of nil\n0 at December 31, 2025 and $8,277\nat December 31, 2024 \n 168,471  \n 145,712 \n\nConvertible notes payable, net of discount of $263,018 at December 31, 2025 and $24,400 at December 31, 2024 \n 1,169,944  \n 815,863 \n\nConvertible notes payable – related parties \n 22,000  \n 22,000 \n\nContingent liabilities \n 190,000  \n 437,500 \n\nLiabilities of discontinued operations, current \n —  \n 369,000 \n\nLiabilities of discontinued operations, current – related parties \n —  \n 30,000 \n\nTotal current liabilities \n 2,628,563  \n 2,455,628 \n\n  \n    \n   \n\n  \n    \n   \n\nConvertible notes payable, net of discount of $274,416 at December 31, 2025 and $318,779 at December 31, 2024 \n 1,390,065  \n 1,127,621 \n\nDerivative liability \n 1,071,944  \n 387,238 \n\nLiabilities of discontinued operations, non-current \n —  \n 97,463 \n\nTotal Liabilities \n 5,090,572  \n 4,067,950 \n\n  \n    \n   \n\nCommitments and contingencies (Note 4) \n    \n   \n\n  \n    \n   \n\nStockholders’ Deficit: \n    \n   \n\nSeries A Convertible Preferred Stock, par value $0.001, 200,000 shares authorized; 16,671 shares issued and outstanding \n 17  \n 17 \n\nSeries B Convertible Preferred Stock, par value $0.001, 85,000 shares authorized; 1 share issued and outstanding \n —  \n — \n\nSeries C Non-convertible, Preferred Stock, par value $0.001, 50,000 shares authorized; 0.5 shares issued and outstanding \n —  \n — \n\nSpecial 2020 Series A Preferred Stock, par value $0.0001, 1 \n —  \n — \n\nshare authorized; 1 share issued and 0 outstanding \n    \n   \n\nCommon Stock, par value $0.001, 350,000,000 shares authorized; 128,889,309 and 108,159,556 shares issued and outstanding, for the period ended December 31, 2025 and December 31, 2024, respectively \n 128,904  \n 108,120 \n\nAdditional paid-in capital \n 15,978,681  \n 12,165,669 \n\nCommon stock to be issued \n 1,611,148  \n 373,443 \n\nTreasury stock, at cost \n (66,400) \n (66,400)\n\nAccumulated deficit \n (20,753,574) \n (13,129,093)\n\nControlling interest \n (3,101,224) \n (548,244)\n\nNon-controlling interest \n —  \n 45,985 \n\nTotal Stockholders’ Deficit \n (3,101,224) \n (502,259)\n\nTotal Liabilities and Stockholders’ Deficit \n$1,989,348  \n$3,565,691 \n\n \n\n \n\n*The accompanying notes are an integral part of\nthese audited consolidated financial statements*\n\n* *\n\n*  *\n\nF-3 \n\n \n\n**CYBER ENVIRO-TECH, INC.**\n\n**CONSOLIDATED STATEMENTS  \nOF OPERATIONS**\n\n**FOR THE YEARS ENDING DECEMBER 31, 2025 AND 2024**  \n\n  \n   \n  \n\n  \nTwelve Months Ending \n\n  \nDecember 31, 2025  \nDecember 31, 2024 \n\nRevenue: \n    \n   \n\nGross Sales \n$—  \n$— \n\nCost of Sales \n —  \n — \n\nGross Margin \n —  \n — \n\n  \n    \n   \n\nOperating Expenses: \n    \n   \n\nProfessional fees \n 343,498  \n 131,054 \n\nGeneral and administrative \n 993,291  \n 1,051,798 \n\nConsulting \n 1,779,681  \n 1,666,553 \n\nTotal operating expenses \n 3,116,470  \n 2,849,405 \n\n  \n    \n   \n\nOperating loss from continuing operations \n (3,116,470) \n (2,849,405)\n\n  \n    \n   \n\nOther Income (Expense): \n    \n   \n\nChange in fair value of derivatives \n (179,252) \n 161,122 \n\nChange in fair value of contingent liabilities \n (47,500) \n (437,500)\n\nLoss on issuance of derivative \n (2,068,536) \n (191,162)\n\nLoss on impairment of assets \n (579,957) \n (957,377)\n\nUnrealized loss on investment in WTXR \n (147,435) \n — \n\nGain on extinguishment of derivative liability \n 1,431,541  \n 264,539 \n\nAmortization of intangible assets \n —  \n (112,850)\n\nInterest income \n 12,564  \n 10,768 \n\nInterest expense \n (1,464,963) \n (759,013)\n\nTotal other expense, net \n (3,043,538) \n (2,021,473)\n\n  \n    \n   \n\nLoss from continuing operations \n (6,160,008) \n (4,870,878)\n\n  \n    \n   \n\nDiscontinued Operations: \n    \n   \n\nLoss from discontinued operations \n (1,462,514) \n (1,495,106)\n\nLoss from shutdown of Axenic \n (18,451) \n — \n\nTotal Discontinued Operations \n (1,480,965) \n (1,495,106)\n\n  \n    \n   \n\nNet loss before income taxes \n (7,640,973) \n (6,365,984)\n\nProvision for income taxes \n —  \n — \n\nNet Loss \n$(7,640,973) \n$(6,365,984)\n\n  \n    \n   \n\nNet loss attributable: \n    \n   \n\nLoss attributable to noncontrolling interest \n$(89,057) \n$(12,815)\n\nNet loss attributable to common stockholders \n (7,551,916) \n (6,353,169)\n\nNet loss \n$(7,640,973) \n$(6,365,984)\n\n  \n    \n   \n\nLoss per share, basic and diluted \n$(0.07) \n$(0.07)\n\n  \n    \n   \n\nWeighted average shares outstanding, basic and diluted \n 115,064,908  \n 92,515,600 \n\n**  **\n\n*The accompanying notes are an integral part of\nthese audited consolidated financial statements*\n\n* *\n\n* *\n\nF-4 \n\n \n\n**CYBER ENVIRO-TECH, INC.**\n\n**CONSOLIDATED STATEMENTS OF\nSTOCKHOLDERS’ DEFICIT** \n\n**FOR THE YEARS ENDING DECEMBER 31, 2025 AND 2024   **\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \n**Preferred**\n \n \n**Common\nStock**\n \n \n \n \n \n**Common\nStock to be Issued**\n \n \n \n \n \n**Unrealized**\n \n \n**Accumulated**\n \n \n**Non-Controlling**\n \n \n \n \n\n**Description**\n \n**Shares**\n \n \n**Amt**\n \n \n**Shares**\n \n \n**Amt**\n \n \n**APIC**\n \n \n**Shares**\n \n \n**Amt**\n \n \n**Treasury**\n \n \n**Loss**\n \n \n**Deficit**\n \n \n**Interest**\n \n \n**Total**\n \n\n**Balance, December 31, 2023**\n \n \n**16,671**\n \n \n**$**\n**17**\n \n \n \n**77,467,573**\n \n \n**$**\n**77,468**\n \n \n**$**\n**7,801,868**\n \n \n \n**8,173,019**\n \n \n**$**\n**933,489**\n \n \n**$**\n**(66,400**\n**)**\n \n \n**0**\n \n \n**$**\n**(6,775,924**\n**)**\n \n \n**—  **\n \n \n**$**\n**1,970,518**\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nWarrants issued for services\n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n215,962\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n215,962\n \n\nWarrants issued for convertible notes payable\n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n33,056\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n33,056\n \n\nShares issued for cash\n \n \n—  \n \n \n \n—  \n \n \n \n834,000\n \n \n \n834\n \n \n \n149,166\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n150,000\n \n\nShares issued for services\n \n \n—  \n \n \n \n—  \n \n \n \n250,000\n \n \n \n250\n \n \n \n77,250\n \n \n \n990,668\n \n \n \n261,400\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n338,900\n \n\nShares issued for interest\n \n \n—  \n \n \n \n—  \n \n \n \n1,437,918\n \n \n \n1,396\n \n \n \n182,302\n \n \n \n(9,730\n)\n \n \n(1,409\n)\n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n182,289\n \n\nShares issued for conversion of convertible notes payable\n \n \n—  \n \n \n \n—  \n \n \n \n28,170,065\n \n \n \n28,172\n \n \n \n3,644,865\n \n \n \n(7,199,707\n)\n \n \n(820,037\n)\n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n2,853,000\n \n\nNoncontrolling interest\n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n61,200\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n58,800\n \n \n \n120,000\n \n\nNet loss\n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n(6,353,169\n)\n \n \n(12,815\n)\n \n \n(6,365,984\n)\n\n**Balance, December 31, 2024**\n \n \n**16,671**\n \n \n**$**\n**17**\n \n \n \n**108,159,556**\n \n \n**$**\n**108,120**\n \n \n**$**\n**12,165,669**\n \n \n \n**1,954,250**\n \n \n**$**\n**373,443**\n \n \n**$**\n**(66,400**\n**)**\n \n**$**\n**—  **\n \n \n**$**\n**(13,129,093**\n**)**\n \n**$**\n**45,985**\n \n \n**$**\n**(502,259**\n**)**\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n**Balance, December 31, 2024**\n \n \n**16,671**\n \n \n**$**\n**17**\n \n \n \n**108,159,556**\n \n \n**$**\n**108,120**\n \n \n**$**\n**12,165,669**\n \n \n \n**1,954,250**\n \n \n**$**\n**373,443**\n \n \n**$**\n**(66,400**\n**)**\n \n \n**0**\n \n \n**$**\n**(13,129,093**\n**)**\n \n**$**\n**45,985**\n \n \n**$**\n**(502,259**\n**)**\n\n Shares issued for cash\n \n \n—  \n \n \n \n—  \n \n \n \n900,000\n \n \n \n900\n \n \n \n179,100\n \n \n \n100,000\n \n \n \n20,000\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n200,000\n \n\n Shares issued for services\n \n \n—  \n \n \n \n—  \n \n \n \n457,675\n \n \n \n459\n \n \n \n90,033\n \n \n \n256,430\n \n \n \n86,643\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n177,135\n \n\n Warrants issued for services\n \n \n—  \n \n \n \n—  \n \n \n \n4,728,515\n \n \n \n4,781\n \n \n \n24,206\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n28,987\n \n\n Shares issued for interest\n \n \n—  \n \n \n \n—  \n \n \n \n847,554\n \n \n \n848\n \n \n \n116,450\n \n \n \n1,349,341\n \n \n \n151,062\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n268,360\n \n\n Shares issued for conversion of notes payable\n \n \n—  \n \n \n \n—  \n \n \n \n1,000,000\n \n \n \n1,000\n \n \n \n199,000\n \n \n \n(1,000,000\n)\n \n \n(200,000\n)\n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n\n Shares issued for conversion of convertible notes\npayable\n \n \n—  \n \n \n \n—  \n \n \n \n12,796,008\n \n \n \n12,796\n \n \n \n2,946,238\n \n \n \n11,003,331\n \n \n \n1,180,000\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n4,139,034\n \n\n Net loss\n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n(7,551,916\n)\n \n \n(89,057\n)\n \n \n(7,640,973\n)\n\n Liquidation of noncontrolling interest\n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n257,984\n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n—  \n \n \n \n(72,567\n)\n \n \n43,072\n \n \n \n228,489\n \n\n**Balance, December 31, 2025**\n \n \n**16,671**\n \n \n**$**\n**17**\n \n \n \n**128,889,308**\n \n \n**$**\n**128,904**\n \n \n**$**\n**15,978,681**\n \n \n \n**13,663,352**\n \n \n**$**\n**1,611,148**\n \n \n**$**\n**(66,400**\n**)**\n \n**$**\n**(147,435**\n**)**\n \n**$**\n**(20,753,574**\n**)**\n \n**$**\n**(0**\n**)**\n \n**$**\n**(3,101,224**\n**)**\n\n** **\n\n* *\n\n*The accompanying notes are an integral part of\nthese audited consolidated financial statements*\n\n \n\n \n\nF-5 \n\n \n\n**CYBER ENVIRO-TECH, INC.**\n\n**CONSOLIDATED STATEMENTS OF\nCASH FLOWS**\n\n**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024   **\n\n  \n   \n  \n\n  \nFor the Twelve Months Ending \n\n  \nDecember 31, 2025  \nDecember 31, 2024 \n\nCash Flows from Operating Activities \n    \n   \n\nNet loss \n$(7,640,973) \n$(6,365,984)\n\nAdjustments to reconcile net loss to net cash used by operating activities: \n    \n   \n\nDepreciation and amortization \n 26,722  \n 112,850 \n\nChange in fair value of derivatives \n 179,252 \n (161,122)\n\nChange in fair value of contingent liability \n 47,500  \n — \n\nLoss on issuance of derivative \n 2,068,536  \n 191,162 \n\nGain on extinguishment of derivative liability \n (1,431,541) \n (264,539)\n\nLoss on impairment of assets \n 579,957  \n 957,377 \n\nLoss on shutdown of Axenic \n 18,451  \n — \n\nLoss on sale of Alvey oil field \n 1,241,110  \n — \n\nLoss on investment in WTXR \n 147,435  \n — \n\nBad debt expense \n 123,076  \n — \n\nShares issued for services \n —  \n 267,500 \n\nStock compensation \n 177,135  \n — \n\nWarrants issued for services \n 28,987  \n 53,991 \n\nAmortization of debt discount \n 933,116  \n 294,222 \n\nChanges in operating assets and liabilities: \n    \n   \n\nPrepaid expenses and other current assets \n 163,250  \n 395,737 \n\nContingent liability \n (100,000) \n 437,500 \n\nAccounts payable \n 272,227  \n 222,587 \n\nAccrued interest \n 280,420  \n 361,979 \n\nNet cash used in operating activities \n (2,885,340) \n (3,496,740)\n\n  \n    \n   \n\nCash Flows from Investing Activities \n    \n   \n\nPurchase or capitalization of property and equipment \n (861,350) \n (338,001)\n\nCash issued for deposit on asset \n (100,000) \n — \n\nCash issued for loans receivable \n (25,000) \n (90,000)\n\nCash received from non-controlling interest contribution \n —  \n 120,000 \n\nNet cash used from investing activities \n (986,350) \n (308,001)\n\n  \n    \n   \n\nCash Flows from Financing Activities \n    \n   \n\nShares issued for cash \n 200,000  \n — \n\nProceeds from issuance of common stock \n —  \n 150,000 \n\nProceeds from notes payable \n 517,562  \n 183,061 \n\nProceeds from convertible notes payable \n 3,570,800  \n 2,582,650 \n\nProceeds from notes payable, related party \n 14,482  \n — \n\nRepayment of convertible notes payable \n (284,313) \n (277,638)\n\nRepayment of note payable \n (129,242) \n (95,000)\n\nNet cash provided by financing activities \n 3,889,289  \n 2,543,073 \n\n  \n    \n   \n\nNet change in cash and cash equivalents from continuing operations \n$17,599  \n$(1,261,668)\n\n  \n    \n   \n\nCash Flows from Discontinued Operations \n    \n   \n\nNet change in operating activities from discontinued operations \n (26,780) \n 1,301,882 \n\n  \n -  \n - \n\nNet change in investing activities from discontinued operations \n —  \n (220,220)\n\nNet change in cash and cash equivalents from discontinued operations \n$(26,780) \n$1,081,662 \n\n  \n    \n   \n\nNet change in cash and cash equivalents \n (9,181) \n (180,006)\n\n  \n    \n   \n\nCash at beginning of period \n 59,411  \n 239,417 \n\n  \n    \n   \n\nCash at end of period \n$50,230  \n$59,411 \n\n  \n    \n   \n\nSupplemental Cash Flow Information \n    \n   \n\nCash paid for interest \n$19,156  \n$— \n\n  \n    \n   \n\nNon-cash investing and financing activities: \n    \n   \n\nShares issued for conversion of convertible notes payable and accrued interest \n$4,139,034  \n$1,695,000 \n\nShares issued for accrued interest \n$268,360  \n$253,842 \n\nShares issued for contingent liability \n$195,000 \n$— \n\nDerivative liability \n$1,035,000  \n$— \n\nDebt discount on convertible notes payable \n$(1,504,245) \n$337,889 \n\n** **\n\n*The accompanying notes are an integral part of\nthese audited consolidated financial statements. *\n\n \n\nF-6 \n\n \n\n \n\n**CYBER ENVIRO-TECH, INC.**\n\n**CONSOLIDATED NOTES TO CONSOLIDATED\nFINANCIAL STATEMENTS**\n\n**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**\n\n**NOTE 1 – ORGANIZATION AND DESCRIPTION\nOF BUSINESS** \n\nCyber Enviro-Tech, Inc. (the “Company”)\n(CETI) Cyber Enviro-Tech, Inc is a water science technology company focusing on the remediation of contaminated industrial wastewater\nwith an initial emphasis on the oil & gas industry. We do this by integrating technologies to include cyber, aerospace, satellite,\nindustrial and AI engineering telemetry. Our water filtration, wastewater and alternative energy systems will have neural sensors, controls\nand networks - all connected to a cellular device. The corporate headquarters is in Scottsdale, Arizona and it also has satellite offices\nin Istanbul, Turkey and Dubai, UAE.\n\n**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING\nPOLICIES**\n\n*Basis of presentation*\n\nThe Company’s consolidated financial\nstatements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.\nGAAP”).\n\n*Principles of Consolidation*\n\nThe consolidated financial statements include\nthe accounts of CETI and CETI Axenic, Inc (“Axenic”). Axenic is a majority owned subsidiary of CETI which discontinued operations\non December 31, 2025. All significant intercompany balances and transactions have been eliminated for 2025 and 2024. As of December 31,\n2025, the investment in Axenic has been written off resulting in a nil balance.\n\n*Use of estimates*\n\nThe preparation of consolidated financial\nstatements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets\nand liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported\namounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.\n\n*Revenue recognition*\n\nThe Company recognizes revenue in accordance\nwith Accounting Standards Update (“ASU”) 2014-09, *“Revenue from Contracts with Customers,”* (“Topic\n606”). Revenue is recognized when a customer obtains control of promised goods or services. In addition, the standard requires\ndisclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amount\nof revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies\nthe following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination\nof whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii)\nmeasurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to\nthe performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.\n\nThe Company only applies the five-step model\nto contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services\nit transfers to the customer. Once a contract is determined to be within the scope of Topic 606 at contract inception, the Company reviews\nthe contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct.\nThe Company expects to recognize revenues as the amount of the transaction price that is allocated to the respective performance obligation\nwhen the performance obligation is satisfied or as it is satisfied.\n\nThe Company recognizes sales when oil is picked\nup by the delivery company and control passes to the customer.\n\n*Advertising Policy*\n\n \n\nThe Company expenses advertising and public relations\ncosts, including costs associated with press release distribution and investor awareness activities, as incurred. Such costs are included\nin general and administrative expenses in the consolidated statements of operations. Advertising and promotional costs were not significant\nfor the years ended December 31, 2025 and 2024.\n\n \n\n*Cash equivalents*\n\nThe Company considers all highly liquid investments\nwith a maturity of three months or less when purchased to be cash equivalents. There were no cash equivalents at December 31, 2025 and\n2024.\n\nF-7 \n\n \n\n \n\n*Investments*\n\nThe Company accounts for investments in accordance\nwith U.S. GAAP. Equity securities are measured at fair value, with changes in fair value recognized in earnings as a component of other\nincome (expense), net. Equity investments without readily determinable fair values are recorded at cost, less impairment, and adjusted\nfor observable price changes in orderly transactions for identical or similar securities of the same issuer. The Company reviews investments\nfor impairment each reporting period.\n\nThe Company determines the fair value of its\ninvestments in accordance with ASC 820, *Fair Value Measurement*. Investments are classified within the fair value hierarchy based\non the lowest level of input that is significant to the fair value measurement. Investments valued using quoted prices in active markets\nfor identical securities are classified as Level 1. Investments valued using observable inputs other than quoted prices in active markets\nare classified as Level 2. Investments valued using significant unobservable inputs, including management assumptions, discounts for\nlack of marketability, limited trading volume, restrictions on transfer, or valuation techniques prepared with the assistance of a valuation\nspecialist, are classified as Level 3.\n\nAs of December 31, 2025, the Company’s\ninvestment in West Texas Resources, Inc. (“WTXR”) was measured at fair value and classified as a Level 3 investment. Although\nWTXR’s common stock is quoted on the OTC market, the stock is thinly traded and the Company’s fair value determination was\nnot based solely on the quoted market price. The Company considered available market data and other valuation inputs, including the limited\ntrading activity of WTXR’s common stock and other relevant factors, in determining fair value. As of December 31, 2025, the carrying\nvalue of the Company’s investment in WTXR was $203,368. During the year ended December 31, 2025, the Company recognized an unrealized\nloss of $147,435 related to its investment in WTXR, which is included in other income (expense), net in the consolidated statements of\noperations.\n\n*Property and Equipment* \n\nProperty and equipment is recorded at cost.\nCost of improvements that substantially extend the useful lives of the assets are capitalized. Maintenance and repair costs are expensed\nwhen incurred. When other property and equipment is sold or retired, the capitalized costs and related accumulated depreciation are removed\nfrom their respective accounts. Assets are depreciated over a five to twenty year period of time, depending upon the estimated useful\nlife of the assets, on a straight-line basis.\n\n*Discontinued Operations*\n\n \n\nA component of an entity that is disposed of by sale\nor abandonment is reported as discontinued operations if the transaction represents a strategic shift that will have a major effect on\nan entity's operations and financial results. The results of discontinued operations are aggregated and presented separately in the Consolidated\nStatement of Operations. Assets and liabilities of the discontinued operations are aggregated and reported separately as assets and liabilities\nof discontinued operations in the Consolidated Balance Sheets, including the comparative prior year period.\n\n \n\n*Loans Receivable*\n\n \n\nIn November 2023 and March 2024, CETI provided\ntwo Short-Term Capital Bridge Loan totaling $190,000 to Sedar Gurel, Founder and CEO of DELTA Cervresel Solusyonlari ve Makinalar A.S.\na Turkish Corporation (\"DELTA\"). The notes are currently due and are accruing simple interest at 6% per annum. Interest income\nwas $11,400 and $10,425 for years ending December 31, 2025 and 2024, respectively. DELTA is a significant partner in CETI’s overseas\noperations and the Company does not have any concern about the collectability of the Company’s loans. Interest income receivable\nis part of prepaid and other current assets on the balance sheets.\n\nCETI provided a Short-Term Capital Bridge Loan\ntotaling $25,000 to Donald Goree, CEO of West Texas Resources, Inc. (OTCID: WTXR). The loan is currently due and is accruing simple interest\nat 9% per annum. Interest income was $1,479 for the year ended December 31, 2025. Interest income receivable is part of prepaid and other\ncurrent assets on the balance sheets.\n\n*Impairment of Long-Lived Assets*\n\n* *\n\nIn accordance with authoritative guidance\non accounting for the impairment or disposal of long-lived assets, as set forth in Topic 360 of the ASC, the Company assesses the recoverability\nof the carrying value of its non-oil and gas long-lived assets when events occur that indicate an impairment in value may exist. An impairment\nloss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets. If this\noccurs, an impairment loss is recognized for the amount by which the carrying amount of the assets exceeds the estimated fair value of\nthe assets.\n\n \n\nF-8 \n\n \n\n \n\n*Accounting for Majority-Owned Subsidiary*\n\n* *\n\nThe Company consolidates the financial statements\nof majority-owned subsidiaries in accordance with U.S. GAAP. A subsidiary is classified as majority-owned when the Company owns more\nthan 50% of its voting shares, giving it control over the subsidiary's operations and financial policies.\n\n \n\nIn the consolidated financial statements, all intercompany\ntransactions, balances, and unrealized gains and losses on transactions between the Company and its subsidiaries have been eliminated.\nThe financial position, results of operations, and cash flows of each majority-owned subsidiary are fully consolidated with the portion\nattributable to non-controlling interests presented as a separate line item in the equity section of the consolidated balance sheets\nand as a separate component of net loss in the Consolidated Statements of Operations.\n\n \n\nCETI is a 51% owner of Axenic which was formed in\n2024 and to focus on water remediation in the commercial laundry industry. Its day-to-day operations are run by other personnel who are\nnot officers of CETI which provides the ability for CETI to expand into another industry while not burdening its current focus on water\nremediation for oil and gas, meat packing and municipalities.\n\n \n\nThe consolidated financial statements include the\naccounts of CETI and Axenic. Axenic is a majority owned subsidiary of CETI which discontinued operations on December 31, 2025. All significant\nintercompany balances and transactions have been eliminated for 2025 and 2024. As of December 31, 2025, the investment in Axenic has\nbeen written off resulting in a nil balance. The Company had non-controlling interest of $45,985 as of December 31, 2024. \n\n \n\n*Stock-based Compensation*\n\nThe Company applies the fair value method\nof Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718, *“Share\nBased Payment”,* in accounting for its stock-based compensation. This standard states that compensation cost is measured at\nthe grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period. The\nCompany values stock-based compensation at the market price for the Company’s common stock and other pertinent factors at the grant\ndate. During the years ended December 31, 2025 and 2024, the Company recorded $496,664 and $694,328 in stock-based compensation expense,\nrespectively.\n\n*Fair Value of Financial Instruments*\n\nThe Company adopted ASC 820, “*Fair\nValue Measurements*.” ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes\na fair value hierarchy to classify the inputs used in measuring fair value as follows:\n\nLevel 1:\nQuoted market\nprices available in active markets for identical assets or liabilities as of the reporting date.\n\n \n \n\nLevel 2:\nPricing inputs other than\nquoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.\n\n \n \n\nLevel 3:\nPricing inputs that are\ngenerally unobservable inputs and not corroborated by market data.\n\n \n\nThe carrying amount of the Company’s\nfinancial assets and liabilities, such as cash, prepaid expenses and accrued expenses approximate their fair value because of the short\nmaturity of those instruments. The Company’s notes payable approximates the fair value of such instruments as the notes bear\ninterest rates that are consistent with current market rates.\n\nThe Company evaluates convertible instruments,\noptions, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives\nto be separately accounted for under ASC 815, *“Derivatives and Hedging”.* The result of this accounting treatment is\nthat the fair value of the derivative is marked to market each balance sheet date and recorded as a liability. In the event that the\nfair value is recorded as a liability, the change in fair value is recorded in the Consolidated Statements of Operations as other income\n(expense). Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and\nthen that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification\nunder ASC 815 are reclassified to liabilities at the fair value of the instrument on the reclassification date.\n\n \n\nF-9 \n\n \n\nThe following table classifies the Company’s\nliability measured at fair value on a recurring basis into the fair value hierarchy as of December 31, 2025:\n\nSchedule of derivative liability  \n   \n   \n   \n  \n\nDescription  \nLevel 1  \nLevel 2  \nLevel 3  \nTotal \n\nDerivative  \n$—  \n$—  \n$1,071,944  \n$1,071,944 \n\nTotal  \n$—  \n$—  \n$1,071,944  \n$1,071,944 \n\n \n\nThe following table classifies the Company’s\nliability measured at fair value on a recurring basis into the fair value hierarchy as of December 31, 2024:\n\n  \n   \n   \n   \n  \n\nDescription \nLevel 1  \nLevel 2  \nLevel 3  \nTotal \n\nDerivative \n$—  \n$—  \n$387,238  \n$387,238 \n\nTotal \n$—  \n$—  \n$387,238  \n$387,238 \n\n*Income taxes*\n\nIncome taxes are accounted for under the asset\nand liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences\nbetween the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss,\ncapital loss and tax credit carryforwards. Deferred tax assets and liabilities are measures using enacted tax rates expected to apply\nto the taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred\ntax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.\n\nThe Company recognizes the effect of income\ntax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the\nlargest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in\nwhich the change in judgment occurs. The Company records interest and penalties related to unrecognized tax benefits as a component of\ngeneral and administrative expenses. The Company’s federal tax return and any state tax returns are not currently under examination.\n\nThe Company has adopted ASC 740, “*Accounting\nfor Income Taxes*,” which requires an asset and lability approach to financial accounting and reporting for income taxes. Deferred\nincome tax assets and liabilities are computed annually from differences between the financial statement and tax basis of assets and\nliabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods\nin which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred\ntax assets to the amount expected to be realized.\n\n*Net income (loss) per common share*\n\nUnder the provisions of ASC 260, “*Earnings\nper Share*”, basic loss per common share is computed by dividing net loss available to common shareholders by the weighted average\nnumber of shares of common stock outstanding for the periods presented. Diluted net loss per share reflects the potential dilution that\ncould occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance\nof common stock that would then share in the income of the Company, subject to anti-dilution limitations. The following potential common\nshares were excluded from the calculation of diluted net income (loss) per share available to common stockholders because their effect\nwould have been antidilutive:\n\nSchedule of diluted net income (loss) per share available to common stockholders \n   \n  \n\n  \nYear ended December 31, \n\n  \n2025  \n2024 \n\nWarrants \n 677,778  \n 4,950,000 \n\nStock options \n 1,000,000  \n 1,000,000 \n\nConvertible notes payable \n 35,856,883  \n 34,842,243 \n\nCommon stock to be issued \n 13,663,352  \n 2,973,132 \n\nPreferred stock \n 50,012,000  \n 50,012,000 \n\nEmbedded derivatives \n 31,204,555  \n 3,543,165 \n\nTotal \n 132,414,568  \n 97,320,540 \n\n \n\n \n\nF-10 \n\n \n\n*Concentration of credit risks*\n\n* *\n\nThe Company maintains accounts with financial\ninstitutions. All cash in checking accounts is non-interest bearing and is fully secured by the Federal Deposit Insurance Corporation\n(FDIC). At times, cash balances may exceed the maximum coverage provided by the FDIC on insured depositor accounts. The Company believes\nit mitigates its risk by depositing its cash and cash equivalents with major financial institutions. \n\n*Segment Reporting*\n\n \n\nThe Company has determined that it has one reportable\nsegment, which includes industrial water remediation. The single segment was identified based on how the Chief Operating Decision\nMaker, who was determined to be the Chief Executive Officer, manages and evaluates performance and allocates resources.\n\n \n\nThe Company operates as one reportable segment: industrial\nwater remediation. The Company’s Chief Executive Officer has been identified as the chief operating decision maker (“CODM”).\nThe CODM assesses performance and allocates resources based on the Company’s consolidated operating results. The measure of segment\nprofit or loss reviewed by the CODM is consolidated net loss, as reported in the consolidated statements of operations. Because the Company\nhas one reportable segment, all required segment financial information is presented in the consolidated financial statements. The Company\ndoes not separately report significant segment expenses to the CODM other than those reflected in the consolidated statements of operations.\nThe Company’s segment assets are consistent with total assets reported in the consolidated balance sheets.\n\n \n\n*Geographic Information*\n\n \n\nThe Company had no revenue from customers outside\nthe United States during the year ended December 31, 2025. As of December 31, 2025, long-lived assets located outside the United States\nconsisted of a demonstration machine used in the Company’s water filtration process located in Mardin, Turkey, with a carrying\nvalue of $916,512 plus equipment for a Cl02 plant of $115,000 for a total of $1,031,512. The Company also maintains offices in Istanbul,\nTurkey and Dubai, United Arab Emirates; however, these offices did not generate revenue and did not incur significant expenses during\nthe year ended December 31, 2025.\n\n \n\n*Derivatives*\n\n \n\nThe Company evaluates convertible debt and other\nfinancial instruments to determine whether they contain embedded features requiring separate accounting as derivative liabilities under\nU.S. GAAP. Derivative liabilities, including embedded conversion features that do not qualify for equity classification, are initially\nrecorded at fair value and remeasured at fair value at each reporting date, with changes in fair value recognized in earnings. Upon conversion,\nsettlement, or extinguishment, the related derivative liability is remeasured and any resulting gain or loss is recognized in earnings.\n\n \n\n*Convertible Debt*\n\n \n\nEffective January 1, 2025, the Company adopted ASU\n2024-04, *Induced Conversions of Convertible Debt Instruments*, which clarifies the accounting guidance for settlements of convertible\ndebt instruments that occur after the adoption of ASU 2020-06. The amendments specify that an issuer must apply the induced-conversion\nmodel when it offers a sweetener or other consideration that is incentive-based and is not required under the original contractual terms\nof the instrument, regardless of whether the settlement is structured as a conversion or as an extinguishment of the debt. The Company\nadopted the amendments using the prospective approach. Adoption of ASU 2024-04 did not have a material impact on the Company’s\nconsolidated financial statements for the year ended December 31, 2025.\n\n \n\n*Recently issued accounting pronouncements*\n\n \n\nThe Company has implemented all new accounting pronouncements\nthat are in effect. These pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed,\nand the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material\nimpact on its financial position or results of operations.\n\n \n\nIn July 2025, the FASB issued ASU 2025-05, “*Financial\nInstruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets*”. The\nupdate introduces two major simplifications to the CECL model for *current* accounts receivable and contract assets, aiming to reduce\ncost and complexity—especially for private companies and NFPs. This pronouncement becomes effective for fiscal years beginning\nafter December 15, 2025. The Company does not believe this accounting pronouncement will have a material impact\non its financial position or results of operations.\n\n \n\n**NOTE 3 – GOING CONCERN**  \n\nThe Company’s consolidated financial\nstatements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge\nits liabilities and commitments in the normal course of business for the foreseeable future. The Company does not yet have sufficient\nrevenue to cover its operating expenses . These factors raise substantial doubt about the Company’s ability to continue\nas a going concern. The ability to continue as a going concern is dependent upon generating profitable operations in the future and/or\nto obtain the necessary financing to meet the Company’s obligations and repay its liabilities arising from normal business operations\nwhen they come due. Management intends to finance operating costs over the next twelve months with increased revenue and private placement\nloans or institutional investors. While the Company believes that it will be successful in obtaining the necessary financing and generating\nrevenue to fund the Company’s operations, meet regulatory requirements and achieve commercial goals, there are no assurances that\nsuch additional funding will be achieved and that the Company will succeed in its future operations.\n\nThe consolidated financial statements of the\nCompany do not include any adjustments that may result from the outcome of these uncertainties.\n\n**NOTE 4 – COMMITMENTS AND CONTINGENCIES**\n\nDuring the normal course of business, the\nCompany may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in\naccordance with ASC 450, *Contingencies*. The Company evaluates its exposure to the matter, possible legal or settlement strategies\nand the likelihood of an unfavorable outcome. If the Company determines that an unfavorable outcome is probable and can be reasonably\nestimated, it establishes the necessary accruals. As of December 31, 2025 and December 31, 2024, the Company is not aware of any contingent\nliabilities related to potential litigation that should be reflected in the consolidated financial statements.\n\nIn February 2022 and February 2023, CETI entered\ninto agreements with two different investors offering them a stock guarantee on share price within a three-year period of time. The first\ninvestor’s shares in February 2022, came due in February 2025 and CETI entered into an agreement to pay $100,000 in cash and shares\nto satisfy that guarantee. For the second investor, the Company accrued a liability as of December 31, 2025 and 2024 for the difference\nbetween share price on those dates and the guaranteed share price. The remaining guarantee is reported as Contingent liability of $190,000\nat December 31, 2025. The two guarantees were reported as Contingent liabilities of $437,500 at December 31, 2024.\n\nF-11 \n\n \n\nOn December 9, 2024, CETI entered into an\nagreement with a company to provide consulting services to obtain funding of at least $25 million or more to fund CETI’s projects\nin the Middle East. The compensation under this agreement was $65,000 plus 0.5% of any monies raised. As of April 14, 2026, no money\nhas been raised and the Company does not expect to raise capital under this agreement.\n\nOn December 21, 2024, CETI entered into a Financial\nConsulting Engagement Agreement (FCEA) to provide consulting services and identify potential sources of private and/or public financing\nof up to 50 million in British pound sterling The retainer fee was $35,000 and the success fee is 5% of the total money raised payable\nat 1% a year for five years. As of April 14, 2026, no money has been raised and the Company does not expect to raise capital under this\nagreement.\n\n \n\n**NOTE 5 – PROPERTY AND EQUIPMENT**\n\nAs of December 31, 2025 and December 31, 2024, property\nand equipment consisted of the following:\n\nSchedule of property and equipment \n   \n   \n \n\n  \nDecember\n31, 2025  \nDecember\n31, 2024  \nUseful lifes\n\nEquipment \n$140,441  \n$600,398  \n5 to 20 years\n\nEquipment - Turkey \n 1,031,512  \n 170,162   \n5 to 20 years\n\nVehicles \n 6,000  \n 6,000  \n5 to 15 years\n\nLess accumulated depreciation \n (26,722) \n —  \n \n\nTotal \n$1,151,231  \n$776,560  \n \n\n \n\nDepreciation expense for 2025 was $26,722. In 2024,\nno assets were placed in service for continuing operations so there is no depreciation expense.\n\n \n\n**NOTE 6 – INTANGIBLE ASSETS**\n\n \n\nThe intangible assets consist of exclusive licenses\nfor United States distribution obtained by the Company from KAM Biotechnology Ltd (“KAM”) in May 2023 and the agreement has\na term of ten years. The asset is stated at the fair value of $758,501, less amortization from May to December of $50,567, for a net\nof $707,934. In October 2023, CETI signed an additional agreement with KAM for secured worldwide rights to most the licenses over a ten-year\nperiod of time and outright purchase of one license. CETI gave KAM 1,000,000 share of common stock which were valued at $0.37/share at\nthe date of the transaction for a total of $370,000, less amortization from October to December of $7,708, for a net of $362,292. This,\ncombined with the initial license acquisition, resulted in a total Intangible assets net balance of $1,070,226 as of December 31, 2023.\nFor the year ending December 31, 2024, there was a total amortization of intangible assets of $112,850 resulting in net tangible asset\nbalance of $957,377 at December 31, 2024. However, during 2024, KAM was declared insolvent. Intellectual property acquired\nby the Company was written off in the amount of $957,377 as of December 31, 2024.\n\n \n\n**NOTE 7 – DEBT**\n\nSchedule of debt \n   \n  \n\n  \nDecember 31, 2025  \nDecember 31, 2024 \n\nNotes Payable \n$199,001  \n$188,061 \n\nNote payable - related party \n 168,471  \n 153,989 \n\nConvertible notes payable \n 3,097,443  \n 2,262,263 \n\nConvertible notes payable - related party \n 22,000  \n 22,000 \n\n  \n 3,486,916  \n 2,626,313 \n\nDebt discount \n (537,434) \n (327,056)\n\nTotal Debt \n$2,949,481  \n$2,299,257 \n\n  \n    \n   \n\nShort term \n 2,045,166  \n 1,171,636 \n\nLong term \n 904,315  \n 1,127,621 \n\nTotal Debt \n$2,949,481  \n$2,299,257 \n\n \n\nThe following is a schedule of long-term debt and\nthe years in which it is scheduled to mature:\n\nSchedule of debt maturity\n \n \n \n \n\n \n \n \n**Amount**\n \n\n \n2026\n \n \n$\n2,045,166\n \n\n \n2027\n \n \n \n904,315\n \n\n \n2028\n \n \n \n—\n \n\n \n \n \n \n$\n2,949,481\n \n\n \n\nF-12 \n\n \n\n \n\n*Notes payable*\n\nIn February 2021, the Company purchased certain\noil and gas production equipment in the Alvey Oil Field. The total purchase price was $450,000 ($389,046 after discount). As of December\n31, 2024 and 2023, the Company had repaid $106,500 leaving a balance of $343,500. The remaining amount due was to be paid in installments.\nHowever, no further payments have been made as the parties are discussing the amount due the Company for operational expenses which exceed\nthe amount the Company owes to the Estate of Danny Hyde, the creditor. This debt was sold to West Texas Coastal as part of the Alvey\nspin off which was effective October 14, 2025. \n\nIn September 2023,\na related party issued a loan to the Company for a total amount of $153,989. The loan has a 12.5% interest rate and is currently past\ndue as of December 31,2025 and is currently in default. In\naddition, in 2025, there was $14,482 accrued for expenses owed in the wind down of Axenic and part of this incurs interest at 8%.\n\n \n\nIn December 2023, the Company borrowed $100,000 from\nan individual with $62,000 and $100,000 outstanding as of December 31, 2025 and 2024, respectively. This loan does not have an expiration\ndate and accrues interest at $250 day, of which $50 will be paid in cash and $200 in stock at $0.15 a share, when paid plus an additional\n$7,500 in cash. Accrued interest was $34,375 and $16,125 at December 31, 2025 and 2024, respectively.\n\n \n\nIn March 2024, the Company had two loans payable\nto an individual totaling $90,000. One loan of $50,000 was paid off in September 2024 and the other note principal\nbalance was paid off in January 2025 and accrued interest of $35,900 remains due as of December 31, 2025. Accrued interest was\n$69,500 as of December 31, 2024. Each loan accrued interest at $125 a day and $39,000 and $6,500 of interest was paid in 2025 and 2024,\nrespectively.\n\n \n\nIn December 2025, the Company had four loans\npayable to four individuals totaling $60,000.\nEach loan will have monthly payments beginning first full month following the commencement of revenues from a project with an amount\nequal to 10% of net revenue. Payments shall continue until 200% of the original loan principal is paid. Two loans will also each\nhave 30,000 shares of common stock at par value ($0.001), one loan will have 60,000 shares of common and the last loan will have\n160,000 shares of common. The term will remain open until earlier of capital is paid in full or 5 years. The value of the shares for the first two loans is $5,025, the third\nloan is $6,000 and the last loan is $9,600. \n\n \n\nThe Company had an outstanding balance on its line\nof credit of $54,381 and $48,061 as of December 31, 2025 and 2024, respectively, included in the notes payable, current maturities line of the balance\nsheet of $199,001 and $188,081. This is a revolving line of credit with a total line of $55,000 and an interest rate of 8.5%.\n\n \n\n*Convertible notes payable*\n\n \n\nIn 2020, the Company executed a convertible note\npayable with a related party for $25,000 that is unsecured, non-interest bearing and convertible into shares of common stock at $0.001.\nIn 2023, $3,000 of this note was converted into 3,000,000 shares of common stock. The note matured on September 23, 2020 and is currently\nin default.\n\n \n\nDuring 2024, the Company raised a net of $2,582,650\nfrom 47 convertible notes payable. The notes included a 8%\ninterest rate and conversion rate between $0.10\n- $0.25, with\nthe exception of eight notes – For six notes totaling $750,000,\nthey have the following terms, $150,000 of\nthese notes bear interest at 10% and were payable at maturity of September 2024. The notes are convertible into common stock\nat issuer’s option beginning thirty days after issuance at $0.35\nshare. In addition, a total of 150,000\ncommon shares were issued in April 2024 as additional loan incentive. For $300,000\nof these notes, the interest rate was 9%\nwith varying maturities in 2026 plus a total of 300,000\nwarrants priced at $0.80/share. The remaining $300,000 of these notes were at 10% interest with varying maturities in 2025 and 2026.\nFor the two notes totaling $173,650, they bear interest at 8%\nand are paid back in installments which began on October 30, 2024 and December 30, 2024, respectively. The outstanding balance as of\nDecember 31, 2024 was $2,262,263\nincluding accrued interest of $68,750. Amortization\ndiscount totaling $294,222 was recorded during the year ended December 31, 2024.\n\n \n\nDuring 2024, the Company converted $3,673,037\nof convertible notes payable, and accrued interest, into 28,170,065\nshares of common stock. As of December 31, 2024, convertible notes payable outstanding consist of short-term convertible notes payable\nof $815,863\n(net of discount of $24,400)\nand long-term convertible notes payable of $1,127,621\n(net of discount of $318,779).\n\n \n\nDuring 2025, the Company raised a net of $3,632,744\nfrom 45 convertible notes payable. The notes included an 8%\ninterest rate and conversion rate between $0.08\n- $0.25,\nwith\nthe exception of seven notes totaling $714,744 which have a stated interest rate of 12% and are paid back in installments which began\non July 15, 2025 and the final payment is due January 2027. The balance outstanding on these seven loans was $609,944\nand $65,263\nat December 31, 2025 and 2024, respectively.\n\n \n\nDuring 2025, the Company converted $1,180,000\nof convertible notes payable, and accrued interest, into 11,003,331\nshares of common stock. As of December 31, 2025, $3,097,444 remain outstanding consisting of short-term convertible\nnotes payable of $1,693,194,\nnet of discount of $37,500\nand long-term convertible notes payable of $1,404,250,\nnet of discount of $499,935.\nAmortization discount of $536,495 was recorded during the year ended December 31, 2025.\n\n \n\n**NOTE 8 – DERIVATIVE FINANCIAL INSTRUMENTS** \n\n*Embedded derivatives*\n\n \n\nSome of the Company’s convertible promissory notes\ngave rise to derivative financial instruments which are based upon potential conversion if the loan is not paid off in cash or if the\nlender converts to stock for repayment. Historically the Company has always repaid the debt instead of allowing a conversion. However,\nfor accounting purposes, we must account for the potential conversion.\n\n \n\nF-13 \n\n \n\n \n\nThe following tables summarize the components\nof the Company’s derivative liabilities and linked common shares as of December 31, 2025 and 2024 and the amounts that were reflected\nin income related to derivatives for the year ended:\n\nSchedule of derivative liabilities \n   \n  \n\n  \nDecember\n31, 2025 \n\nThe financings giving rise to derivative financial\ninstruments \nIndexed\n\nShares  \nFair\n\nValues \n\nEmbedded derivatives \n 31,204,555  \n$1,060,899 \n\nWarrant derivatives \n 277,778  \n 11,045 \n\nTotal \n 31,482,333  \n$1,071,944 \n\n \n\n  \n   \n  \n\n  \nDecember\n31, 2024 \n\nThe financings giving rise to derivative financial\ninstruments \nIndexed\n\nShares  \nFair\n\nValues \n\nEmbedded derivatives \n 3,543,165  \n$387,238 \n\nTotal \n 3,543,165  \n$387,238 \n\n \n\nThe following table summarizes the effects on the\nCompany’s gain (loss) associated with changes in the fair values of the derivative financial instruments by type of financing for\nthe years ended December 31, 2025 and 2024:\n\nSchedule of changes in gain loss fair values of the derivative financial instruments \n   \n  \n\n  \nFor the\nYears Ended \n\n  \nDecember\n31, 2025  \nDecember\n31, 2024 \n\nEmbedded derivatives \n$(204,186)  \n$161,122 \n\nWarrant derivatives \n 24,934  \n — \n\nLoss on issuance of derivative \n (2,068,536) \n (191,162)\n\nTotal gain (loss) \n$(2,247,788) \n$(30,040)\n\n \n\nCurrent accounting principles that are provided in\nASC 815 - *Derivatives and Hedging* require derivative financial instruments to be classified in liabilities and carried\nat fair value with changes recorded in income. The Company has selected the Monte Carlo Simulation Model, valuation technique to fair\nvalue the embedded derivative because it believes that this technique is reflective of all significant assumption types, and ranges of\nassumption inputs, that market participants would likely consider in transactions involving embedded derivatives. Such assumptions include,\namong other inputs, interest risk assumptions, credit risk assumptions and redemption behaviors in addition to traditional inputs for\noption models such as market trading volatility and risk-free rates. The Monte Carlo Simulation Model technique is a level three valuation\ntechnique because it requires the development of significant internal assumptions in addition to observable market indicators. For instruments\nin which the time to expiration has expired, the Company has utilized the intrinsic value as the fair value. The intrinsic value is the\ndifference between the quoted market price on the valuation date and the applicable conversion price.\n\n \n\nSignificant inputs and results arising from the Monte\nCarlo Simulation process are as follows for the embedded derivatives that have been bifurcated from the convertible notes and classified\nin liabilities:\n\n Schedule of embedded derivatives \n   \n   \n   \n  \n\n  \nInception Date January\n3, 2025 Note  \nInception Date June\n10, 2025 Note  \nInception Date September\n22, 2025 Note  \nInception Date November\n11, 2025 Note \n\nQuoted market price on valuation date \n$0.2400  \n$0.4625  \n$0.1680  \n$0.1400 \n\nEffective contractual conversion rates \n$0.1495  \n$0.2665  \n$0.0960  \n$0.0840 \n\nContractual term to maturity \n 0.87 Years  \n  0.87 Years   \n  0.85 Years   \n  1.00 Year  \n\n  \n    \n    \n    \n   \n\nMarket volatility: \n    \n    \n    \n   \n\nVolatility \n 116.47%-291.91%  \n  148.93%-297.07%   \n  139.46%-196.42%   \n  108.20%-175.98%  \n\nRisk-adjusted interest rate \n 12% \n 12% \n 12% \n 12%\n\n \n\n  \nInception Date November\n19, 2025 Note  \nPeriod Ended December\n18, 2025  \nPeriod Ended December\n26, 2025  \nPeriod Ended December\n31, 2025 \n\nQuoted market price on valuation date \n$0.1300  \n$0.0560  \n$0.0480  \n$0.0400 \n\nEffective contractual conversion rates \n$0.0860  \n$0.0050  \n$0.0310  \n  $    0.005-0.0339  \n\nContractual term to maturity \n  0.75 Years   \n  2.00 Years   \n  0.84 Years   \n  0.29-1.96 Years  \n\n  \n    \n    \n    \n   \n\nMarket volatility: \n    \n    \n    \n   \n\nVolatility \n  181.77%-321.83%   \n  182.95%-307.62%   \n  202.62%-346.00%   \n  189.30%-380.88%  \n\nRisk-adjusted interest rate \n 12% \n 8% \n 12% \n 8%-12% \n\n \n\n \n\nF-14 \n\n \n\n  \n\nThe following table reflects the issuances of embedded\nderivatives and changes in fair value inputs and assumptions related to the embedded derivatives as of December 31, 2025 and 2024.\n\nSchedule of fair value assumptions \n   \n  \n\n  \n\n**As of**\n\n**December 31, 2025**\n  \n\n**As of**\n\n**December 31, 2024**\n \n\nBalances at beginning of year \n$387,238  \n$217,177 \n\nIssuances: \n    \n   \n\nEmbedded derivatives \n 2,259,520  \n 595,722 \n\nWarrant derivatives \n 35,979  \n —  \n\nGain on extinguishment \n (1,431,541) \n (264,539)\n\nChanges in fair value inputs and assumptions reflected in income \n (179,252) \n (161,122)\n\nBalances at end of year \n$1,071,944  \n$387,238 \n\n \n\n**NOTE 9 – RELATED PARTY TRANSACTIONS**\n\nAt December 31, 2025 and 2024, the Company had a\nconvertible note payable for $22,000 with a related party. The note is unsecured, non-interest bearing and is convertible into shares\nof common stock at $0.001 and is in default.\n\n \n\nIn September 2023, a related party loaned $153,989\nto CETI. The loan term was two years and had interest only payments at 12.5%. The first six months interest plus closing costs were paid\nat time of closing. The closing costs and interest are being amortized over a six month and twenty-four month period of time, respectively.\nThis resulted in expenses of $8,277 and $15,638 as of December 31, 2025 and 2024, respectively. The net outstanding balance is $153,989\nand $145,712 at December 31, 2025 and 2024, respectively. This note is currently in default.\n\n \n\nThe Company paid various related parties for\nconsulting services in the amounts of $421,510\nand $409,850, during\nyears ended December 31, 2025 and 2024, respectively. Some of these consulting fees were capitalized in property and equipment under\nwell development costs for the years ended December 31, 2025 and December 31, 2024, nil 0 and $30,000,\nrespectively. Well Development costs were included in the spin off sale to West Texas Coastal which was effective October 14, 2025\nand no longer shows as discontinued operations on the consolidated balance sheets.\n\n \n\nAt December 31, 2025 and 2024, the Company had accounts\npayable to various related parties for a total of $210,170 and $137,690.\n\n \n\nThe above transactions and amounts are not necessarily\nwhat third parties would have agreed to.\n\n \n\n**NOTE 10 – PREFERRED STOCK** \n\n*Series A Convertible Preferred Stock*\n\nThe Company previously designated 200,000 shares\nof Preferred Stock as Series A Convertible Preferred Stock and had issued 200,000 shares. Voting Rights had been established whereby\none (1) share of Series A Convertible Preferred Stock has ten (10) equivalent votes of stockholders of the Company's common stock for\nan aggregate of 10 votes. Each share of Series A Convertible Preferred Stock previously was convertible into ten (10) shares of the Company's\ncommon stock. In event of the liquidation of the Company, the shareholders of Series A Convertible Preferred Stock would have preference\nover the shareholders of the Company's common stock and all other series of Preferred Stock.\n\n \n\nDuring 2023, the Company changed the terms of this\nseries of stock whereby one (1) share of Series A Convertible Preferred, after a minimum two-year holding period, can be converted into\nthree thousand (3,000) shares of the Company’s common stock and has the same equivalent voting rights. In October 2023, the three\ntop shareholders cancelled 50,000,000 shares of common stock and were issued 16,667 shares of Series A Convertible Preferred Stock. As\nof December 31, 2025 and 2024, there are 16,671 shares of Series A Convertible Stock issued and outstanding.\n\n \n\nDuring 2025, the lockup period for this series of\nstock was extended for four more years, plus optional two-year extension, for any transfer or conversion applicable to all current Series\nA shareholders as of December 19, 2025. This lockup period would also be applicable to any future holders of this stock.\n\n \n\n \n\nF-15 \n\n \n\n \n\n*Series B Convertible Preferred Stock*\n\n \n\nThe Company previously designated 85,000 shares of\nPreferred Stock as Series B Convertible Preferred Stock and had issued 67,448 shares. Holders of Series B Convertible Preferred Stock\nhad no voting Rights. Each share of Series B Preferred Stock previously was convertible into one (1) share of the Company's Common Stock.\nIn event of the liquidation of the Company, the shareholders of Series B Convertible Preferred Stock would have preference over the shareholders\nof the Company's Common Stock and all other series of Preferred Stock except for the shareholders of Series A Convertible Preferred Stock.\nAs of December 31, 2025 and 2024, there is one 1 share of Series B Convertible Stock issued an outstanding.\n\n \n\n*Series C Non-Convertible Preferred Stock*\n\nThe Company previously designated 50,000\nshares of Preferred Stock as Series C Non-Convertible Preferred Stock and issued all 50,000 shares. Holders\nof Series C Non-Convertible Preferred Stock have 1,600 shares of voting Rights per share. Series C Non-Convertible Preferred Stock is\nnot convertible into any of the Company's Common Stock or other Series of Preferred Stock. In event of the liquidation of the\nCompany, the shareholders of Series C Non-Convertible Preferred Stock would have preference over the shareholders of the Company's Common\nStock and all other series of Preferred Stock except for the shareholders of Series A and Series B Convertible Preferred Stock. As of\nDecember 31, 2025 and 2024, there is one-half share of Series C Convertible Stock issued an outstanding.\n\n \n\n*Special 2020 Series A Preferred*\n\n \n\nThe Company has one share of preferred stock designated\nas *Special 2020 Series A Preferred*, par value $0.0001. The holder for the Special 2020 Series A Preferred shall vote with the\nholders of both preferred and common stockholders as a single class. The holder is entitled to 60% of all votes. The one share of Series\nA is convertible into 150,000,000 shares of common stock at any time and is not entitled to dividends. The Company purchased that one\nseries A preferred share for $66,400. This share is now recorded as a Treasury stock. As of December 31, 2025 and 2024, there is 1 share\nof Special 2020 Series A Preferred issued and 0 outstanding. \n\n \n\n**NOTE 11 – STOCK OPTIONS AND WARRANTS**\n\nStock option activity for the years  ended\nDecember 31, 2025 and 2024 summarized as follows:\n\nSchedule of stock option activity  \n   \n   \n  \n\n   \nNumber of\nShares  \nWeighted\nAverage Exercise Price  \n\n**Weighted\nAverage**\n\n**Remaining\nContractual Life**\n \n\n Options\noutstanding December 31, 2023  \n —  \n —  \n — \n\n  Issued  \n 1,000,000  \n$0.3600  \n 1.42 \n\n  Exercised  \n —  \n —  \n — \n\n  Cancelled  \n —  \n —  \n — \n\n Options\noutstanding December 31, 2024  \n 1,000,000  \n 0.3600  \n 0.93 \n\n  Issued  \n —  \n —  \n — \n\n  Exercised  \n —  \n —  \n — \n\n  Cancelled  \n —  \n —  \n — \n\n Options\noutstanding December 31, 2025  \n 1,000,000  \n 0.3600  \n 0.42 \n\n Options\nexercisable December 31, 2025  \n 1,000,000  \n$0.3600  \n 0.42 \n\n \n\nIn connection with a different consulting agreement\ndated March 1, 2023, the Company initially agreed to pay 2,000,000 shares of common stock, along with a monthly consulting fee.\nThis common stock was valued at $0.42 on the date of the agreement and was amortized equally over the six-month agreement. On July 1,\n2023, the Company and consultant decided to amend the agreement so that the consultant would receive 3,250,000 warrants valued at $0.001\nin replacement for the stock and extend the agreement until June 30, 2024. The agreement was amended again on September 15, 2023 resulting\nin an additional 500,000 warrants being issued and the agreement extended until September 15, 2024. This resulted in an additional $602,179\nin consulting expenses which will be equally amortized over the following twelve months. The agreement was extended again on November\n1, 2024 with another 800,000 warrants being issued valued at $215,962 and amortized equally over the eight-month term of the extended\nagreement.\n\n \n\nDuring the years ended December 31, 2025 and\n2024, the Company issued an aggregate 277,778 and 1,200,000 warrants in connection with convertible notes, respectively.\n\n \n\nSignificant range of inputs and results arising from\nthe Black-Scholes process are as follows for the warrants:\n\nSchedule of assumptions \n   \n\nQuoted market price on valuation date \n$0.231-0.3100  \n\nEffective contractual strike price \n$ 0.0013\n- 0.80  \n\nMarket volatility \n 373% - 401%  \n\nContractual term to maturity \n 2 Years \n\nRisk-adjusted interest rate \n 3.98% - 4.87% \n\n  \n\nStock warrant activity for the years ended\nDecember 31, 2025 and 2024 is summarized as follows: \n\nSchedule of stock warrant activity\n \n \n \n \n \n \n \n \n \n \n\n \n \n \n**Number\nof Shares**\n \n \n**Weighted\nAverage Exercise Price**\n \n \n**Weighted\nAverage Remaining Contractual Life**\n \n\n \nWarrants exercisable December 31,\n2023\n \n \n \n3,750,000\n \n \n$\n0.001\n \n \n \n1.50\n \n\n \nIssued\n \n \n \n1,200,000\n \n \n \n—\n \n \n \n—\n \n\n \nExercised\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n\n \nCancelled\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n\n \nWarrants outstanding December 31, 2024\n \n \n \n4,950,000\n \n \n \n0.001\n \n \n \n0.82\n \n\n \nWarrants outstanding December 31, 2024\n \n \n \n4,950,000\n \n \n$\n0.001\n \n \n \n0.82\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \nWarrants exercisable December 31, 2024\n \n \n \n4,950,000\n \n \n$\n0.001\n \n \n \n3.00\n \n\n \nIssued\n \n \n \n277,778\n \n \n \n0.200\n \n \n \n—\n \n\n \nExercised\n \n \n \n4,550,000\n \n \n \n—\n \n \n \n—\n \n\n \nCancelled\n \n \n \n—\n \n \n \n—\n \n \n \n—\n \n\n \nWarrants outstanding December 31, 2025\n \n \n \n677,778\n \n \n \n0.550\n \n \n \n1.65\n \n\n \nWarrants exercisable December 31, 2025\n \n \n \n677,778\n \n \n \n0.550\n \n \n \n1.65\n \n\n \n\n**NOTE 12 – DISCONTINUED OPERATIONS**\n\n \n\nIn 2023, CETI was planning to spin-off the Alvey\noil field operations into a new entity. Accordingly, the Company has categorized Alvey as discontinued operations in the consolidated\nfinancial statements for the years ended December 31, 2025 and 2024  .\n\n \n\nEffective October 14, 2025 the\nCompany completed its spinoff of the Alvey oil field operation to Texas Coastal Energy, Corp. (TCEC) in exchange for 8,600,000 shares\nof West Texas Resources, Inc (OTCID: WTXR).     While this transaction was being negotiated, TCEC completed\na reverse merger through which it assumed control and operational stewardship of West Texas Resources, Inc. Operating under the WTXR\nbanner, the company has expanded its portfolio of producing oil and gas wells and reinforced its strategy to revitalize legacy oil fields\nacross Texas. The acquisition of the Alvey oil field further accelerates WTXR’s growth trajectory.  \n\n \n\nThe Alvey oil field was originally acquired by\nCETI as a pilot site to test and refine its proprietary oil production enhancement technologies. Those efforts proved instrumental in demonstrating broader\napplications—extending beyond oil field optimization into large-scale remediation of contaminated oil, sludge, soil, and wastewater.\nAs CETI’s technology and strategy have evolved, the Alvey asset no longer aligned with the Company’s core focus. By\nspinning off the Alvey asset, CETI can fully dedicate its resources to advancing a growing portfolio of domestic and international remediation\nprojects. At the same time, CETI and its shareholders retain the opportunity to participate in the future value of the Alvey oil field\nthrough its continued development by a company with deep expertise in oil and gas production—ensuring the asset has a better chance\nto realize its full potential while CETI concentrates on its primary growth markets.  \n\n \n\n  \n\nF-16 \n\n \n\n \n\nThe assets, liabilities and results of operations related\nto Alvey, previously shown in discontinued operations, have been removed from Cyber Enviro-Tech, Inc. consolidated results\nof operations for the year ended December 31, 2025 and 2024.  \n\n \n\nSchedule of discontinued operations consolidated statement of operations \n    \n   \n\n  \n\n**Years Ended**\n\n**December 31,**\n \n\n  \n2025  \n2024 \n\nTotal revenue \n$9,951  \n$20,362 \n\nTotal cost of revenue \n (2,409) \n (5,707)\n\nGross profit \n 7,182  \n 14,655 \n\nOperating expenses \n (244,297) \n (1,509,761)\n\nLoss on sale of Alvey oil field \n (1,225,399) \n — \n\nLoss from operations \n (1,462,514) \n (1,495,106)\n\nOther income (expenses) \n —  \n — \n\nLoss before tax expense \n (1,462,514) \n (1,495,106)\n\nTax expense \n —  \n — \n\nLoss from operations of discontinued operations \n$(1,462,514) \n$(1,495,106)\n\n  \n\nThe assets and liabilities of the discontinued operations at December\n31, 2025 and 2024 are summarized below:\n\nSchedule of assets and liabilities of the discontinued operation \n   \n  \n\n  \nAs of December\n31, \n\n  \n2025  \n2024 \n\nProperty and equipment, net \n$—  \n$2,019,415 \n\nTexas Railroad Commission bond \n —  \n 62,537 \n\nAssets of discontinued operations,\nnon-current \n —  \n 2,081,952 \n\nTotal assets \n$—  \n$2,081,952 \n\n  \n    \n   \n\nAccounts payable \n$—  \n$25,500 \n\nAccounts payable - related party \n —  \n 30,000 \n\nNote payable, current maturities \n —  \n 343,500 \n\nLiabilities of discontinued operations, current \n —  \n 399,000 \n\nEstimated asset retirement obligation \n —  \n 97,463 \n\nLiabilities of discontinued operations,\nnon-current \n —  \n 97,463 \n\nTotal liabilities \n$—  \n$496,463 \n\n \n\nProperty and equipment, at cost, for the discontinued\noperations consisted of the following at December 31, 2025 and 2024:\n\nSchedule of property and equipment cost, for discontinued operations \n   \n   \n \n\n  \n\nDecember\n31,\n\n2025\n  \nDecember\n31, 2024  \nUseful Lives\n\nEquipment \n$—  \n$802,016  \n5 to 20 years\n\nVehicles \n —  \n 61,000  \n5 to 15 years\n\nWell development costs \n —  \n 1,395,461  \n*\n\nLess accumulated depreciation \n —  \n (176,525) \n—\n\nProperty and equipment, net \n$—  \n$2,081,952  \n—\n\n  \n\n* Once full production\nbegins, Well development costs were to be depreciated using the units-of-production method based on barrels of oil produced. Full production\ndid not occur so no depreciation was ever taken on this asset. In addition, as of December 31, 2024, it was determined the fair value\nof the Well Development costs exceeded their fair value and were written down by $1,395,980.\n\n \n\nDepreciation expense for the discontinued\noperations for the years ended December 31, 2025 and 2024 was $nil 0 and $73,272, respectively.\n\n* *\n\n*Oil and Gas Producing Activities*\n\n \n\nThe Company uses the successful efforts\nmethod of accounting for oil and gas activities. Under this method, the costs of productive exploratory wells, all development\nwells, related asset retirement obligation assets, and productive leases are capitalized and amortized, principally by field, on a\nunits-of-production basis over the life of the remaining proved reserves. Exploration costs, including personnel costs, geological\nand geophysical expenses, and delay rentals for oil and gas leases are charged to expense as incurred. Exploratory drilling costs\nare initially capitalized, but charged to expense if and when the well is determined not to have found reserves in commercial\nquantities. The sale of a partial interest in a proved property is accounted for as a cost recovery, and no gain or loss is\nrecognized as long as this treatment does not significantly affect the units-of-production amortization rate. A gain or loss is\nrecognized for all other sales of producing properties. There were capitalized costs of nil 0 and $1,395,461 at December 31, 2025\nand 2024, respectively. The amount for 2024 is after a write down of $1,395,980 to estimated fair value.\n\n  \n\nF-17 \n\n \n\n \n\nUnproved oil and gas properties are assessed annually\nto determine whether they have been impaired by the drilling of dry holes on or near the related acreage or other circumstances, which\nmay indicate a decline in value. When impairment occurs, a loss is recognized. When leases for unproved properties expire, the costs\nthereof, net of any related allowance for impairment, is removed from the accounts and charged to expense. During the years ended December\n31, 2025 and 2024, there was no impairment to unproved properties. The sale of a partial interest in an unproved property is accounted\nfor as a recovery of cost when substantial uncertainty exists as to the ultimate recovery of the cost applicable to the interest retained.\nA gain on the sale is recognized to the extent that the sales price exceeds the carrying amount of the unproved property. A gain or loss\nis recognized for all other sales of unproved properties. For the years ending December 31, 2025 and 2024, there was no gain or loss\nrecognized for sales of unproved properties.\n\n \n\nCosts associated with development wells that are\nunevaluated or are waiting on access to transportation or processing facilities were reclassified into developmental wells-in-progress\n(\"WIP\"). These costs are not put into a depletable field basis until the wells are fully evaluated or access is gained to transportation\nand processing facilities. Costs associated with WIP are included in the cash flows from investing as part of investment in oil and gas\nproperties. At December 31, 2025 and 2024, no capitalized developmental costs were included in WIP.\n\n \n\nDepreciation, depletion and amortization of proved\noil and gas properties is calculated using the units-of- production method based on proved reserves and estimated salvage values. During\nthe years ended December 31, 2025 and 2024, the Company recorded no depreciation, depletion\nand amortization expense on oil and gas properties. The Company will start using the units-of-production method when the field is continuously\noperational and there are material sales.\n\n \n\nThe Company reviews its proved oil and natural gas\nproperties for impairment whenever events and circumstances indicate that a decline in the recoverability of its carrying value may have\noccurred. It estimates the undiscounted future net cash flows of its oil and natural gas properties and compares such undiscounted future\ncash flows to the carrying amount of the oil and natural gas properties to determine if the carrying amount is recoverable. If the carrying\namount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and natural gas properties\nto fair value. During the years ended December 31, 2025 and 2024, there was no impairment to proved properties.\n\n \n\nTo cover the estimated future asset retirement obligations\n(\"ARO\") related to its oil and gas properties, the Company maintains a $62,337 bond with the Railroad Commission of Texas (“RRC”).\nWith the help of an outside consultant, the Company estimates it would take $5,000 to cap each of the 32 wells on the property so there\nis a potential liability of $97,463 to account for the total estimated cost if the Company decided to cap the wells. The bond ensures\nthat the Company will cap any wells on the Alvey Oil Field that it decides are no longer productive.\n\n \n\nEffective October 14, 2025 the Company\ncompleted its spinoff of the Alvey oil field operation to Texas Coastal Energy, Corp. (TCEC).  The assets, liabilities\nand results of operation including the aforementioned bond, related to the Alvey oil field, previously shown in discontinued\noperations, have been removed from Cyber Enviro-Tech, Inc. consolidated results of operations.  \n\n \n\n**NOTE 13 – INCOME TAXES     **\n\nDeferred taxes are provided on a liability\nmethod whereby deferred tax assets are recognized for deductible temporary differences and operating loss, and tax credit carryforwards\nand deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the\nreported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the\nopinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred\ntax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The U.S. federal income\ntax rate of 21% is being used as the effective tax rate. The Company filed an extension for Federal Income taxes for the year ended December\n31, 2025 and the federal corporate tax return for 2024 has not been filed as of May 19, 2026.\n\nIncome taxes consist of the following components\nas of:\n\nSchedule of income taxes \n   \n  \n\n  \nDecember 31, 2025  \nDecember 31, 2024 \n\nFederal income tax benefit attributable to: \n    \n   \n\nCurrent Operations \n$1,270,465  \n$1,294,226 \n\nLess: Valuation Allowance \n (1,270,465) \n (1,294,226)\n\nNet provision for Federal income taxes \n$—  \n$— \n\n  \n\nThe income tax provision differs from the amount\nof income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended\nDecember 31, 2025 and 2025, due to the following:\n\nSchedule of income tax provision \n   \n  \n\n  \nDecember 31, 2025  \nDecember 31, 2024 \n\nDeferred tax asset attributable to: \n    \n   \n\nNet operating loss carryover \n$3,976,675  \n$2,706,210 \n\nLess: Valuation Allowance \n (3,976,675) \n (2,706,210)\n\nNet deferred tax asset \n$—  \n$— \n\n  \n\nF-18 \n\n \n\n \n\nAt December 31, 2025, the Company had a total\nnet operating loss carry forwards of $18,936,548 which would result in a deferred tax asset of $3,976,675, an increase of $1,270,465\nfrom 2024. At December 31, 2024, the Company had net operating loss carry forwards of $12,886,715 which would result in a deferred tax\nasset of $2,706,210, an increase of $1,294,226 from 2023. Net operating losses generated in tax years beginning after December 31, 2017\nmay be carried forward indefinitely, subject to applicable limitations, including the limitation that such losses may generally offset\nno more than 80% of taxable income in future taxable years. No tax benefit has been reported in December 2025 and 2024 consolidated\nfinancial statements since the potential tax benefit is offset by a valuation allowance of the same amount.\n\n \n\nUtilization of the Company’s net operating\nloss carryforwards may be subject to annual limitations under Section 382 of the Internal Revenue Code if the Company has experienced,\nor experiences in the future, an ownership change. Should a change in ownership occur, net operating loss carry forwards may be limited\nas to use in future years.** **\n\n** **\n\n**NOTE 14 – SUBSEQUENT EVENTS**  \n\n \n\nThe Company has evaluated subsequent events through\nMay 19, 2026, the date the consolidated financial statements were available to be issued. The following subsequent events were identified\nas potentially being material and requiring disclosure:\n\n \n\nSubsequent to December 31,\n2025, the Company entered into new loan arrangements with various lenders totaling $320,600. These borrowings consisted of the following:\n\n \n\n·a $35,000 loan repayable in\nequal weekly installments of $2,226 over 25 weeks;\n\n·a $110,000 convertible promissory\nnote maturing on March 17, 2027, which is immediately convertible into shares of the Company’s common stock based on a variable\nconversion formula tied to market prices;\n\n·a $110,000 convertible promissory\nnote maturing on March 30, 2027, which becomes convertible 165 days after issuance and includes variable conversion pricing based on market\nprices, with interest payable in shares of the Company’s common stock; and\n\n·three additional notes\ntotaling $65,600 from Kim N Southworth, the wife of CETI’s CEO, consisting of: (i) a $28,000 note bearing interest at 25% per month for the first two months; (ii) a $17,600 note\nwith an upfront loan fee of $2,000 plus $1,000 per month for two months; and (iii) a $20,000 note with an upfront loan fee of $2,000\nplus $1,000 per month for two months.\n\n \n\nOn January 12, 2026, the\nCompany commenced a Regulation A offering of up to 1,000,000,000 shares of common stock, par value $0.001 per share, at an offering price\nof $0.005 per share. On February 13, 2026, the Company reduced the offering price to $0.004 per share. On March 13, 2026, the Company\nterminated the Regulation A offering after raising $137,192.\n\n \n\nOn March 11, 2026, the Company\nissued one share of Special 2025 Series A Preferred Stock to Kim D. Southworth, the Company’s Chief Executive Officer. The Special\n2025 Series A Preferred Stock was issued for voting control purposes.\n\n \n\nOn March 17, 2026, Dan Leboffe\nresigned as Chief Financial Officer, and Deborah Casper-Stone was appointed Chief Financial Officer. On April 30, 2026, Deborah Casper-Stone\nresigned as Chief Financial Officer, and Dan Leboffe was reinstated as Acting Chief Financial Officer.\n\n \n\nOn March 20, 2026, the Company\nentered into an Equity Purchase Agreement with Monroe Street Capital Partners, LP. Pursuant to the agreement, the Company has the right,\nbut not the obligation, to sell to Monroe Street Capital Partners, LP up to $30,000,000 of the Company’s common stock from time\nto time during the commitment period, subject to the terms, conditions, limitations, and procedures set forth in the agreement.\n\n \n\nOn April 3, 2026, the Company\ncreated a new class of preferred stock designated as Series D Convertible Preferred Stock, with 5,000,000 shares authorized and a par\nvalue of $0.001 per share. The Series D Convertible Preferred Stock has a one-year lockup period from the date of issuance and is convertible\ninto shares of common stock at a ratio of ten shares of common stock for each share of Series D Convertible Preferred Stock. The Series\nD Convertible Preferred Stock also has voting rights equivalent to the common stock on an as-converted basis. In 2026, three shareholders\nagreed to convert an aggregate of 19,404,168 shares of common stock into 1,940,417 shares of Series D Convertible Preferred Stock.\n\n \n\nOn April 6, 2026, Dan Leboffe\nresigned from the Company’s Board of Directors and joined the Company’s newly created Advisory Board. Also on April 6, 2026,\nthe Company announced the creation of its Advisory Board and appointed Brian Feingold and Dan Leboffe as members. Mr. Leboffe, the Company’s\nformer Chief Financial Officer and former director, transitioned to the Advisory Board. Mr. Feingold has over 30 years of experience across\nemerging technologies and global markets, including strategic alliances, mergers and acquisitions, capital formation, and electrical engineering.\n\n \n\nOn April 7, 2026, the Company\nappointed Brianna Stoecklein, Chief Executive Officer of AirPower USA, to the Company’s Board of Directors. Ms. Stoecklein’s\nappointment is intended to support the Company’s strategic alignment with its exclusive AirPower manufacturing and distribution\nagreement. In addition, the Company provided AirPower USA 5.5M common shares of stock and 40K shares of Series A Preferred stock as collateral\non the agreement.\n\n  \n\n \n\n  \n\n \n\nF-19"}