{"url_path":"/sec/sntl/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 Financial Statements and Supplementary Data.**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-05","source_url":"https://www.sec.gov/Archives/edgar/data/889353/0001096906-26-000918-index.html","accession_number":"0001096906-26-000918","cik":"0000889353","ticker":"SNTL","issuer_name":"Sentinel Holdings Ltd.","edgar_url":"https://www.sec.gov/Archives/edgar/data/889353/0001096906-26-000918-index.html","primary_entity_key":"0000889353","primary_entity_name":"Sentinel Holdings Ltd."},"word_count":12299,"has_tables":true,"body_markdown":"**Item 8. Financial Statements and Supplementary Data.**\n\n \n\n**SENTINEL HOLDINGS, LLC AND SUBSIDIARIES**\n\n**(F/K/A JAMES MARITIME HOLDINGS, INC. AND SUBSIDIARIES)**\n\n**AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**\n\n \n\nPage(s)\n\n[Report of Independent Registered Public Accounting Firm (PCAOB ID No. 6797)](#repo)\n\nF-2\n\n[Consolidated Balance Sheets](#bs)\n\nF-3\n\n[Consolidated Statements of Operations](#soo)\n\nF-4\n\n[Consolidated Statements of Changes in Stockholders' Equity (Deficit)](#eqt)\n\nF-5\n\n[Consolidated Statements of Cash Flows](#cf)\n\nF-7\n\n[Notes to Consolidated Financial Statements](#note)\n\nF-8 - F-28\n\n \n\n \n\nF-1\n\n*Table of Contents*\n\n  \n\n**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**\n\n \n\nTo the Shareholder and the Board of Directors of\n\nSentinel Holdings Ltd.\n\n \n\n**OPINION ON THE CONSOLIDATED FINANCIAL STATEMENTS**\n\n \n\nWe have audited the accompanying consolidated balance sheet of Sentinel Holdings Ltd. (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive loss, stockholders’ equity and cash flows for the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.\n\n \n\n**GOING CONCERN**\n\n \n\nThe accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has incurred continuing losses and has obligations for significant cash payments in the next year that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.\n\n \n\n**BASIS FOR OPINION**\n\n \n\nThese consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.\n\n \n\n**CRITICAL AUDIT MATTERS**\n\n \n\nCritical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined the following critical audit matters:\n\n \n\n**1)**\n**Description of the Matter: Business Repositioning Adjustment**\n\n \n\n \n\n \nAs discussed in Note 17 to the financial statements, during 2025 the Company recorded a series of business reassessment and repositioning adjustments that affected multiple balance sheet and income statement accounts, including the elimination of certain USS assets and lease balances, reversals of payroll and payroll tax liabilities, elimination of related-party balances, and other adjustments recorded across subsidiaries. This matter involved especially challenging auditor judgment due to the number and nature of the adjustments, the need to assess the underlying support for each entry, and the evaluation of the appropriate accounting and financial statement presentation, including the application of ASC 250.\n\n \n\n \n\n \n**How the Critical Audit Matter Was Addressed in the Audit**\n\n \n\n \n\n \nThe primary procedures performed to address this matter included evaluating management’s memorandum and supporting schedules for the adjustments; tracing the adjustments to the underlying journal entries and consolidated trial balance; testing supporting documentation for selected adjustments, including IRS transcripts, payment support, correspondence, and subsequent clearing activity; obtaining confirmation for the related-party balance; assessing management’s conclusions regarding the accounting treatment under ASC 250; and evaluating the related disclosures in the financial statements.\n\n \n\n \n\n**2)**\n**Description of the Matter: OPSEC Acquisition**\n\n \n\n \n\n \nAs discussed in Note 3 to the financial statements, the Company acquired the operating contracts and related licenses and permits of OPSEC Specialized Protection, Inc. during 2025 through its wholly owned subsidiary, Sentry Protective Services, Inc. This matter involved especially challenging auditor judgment due to the significance of the transaction and the judgment required to evaluate whether the acquisition should be accounted for as an asset acquisition or a business combination, the fair value of the acquired contracts, and the related amortization period.\n\n \n\n \n\n \n**How the Critical Audit Matter Was Addressed in the Audit**\n\n \n\n \n\n \nThe primary procedures performed to address this matter included reading the acquisition agreement and related supporting documents; evaluating management’s accounting conclusion that the transaction qualified as an asset acquisition; independently assessing the fair value of the acquired contracts using a discounted cash flow approach and evaluating key assumptions, including projected revenue, margins, attrition, growth, tax rates, and discount rates; assessing the reasonableness of the amortization period based on contractual terms and expected economic life; and evaluating the related financial statement disclosures.\n\n  \n\n/s/ Bush & Associates CPA LLC\n\n \n\nWe have served as the Company’s auditor since 2024.\n\n \n\nLas Vegas, Nevada\n\nJune 5, 2026\n\nPCAOB ID Number 6797\n\n \n\n \n\nF-2\n\n*Table of Contents*\n\n  \n\n**Sentinel Holdings Ltd and Subsidiaries**\n\n**Consolidated Balance Sheets**\n\n**As of December 31, 2025 and 2024**\n\n \n\n \n\n \n\n**As of December 31,**\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Assets**\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**Current Assets**\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash\n\n \n$197,165\n \n\n \n$131,154\n \n\nAccounts receivable (net)\n\n \n\n \n845,550\n \n\n \n\n \n-\n \n\nPrepaid expenses and other\n\n \n\n \n578\n \n\n \n\n \n-\n \n\nAssets of discontinued operations\n\n \n\n \n252,965\n \n\n \n\n \n583,589\n \n\nTotal current assets\n\n \n\n \n1,296,258\n \n\n \n\n \n714,743\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Property and Equipment (Net)**\n\n \n\n \n116,667\n \n\n \n\n \n105,000\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Intangible Assets (Net)**\n\n \n\n \n1,228,187\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**Total Assets**\n\n \n$2,641,112\n \n\n \n$819,743\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Liabilities and Stockholders' Deficit**\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**Current Liabilities**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable and accrued expenses\n\n \n$3,229,786\n \n\n \n$1,697,954\n \n\nNotes payable\n\n \n\n \n255,195\n \n\n \n\n \n122,974\n \n\nLoans payable\n\n \n\n \n341,800\n \n\n \n\n \n294,708\n \n\nConvertible notes payable\n\n \n\n \n35,000\n \n\n \n\n \n35,000\n \n\nDerivative liabilities\n\n \n\n \n392,747\n \n\n \n\n \n338,061\n \n\nLiabilities of discontinued operations\n\n \n\n \n1,234,269\n \n\n \n\n \n2,593,918\n \n\nTotal current liabilities\n\n \n\n \n5,488,797\n \n\n \n\n \n5,082,615\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Long Term Liabilities**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLoans payable (net)\n\n \n\n \n-\n \n\n \n\n \n67,800\n \n\nOperating lease liability\n\n \n\n \n-\n \n\n \n\n \n-\n \n\nTotal long term liabilities\n\n \n\n \n-\n \n\n \n\n \n67,800\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Total Liabilities**\n\n \n\n \n5,488,797\n \n\n \n\n \n5,150,415\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Commitments and Contingencies**\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**Stockholders' Equity (Deficit)**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSeries A Preferred Stock ($0.001 par value; 2,000,000 shares authorized; 2,000,000 and 400,000 shares issued and outstanding as of December 31, 2025 and 2024, respectively\n\n \n\n \n2,000\n \n\n \n\n \n400\n \n\nSeries B Preferred Stock ($0.001 par value; 1,000,000 shares authorized; 75,000 and 50,000 shares issued and outstanding as of December 31, 2025 and 2024, respectively\n\n \n\n \n75\n \n\n \n\n \n50\n \n\nCommon Stock ($0.001 par value; 90,000,000 shares authorized; 9,690,429 and 9,371,429 shares issued and outstanding as of December 31, 2025 and 2024, respectively\n\n \n\n \n9,690\n \n\n \n\n \n9,371\n \n\nAdditional paid-in capital\n\n \n\n \n21,465,838\n \n\n \n\n \n18,212,182\n \n\nAccumulated deficit\n\n \n\n \n(23,956,337)\n \n\n \n(22,291,520)\n\nStockholders' equity (deficit)\n\n \n\n \n(2,478,734)\n \n\n \n(4,069,517)\n\nNon-controlling interest\n\n \n\n \n(368,951)\n \n\n \n(261,155)\n\nTotal stockholders' equity (deficit)\n\n \n\n \n(2,847,685)\n \n\n \n(4,330,672)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Total Liabilities and Stockholders' Deficit**\n\n \n$2,641,112\n \n\n \n$819,743\n \n\n \n\nThe accompanying footnotes are an integral part of these consolidated financial statements.\n\n \n\n \n\nF-3\n\n*Table of Contents*\n\n \n\n**Sentinel Holdings Ltd and Subsidiaries**\n\n**Consolidated Statements of Operations**\n\n**For the Years Ended December 31, 2025 and 2024**\n\n \n\n \n\n \n\n**For the Years Ended**\n\n \n\n \n\n \n\n**December 31,**\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Continuing Operations**\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\nRevenue\n\n \n$1,933,422\n \n\n \n$-\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCost of Revenue\n\n \n\n \n1,496,358\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\nGross Profit\n\n \n\n \n437,964\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\nGeneral and Administrative Expenses\n\n \n\n \n4,899,761\n \n\n \n\n \n5,828,300\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLoss on Impairment of Intangible Assets\n\n \n\n \n-\n \n\n \n\n \n2,088,274\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLoss From Operations\n\n \n\n \n(4,462,697)\n \n\n \n(7,916,574)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther Income (Expense)\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\nBusiness reassessment and repositioning adjustments\n\n \n\n \n2,205,292\n \n\n \n\n \n-\n \n\nGain on acquisition\n\n \n\n \n\n571,000\n\n \n\n \n\n \n\n \n\n \n\nInterest expense\n\n \n\n \n(498,037)\n \n\n \n(776,996)\n\nChange in fair value of derivative liabilities\n\n \n\n \n(54,686)\n \n\n \n(163,016)\n\nLegal settlement\n\n \n\n \n(332,081)\n \n\n \n-\n \n\nOther income (expense)\n\n \n\n \n(5,360)\n \n\n \n(7,426)\n\nPPP loan forgiveness\n\n \n\n \n-\n \n\n \n\n \n-\n \n\nOther income (expense) (net)\n\n \n\n \n1,886,128\n \n\n \n\n \n(947,438)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet Income (Loss) From Continuing Operations Including Non-Controlling Interest\n\n \n\n \n(2,576,569)\n \n\n \n(8,864,012)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Discontinued Operations**\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\nNet Income (Loss) From Discontinued Operations\n\n \n\n \n803,956\n \n\n \n\n \n413,460\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Net Income**\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\nNet Income (Loss) Including Non-Controlling Interest\n\n \n\n \n(1,772,613)\n \n\n \n(8,450,552)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNon-Controlling Interest\n\n \n\n \n(107,796)\n \n\n \n(74,959)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet Income (Loss) Available to Common Shareholders\n\n \n$(1,664,817)\n \n$(8,375,593)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Net Income (Loss) Per Common Share - Basic and Diluted**\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\nFrom Continuing Operations\n\n \n$(0.27)\n \n$(0.99)\n\nFrom Discontinued Operations\n\n \n$0.09\n \n\n \n$0.05\n \n\nAttributable To Common Shareholders\n\n \n$(0.18)\n \n$(0.94)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Weighted Average Number of Common Shares Outstanding - Basic and Diluted**\n\n \n\n \n9,452,155\n \n\n \n\n \n8,921,014\n \n\n \n\nThe accompanying footnotes are an integral part of these consolidated financial statements.\n\n \n\n \n\nF-4\n\n*Table of Contents*\n\n \n\n**Sentinel Holdings Ltd and Subsidiaries**\n\n**Consolidated Statements of Changes in Stockholders’ Equity (Deficit)**\n\n**For the Years Ended December 31, 2025 and 2024**\n\n \n\n \n\n \n\n**Preferred Stock Series A**\n\n \n\n \n\n**Preferred Stock Series B**\n\n \n\n \n\n**Common Stock**\n\n \n\n \n\n**Additional**\n\n**Paid-In**\n\n \n\n \n\n**Subscription**\n\n \n\n \n\n**Accumulated**\n\n \n\n \n\n**Total Equity (Deficit)Attributable**\n\n**To The**\n\n \n\n \n\n**Non-Controlling**\n\n \n\n \n\n**Total**\n\n**Shareholders'**\n\n**Equity**\n\n \n\n \n\n \n\n**Shares**\n\n \n\n \n\n**Amount**\n\n \n\n \n\n**Shares**\n\n \n\n \n\n**Amount**\n\n \n\n \n\n**Shares**\n\n \n\n \n\n**Amount**\n\n \n\n \n\n**Capital**\n\n \n\n \n\n**Receivable**\n\n \n\n \n\n**Deficit**\n\n \n\n \n\n**Company**\n\n \n\n \n\n**Interest**\n\n \n\n \n\n**(Deficit)**\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\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**January 1, 2024**\n\n \n\n \n400,000\n \n\n \n\n \n400\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n9,064,129\n \n\n \n\n \n9,064\n \n\n \n\n \n13,769,537\n \n\n \n\n \n-\n \n\n \n\n \n(13,915,927)\n \n\n \n(136,926)\n \n\n \n(186,196)\n \n\n \n(323,122)\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\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\nNet income (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\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n1,352,480\n \n\n \n\n \n1,352,480\n \n\n \n\n \n-\n \n\n \n\n \n1,352,480\n \n\nShares issued\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 \n368,967\n \n\n \n\n \n369\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n369\n \n\n \n\n \n-\n \n\n \n\n \n369\n \n\nShares cancelled\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(866,667)\n \n\n \n(867)\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n(867)\n \n\n \n-\n \n\n \n\n \n(867)\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\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**March 31, 2024**\n\n \n\n \n400,000\n \n\n \n\n \n400\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n8,566,429\n \n\n \n\n \n8,566\n \n\n \n\n \n13,769,537\n \n\n \n\n \n-\n \n\n \n\n \n(12,563,447)\n \n\n \n1,215,056\n \n\n \n\n \n(186,196)\n \n\n \n1,028,860\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 \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\nNet income (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\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n(2,795,731)\n \n\n \n(2,795,731)\n \n\n \n-\n \n\n \n\n \n(2,795,731)\n\nShares and warrants issued for cash\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 \n175,000\n \n\n \n\n \n175\n \n\n \n\n \n174,825\n \n\n \n\n \n(100,000)\n \n\n \n-\n \n\n \n\n \n75,000\n \n\n \n\n \n-\n \n\n \n\n \n75,000\n \n\nWarrants issued for services\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 \n1,138,500\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n1,138,500\n \n\n \n\n \n-\n \n\n \n\n \n1,138,500\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 \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**June 30, 2024**\n\n \n\n \n400,000\n \n\n \n\n \n400\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n8,741,429\n \n\n \n\n \n8,741\n \n\n \n\n \n15,082,862\n \n\n \n\n \n(100,000)\n \n\n \n(15,359,178)\n \n\n \n(367,175)\n \n\n \n(186,196)\n \n\n \n(553,371)\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\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\nNet income (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\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n(3,269,390)\n \n\n \n(3,269,390)\n \n\n \n-\n \n\n \n\n \n(3,269,390)\n\nReceipt of subscription receivable\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 \n100,000\n \n\n \n\n \n-\n \n\n \n\n \n100,000\n \n\n \n\n \n-\n \n\n \n\n \n100,000\n \n\nShares and warrants issued for cash\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 \n275,000\n \n\n \n\n \n275\n \n\n \n\n \n274,725\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n275,000\n \n\n \n\n \n-\n \n\n \n\n \n275,000\n \n\nShares issued for cash\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 \n35,000\n \n\n \n\n \n35\n \n\n \n\n \n34,965\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n35,000\n \n\n \n\n \n-\n \n\n \n\n \n35,000\n \n\nShares issued for services\n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n50,000\n \n\n \n\n \n50\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n2,499,950\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n2,500,000\n \n\n \n\n \n-\n \n\n \n\n \n2,500,000\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 \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**September 30, 2024**\n\n \n\n \n400,000\n \n\n \n\n \n400\n \n\n \n\n \n50,000\n \n\n \n\n \n50\n \n\n \n\n \n9,051,429\n \n\n \n\n \n9,051\n \n\n \n\n \n17,892,502\n \n\n \n\n \n-\n \n\n \n\n \n(18,628,568)\n \n\n \n(726,565)\n \n\n \n(186,196)\n \n\n \n(912,761)\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\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\nNet income (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\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n(3,662,952)\n \n\n \n(3,662,952)\n \n\n \n(74,959)\n \n\n \n(3,737,911)\n\nShares and warrants issued for cash\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 \n270,000\n \n\n \n\n \n270\n \n\n \n\n \n269,730\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n270,000\n \n\n \n\n \n-\n \n\n \n\n \n270,000\n \n\nShares issued for cash\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 \n50,000\n \n\n \n\n \n50\n \n\n \n\n \n49,950\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n50,000\n \n\n \n\n \n-\n \n\n \n\n \n50,000\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 \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**December 31, 2024**\n\n \n\n \n400,000\n \n\n \n$400\n \n\n \n\n \n50,000\n \n\n \n$50\n \n\n \n\n \n9,371,429\n \n\n \n$9,371\n \n\n \n$18,212,182\n \n\n \n$-\n \n\n \n$(22,291,520)\n \n$(4,069,517)\n \n$(261,155)\n \n$(4,330,672)\n\n \n\n The accompanying footnotes are an integral part of these condensed consolidated financial statements.\n\n \n\n \n\nF-5\n\n*Table of Contents*\n\n \n\n**Sentinel Holdings Ltd and Subsidiaries**\n\n**Consolidated Statements of Changes in Stockholders’ Equity (Deficit)**\n\n**For the Years Ended December 31, 2025 and 2024**\n\n \n\n \n\n \n\n **Preferred Stock Series A**\n\n \n\n \n\n** Preferred Stock Series B**\n\n \n\n \n\n** Common Stock**\n\n \n\n \n\n** **\n\n** Additional**\n\n**Paid-In**\n\n \n\n \n\n** Subscription**\n\n \n\n \n\n** Accumulated**\n\n \n\n \n\n** **\n\n** Equity (Deficit)**\n\n** Attributable**\n\n**To The**\n\n \n\n \n\n** **\n\n** Non-**\n\n**Controlling**\n\n \n\n \n\n** **\n\n** Total**\n\n**Shareholders' **\n\n**Equity**\n\n \n\n \n\n \n\n** Shares**\n\n \n\n \n\n** Amount**\n\n \n\n \n\n** Shares**\n\n \n\n \n\n** Amount**\n\n \n\n \n\n** Shares**\n\n \n\n \n\n** Amount**\n\n \n\n \n\n** Capital**\n\n \n\n \n\n** Receivable**\n\n \n\n \n\n** Deficit**\n\n \n\n \n\n** Company**\n\n \n\n \n\n** Interest**\n\n \n\n \n\n**(Deficit)**\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\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**December 31, 2024**\n\n \n\n \n400,000\n \n\n \n\n \n400\n \n\n \n\n \n50,000\n \n\n \n\n \n50\n \n\n \n\n \n9,371,429\n \n\n \n\n \n9,371\n \n\n \n\n \n18,212,182\n \n\n \n\n \n-\n \n\n \n\n \n(22,291,520)\n \n\n \n(4,069,517)\n \n\n \n(261,155)\n \n\n \n(4,330,672)\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\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\nNet income (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\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n(607,064)\n \n\n \n(607,064)\n \n\n \n(11,099)\n \n\n \n(618,163)\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\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**March 31, 2025**\n\n \n\n \n400,000\n \n\n \n\n \n400\n \n\n \n\n \n50,000\n \n\n \n\n \n50\n \n\n \n\n \n9,371,429\n \n\n \n\n \n9,371\n \n\n \n\n \n18,212,182\n \n\n \n\n \n-\n \n\n \n\n \n(22,898,584)\n \n\n \n(4,676,581)\n \n\n \n(272,254)\n \n\n \n(4,948,835)\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\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\nNet income (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\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n(1,371,468)\n \n\n \n(1,371,468)\n \n\n \n(17,255)\n \n\n \n(1,388,723)\n\nShares issued for cash\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 \n135,000\n \n\n \n\n \n135\n \n\n \n\n \n134,865\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n135,000\n \n\n \n\n \n-\n \n\n \n\n \n135,000\n \n\nShares issued for services\n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n15,000\n \n\n \n\n \n15\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n749,985\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n750,000\n \n\n \n\n \n-\n \n\n \n\n \n750,000\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 \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**June 30, 2025**\n\n \n\n \n400,000\n \n\n \n\n \n400\n \n\n \n\n \n65,000\n \n\n \n\n \n65\n \n\n \n\n \n9,506,429\n \n\n \n\n \n9,506\n \n\n \n\n \n19,097,032\n \n\n \n\n \n-\n \n\n \n\n \n(24,270,052)\n \n\n \n(5,163,049)\n \n\n \n(289,509)\n \n\n \n(5,452,558)\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\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\nNet income (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\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n(624,213)\n \n\n \n(624,213)\n \n\n \n(7,837)\n \n\n \n(632,050)\n\nWarrants issued for cash\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 \n1,685,000\n \n\n \n\n \n(1,000,000)\n \n\n \n-\n \n\n \n\n \n685,000\n \n\n \n\n \n-\n \n\n \n\n \n685,000\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 \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n**September 30, 2025**\n\n \n\n \n400,000\n \n\n \n\n \n400\n \n\n \n\n \n65,000\n \n\n \n\n \n65\n \n\n \n\n \n9,506,429\n \n\n \n\n \n9,506\n \n\n \n\n \n20,782,032\n \n\n \n\n \n(1,000,000)\n \n\n \n(24,894,265)\n \n\n \n(5,102,262)\n \n\n \n(297,346)\n \n\n \n(5,399,608)\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\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\nNet income (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\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n937,928\n \n\n \n\n \n937,928\n \n\n \n\n \n(71,605)\n \n\n \n866,323\n \n\nCollection of subscription balance\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 \n1,000,000\n \n\n \n\n \n-\n \n\n \n\n \n1,000,000\n \n\n \n\n \n-\n \n\n \n\n \n1,000,000\n \n\nShares issued for services\n\n \n\n \n1,600,000\n \n\n \n\n \n1,600\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 \n1,600\n \n\n \n\n \n-\n \n\n \n\n \n1,600\n \n\nShares issued for services\n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n10,000\n \n\n \n\n \n10\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n499,990\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n500,000\n \n\n \n\n \n-\n \n\n \n\n \n500,000\n \n\nShares issued for services\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 \n184,000\n \n\n \n\n \n184\n \n\n \n\n \n183,816\n \n\n \n\n \n-\n \n\n \n\n \n-\n \n\n \n\n \n184,000\n \n\n \n\n \n-\n \n\n \n\n \n184,000\n \n\nOther\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-\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 \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\n \n\n \n\n \n\n \n\n \n\n \n\n**December 31, 2025**\n\n \n\n \n2,000,000\n \n\n \n$2,000\n \n\n \n\n \n75,000\n \n\n \n$75\n \n\n \n\n \n9,690,429\n \n\n \n$9,690\n \n\n \n$21,465,838\n \n\n \n$-\n \n\n \n$(23,956,337)\n \n$(2,478,734)\n \n$(368,951)\n \n$(2,847,685)\n\n \n\nThe accompanying footnotes are an integral part of these condensed consolidated financial statements.\n\n \n\n \n\nF-6\n\n*Table of Contents*\n\n \n\n**Sentinel Holdings Ltd and Subsidiaries**\n\n**Consolidated Statements of Cash Flows**\n\n**For the Years Ended December 31, 2025 and 2024**\n\n \n\n \n\n \n\n** For the Years Ended**\n\n \n\n \n\n \n\n** December 31,**\n\n \n\n \n\n \n\n** 2025**\n\n \n\n \n\n** 2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Cash Flows From Operating Activities**\n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income (loss) (Including non-controlling interest)\n\n \n$(1,772,613)\n \n$(8,450,552)\n\nAdjustments to reconcile net income (loss) to net cash flow from operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBusiness reassessment and repositioning adjustments\n\n \n\n \n(2,205,292)\n \n\n \n-\n \n\nLoss on impairment of goodwill and intangibles\n\n \n\n \n-\n \n\n \n\n \n2,088,274\n \n\nDepreciation and amortization\n\n \n\n \n170,611\n \n\n \n\n \n37,065\n \n\nCommon Stock issued for services\n\n \n\n \n184,000\n \n\n \n\n \n-\n \n\nPreferred Stock Series A issued for services\n\n \n\n \n1,600\n \n\n \n\n \n-\n \n\nPreferred Stock Series B issued for services\n\n \n\n \n750,000\n \n\n \n\n \n-\n \n\nAmortization of operating lease right-of-use asset\n\n \n\n \n84,216\n \n\n \n\n \n87,320\n \n\nChange in operating lease liability\n\n \n\n \n(83,361\n)\n\n \n\n \n(79,049)\n\nChange in derivative liability\n\n \n\n \n54,686\n \n\n \n\n \n163,016\n \n\nAmortization of debt discount\n\n \n\n \n-\n \n\n \n\n \n70,032\n \n\nBad debt expense\n\n \n\n \n-\n \n\n \n\n \n49,339\n \n\nWarrants issued for services rendered\n\n \n\n \n-\n \n\n \n\n \n1,138,500\n \n\nStock-based compensation expense\n\n \n\n \n-\n \n\n \n\n \n2,499,502\n \n\nNon-cash charitable contribution\n\n \n\n \n-\n \n\n \n\n \n17,077\n \n\nChanges in operating assets and liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts receivable\n\n \n\n \n(845,550)\n \n\n \n453,469\n \n\nPrepaid expenses and other\n\n \n\n \n(578)\n \n\n \n34,553\n \n\nAccounts payable and accrued expenses\n\n \n\n \n3,489,105\n \n\n \n\n \n1,858,747\n \n\nCash classified within assets of discontinued operations\n\n \n\n \n-\n \n\n \n\n \n(91,048)\n\nReceivables classified within assets of discontinued operations\n\n \n\n \n77,515\n \n\n \n\n \n-\n \n\nLiabilities classified within liabilities of discontinued operations\n\n \n\n \n(1,224,514)\n \n\n \n-\n \n\nNet cash provided by (used in) operating activities\n\n \n\n \n(1,320,175)\n \n\n \n(123,755)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Cash Flows From Investing Activities**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAcquisition of contracts\n\n \n\n \n(650,000)\n \n\n \n-\n \n\nPurchase of fixed assets\n\n \n\n \n(140,000)\n \n\n \n-\n \n\nNet cash provided by (used in) investing activities\n\n \n\n \n(790,000)\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**Cash Flows From Financing Activities**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCommon Stock issued for cash\n\n \n\n \n135,000\n \n\n \n\n \n805,000\n \n\nWarrants - Issued for cash\n\n \n\n \n1,685,000\n \n\n \n\n \n-\n \n\nNotes payable - Borrowings\n\n \n\n \n140,000\n \n\n \n\n \n348,874\n \n\nNotes payable - Repayments\n\n \n\n \n216,186\n \n\n \n\n \n(523,554)\n\nLoans payable - Repayments\n\n \n\n \n-\n \n\n \n\n \n(420,962)\n\nNet cash provided by (used in) financing activities\n\n \n\n \n2,176,186\n \n\n \n\n \n209,358\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Net increase (decrease) in cash**\n\n \n\n \n66,011\n \n\n \n\n \n85,603\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Cash - Beginning of Period**\n\n \n\n \n131,154\n \n\n \n\n \n45,551\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Cash - End of Period**\n\n \n$197,165\n \n\n \n$131,154\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n**Supplemental Disclosures of Cash Flow Information**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash paid for interest\n\n \n\n108,850\n\n \n\n \n\n \n136,062\n \n\nCash paid for income taxes\n\n \n$-\n \n\n \n$-\n \n\n \n\nThe accompanying footnotes are an integral part of these consolidated financial statements.\n\n \n\n \n\nF-7\n\n*Table of Contents*\n\n \n\n**SENTINEL HOLDINGS LTD AND SUBSIDIARIES**\n\n**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**\n\n \n\n \n\n**NOTE 1 – ORGANIZATION, NATURE OF OPERATIONS, AND RISKS AND UNCERTAINTIES**\n\n \n\n**Organization**\n\n \n\nThe accompanying consolidated financial statements include the accounts of Sentinel Holdings Ltd (“Sentinel”) and its majority-owned subsidiaries, Sentry Protective Services, Inc. (“Sentry”), United Security Specialists Inc. (“USS”), and Gladiator Solutions Inc. (“Gladiator”), (collectively “Sentinel” or the “Company”). Sentinel Holdings Ltd was incorporated in the State of Nevada on January 23, 2015.\n\n \n\nEffective July 17, 2024, the Company changed its name from James Maritime Holdings, Inc. to Sentinel Holdings Ltd in order to better reflect its current business activities and provide better transparency to the financial markets and its shareholders. The Company received approval from FINRA regarding this name change on April 5, 2025.\n\n \n\n**Nature of Operations**\n\n \n\nThe Company provides professional security services through its operating subsidiaries. It offers armed and unarmed security personnel and services, including on-site protection, mobile patrol, and event security, enhanced by smartphone-based security applications. It operates primarily in California and serves a diverse clientele, including businesses, individuals, residential communities, and event organizers.\n\n \n\n**Risks and Uncertainties**\n\n \n\nThe Company operates in a highly competitive industry that is subject to intense market dynamics, shifting consumer demand, and economic fluctuations. The Company’s operations are exposed to significant financial, operational, and strategic risks, including potential business disruptions and liquidity challenges.\n\n \n\nThe Company evaluates and discloses risks and uncertainties that could materially affect its financial condition, results of operations, and business outlook. Key factors contributing to variability in revenues and earnings include:\n\n \n\n·\n\nIndustry cyclicality – The Company's financial performance is affected by industry trends, seasonality, and shifts in market demand;\n\n·\n\nMacroeconomic conditions – Economic downturns, inflationary pressures, interest rate changes, and geopolitical risks may impact consumer purchasing behavior and the Company’s revenue streams; and\n\n·\n\nPricing volatility – Competitive pricing pressures can lead to fluctuations in gross margins and profitability.\n\n \n\nGiven such uncertainties, the Company faces challenges in accurately forecasting financial performance and may experience material risks affecting liquidity, business continuity, and long-term strategic growth. The Company continuously assesses these risks and implements measures to mitigate their potential impact.\n\n \n\n**NOTE 2 – GOING CONCERN**\n\n \n\nThe Company reported a net loss available to common shareholders of $1,664,817 for the year ended December 31, 2025 and utilized net cash in operating activities of $1,320,176 during that same period. Such net income included a non-cash benefit $2,205,292 as discussed above and, in the absence of that benefit, the Company would have reported a net loss of $3,870,109. The Company has an accumulated deficit of $23,956,337, a stockholders’ deficit of $2,847,685, and a working capital deficit of $4,192,539 as of December 31, 2025. The Company has incurred significant losses since inception, has not yet attained profitable operations, and remains dependent upon obtaining financing to support operations and pursue its business plans.\n\n \n\nConsequently, our auditors have stated in their report on our financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.\n\n \n\n \n\nF-8\n\n*Table of Contents*\n\n \n\n**NOTE 3 – ACQUISITION**\n\n \n\nEffective October 15, 2025, the Company, through its Sentry subsidiary, acquired the operating assets of Opsec Specialized Protection, Inc. (“Opsec”) consisting of Opsec’s contractual relationships with its clients, rights to all licenses and/or permits required to operate the business, and other miscellaneous assets associated with the business.\n\n \n\nThe Company performed an assessment under ASC 805 to determine whether the contracts acquired should be accounted for as a business combination or an asset acquisition. Management applied the relevant screen tests and guidance to evaluate whether the acquired set includes an input and a substantive process that together significantly contribute to the ability to create outputs.\n\n \n\nFirst, the Company noted that the acquired contracts are not limited to a simple portfolio of customer arrangements; they are accompanied by operational processes that are currently in use to deliver the underlying services and generate revenue. These processes include the methods, systems, and workflows necessary to fulfill the contracts and continue generating revenue without significant modification or further development by the Company.\n\n \n\nSecond, the acquired contracts are already generating revenue from customers and are expected to continue to do so as part of the Company’s ongoing operations. The presence of both inputs (the customer contracts and related customer relationships) and substantive processes (the operational know-how and procedures that are integral to managing and fulfilling those contracts) indicates that the acquired set is capable of producing outputs on a stand‑alone basis.\n\n \n\nTherefore, based on this analysis, management concluded that the acquired asset meets the definition of a business under ASC 805 and therefore should be accounted for as a business acquisition.\n\n \n\nConsideration for this acquisition totaled $800,000 consisted of cash of $650,000 paid on the closing date and $150,000 paid on April 15, 2026. The acquired assets were valued by management at $1,371,000 and recorded as contracts which is amortized on a straight-line basis over a two-year period. The difference of $571,000 between such value and the amount paid was recorded as a gain on acquisition on the statement of operations.\n\n \n\nAdditionally and as more fully described in Note 14, *Commitments and Contingencies*, the Company entered into an agreement with the owner of the Opsec business for a six-month period at the rate of $50,000 per month for consulting services.\n\n \n\n**NOTE 4 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**\n\n \n\n**Basis of Presentation**\n\n \n\nThe accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as promulgated by the Financial Accounting Standards Board through its Accounting Standards Codification (ASC).\n\n \n\n**Discontinued Operations**\n\n \n\nOn February 28, 2026 and as more fully discussed in Note 22, *Subsequent Events*, the Company sold 100% of its equity interest in USS. Prior to the sale, USS operated as a legally and operationally distinct subsidiary of the Company with separately identifiable revenues and direct costs. The Company has determined that the sale of USS represents a strategic shift that has, and will continue to have, a major effect on the Company's operations and financial results. Accordingly, the results of USS operations for all periods presented have been reclassified and reported as discontinued operations.\n\n \n\n·\n\nThe financial results of the discontinued operations for the years ended December 31, 2025 and 2024 were as follows:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenue\n\n \n$3,132,845\n \n\n \n$4,605,338\n \n\nCost of revenues\n\n \n\n \n2,328,889\n \n\n \n\n \n4,191,878\n \n\nGross profit\n\n \n\n \n803,956\n \n\n \n\n \n413,460\n \n\nGeneral and administrative expenses\n\n \n\n \n-\n \n\n \n\n \n-\n \n\nLoss on impairment of intangible assets\n\n \n\n \n-\n \n\n \n\n \n-\n \n\nIncome from discontinued operations, net of tax\n\n \n$803,956\n \n\n \n$413,460\n \n\n \n\n \n\nF-9\n\n*Table of Contents*\n\n \n\n·\n\nAssets and liabilities of the discontinued operations as of December 31, 2025 and 2024 were as follows:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\nAssets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash\n\n \n$-\n \n\n \n$91,048\n \n\nAccounts receivable\n\n \n\n \n77,515\n \n\n \n\n \n224,704\n \n\nOperating lease - Right of use asset\n\n \n\n \n\n175,450\n\n \n\n \n\n \n\n259,666\n\n \n\nPrepaid expenses and other assets\n\n \n\n \n-\n \n\n \n\n \n8,171\n \n\nTotal\n\n \n$252,965\n \n\n \n$583,589\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLiabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable and accrued expenses\n\n \n$877,514\n \n\n \n$1,830,701\n \n\nNotes payable\n\n \n\n \n148,947\n \n\n \n\n \n288,916\n \n\nLoans payable\n\n \n\n \n-\n \n\n \n\n \n183,132\n \n\nOperating lease liability – Current\n\n \n\n \n207,808\n \n\n \n\n \n83,362\n \n\nOperating lease liability - Long term\n\n \n\n \n-\n \n\n \n\n \n207,807\n \n\nTotal\n\n \n$1,234,269\n \n\n \n$2,593,918\n \n\n \n\n·\n\nThe reconciliations of key reported consolidated amounts and the related restated amounts attributable to continuing and discontinued for the years ended December 31, 2025 and 2024 are as follows:\n\n  \n\n \n\n \n\n \n\n \n\n \n\n**Discontinued**\n\n \n\n \n\n**Continuing**\n\n \n\n \n\n \n\n**Consolidated**\n\n \n\n \n\n**Operations**\n\n \n\n \n\n**Operations**\n\n \n\nYear ended December 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nRevenue\n\n \n$5,066,543\n \n\n \n$(3,132,845)\n \n$1,933,698\n \n\nLoss from operations\n\n \n$(3,658,741)\n \n$803,956\n \n$(4,462,697)\n\nNet loss available to common shareholders\n\n \n$(2,468,773)\n \n$803,956\n \n\n \n$(1,664,817)\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\nYear ended December 31, 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\nRevenue\n\n \n$4,605,338\n \n\n \n$(4,605,338)\n \n$-\n \n\nLoss from operations\n\n \n$(7,503,114)\n \n$413,460\n \n$(7,916,574)\n\nNet loss available to common shareholders\n\n \n$(7,962,133)\n \n$413,460\n \n\n \n$(8,375,593)\n\n \n\n**Use of Estimates and Assumptions**\n\n \n\nThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the recognition of revenues and expenses during the reporting period. Actual results may differ from these estimates, and such differences could be material.\n\n \n\n**Principles of Consolidation and Non-Controlling Interest**\n\n \n\nThe Company consolidates entities where it has a controlling financial interest, as defined by ASC 810, *Consolidation*, and continuously evaluates its investments and business relationships to assess consolidation requirements. All intercompany balances and transactions are eliminated in consolidation.\n\n \n\nIn accordance with ASC 810-10, consolidation is required for:\n\n \n\n·\n\nEntities wherein the Company has more than a 50% voting interest, unless control is not with the Company; and\n\n·\n\nVariable Interest Entities where the Company is the primary beneficiary, possessing both (i) power over significant activities, and (ii) the obligation to absorb losses or receive benefits.\n\n \n\nFor entities that are consolidated, but not 100% owned by the Company, a portion of the income or loss as well as the corresponding equity is allocated to the other owners of such entities. The aggregate of the income or loss and the corresponding equity that is not owned by the Company is included in Non-Controlling Interests in the consolidated financial statements.\n\n \n\n \n\nF-10\n\n*Table of Contents*\n\n \n\n \n\n**Related Parties**\n\n \n\nThe Company defines related parties in accordance with ASC 850, *Related Party Disclosures*, and applicable SEC Regulations and discloses such relationships and transactions in its financial statements.\n\n \n\nThat definition includes entities and individuals that, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company.\n\n \n\nRelated parties include, but are not limited to:\n\n \n\n·\n\nPrincipal owners of the Company;\n\n·\n\nAny shareholder owning more than 5% of any class of the Company’s voting securities;\n\n·\n\nMembers of management (including directors, executive officers, and key employees);\n\n·\n\nImmediate family members of principal owners and members of management;\n\n·\n\nEntities affiliated with principal owners or management through direct or indirect ownership; and\n\n·\n\nEntities with which the Company has significant transactions, where one party has the ability to exercise control or significant influence over the management or operating policies of the other\n\n \n\nA party is considered related if it has the ability to control or significantly influence the management or operating policies of the Company in a manner that could prevent either party from fully pursuing its own separate economic interests.\n\n \n\n**Fair Value of Financial Instruments**\n\n \n\nThe Company accounts for financial instruments in accordance with ASC 820, *Fair Value Measurements*, which establishes a framework for measuring fair value and requires related disclosures. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the Company’s principal market or, if none exists, the most advantageous market for the asset or liability.\n\n \n\nASC 820 requires the use of observable inputs whenever available and establishes a three-tier hierarchy for measuring fair value:\n\n \n\n·\n\nLevel 1 - Quoted market prices (unadjusted) for identical assets or liabilities in active market;\n\n·\n\nLevel 2 - Observable inputs other than quoted prices in active markets, such as quoted prices for similar assets and liabilities or inputs that are directly or indirectly observable; and\n\n·\n\nLevel 3 - Unobservable inputs that require significant judgment, often involving a combination of cost, market, or income approaches, as well as Management’s assumptions about market conditions, pricing, and other factors.\n\n \n\nThe measurement of the fair value of the Company’s derivative liabilities are discussed in Note 13, *Derivative Liabilities*. The carrying amounts of the Company’s other financial instruments, such as cash, accounts receivable, accrued expenses, and notes payable, et cetera, approximate their fair values due to the short-term nature of those instruments.\n\n \n\n**Credit Risks and Concentrations**\n\n \n\nThe Company evaluates and discloses significant concentrations of risk in accordance with ASC 275, *Risks and Uncertainties*, whereby it specifically considers risks that may arise from concentrations with clients in revenues and/or accounts receivable, reliance upon certain vendors, or general economic factors that could materially impact the Company’s financial position, results of operations, or cash flows.\n\n \n\n \n\nF-11\n\n*Table of Contents*\n\n \n\nIn summary, financial instruments that subject the Company to credit risk consist principally of cash and accounts receivable as follows:\n\n \n\n·\n\nThe Company maintains cash deposits with financial institutions, which, from time to time, may exceed federally insured limits. The Company has not experienced any losses and believes it is not exposed to any significant credit risk from cash.\n\n \n\n \n\n·\n\nThe Company does not require collateral for financial instruments subject to credit risk such as accounts receivable. The Company believes that credit risk is limited because the Company is familiar with the nature of operations of its customers. However, if appropriate and based upon the credit risk of its customers, the Company's policy is to establish an allowance for uncollectible accounts and periodically reassess the need for such allowances.\n\n \n\nThe Company deems a concentration of risk to exist when a single customer, supplier, or market accounts for a significant portion (typically greater than 10%) of the Company’s total revenues, accounts receivable, or vendor purchases. Such concentrations of risk, if any, are disclosed in the related areas of these footnotes.\n\n \n\n**Cash and Cash Equivalents**\n\n \n\nThe Company considers all money market accounts and highly liquid instruments with a maturity of three months or less as of the purchase date to be cash equivalents.\n\n \n\n**Accounts Receivable**\n\n \n\nThe Company accounts for accounts receivable in accordance with ASC 310, *Receivables*, whereby:\n\n \n\n·\nThe collectability of accounts receivable are periodically assessed;\n\n·\nAn allowance for doubtful accounts is established as circumstances warrant; and\n\n·\nAccounts are written off against the allowance for doubtful accounts when they are determined to be uncollectible.\n\n \n\n**Property and Equipment**\n\n \n\nThe Company accounts for property and equipment in accordance with ASC 360, *Property, Plant, and Equipment*, whereby such assets are stated at cost, less accumulated depreciation. Such depreciation is provided on the straight-line basis over the estimated useful lives of such assets.\n\n \n\nExpenditures for repair and maintenance which do not materially extend the useful lives of property and equipment are charged to operations. When property or equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective accounts with the resulting gain or loss reflected in operations.\n\n \n\nManagement periodically reviews the carrying value of its property and equipment as well as whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable in accordance with the provisions of ASC-360-10, *Impairment or Disposal of Long-Lived Assets.*\n\n \n\n**Intangible Assets**\n\n \n\nThe Company accounts for intangible assets in accordance with ASC 350, *Intangibles - Goodwill and Other*, whereby such assets are stated at cost, less accumulated amortization. Such amortization is provided on the straight-line basis over the estimated useful lives of such assets.\n\n \n\nWhen intangible assets are sold or otherwise disposed of, the cost and related accumulated amortization are removed from the respective accounts with the resulting gain or loss reflected in operations.\n\n \n\n \n\nF-12\n\n*Table of Contents*\n\n \n\nManagement periodically reviews the carrying value of its intangible assets as well as whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable in accordance with the provisions of ASC-360-10, *Impairment or Disposal of Long-Lived Assets.*\n\n \n\n**Operating Lease Right-of-Use Asset**\n\n \n\nThe Company accounts for right-of-use (ROU) assets and lease liabilities in accordance with FASB ASC 842, *Leases*. The amount of the right-of-use asset is determined by the present value of the estimated future minimum lease payments over the lease term discounted using a collateralized incremental borrowing rate. Such right-of-use asset is then amortized to expense over the expected term of the lease.\n\n \n\n**Accounts Payable and Accrued Expenses**\n\n \n\nThe Company accounts for accounts payable and accrued expenses in accordance with the provisions of ASC 405, *Liabilities*, whereby debts and other obligations due to external parties requiring future outflows of cash or the transfer of monetary assets are estimated, recorded, and reported.\n\n \n\n**Notes and Loans Payable**\n\n \n\nThe Company accounts for notes and loans payable in accordance with the provisions of ASC 470, *Debt*, whereby notes and loans payable due to external parties requiring future outflows of cash or the transfer of monetary assets are estimated, recorded, and reported.\n\n \n\n**Derivative Liabilities**\n\n \n\nThe Company accounts for eligible financial instruments in accordance with the provisions of ASC 815, *Derivatives and Hedging,* whereby financial contracts whose value is derived from an underlying asset with obligations due to external parties requiring settlement at a future date with outflows of cash or the transfer of monetary assets are estimated, recorded, and reported at fair value.\n\n \n\nThe fair value of such derivative liabilities are remeasured at the end of each reporting period utilizing a binomial pricing model. The change in such value is recognized in the results of operations as a gain or loss on the change in the fair value of derivative liabilities.\n\n \n\n**Operating Lease Liabilities**\n\n \n\nThe Company accounts for operating lease liabilities in accordance with the provisions of ASC 842, *Leases*, whereby the right-of-use (ROU) model is employed through recognizing a right-of-use asset and a lease liability for all leases with terms exceeding twelve months. Lease classification determines the pattern of expense recognition in the consolidated statement of operations. Specifically, expenses for:\n\n \n\n·\nOperating leases are recognized on a straight-line basis over the lease term; and\n\n·\nFinance leases are recognized via the amortization of the ROU asset plus interest expense on the lease liability.\n\n \n\n**Contingencies**\n\n \n\nThe Company is subject to litigation claims arising in the ordinary course of business. The Company records litigation accruals for legal matters which are both probable and estimable plus related legal costs as incurred. The Company does not reduce these liabilities for potential insurance or third-party recoveries.\n\n \n\n \n\nF-13\n\n*Table of Contents*\n\n \n\n \n\n**Revenue Recognition**\n\n \n\nThe Company recognizes revenue and related costs in accordance with the provisions of ASC 606, *Revenue From Contracts With Customers,* whereby revenue is recognized when it is able to:\n\n \n\n·\nIdentify a contract with a client;\n\n·\nIdentify the performance obligation specified within the contract;\n\n·\nDetermine the transaction price specified within the contract;\n\n·\nAllocate the transaction price to the performance obligation specified within the contract; and\n\n·\nSatisfy the performance obligation specified within the contract.\n\n \n\n**Marketing and Advertising Costs**\n\n \n\nThe Company accounts for marketing and advertising costs in accordance with the provisions of ASC 720, *Advertising Costs*, whereby all such costs are expensed as incurred. Such costs are classified within general and administrative expenses in the statement of operations.\n\n \n\n**Stock-Based Compensation**\n\n \n\nThe Company accounts for stock-based compensation in accordance with the provisions of ASC 718, *Compensation - Stock Compensation*, whereby it utilizes the fair value-based method. Under this method, cost is measured as of the grant date based on the fair value of the award determined by using the Black-Scholes option pricing model and such cost is recognized over the requisite service period, typically the vesting period. This method is utilized for awards granted to employees and issuances of equity instruments such as stock and/or warrants to vendors and other parties for services.\n\n \n\n**Income Taxes**\n\n \n\nThe Company records income tax expense utilizing the asset and liability method in accordance with the provisions of ASC 740, *Income Taxes*, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases.\n\n \n\nDeferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. The effect of changes in such tax rates on deferred tax assets and liabilities are recognized in income or expense in the period that the change is effective.\n\n \n\nIncome tax benefits are recognized when it is probable that the deduction will be sustained. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will either expire before the Company is able to realize the benefit or that future deductibility is uncertain. The Company recognizes uncertain tax positions only if it is more likely than not (greater than 50% likelihood) to be sustained upon examination by tax authorities. Any interest and penalties incurred related to uncertain tax positions are reported in other expense in the consolidated statement of operations.\n\n \n\nThe Company’s deferred tax assets include certain future tax benefits, such as net operating losses (NOLs), tax credits, and deductible temporary differences. The Company reviews the realizability of such deferred tax assets on a quarterly basis, or more frequently if circumstances warrant, and records a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized.\n\n \n\n \n\nF-14\n\n*Table of Contents*\n\n \n\n**Earnings (Loss) Per Share**\n\n \n\nThe Company calculates net earnings (loss) per common share in accordance with ASC 260, *Earnings Per Share*, whereby:\n\n \n\n·\nIn net income situations:\n\n \n\n \n\n·\n\n“Basic” net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period; and\n\n \n\n \n\n \n\n \n\n·\n\n“Diluted” net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during the period plus the number of common shares that would result from the exercise of outstanding stock options, warrants, and conversion of eligible debt and/or preferred stock.\n\n \n\n·\n\nIn net loss situations, “Basic and Diluted” net loss per common share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period. No exercise of outstanding stock options, warrants, or conversion of eligible debt and/or preferred stock is assumed as the effect of including such common share amounts would be anti-dilutive.\n\n \n\n**Recently Issued Accounting Pronouncements**\n\n \n\nIn November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional disclosure of the nature of expenses included in the income statement. The standard requires disaggregation of certain costs in a separate note to the financial statements, such as the amounts of employee compensation, depreciation, and intangible asset amortization, included in each relevant expense caption in annual and interim consolidated financial statements. This standard will be effective for the Company for the annual period beginning January 1, 2027 and interim period beginning January 1, 2028, with early adoption permitted.\n\n \n\nIn January 2025, the FASB issued ASU 2025-01, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The requirements should be applied on a prospective basis while retrospective application is permitted. The Company is currently evaluating the disclosure impacts of ASU 2024-03 on its consolidated financial statements as well as the impacts to its financial reporting process and related internal controls.\n\n \n\nIn September 2025, the FASB issued ASU 2025-06, *Intangibles - Goodwill and Other - Internal-Use Software* *(Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software*, which removes all references to software development stages (referred to as “project stages”) throughout Subtopic 350-40. The standard requires entities to start capitalizing software costs when both of the following occur: (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. This standard is effective for the Company for the annual and interim periods beginning January 1, 2028, with early adoption permitted. The Company is currently evaluating the impacts of ASU 2025-06 on its consolidated financial statements as well as the impacts to its financial reporting process and related internal controls.\n\n \n\n \n\nF-15\n\n*Table of Contents*\n\n \n\nIn November 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-09, *Derivatives and Hedging (Topic 815): Hedge Accounting Improvements,* which makes targeted improvements to the hedge accounting model. The amendments address five specific areas, including expanding the hedged risks permitted to be aggregated in groups of forecasted transactions, introducing an optional model for hedging choose-your-rate debt instruments, expanding hedge accounting for forecasted purchases and sales of nonfinancial assets, eliminating the net written option test in certain instances, and eliminating recognition and presentation mismatches for dual hedge strategies. The standard is effective for the Company for annual periods beginning January 1, 2027, and interim periods within those annual periods, with early adoption permitted. The Company does not expect this guidance to have a material impact on its consolidated financial statements.\n\n \n\n**Recently Adopted Accounting Pronouncements**\n\n \n\nIn December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*, which requires disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The new standard was effective for the Company for the annual period beginning January 1, 2025 on a prospective basis, with a retrospective option, and early adoption is permitted. The Company adopted this standard beginning in 2025 on a prospective basis. However, there was no impact to the consolidated financial statements upon adoption.\n\n \n\nIn July 2025, the FASB issued ASU 2025-05, *Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets*, which introduces a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from transactions under Topic 606. The practical expedient allows entities to assume that current conditions as of the balance sheet date would not change for the remaining life of the asset when evaluating expected credit losses. This standard is effective for the Company for the annual and interim periods beginning January 1, 2026, with early adoption permitted, and should be applied prospectively. The Company does not expect the adoption of this guidance did not have a material impact on its consolidated financial statements.\n\n \n\n**NOTE 5 – CASH AND CASH EQUIVALENTS**\n\n \n\nThe Company had no cash equivalents as of December 31, 2025 and 2024.\n\n \n\nThe Company is exposed to credit risk on its deposits with banking institutions to the extent that such account balances exceed the Federal Deposit Insurance Corporation insurance limit of $250,000. The Company did not have any such deposits in excess of those limits as of December 31, 2025 and 2024.\n\n \n\n**NOTE 6 – ACCOUNTS RECEIVABLE**\n\n \n\nAccounts receivable consisted of the following as of December 31, 2025 and 2024:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts receivable\n\n \n$923,065\n \n\n \n$224,704\n \n\nLess allowance for doubtful accounts\n\n \n\n \n-\n \n\n \n\n \n-\n \n\nSubtotal\n\n \n\n \n923,065\n \n\n \n\n \n224,704\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAs described in Note 4, *Basis of Presentation and Summary of**Significant Accounting Policies - Discontinued Operations,* the receivables associated with*USS*are reported in the *Assets of Discontinued Operations*caption on the balance sheet.\n\n \n\n \n(77,515 )\n \n\n \n(224,704 )\n\nAccounts receivable (net)\n\n \n$845,550\n \n\n \n$-\n \n\n    \n\n \n\nF-16\n\n*Table of Contents*\n\n \n\nNo individual client represented more than 10% of the total accounts receivable outstanding as of December 31, 2025 nor did any represent more than 10% of revenues for the year then ended. Three clients represented 57%, 19% and 11% of the total accounts receivable outstanding as of December 31, 2024 and all amounts were subsequently collected. The first client also represented 37% of revenues for the year then ended.\n\n \n\nBad debt expense was zero and $41,939 for the years ended December 31, 2025 and 2024, respectively.\n\n \n\n**NOTE 7 – PROPERTY AND EQUIPMENT**\n\n \n\nProperty and equipment consisted of the following as of December 31, 2025 and 2024:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFurniture and fixtures\n\n \n$-\n \n\n \n$37,271\n \n\nVehicles\n\n \n\n \n140,000\n \n\n \n\n \n171,901\n \n\n \n\n \n\n \n140,000\n \n\n \n\n \n209,172\n \n\nAccumulated depreciation\n\n \n\n \n(23,333\n)\n\n \n\n \n(104,172\n)\n\nProperty and equipment (net)\n\n \n$116,667\n \n\n \n$105,000\n \n\n   \n\nDepreciation expense totaled $61,603 and $37,065 for the years ended December 31, 2025 and 2024, respectively.\n\n \n\n**NOTE 8 – INTANGIBLE ASSETS**\n\n \n\nIntangible assets consisted of the following as of December 31, 2025 and 2024:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nContracts (Customer contracts and relationships)\n\n \n$1,371,000\n \n\n \n$2,420,014\n \n\nSupplier relationship\n\n \n\n \n-\n \n\n \n\n \n700,207\n \n\nEmployee expertise\n\n \n\n \n-\n \n\n \n\n \n1,719,807\n \n\nSoftware development cost\n\n \n\n \n-\n \n\n \n\n \n99,609\n \n\n \n\n \n\n \n1,371,000\n \n\n \n\n \n4,939,637\n \n\nAccumulated amortization\n\n \n\n \n(142,813 )\n \n\n \n(2,851,363)\n\nImpairment loss\n\n \n\n \n-\n \n\n \n\n \n(2,088,274)\n\nIntangible assets (net)\n\n \n$1,228,187\n \n\n \n$-\n \n\n \n\nAmortization expense totaled $142,813 and $1,191,898 for the years ended December 31, 2025 and 2024, respectively, and impairment loss were zero and $2,088,274 for the years ended December 31, 2025 and 2024, respectively.\n\n \n\nEffective October 15, 2025 and as further described in Note 3, *Acquisition*, the Company acquired a business wherein Contracts of $1,371,000 was recorded which was attributed to customer contracts and relationships. This intangible is being amortized on a straight-line basis over the minimum estimated remaining life of those contracts which is expected to average two years.\n\n \n\nDuring 2024, the loss of key USS customers led to a significant decline in sales relative to the prior year which resulted in revenue projections that could not support the remaining value of the USS intangible assets. Further, Management determined that the USS intangible assets were no longer expected to generate any future economic benefits. Consequently, an impairment loss equal to the remaining carrying amount of the assets was recorded as of December 31, 2024 which reduced their balance to zero.\n\n \n\n \n\nF-17\n\n*Table of Contents*\n\n \n\n**NOTE 9 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES**\n\n \n\nAccounts payable and accrued liabilities consisted of the following as of December 31, 2025 and 2024:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable and accrued liabilities\n\n \n$1,705,017\n \n\n \n$827,025\n \n\nPayroll tax liabilities\n\n \n\n \n997,143\n \n\n \n\n \n1,729,120\n \n\nAccrued interest liabilities\n\n \n\n \n1,405,140\n \n\n \n\n \n972,510\n \n\nSubtotal\n\n \n\n \n4,107,300\n \n\n \n\n \n3,528,655\n \n\nAs described in Note 4, *Basis of Presentation and Summary of**Significant Accounting Policies - Discontinued Operations,* the liabilities associated with *USS*are reported in the *Liabilities of**Discontinued Operations* caption on the balance sheet.\n\n \n\n \n(877,514)\n \n\n \n(1,830,701)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable (net)\n\n \n$3,229,786\n \n\n \n$1,697,954\n \n\n** **\n\n**NOTE 10 – NOTES PAYABLE**\n\n \n\nNotes payable consisted of the following as of December 31, 2025 and 2024:\n\n \n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\na) \n\nOn October 31, 2025 and as further described in Note 3, *Acquisition*, Sentry issued a note in the amount of $140,000 in connection with the purchase of several vehicles for that same amount. The note is collateralized by the vehicles, has no stated interest rate, and requires eighteen monthly payments of $7,778.\n\n \n$132,222\n \n\n \n$-\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nb)\n\nOn September 15, 2022, Gladiator issued a note in the amount of $150,000 to Kapitus Servicing, Inc. wherein Gladiator agreed to repay the note in weekly installments of $3,003 consisting of principal and interest over a 15-month period resulting in an effective interest rate of 24% per annum. The Company fell behind in payments and presently the parties are in litigation with Kapitus in connection with this note and other business matters.\n\n \n\n \n122,973\n \n\n \n\n \n122,973\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n c) \n\nOn September 23, 2021, USS issued a note in the amount of $637,500 to Henry Sierra in connection with his separation from USS and the repurchase of stock certain equity interests held by him. Ultimately the principal amount was reduced to $231,955 and in connection with the acquisition of USS in 2021 this note was assigned a value of $148,946. No activity has occurred with respect to this note since that date.\n\n \n\n \n148,946\n \n\n \n\n \n148,946\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n d) \n\nOn June 5, 2024, USS issued a promissory note in the amount of $200,000 to Clearview Funding Solutions, Inc. which matured on June 5, 2025. As described in Note 18, *Business Reassessment and**Repositioning* *Adjustments,* the Company adjusted the balance recorded in its financial records from $50,294 to zero effective December 31, 2025.\n\n \n\n \n-\n \n\n \n\n \n139,972\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSubtotal\n\n \n\n \n404,141\n \n\n \n\n \n411,891\n \n\n \n\nAs described in Note 4, *Basis of Presentation and Summary of**Significant Accounting Policies - Discontinued Operations,* the liability associated with the notes described in “c” above are reported in the *Liabilities of Discontinued Operations* caption on the balance sheet.\n\n \n\n \n(148,946)\n \n\n \n(288,917)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n$255,195\n \n\n \n$122,974\n \n\n   \n\n \n\nF-18\n\n*Table of Contents*\n\n** **\n\n**NOTE 11 – CONVERTIBLE NOTES PAYABLE**\n\n \n\nConvertible notes payable consisted of the following as of December 31, 2025 and 2024:\n\n \n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOn February 8 and 26, 2021, Gladiator issued two promissory notes in the total principal amount of $35,000 to Pink Holdings which accrued interest at 6% per annum and matured one year after issuance.  \n\n \n$35,000\n \n\n \n$35,000\n \n\n \n\nThese notes contain terms which provide the holder with the option to convert any portion of the outstanding principal and accrued interest amounts into fully paid and non-assessable shares of common stock of the Company at 10% of the lowest trading price during the five-trading day period immediately prior to the conversion date. Since these notes contain an embedded conversion feature with a conversion price that could result in the issuance of an indeterminate amount of shares of common stock in the future, such feature has been bifurcated from the notes and accounted for as a derivative liability as described in Note 13, *Derivative Liabilities*.\n\n \n\n**NOTE 12 – LOANS PAYABLE**\n\n \n\nLoans payable consisted of the following as of December 31, 2025 and 2024:\n\n \n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**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\na) \n\nOn March 3, 2021, Gladiator entered into a loan agreement with the Small Business Administration in the amount of $67,800. This loan accrues interest at the annual rate of 3.75% and matures on March 3, 2051.\n\n \n$67,800\n \n\n \n$67,800\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nb)\n\nOn September 16, 2022, Gladiator entered into a loan agreement with Pinnacle Business Funding, LLC wherein it borrowed $145,500 and agreed to repay the loan in weekly payments of $6,328. The Company has not fully complied with the terms of this agreement and payments totaling $24,000 remain outstanding as of December 31, 2025 and 2024.\n\n \n\n \n24,000\n \n\n \n\n \n24,000\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nc)\n\nOn December 9, 2022, Gladiator entered into a loan agreement with Quattro Capital in the amount of $250,000 in connection with the financing of inventory purchases. The note is collateralized by such inventory, accrues interest at the rate of 150% per annum, and required repayment within 60 days. If not paid upon maturity, the interest rate increased to $1,200 per day resulting in an effective interest rate of approximately 175% per annum. The Company has accrued interest of $1,276,417 and $889,625 in connection with this note as of December 31, 2025 and 2024, respectively, and classified such amounts in the *Accounts**Payable and Accrued Expenses* caption on the balance sheet.\n\n \n\n \n250,000\n \n\n \n\n \n250,000\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nd)\n\nOn April 13, 2023, USS entered into a loan agreement for the factoring of accounts receivable. This loan balance was paid in full during the year ended December 31, 2025.\n\n \n\n \n-\n \n\n \n\n \n94,881\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\ne)\n\nOn April 26, 2024, USS entered into a loan agreement with an individual in the amount of $100,000. This loan did not accrue interest and was paid in full on March 18, 2025.\n\n \n\n \n-\n \n\n \n\n \n75,001\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nf)\n\nOn various dates during the years ended December 31, 2025 and prior, USS entered into various loan agreements in connection with various vehicle purchases. As described in Note 18, *Business Reassessment**and Repositioning Adjustments*, the Company adjusted the balance recorded in its financial records from $45,437 to zero effective December 31, 2025.\n\n \n\n \n-\n \n\n \n\n \n33,958\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSubtotal\n\n \n\n \n341,800\n \n\n \n\n \n545,640\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAs described in Note 4, *Basis of Presentation and Summary of**Significant Accounting Policies - Discontinued Operations,* the liability associated with**the notes described in “d”, “e”, and “f” and above are reported in the *Liabilities of Discontinued Operations*caption on the balance sheet.\n\n \n\n \n\n \n\n \n\n \n\n \n(250,932)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n$341,800\n \n\n \n$294,708\n \n\n  \n\n \n\nF-19\n\n*Table of Contents*\n\n \n\n**NOTE 13 – DERIVATIVE LIABILITIES**\n\n \n\nThe notes described in Note 11, *Convertible Notes Payable*, contained embedded conversion options with a conversion price that could result in the issuance of an indeterminate amount of shares of common stock in the future to settle the host contract. Accordingly, the embedded conversion options were bifurcated from the convertible notes and treated as a liability. The fair value of such liability amounts were calculated using “Level 3” type inputs (as described in Note 4**,***Summary Of Significant Accounting Policies – Fair Value Of Financial Instruments*) and marked to market at the end of each reporting period.\n\n \n\nDuring the years ended December 31, 2025 and 2024, the Company used the Black-Scholes pricing model to estimate the fair value of its embedded conversion option liabilities on those remeasurement dates with the following inputs:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n·     Expected term (in years)\n\n \n\n \n\n1.0\n\n \n\n \n\n \n\n1.0\n\n \n\n·     Volatility\n\n \n\n30% - 80%\n\n \n\n \n\n62% - 84%\n\n \n\n·     Dividends\n\n \n\nNone\n\n \n\n \n\nNone\n\n \n\n·     Risk-free interest rate\n\n \n\n3.5% - 4.0%\n\n \n\n \n\n4.0% - 5.1%\n\n \n\n \n\nThe changes in derivative liabilities during the years ended December 31, 2025 and 2024 are as follows:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBeginning of year\n\n \n$338,061\n \n\n \n$175,045\n \n\nMark-to-market adjustment\n\n \n\n \n54,686\n \n\n \n\n \n163,016\n \n\nEnd of year\n\n \n$392,747\n \n\n \n$338,061\n \n\n \n\n \n\nF-20\n\n*Table of Contents*\n\n \n\n**NOTE 14 – COMMITMENTS AND CONTINGENCIES**\n\n \n\n**Operating Lease Liabilities**\n\n \n\nThe tables below present information regarding the Company’s operating lease and liability as of December 31, 2025 and 2024:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\nAssets and liabilities:\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\nOperating lease right-of-use asset\n\n \n$175,450\n \n\n \n$259,666\n \n\nOperating lease liability\n\n \n$207,808\n \n\n \n$291,169\n \n\nWeighted-average remaining lease term (in years)\n\n \n\n2.1\n\n \n\n \n\n \n3.1\n \n\nWeighted-average discount rate\n\n \n\n \n8.0%\n \n\n \n8.0%\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nComponents of lease expense:\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\nAmortization of right-of-use operating lease asset\n\n \n$84,216\n \n\n \n$84,216\n \n\nLease liability in connection with obligation payment\n\n \n\n \n20,300\n \n\n \n\n \n26,438\n \n\nTotal operating lease cost\n\n \n$104,516\n \n\n \n$110,654\n \n\n  \n\n**Consulting Agreements**\n\n \n\nEffective October 15, 2025 and in connection with the acquisition discussed in Note 3, *Acquisition*, Sentry entered into a consulting agreement with the seller of that business through April 15, 2026 wherein Sentry is obligated to compensate that individual $50,000 per month. Remaining payments due to this individual total $175,000 as of December 31, 2025.\n\n \n\nEffective October 28, 2025, Sentinel entered into a consulting agreement with Padang Padang, Ltd (“Padang”), a related party, through October 2026 wherein Sentinel is obligated to compensate Padang $20,000 per month. Remaining payments due to Padang under the terms of this agreement total $205,000 as of December 31, 2025.\n\n \n\n**Legal Matters**\n\n \n\nThe Company, as previously indicated, is subject to litigation claims arising in the ordinary course of business. In that regard, the Company has assessed each matter individually and has recorded aggregated estimated liabilities for litigation claims of $347,325 and zero as of December 31, 2025 and 2024. The Company is not aware of any litigation, pending litigation, or other transactions that, in the opinion of management, would require specific disclosure as of those dates to prevent the financial statements from being misleading.\n\n \n\n**NOTE 15 – STOCKHOLDERS’ EQUITY (DEFICIT)**\n\n \n\na) **Preferred and Common Stock**\n\n \n\nThe Company had two classes of stock authorized (Preferred Stock and Common Stock) and three classes of stock issued and outstanding (Preferred Stock Series A, Preferred Stock Series B, and Common Stock) as of December 31, 2025 and 2024. The rights and preferences of each are summarized as follows:\n\n \n\n \n\nF-21\n\n*Table of Contents*\n\n \n\n \n\ni)\n\nPreferred Stock\n\n \n\nNumber of shares authorized\n\n \n\n \n10,000,000\n \n\nPar value\n\n \n$0.001\n \n\nVoting rights\n\n \n\nNone\n\n \n\nDividend rights\n\n \n\nNone\n\n \n\nRedemption rights\n\n \n\nNone\n\n \n\nConversion rights\n\n \n\nNone\n\n \n\nLiquidation preference\n\n \n\nNone\n\n \n\n \n\n \n\nii)\n\nPreferred Stock Series A\n\n \n\nNumber of Preferred Stock shares designated as Series A\n\n \n\n \n2,000,000\n \n\nNumber of shares issued and outstanding as of:\n\n \n\n \n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n2,000,000\n \n\nDecember 31, 2024\n\n \n\n \n400,000\n \n\nPar value\n\n \n$0.001\n \n\nVoting rights\n\n \n\n30 votes per share\n\n \n\nDividend rights\n\n \n\nNone\n\n \n\nRedemption rights\n\n \n\nNone\n\n \n\nConversion rights\n\n \n\nNone\n\n \n\nLiquidation preference\n\n \n\nNone\n\n \n\n \n\n \n\niii)\n\nPreferred Stock Series B\n\n \n\nNumber of Preferred Stock shares designated as Series B\n\n \n\n \n1,000,000\n \n\nNumber of shares issued and outstanding as of:\n\n \n\n \n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n75,000\n \n\nDecember 31, 2024\n\n \n\n \n50,000\n \n\nPar value\n\n \n$0.001\n \n\nVoting rights\n\n \n\n10 votes per share\n\n \n\nDividend rights\n\n \n\nNone\n\n \n\nRedemption rights\n\n \n\nNone\n\n \n\nConversion rights\n\n \n\n50 common shares per share\n\n \n\nLiquidation preference\n\n \n\nNone\n\n \n\n \n\n \n\niv)\n\nCommon Stock\n\n \n\nNumber of shares designated\n\n \n\n \n90,000,000\n \n\nNumber of shares issued and outstanding as of:\n\n \n\n \n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n9,690,429\n \n\nDecember 31, 2024\n\n \n\n \n9,371,429\n \n\nPar value\n\n \n$0.001\n \n\nVoting rights\n\n \n\n1 vote per share\n\n \n\nDividend rights\n\n \n\nNone\n\n \n\nRedemption rights\n\n \n\nNone\n\n \n\n \n\n \n\nF-22\n\n*Table of Contents*\n\n \n\n \n\nb) **Financing Activities**\n\n  \n\nThe Company issued shares of Preferred and Common Stock as well as warrants in connection with financing activities during the years ended December 31, 2025 and 2024. Such activities are summarized as follows:\n\n \n\n**During the year ended December 31, 2025:**\n\n \n\n \n\ni)\n\nOn June 24, 2025, the Company issued 135,000 shares of common stock at $1.00 per share to a private investor and received cash proceeds of $135,000.\n\n \n\n \n\n \n\n \n\nii)\n\nOn June 24, 2025, the Company issued 15,000 shares of Preferred Stock Series B to a consultant for services with a fair value of $750,000.\n\n \n\n \n\n \n\n \n\n \n\nThe Company’s Preferred Stock Series B is not traded on a public exchange and therefore lacks an observable market price. As a result, the Company estimated the fair value of such shares in accordance with the provisions of ASC 718, *Compensation - Stock Compensation. Specifically, e*ach share of Preferred Stock Series B was deemed to have a value of $50 per share as each such share is convertible into 50 shares of Common Stock. Further, each share of Common Stock was deemed by Management to have a value of $1.00 per share based upon the most recent cash the price paid per common share by third-party investors earlier in that same quarter. That value was deemed to be the best and most reliable indicator of the value for the Company’s common shares at the time of this transaction. Therefore, the value of $750,000 was calculated as follows:\n\n   \n\nQuantity of Preferred Stock Series B shares issued\n\n \n\n \n15,000\n \n\nConversion ratio of Preferred Stock Series B into Common Stock\n\n \n\n \n50\n \n\nEquivalent quantity of common shares\n\n \n\n \n750,000\n \n\nCash offering price of common shares\n\n \n$1.00\n \n\nValuation of Preferred Stock Series B shares issued\n\n \n$750,000\n \n\n \n\n \n\niii)\n\nOn June 24, 2025, the Company extended the expiration date of certain outstanding warrants held by a private investor for the purchase of up to 1,000,000 shares of Common Stock at $3.50 per share to a new expiration date of July 27, 2027. The Company did not receive any consideration for this action nor did it attribute any value to it.\n\n \n\n \n\n \n\n \n\niv)\n\nOn various dates from July 23, 2025 through September 23, 2025, the Company sold a total of 1,685,000 Warrant Units to private investors at $1.00 per Unit for the purchase of up to a total of 3,370,000 shares of Common Stock and received cash proceeds of $1,685,000.\n\n \n\n \n\n \n\n \n\n \n\nEach Unit consists of one Series A Warrant to purchase one share of Common Stock at $3.50 per share and one Pre-Funded Warrant to purchase one share of Common Stock at $0.001 per share. All warrants were fully vested upon issuance and expire on various dates from September 24, 2030 to October 8,2030**.**\n\n \n\nSuch Units, and specifically the Pre-Funded Warrants contained within, were accounted for as equity instruments in accordance with the provisions of ASC 815-40-25 because:\n\n  \n\n \n\n·\nThe warrants are indexed to the Company’s common stock;\n\n \n\n·\nThe Company is not required to settle the warrants with cash;\n\n \n\n·\nThe Company has sufficient authorized and unissued shares available to settle the warrants; and\n\n \n\n·\nThe warrants contain an explicit limit on the number of shares to be delivered upon settlement.\n\n \n\n \n\nF-23\n\n*Table of Contents*\n\n \n\n \n\nv) \n\nOn October 28, 2025, the Company issued 1,600,000 shares of Preferred Stock Series A to a related party as partial compensation valued at $1,600 for consulting services as further described in Note 21, *Related Party Transactions*.\n\n \n\n \n\n \n\nShares of Preferred Stock Series A have voting rights, but they do not accrue dividends nor do they have any redemption rights, conversion rights, or liquidation preferences. Therefore, consistent with previous accounting for such issuances, such shares were valued at their par value of $0.001 per share.\n\n \n\n \n\n \n\n \n\nvi) \n\nOn October 30, 2025, the Company issued 10,000 shares of Preferred Stock Series B to a related party, the Company’s President and CEO, as compensation valued at $500,000 for services performed in connection with an acquisition in October 2025 as further described in Note 3, *Acquisition*, and Note 21, *Related Party Transactions*. This amount was recorded as an expense in the statement of operations and classified in general and administrative expenses.\n\n \n\n \n\n \n\n \n\n \n\nThe Company’s Preferred Stock Series B is not traded on a public exchange and therefore lacks an observable market price. As a result, the Company estimated the fair value of such shares in accordance with the provisions of ASC 718, *Compensation - Stock Compensation. Specifically, e*ach share of Preferred Stock Series B was deemed to have a value of $50 per share as each such share is convertible into 50 shares of Common Stock. Further, each share of Common Stock was deemed by Management to have a value of $1.00 per share based upon the most recent cash the price paid per common share by third-party investors earlier in the same quarter. That value was deemed to be the best and most reliable indicator of the value for the Company’s common shares at the time of this transaction. Therefore, the value of $500,000 was calculated as follows:\n\n   \n\nQuantity of Preferred Stock Series B shares issued\n\n \n\n \n10,000\n \n\nConversion ratio of Preferred Stock Series B into Common Stock\n\n \n\n \n50\n \n\nEquivalent quantity of common shares\n\n \n\n \n500,000\n \n\nCash offering price of common shares\n\n \n$1.00\n \n\nValuation of Preferred Stock Series B shares issued\n\n \n$500,000\n \n\n \n\n \n\nvii)\n\nOn December 12, 2025, the Company adopted the *2025 Sentinel Equity Incentive Plan* and approved the issuance of 184,000 shares of Common Stock to employees with a fair value of $184,000 in recognition of services rendered.\n\n \n\n \n\n \n\n \n\n \n\nEach share of Common Stock was deemed by Management to have a value of $1.00 per share based upon the most recent cash the price paid per common share by third-party investors during the second quarter of that year. That value was deemed to be the best and most reliable indicator of the value for the Company’s common shares at the time of this transaction.\n\n \n\n**During the year ended December 31, 2024:**\n\n \n\n \n\ni)\n\nOn March 6, 2024, the Company cancelled 866,667 shares of common stock that was previously issued and re-issued the same shareholders a total of 368,967 shares pursuant to the terms of the Gladiator Stock Purchase Agreement of December 19, 2021 due to Gladiator’s lack of performance.\n\n \n\n \n\n \n\n \n\nii)\n\nOn April 8, 2024 and as more fully described in Note 21, *Related Party Transactions*, the Company issued 550,000 warrants to a related party, the Company’s majority shareholder, for the purchase of 550,000 shares of Common Stock at $3.50 per share valued at $1,138,500 as compensation for consulting services. All warrants were fully vested upon issuance and expire on April 8, 2026.\n\n \n\n \n\n \n\n \n\n \n\nThe Company used the Black-Scholes pricing model to estimate the fair value of such warrants with the following inputs:\n\n \n\n·     Expected term (in years)\n \n\n \n2.7\n \n\n·     Volatility\n \n\n \n52%\n\n·     Dividends\n \n\n None\n\n \n\n·     Risk-free interest rate\n \n\n \n4.6%\n\n \n\n \n\nF-24\n\n*Table of Contents*\n\n \n\n \n\niii)\n\nOn June 8, 2024 and June 28, 2024, the Company sold a total of 175,000 Units to private investors at $1.00 per Unit, issued 175,000 shares of Common Stock, and received cash proceeds of $175,000.\n\n \n\n \n\n \n\nEach Unit consisted of one share of Common Stock and one warrant to purchase one share of Common Stock at $3.50 per share. All warrants were fully vested upon issuance and expire on December 31, 2026**.**\n\n \n\n \n\n \n\n \n\niv)\n\nOn various dates from July 25, 2024 through August 12, 2024, the Company sold a total of 275,000 Units to private investors at $1.00 per Unit, issued 275,000 shares of Common Stock, and received cash proceeds of $275,000.\n\n \n\n \n\n \n\nEach Unit consisted of one share of Common Stock and one warrant to purchase one share of Common Stock at $3.50 per share. All warrants were fully vested upon issuance and expire on December 31, 2026**.**\n\n   \n\n \n\nv)\n\nOn August 26, 2024, the Company issued 35,000 shares of common stock at $1.00 per share to private investors and received cash proceeds of $35,000.\n\n \n\n \n\n \n\n \n\nvi)\n\nOn September 6, 2024, the Company issued 50,000 shares of Preferred Stock Series B to a related party, the Company’s majority shareholder, as compensation valued at $2,500,000 for consulting services as further described in Note 21, *Related Party Transactions*.\n\n \n\n \n\n \n\n \n\n \n\nThe Company’s Preferred Stock Series B is not traded on a public exchange and therefore lacks an observable market price. As a result, the Company estimated the fair value of such shares in accordance with the provisions of ASC 718, *Compensation - Stock Compensation. Specifically, e*ach share of Preferred Stock Series B was deemed to have a value of $50 per share as each such share is convertible into 50 shares of Common Stock. Further, each share of Common Stock was deemed by Management to have a value of $1.00 per share based upon the most recent cash the price paid per common share by third-party investors earlier in the same quarter. That value was deemed to be the best and most reliable indicator of the value for the Company’s common shares at the time of this transaction. Therefore, the value of $2,500,000 was calculated as follows:\n\n  \n\nQuantity of Preferred Stock Series B shares issued\n\n \n\n \n50,000\n \n\nConversion ratio of Preferred Stock Series B into Common Stock\n\n \n\n \n50\n \n\nEquivalent quantity of common shares\n\n \n\n \n2,500,000\n \n\nCash offering price of common shares\n\n \n$1.00\n \n\nValuation of Preferred Stock Series B shares issued\n\n \n$2,500,000\n \n\n \n\n \n\nvii)\n\nOn October 30, 2024, the Company sold a total of 20,000 Units to private investors at $1.00 per Unit, issued 20,000 shares of Common Stock, and received cash proceeds of $20,000.\n\n \n\n \n\n \n\n \n\n \n\nEach Unit consisted of one share of Common Stock and one warrant to purchase one share of Common Stock at $3.50 per share. All warrants were fully vested upon issuance and expire on October 30, 2026**.**\n\n    \n\n \n\nviii)\n\nOn November 4, 2024, the Company sold a total of 250,000 Units to private investors at $1.00 per Unit, issued 250,000 shares of Common Stock, and received cash proceeds of $250,000.\n\n \n\n \n\n \n\n \n\n \n\nEach Unit consisted of one share of Common Stock and one warrant to purchase one share of Common Stock at $3.50 per share. All warrants were fully vested upon issuance and expire on December 31, 2026**.**\n\n  \n\n \n\nix)\n\nOn December 9, 2024, the Company issued 50,000 shares of common stock at $1.00 per share to private investors and received cash proceeds of $50,000.\n\n \n\n \n\nF-25\n\n*Table of Contents*\n\n \n\n \n\nc) **Warrant Activities**\n\n \n\nWarrant activities described in detail in the preceding section for the years ended December 31, 2025 and 2024 are summarized as follows:\n\n \n\n \n\n \n\nNumber\n\nOf\n\nWarrants\n\n \n\n \n\nWeighted Average\n\nExercise\n\nPrice\n\n \n\n \n\nWeighted Average\n\nRemaining\n\nContractual\n\nTerm\n\n(In Years)\n\n \n\n \n\nAggregate\n\nIntrinsic\n\nValue\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\nAmounts outstanding, vested, and\n\nexercisable as of January 1, 2024\n\n \n\n \n1,000,000\n \n\n \n$3.50\n \n\n \n\n \n1.6\n \n\n \n$2,500,000\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\nIssued during 2024\n\n \n\n \n1,270,000\n \n\n \n$3.50\n \n\n \n\n \n2.2\n \n\n \n\n \nn/a\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\nAmounts outstanding, vested,\n\nand exercisable as of December 31, 2024\n\n \n\n \n2,270,000\n \n\n \n$3.50\n \n\n \n\n \n2.1\n \n\n \n$3,382,300\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\nIssued during 2025\n\n \n\n \n3,370,000\n \n\n \n$1.75\n \n\n \n\n \n5.1\n \n\n \n\n \nn/a\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\nAmounts outstanding, vested, and\n\nexercisable as of December 31, 2025\n\n \n\n \n5,640,000\n \n\n \n$2.45\n \n\n \n\n \n3.3\n \n\n \n$20,954,615\n \n\n \n\nThe aggregate intrinsic value was calculated using $6.00, $4.99, and $6.17 per share for January 1, 2024, December 31, 2024, and December 31, 2025, respectively.\n\n \n\n**NOTE 16 – REVENUE**\n\n \n\nThe Company derived revenue exclusively from services during the years ended December 31, 2025 and 2024.\n\n \n\nRevenue is recognized in accordance with accounting policy previously discussed and most clients are invoiced on a weekly basis. Consequently, there are no right-of-return considerations and uncollectable receivables are minimal to non-existent.\n\n \n\n**NOTE 17 – BUSINESS REASSESSMENT AND REPOSITIONING ADJUSTMENTS**\n\n \n\nIn conjunction with the preparation of the Company’s consolidated financial statements as of and for the year ended December 31, 2025, Management considered the following recent events and initiatives:\n\n \n\na)\n\nThe September 2025 removal of an individual for the alleged improper issuance of the Company’s securities. This individual:\n\n \n\n \n\ni)\n\nWas then serving as Treasurer, Secretary, and a member of the Board of Directors; and\n\n \n\nii)\n\nHad previously served as President and Chief Executive Officer for almost a decade;\n\n \n\nb)\n\nThe October 2025 acquisition of the Opsec business;\n\n \n\n \n\nc)\n\nThe February 2026 sale of USS; and\n\n \n\n \n\nF-26\n\n*Table of Contents*\n\n \n\nd)\n\nInitiatives discussed elsewhere in this document consisting of:\n\n \n\n \n\ni)\n\nThe establishment of a new Management Team;\n\n \n\nii)\n\nThe launch of a growth strategy;\n\n \n\niii)\n\nThe ongoing pursuit of additional acquisitions; and\n\n \n\niv)\n\nThe ongoing pursuit of additional financing to fund such growth strategies and acquisitions.\n\n \n\nIn light of the above, Management reassessed the propriety of certain assets and liabilities carried on its balance sheet and elected to make repositioning adjustments related thereto effective as of December 31, 2025 to more accurately reflect the prospective obligations of the Company. This resulted in a net benefit of $2,378,301 which was recorded in the *Other Income/Expense* area in the Consolidated Statement of Operations.\n\n \n\nThe Company accounted for such adjustments in accordance with the provisions of ASC 250, *Accounting Changes and Error Corrections*, whereby changes in estimates are recorded in the period in which they become known and are accounted for prospectively. The Company based such adjustments on the facts and circumstances described above, historical experience, industry trends, and other relevant factors, incorporating both quantitative and qualitative assessments that it believed were reasonable under the circumstances.\n\n \n\nThose elimination adjustments are summarized as follows:\n\n \n\na)\n\nCertain payroll and payroll tax liabilities which had accumulated over time, whose origins are uncertain, and Management has deemed to be unnecessary\n\n \n$2,109,240\n \n\n \n\n \n\n \n\n \n\n \n\nb)\n\nMiscellaneous operational related items\n\n \n\n \n96,052\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal\n\n \n$2,205,292\n \n\n \n\n**NOTE 18 – INCOME TAXES**\n\n \n\n The Components of the deferred tax assets and liabilities as of December 31, 2025 and 2024 were approximately as follows:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBad debt\n\n \n\n$\n\n12,000\n\n \n\n \n\n$\n\n12,000\n\n \n\nAmortization of ROU lease\n\n \n\n \n\n36,000\n\n \n\n \n\n \n\n24,000\n\n \n\nAmortization of debt discount\n\n \n\n \n\n433,000\n\n \n\n \n\n \n\n433,000\n\n \n\nShare based payments\n\n \n\n \n\n1,295,000\n\n \n\n \n\n \n\n1,018,000\n\n \n\nImpairment expense\n\n \n\n \n\n584,000\n\n \n\n \n\n \n\n584,000\n\n \n\nChange in fair value of derivative liabilities\n\n \n\n \n\n61,000\n\n \n\n \n\n \n\n46,000\n\nOther\n\n \n\n \n\n12,000\n\n \n\n \n\n \n\n-\n\nNet operating loss carryforwards\n\n \n\n \n\n1,964,000\n\n \n\n \n\n \n\n1,813,000\n\n \n\nTotal deferred tax assets\n\n \n\n \n\n4,397,000\n\n \n\n \n\n \n\n3,930,000\n\n \n\nLess: valuation allowance\n\n \n\n \n\n(4,397,000\n\n)\n\n \n\n \n\n(3,930,000\n\n)\n\nNet deferred tax asset recorded\n\n \n\n$\n\n-\n\n \n\n \n\n$\n\n-\n\n \n\n \n\nThe components of the income tax benefit and related valuation allowance for the years ended December 31, 2025 and 2024 was approximately as follows:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\nCurrent\n\n \n\n$\n\n-\n\n \n\n \n\n$\n\n-\n\n \n\nDeferred\n\n \n\n \n\n(151,000\n\n)\n\n \n\n \n\n(2,365,000\n\n)\n\nTotal income tax provision (benefit)\n\n \n\n \n\n(151,000\n\n)\n\n \n\n \n\n(2,365,000\n\n)\n\nLess: valuation allowance\n\n \n\n \n\n151,000\n\n \n\n \n\n \n\n2,365,000\n\n \n\nIncome tax provision (benefit)\n\n \n\n$\n\n-\n\n \n\n \n\n$\n\n-\n\n \n\n \n\nA reconciliation of the provision for income taxes for the years ended December 31, 2025 and 2024 as compared to statutory rates was approximately as follows:\n\n \n\n \n\n \n\n**2025**\n\n \n\n \n\n**2024**\n\n \n\nFederal income tax benefit - 6.2%\n\n \n$(103,000 )\n \n$(1,618,000 )\n\nState income tax benefit - 2.3%\n\n \n\n \n(48,000 )\n \n\n \n(747,000 )\n\nSubtotal\n\n \n\n \n(151,000 )\n \n\n \n(2,365,000 )\n\nChange in valuation allowance\n\n \n\n \n151,000\n \n\n \n\n \n2,365,000\n \n\nIncome tax benefit\n\n \n$-\n \n\n \n$-\n \n\n \n\nFederal net operating loss carry forwards at December 31, 2025 and 2024 were approximately $7,013,000 and $6,474,000, respectively.\n\n \n\nDeferred tax assets and liabilities are computed by applying the federal and state income tax rates in effect to the gross amounts of temporary differences and other tax attributes, such as net operating loss carry forwards. In assessing if the deferred tax assets will be realized, the Company considers whether it is more likely than not that some or all of these deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which these deductible temporary differences reverse. As a result of historic losses, the Company has recorded a full valuation allowance as of December 31, 2025.\n\n \n\nDuring the year ended December 31, 2025, the valuation allowance increased by approximately $467,000. The total valuation allowance results from the Company’s estimate of its future recoverability of its net deferred tax assets.\n\n \n\nThe Company has determined that it had a change of control issue for the year ended December 31, 2021, that will limit the future use of the NOL carryforwards of approximately $3,006,000 as of December 31,2021. As of December 31, 2025, the remaining federal NOL carryforwards of approximately $4,007,000 were generated after 2017 and, as such, may only be used to offset 80% of future taxable income and are carried forward indefinitely until fully utilized.\n\n \n\nThe Company follows the provisions of ASC 740, which require the computations of current and deferred income tax assets and liabilities only consider tax positions that are more likely than not (defined as greater than 50% chance) to be sustained if the taxing authorities examined the positions. There are no significant differences between the tax provisions represented in the accompanying financial statements and those reported in the Company's income tax returns.\n\n \n\nThe Company files corporate income tax returns in the United States and California. Due to the Company's net operating loss posture, all tax years are open and subject to income tax examination by tax authorities. The Company's policy is to recognize interest expense and penalties related to income tax matters as tax expense. As of December 31, 2025 and 2024, respectively, there are no unrecognized tax benefits, and there were no accruals for interest related to unrecognized tax benefits or tax penalties.\n\n \n\n \n\nF-27\n\n*Table of Contents*\n\n \n\n**NOTE 19 – EARNINGS PER SHARE**\n\n \n\nThe following table summarizes the common share equivalents included in the number of shares used in the calculation of diluted earnings per share for the year ended December 31, 2025:\n\n \n\nPreferred Stock Series B\n\n \n\n \n3,750,000\n \n\nWarrants\n\n \n\n \n5,640,000\n \n\nTotal\n\n \n\n \n9,390,000\n \n\n \n\nThe following table summarizes the common share equivalents excluded from the number of shares used in the calculation of basic and diluted loss per share for the year ended December 31, 2024:\n\n \n\nPreferred Stock Series B\n\n \n\n \n2,500,000\n \n\nWarrants\n\n \n\n \n2,270,000\n \n\nTotal\n\n \n\n \n4,770,000\n \n\n \n\n**NOTE 20 – RELATED PARTY TRANSACTIONS**\n\n \n\nOn September 6, 2024 and as more fully described in Note 15(b), *Shareholder Equity (Deficit) - Financing Activities - 2024 - (vi)*, the Company entered into a consulting agreement with Padang Padang, Ltd (“Padang”), the Company’s majority shareholder a related party, for a one-year period wherein the Company agreed to provide compensation to Padang in the form of the issuance of 50,000 shares of Preferred Stock Series B.\n\n \n\nOn October 28, 2025 and as more fully described in Note 14, *Commitments and Contingencies*, and Note 15(b), *Shareholder Equity (Deficit) - Financing Transactions*, the Company entered into a consulting agreement with Padang for a one-year period wherein the Company agreed to compensate Padang $20,000 per month and issue 1,600,000 shares of Preferred Stock Series A.\n\n \n\nOn October 30, 2025 and as more fully described in Note 3, *Acquisition*, and Note 15(b), *Shareholder Equity (Deficit) - Financing Transactions*, the Company issued 10,000 shares of Preferred Stock Series B to a related party, the Company’s President and CEO, as compensation for services performed in connection with the acquisition of the Opsec business.\n\n \n\n**NOTE 21 – SUBSEQUENT EVENTS**\n\n \n\nOn February 28, 2026, the Company sold 100% of its equity interest in USS pursuant to a stock purchase agreement. The buyers were Top Flight Security Solutions LLC (“Top Flight”), a Nevada limited liability company, and Rodney Miller II, an individual. Total consideration received by the Company consisted of $1.00 in cash and a 4% non-managing membership interest in Top Flight, a newly formed entity with no assets or operating history, to which the Company assigned no value. No additional contingent consideration is provided for under the agreement. Therefore, as USS had a net deficit of approximately $981,000 as of that date (consisting of assets of approximately $253,000 and liabilities of approximately $1,233,000), the Company recorded a gain of approximately $980,000 during the first quarter of 2026.\n\n \n\n \n\nF-28\n\n*Table of Contents*"}