Financial Analysis

NOTE 4: DUE TO SELLER RAN CoPacking Solutions LLC The Company evaluated the Ranco Agreement pursuant to ASC 805 and ASU 2017-01, Topic 805, Business Combinations. Total fair value of the preliminary purchase price consideration as of July 1, 2023 was determined as follows: Cash (due to seller) $ 1,000,000 Common stock 8,000,000 Contingent consideration 208,000 Purchase price consideration $ 9,208,000 On July 1, 2023, the Company issued 4,000,000 (post-split) shares of common stock pursuant to the Asset Purchase Agreement for a fair value of $8,000,000, or $2.00 per share. Pursuant to the Asset Purchase Agreement, the Company owes the Seller $1,000,000 in cash consideration. The amount was recorded as a due to seller liability on the consolidated balance sheet. As of December 31, 2025, no payments were made. In accordance with the Earn Out provisions per the Asset Purchase Agreement, the Company determined an initial fair value of $208,000 based on the fair value of the shares at the acquisition date and probabilities of the respective Earn Out terms. In connection with the discontinuation of Rancos operations and the passage of H.R. 5371, management determined that the Earn Out conditions were no longer probable of being achieved. Accordingly, the contingent consideration liability of $208,000 was reversed in full during the year ended December 31, 2025, and the reversal was recognized as other income in the consolidated statement of operations for continuing operations. …

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NOTE 14: COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. The Company is not presently a party to any legal proceedings that it currently believes, if determined adversely to the Company, would individually or taken together have a material adverse effect on the Companys business, operating results, financial condition or cash flows. Guarantee of Ranco Notes The Company has guaranteed the Ranco Notes (aggregate outstanding balance of $4,044,083 at December 31, 2025), which are classified within current liabilities of discontinued operations (see Note 12). Ranco LLC is the primary obligor on these notes; however, the Company may be required to satisfy these obligations in the event Ranco is unable to do so. As of December 31, 2025, no separate guarantee liability has been recognized under ASC 460, as the Company expects the obligations to be settled through the wind-down of Rancos remaining assets and negotiated settlements with the lenders. The Company is also pursuing discounted settlement of the discontinued obligations. …

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Year Ended December 31, 2025 2024 Sponsored content services $ 36,297 $ 321,352 $ 36,297 $ 321,352

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"NOTE 13: INCOME TAXES The provision for income taxes consists of the following: Years Ended December 31, 2025 2024 Current: Federal $ - $ - State - - Total current - - Deferred: Federal - - State - - Total deferred - - Total provision for income taxes $ - $ - The following is a reconciliation of the provision for income taxes at the U.S. federal income tax rate to the income taxes reflected in the statements of operations: Years Ended December 31, 2025 % 2024 % Tax benefit at federal statutory rate ($1,336,565) 21.0% ($900,766) 21.0% State taxes, net of federal benefit - 0.0% - 0.0% Permanent differences - 0.0% - 0.0% Change in valuation allowance $ 1,336,565 -21.0% $ 900,766 -21.0% Total provision for income taxes - 0.0% - 0.0% The tax effects of temporary differences that give rise to significant components of the deferred tax assets and liabilities are as follows: December 31, 2025 2024 Deferred tax assets: Net operating loss carryforwards $ 11,891,349 $ 10,554,784 Impairment - - Other temporary differences ($10,893) ($10,893) Total deferred tax assets $ 11,880,456 $ 10,543,891 Less: valuation allowance ($11,880,456) ($10,543,891) Net deferred tax assets $ - $ - As of December 31, 2025, the Company had federal net operating loss (""NOL"") carryforwards of approximately $56.6 million available to offset future federal taxable income. The NOL carryforwards generated after 2017 do not expire and are subject to an 80% of taxable income limitation. The Company has established …

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NOTE 10: LEASES On April 1, 2023, Emerging Growth LLC entered into a modification of the existing lease agreement for its premises in Whitefish, Montana commencing April 11, 2023, for a period of five years at a rate of $3,750 per month, which lease contains an option for the Company to renew the lease for a period of one additional year at a monthly rent subject to a 3% increase. In connection with this lease, the Company recorded a ROU asset and liability of $187,863. During 2025, the lease was further modified to remove the 3% rent increase provision. As a result of this modification, the Company recorded a new ROU asset of $108,812 and a lease liability of $108,701. In connection with the Ranco acquisition, the Company agreed to assume the Sellers lease for property related to the Purchased Assets in Los Angeles, California, consisting of approximately 46,000 square feet of space. The Ranco operating lease agreement commenced on July 1, 2022 and expires on July 31, 2027. The lease requires monthly base rent payments of $49,782 and required a security deposit of $297,269. Upon the Ranco acquisition, the Company recognized a right of use asset of $2,270,059 and right of use liability of $1,760,485. Furthermore, the Company acquired the existing security deposit of $297,269. In 2023, the Company recognized a right of use asset of $1,993,847 and right of use liability of $2,031,541. Initially, the Company was only paying the $49,782 monthly base rent until the landlord vacate …

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NOTE 7: NOTES PAYABLE The following is a summary of the Companys notes payable from continuing operations as of December 31, 2025 and 2024. Notes payable related to the discontinued operations of Ranco LLC ($4,044,083 at December 31, 2025) are presented within current liabilities of discontinued operations on the consolidated balance sheet. See Note 12 Discontinued Operations. The December 31, 2024 balances presented below include Rancos notes payable as the prior-period balance sheet is not retrospectively reclassified for discontinued operations under ASC 205-20. On September 10, 2019, the Company entered into a promissory note payable whereby the Company borrowed $500,000 bearing interest at 8% per annum. Interest on the note is payable quarterly. In 2022, the maturity date was extended to 2024. In April 2025, the Company and the holder reached an agreement to extend the maturity date to December 31, 2027. In connection with the extension, the Company issued 60,000 shares of its common stock to the noteholder in consideration of the extension and in lieu of $60,000 of interest accrued on the note through March 31, 2025. The issuance of shares was recorded as a loss on conversion of accrued interest of $60,000 in the consolidated statement of operations. The outstanding balance of the note was $500,000 at both December 31, 2025 and December 31, 2024. On October 28, 2019, the Companys subsidiary CNP Operating, LLC entered into a promissory note payable with Complete Business …

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Recent Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting Comprehensive Income Expense Disaggregation Disclosures (Subtopic 220-40), which requires public business entities to provide disaggregated disclosures of certain expense categories on the face of the income statement or in the notes. The required expense categories include purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depreciation, depletion and amortization recognized as part of oil- and gas-producing activities. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its disclosures. In March 2024, the FASB issued ASU 2024-01, Compensation Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards, which provides illustrative guidance to help entities determine whether profits interest and similar awards should be accounted for as share-based payment arrangements under Topic 718. The standard is effective for fiscal years beginning after December 15, 2024 and interim periods within those fiscal years. The adoption of this standard did not have a material impact on the Companys consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, account …

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NOTE 11: RELATED PARTY TRANSACTIONS As of December 31, 2025 and 2024, there was $666,140 and $501,140, respectively, in amounts due to related parties. The increase of $165,000 represents advances received from a related party during fiscal 2025. The advances are unsecured, non-interest bearing and due on demand. During the year ended December 31, 2025, Ranco LLC purchased products aggregating $17,315,653 from AGP Holdings LLC, an entity wholly owned by Allen Park, the Companys former Chief Operating Officer and Controller, on arms length terms. These transactions are included in discontinued operations. On October 1, 2025, the arrangement was terminated by the Company. …

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NOTE 15: SEGMENT REPORTING Following the classification of Ranco LLC as a discontinued operation in the fourth quarter of 2025, the Company has one reportable segment for the year ended December 31, 2025 consisting of the CFN/Wine segment, which includes the operations of J Street, Prestige, Interstice Cellars, the CFN Media business, and CNP Operating. Prior to the discontinued operations classification, the Company had three operating segments: Ranco-Legacy, Ranco-AGP, and CFN (which included the CFN Media business, J Street, and CNP Operating). The historical segment results for the Ranco-Legacy and Ranco-AGP segments are now presented within discontinued operations. As the Company operates in a single reportable segment, the segment financial information is the same as the consolidated financial statements for continuing operations. The following table summarizes key financial data for the Company's single reportable segment: Year Ended December 31, 2025 2024 Net revenues $ 36,297 $ 321,352 Cost of revenue 352 25,445 Gross profit 35,945 295,907 Selling, general and administrative 1,748,162 2,274,779 Loss from operations (1,712,217) (1,978,872) Interest expense (219,380) (218,611) Gain on extinguishment of debt - 89,051 Other income 208,048 250,000 Interest income - 202 Loss on conversion of accrued interest (60,000) - Total other expense, net (71,332) 120,642 Provision for income taxes - - Net loss from continuing operations (1,783,549) (1,858,230) Total assets $ 1,230,33 …

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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reporting amounts of revenues and expenses during the reported period. Actual results will differ from those estimates. Included in these estimates are assumptions about collection of accounts receivable, useful life of fixed assets and intangible assets, borrowing rate considered for operating lease right-of-use asset and related operating lease liability, and assumptions used in Black-Scholes valuation methods. Cash and Cash Equivalents The Company considers all highly liquid, temporary cash investments with an original maturity of three months or less when purchased to be cash equivalents. Accounts Receivable The Companys accounts receivable for the CFN Business are due from customers relating to contracts to provide investor relation services. For the wine and beverage business, accounts receivable are due from customers for products sold and services provided. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make payments. The allowance for doubtful accounts as of December 31, 2025 and 2024 amounted to $106,000 and $106,000, respectively, relating t …

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NOTE 8: STOCKHOLDERS DEFICIT Common Stock On July 11, 2025, the Company effected a 1-for-10 reverse stock split of its common stock. No fractional shares were issued, and any fractional shares were rounded up to the nearest whole share. The reverse stock split did not affect the number of authorized shares or the par value of the common stock. All share and per-share amounts in these financial statements have been retroactively adjusted to reflect the reverse stock split for all periods presented. On April 10, 2025, the Company issued 60,000 shares of its common stock to the holder of the $500,000 promissory note in consideration of a maturity date extension and in lieu of $60,000 of accrued interest. On July 1, 2025, the Company issued 150,000 shares of common stock at a price of $2.90 per share, or total fair value of $435,000, pursuant to the J Street acquisition (See Note 3). On November 3, 2025, the Company issued 150,000 shares of common stock at a price of $2.15 per share, or total fair value of $322,500, pursuant to the Prestige acquisition (See Note 3). Preferred Stock The Company is authorized to issue 2,000,000 shares of preferred stock with a par value of $0.001 per share, of which 500 have been authorized as Series A Preferred Stock and 3,000 have been authorized as Series B Preferred Stock. For the years ended December 31, 2025 and 2024, the Company incurred $315,000 and $240,000, respectively, of interest from the outstanding preferred stock. On August 14, 2025 …

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NOTE 16: SUBSEQUENT EVENTS The Company has evaluated subsequent events through April 15, 2026, the date the financial statements were available to be issued. On April 13, 2026, the Board terminated Rami Abi, the Companys Chief Strategy Officer, for cause as defined in the Employment Agreement between the Company and Rami Abi, dated July 1, 2023. …

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