Financial Analysis

Note 7 Commitments and Contingencies Operating Leases The Company accounts for leases in accordance with ASC 842: Leases, which requires lessees to apply the right-of-use (ROU) model by recognizing a right-of-use asset and a lease liability for all leases with terms exceeding 12 months. Lease classification determines the pattern of expense recognition in the consolidated statement of operations: Operating leases: Recognized on a straight-line basis as lease expense over the lease term. Finance leases: Recognized with amortization of the ROU asset and interest expense on the lease liability. Lessors classify leases as sales-type, direct financing, or operating leases based on whether they transfer risks, rewards, and control of the asset (ASC 842-10-25-2): If all risks, rewards, and control transfer, the lease is treated as a sale (sales-type lease). If risks and rewards transfer but control does not, the lease is classified as financing. If neither risks, rewards, nor control transfer, it is classified as an operating lease. Lease Recognition and Measurement The Company evaluates whether an arrangement contains a lease at inception and recognizes the lease in the financial statements upon lease commencement (the date the underlying asset is available for use). ROU assets represent the Companys right to use an asset over the lease term, while lease liabilities reflect the present value of future lease payments. At lease commencement: ROU assets and lease liabilities are initi …

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Note 5 Debt The following represents a summary of the Companys debt (notes payable related parties, third party debt for notes payable (including those owed on vehicles), and line of credit, including key terms, and outstanding balances at December 31, 2024 and 2023, respectively. Notes Payable Related Parties The following is a summary of the Companys notes payable related parties at December 31, 2025 and 2024: Summary of Notes Payable - Related Parties Balance - December 31, 2023 3,869,650 Advances 7,593,000 Repayments (689,650 ) Balance - December 31, 2024 10,773,000 Advances 2,001,594 Debt Discount (175,000 ) Amortization of debt discount 140,252 Repayments (1,110,000 ) Balance - December 31, 2025 $ 11,629,846 During the year ended December 31, 2025, $ 2,080,000 of accrued interest on related party promissory notes owed to the Chief Executive Officer and Executive Chairman was converted from debt to equity pursuant to a Stock Purchase Agreement. The following is a detail of the Companys advances payable related parties terms and history of each advance at December 31, 2025 and December 31, 2024: Schedule of Advances Payable Related Parties Maturity Interest December 31, December 31, Debt Holder Issue Date Date Rate Collateral 2025 2024 Chief Executive Officer/>50% control person Various Due on demand 10 % - 18 % Unsecured $ 11,629,846 $ 10,773,000 Notes Payable The following represents the terms of the Companys notes payable as of December 31, 2025 and December 31, 20 …

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The following represents the Companys disaggregation of revenues for the years ended December 31, 2025 and 2024: Schedule of Disaggregation of Revenue Year Ended December 31, 2025 2024 Revenue % of Revenues Revenue % of Revenues Fuel sales $ 79,001,833 96.54 % $ 26,694,186 96.13 % Other 2,833,446 3.46 % 1,076,093 3.87 % Total Sales $ 81,835,279 100.00 % $ 27,770,279 100.00 % …

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Note 6 Fair Value of Financial Instruments The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. This determination requires significant judgments to be made. The Company did no t have any assets or liabilities measured at fair value on a recurring basis at December 31, 2025 and 2024, respectively. …

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Note 10 Intangible Assets Acquisition of Stat-EI, Inc. (Business Combination) In January 2024, the Company acquired 100 % of the equity interests in STAT in exchange for $ 5,500,000 . STAT has patented technology that will be used in the Companys expected future operations. Prior to the acquisition, the operations of STAT were insignificant. In 2023, the Company paid a deposit of $ 250,000 towards this acquisition. In 2024, the Company paid an additional $ 1,550,000 for total cash consideration paid of $ 1,800,000 at closing. The balance of $ 3,700,000 was financed through a note payable. This note bears interest at 7 %, is unsecured was due in May 2024 (initial maturity date). The Company also has the option to extend the due date to July 2024 for no additional consideration or change in terms. Subsequent to the initial maturity date, the lender has agreed to extend the due date of the note multiple times, for payments of $ 130,000 , respectively. Each of these payments was recorded as interest expense. In October 2024, without any additional extension payments required, the Company repaid the note plus accrued interest totaling $ 3,826,112 . An additional $ 59,800 of accrued interest was forgiven by the lender and recorded as other income in the accompanying unaudited consolidated statements of operations during the year ended December 31, 2024. The Company has accounted for this transaction as a business combination. The table below summarizes the estimated fair value of t …

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Note 13 Income Taxes The components of the deferred tax assets and liabilities at December 31, 2025 and 2024 were approximately as follows: Schedule of Deferred Tax Assets and Liabilities December 31, 2025 December 31, 2024 Deferred Tax Assets Stock based compensation $ 11,142,537 $ 346,000 Intangibles 1,660,542 907,000 Net operating loss carryforward - 13,460,000 Lease liabilities 154,219 43,000 Capitalized research expenditures 367,225 367,000 Impairment loss (2,163,832 ) - Bad debt reserve 41,936 31,000 Other 9,042 9,000 Total deferred tax assets 11,211,669 15,163,000 Deferred Tax Liabilities Depreciation (218,692 ) (442,000 ) Prepaid assets (64,098 ) (92,000 ) Right-of-Use asset (16,377 ) (128,000 ) Total deferred tax liabilities (299,167 ) (662,000 ) Deferred Tax Assets 10,912,502 14,501,000 Less: valuation allowance (10,912,502 ) (14,501,000 ) Deferred tax asset - net $ - $ - The components of the income tax benefit and related valuation allowance for the years ended December 31, 2025 and 2024 were as follows: Schedule of Income Tax Benefit and Related Valuation Allowance December 31, 2025 December 31, 2024 Current $ - $ - Deferred (3,588,498 ) (3,193,000 ) Total income tax provision (benefit) (3,588,498 ) (3,193,000 ) Less: valuation allowance 3,588,498 3,193,000 Total Tax Provision $ - $ - A reconciliation of the provision for income taxes for the years ended December 31, 2025 and 2024 as compared to statutory rates is as follows: Schedule of Reconciliation of Provisi …

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Recent Accounting Standards In November 2023, the FASB issued ASU 2023-07, which enhances disclosure requirements for reportable segments by: Requiring enhanced disclosures of significant segment expenses. Aligning segment reporting requirements with information regularly reviewed by management. The Company adopted ASU 2023-07 on January 1, 2024. The adoption did not have a material impact on the Companys consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted In December 2023, the FASB issued ASU 2023-09, which enhances income tax disclosure requirements by: Standardizing and disaggregating rate reconciliation categories. Requiring disclosure of income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024, and may be applied on a prospective or retrospective basis. Early adoption is permitted. The Company is currently assessing the impact of ASU 2023-09 on its income tax disclosures and reporting requirements. In November 2024, the FASB issued ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). This standard requires additional disclosures of certain expenses, including purchases of inventory, employee compensation, depreciation, intangible asset amortization, and other specific expense categories. This standard also requires disclosure of the total amount of selling expens …

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Note 12 Segment Reporting The Company operates in two reportable segments: Energy Infrastructure and Mobile Fuel Delivery. The Companys segments were determined based on the economic characteristics of its products and services, its internal organizational structure, the manner in which operations are managed and the criteria used by the Companys CODM to evaluate performance, which include revenue, gross margin, and operating profit. Mobile Fueling The Companys mobile fueling segment provides on-demand fuel delivery services through a growing fleet of fuel trucks operating across a national footprint. These operations serve commercial fleets and other customers, offering a more efficient, time-saving alternative to traditional fueling stations. The Company is integrating sustainable energy solutions into its fueling operations, with the goal of assisting customers in transitioning to electric vehicles and incorporating advanced technologies such as wireless EV charging to enhance service efficiency and support the adoption of clean energy. Energy Infrastructure The Companys energy infrastructure segment focuses on the development, deployment, and operation of AI/ML-powered smart microgrids, solar energy systems, battery storage, and wireless EV charging solutions. These systems are designed to improve grid resiliency, optimize energy use, reduce costs, and increase access to reliable, sustainable power for commercial, industrial, municipal, and tribal customers. Revenue is ge …

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Note 2 - Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of the Company and its wholly owned subsidiaries. The Company consolidates entities where it has a controlling financial interest, as defined by ASC 810, Consolidation. In accordance with ASC 810-10, consolidation applies to: Entities with more than 50% voting interest, unless control is not with the Company; and Variable Interest Entities (VIEs), where the Company is the primary beneficiary, possessing both (i) power over significant activities and (ii) the obligation to absorb losses or receive benefits. All intercompany transactions and balances are eliminated in consolidation per ASC 810-10-45. The Company continuously evaluates its investments and relationships to assess consolidation requirements. Business Combinations, Asset Acquisitions, and Reverse Acquisitions The Company accounts for acquisitions in accordance with ASC 805, Business Combinations, and applicable SEC reporting requirements under Regulation S-X, Rule 3-05 and Regulation S-K, Items 101 and 303. Transactions qualifying as business combinations are accounted for under the acquisition method, while those classified as asset acquisitions follow the guidance in ASC 805-50. Additionally, the Company evaluates whether a transaction qualifies as a reverse acquisition under ASC 805-40 and applies the appropriate accounting …

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Note 8 Stockholders Equity (Deficit) Change in Authorized Shares On June 14, 2024, the Companys Board of Directors approved an increase in authorized common stock from 50,000,000 to 500,000,000 shares. This increase was made to: Support current and future equity financings, Facilitate conversions of preferred stock into common stock, Enable future stock-based compensation plans, and Provide flexibility for potential mergers, acquisitions, and other corporate transactions. As of December 31, 2024, the Company had four (4) classes of stock, detailed as follows: Preferred Stock (Undesignated) The Companys undesignated preferred stock provides flexibility for future corporate financing and strategic transactions. Authorized Shares: 5,000,000 Issued & Outstanding: None Par Value: $ 0.0001 per share Voting Rights: None Ranking: Senior to all other classes of stock, including Series A and Series B Preferred Stock, unless otherwise designated Dividends: None , unless declared by the Board of Directors Liquidation Preference: None Redemption Rights: None Conversion Rights: None The Board of Directors has the authority to issue preferred stock in one or more series and determine the rights, privileges, and restrictions of each series without further stockholder approval. Convertible Preferred Stock Series A On August 16, 2024, the Company designated and issued Series A Convertible Preferred Stock as part of a debt-to-equity conversion. Authorized Shares: 513,000 Issued & Outsta …

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Note 14 - Subsequent Events Subsequent to December 31, 2025, the Company had the following transactions: In January 2026, the Company terminated its At-the-Market Sales Agreement with ThinkEquity, H.C. Wainwright, and Roth Capital Partners, effective January 17, 2026, and indicated no immediate plans for a replacement ATM program. The Company also raised modest equity capital through a series of private stock purchase agreements, selling an aggregate of approximately 1,050,000 shares for total proceeds of approximately $ 1,125,000 at prices ranging from $ 0.75 to $ 1.08 per share across transactions dated January 20, January 2829, and February 1218, 2026. In March and April 2026, the Company undertook a series of debt restructuring and new financing activities. On March 9, 2026, it entered into a Future Receivables Sale and Purchase Agreement, selling 6.87 % of future receipts for $ 2,100,000 in gross consideration, with CEO Michael D. Farkas personally guaranteeing the obligation. As security for payment and performance of the Companys obligations pursuant to the Future Receivables Sale and Purchase Agreement, the Company agreed to grant to the purchaser a first priority lien on all of the Companys interest in all accounts, including, but not limited to deposit accounts, accounts receivables, other receivables and inventory, whether existing as of the effective date of the Future Receivables Sale and Purchase Agreement or thereafter acquired. On March 11, 2026, the Company i …

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