Financial Analysis

11. COMMITMENTS AND CONTINGENCIES Contingent Commitments The Company entered into a rental agreement with a related party on August 23, 2021, for its corporate office address on 3250 Oakland Hills Court, Fairfield, California, 94534. The lease expired on August 31,2022; it was originally for one year at a rate of $ 2,000 /month. Since its expiration there has been no formal agreement written to extend the rent arrangement, but it is informally extended on a month-to-month basis. During 2025 and 2024, a total of $ 24,000 was incurred for lease expense because of this. This lease arrangement is considered temporary due to the projected expansion of its business and may not be suitable within a 1-year period. The Company therefore is evaluating its lease needs on a year-to-year basis, and the lease is therefore exempt from ASC 842. Pledged Receivable In 2019, the Company agreed to pledge the collections of a specific uncollected customer invoice in the amount of $ 752,500 as collateral for a loan made by LarCo Holdings, LLC (LarCo), an unrelated party, to a vendor of the Company (the Vendor) and a former executive. The Company subsequently executed acknowledgments in connection with amendments to the loan dated July 2, 2019, July 8, 2020, April 1, 2021, and April 17, 2023, each confirming the same conditional undertaking: should the Company collect on the pledged invoice, in whole or in part, it would remit the proceeds of that collection to LarCo to be applied against the vendo …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

16. STOCK-BASED COMPENSATION The Company has adopted the 2017 Equity Incentive Plan (the Plan) under which non-transferable options to purchase common shares of the Company may be granted to directors, officers, employees, or consultants of the Company. The terms of the Plan provide that our board of directors may grant options to acquire common shares of the Company at not less than 100% of the greater of: (i) the fair market value of the shares underlying the options on the grant date and (ii) the fair market value of the shares underlying the options on the date preceding the grant date at terms of up to ten years. No amounts are paid or payable by the recipient on receipt of the options. On June 30, 2023, the maximum number of options available for grant was increased to 28,300,000 shares. On December 31, 2025 and 2024, there are 24,213,334 stock options issued and outstanding. The Company has also granted stock options to non-employees. These stock options were granted to consultants who have provided their services for cash compensation below cost, with the stock options providing additional compensation in lieu of cash. On February 10, 2021, the Company granted a total of 2,066,666 stock options to consultants. The stock options are exercisable at the exercise price of $ 1.17 per share for a period of ten years from the date of grant. The stock options have a fair value of $ 1.09 and are exercisable as follows: (i) 1/3 on the first anniversary date; (ii) 1/3 on the sec …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

8. LOAN PAYABLES Notes Payable On June 14, 2022, the Company issued a promissory note payable for $ 117,000 . The promissory note is unsecured, payable on demand, and was set to mature on August 13, 2022 . The promissory note bore interest at a rate per annum equal to the Bank of Canadas Prime rate and has a one-time interest charge of $ 14,011 . On August 9, 2022, a promissory note extension was signed, extending the maturity date of the note payable to February 14, 2023. The note requires monthly payment of $ 13,077 over 10 months. On January 31, 2023, the Company signed an amendment to extend the maturity date of the loan to February 14, 2024 at an interest rate equal to the Bank of Canadas Prime rate plus 3%. The Principal balance owed on December 31, 2025 and 2024 is $ 117,000 . Accrued interest on this loan is $ 31,957 and $ 22,655 on December 31, 2025 and 2024 respectively. The note went into default during 2024, and management is currently negotiating an extension with the loan holder. On November 8, 2022, the Company entered into a promissory note agreement to raise $ 116,760 . The note had a discount of $ 12,510 and fees of $ 4,250 , resulting in net proceeds of $ 100,000 . The note was unsecured, had a one-time interest charge of $ 14,011 , and matured on November 8, 2023. The notes total of $ 130,771 (including principal, interest, and fees) was repaid in ten payments, each in the amount of $ 13,077 with the first payment made on December 30, 2022, and nine subseq …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

17. INCOME TAXES For the fiscal years 2025 and 2024, there was no provision for income taxes and deferred tax assets have been entirely offset by valuation allowances. As of December 31, 2025 and 2024, the Company had net operating loss carry forwards of approximately $ 5,758,109 and $ 5,534,653 , respectively. The carry forwards expire through the year 2045 . The Companys net operating loss carry forwards may be subject to annual limitations, which could reduce or defer the utilization of the losses as a result of an ownership change as defined in Section 382 of the Internal Revenue Code. 17. INCOME TAXES (CONTD) The Tax Cuts and Jobs Act was enacted on December 22, 2017, which reduced the U.S. corporate statutory tax rate from 35% to 21% beginning on January 1, 2018. We used 21% as an effective federal rate, and 1.5% as an effective state rate. Tax computations are as follows: SCHEDULE OF TAX COMPUTATIONS For the year Ended For the Year Ended December 31, 2025 December 31, 2024 Net income (loss) before taxes (1,076,807 ) (2,880,147 ) Federal income tax rate 21 % 21 % State tax rate 1.5 % 1.5 % Tax expense (benefit) at the statutory rate federal (226,129 ) (604,830 ) Tax expense (benefit) at the statutory rate state (16,152 ) (43,202 ) Non-deductible items Tax effect of stock-based compensation (non-qualifying options) 18,826 55,349 Change in valuation allowance 223,455 592,683 Total - - Deferred Tax Asset Net operating loss carry forwards $ 5,758,108 $ 5,534,653 Total gross …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

12. OPERATING LEASE The Company entered into an operating lease for its office premises beginning July 15, 2025, and expiring July 31, 2028. Monthly rent payments range from $ 7,500 to $ 12,000 over the lease term, totaling $ 404,500 . At commencement, the Company recognized a right-of-use asset and lease liability of approximately $ 326,462 , based on the present value of future lease payments using an incremental borrowing rate of 13 %. Lease expense is recognized on a straight-line basis over the lease term. For the year ended December 31, 2025, total lease expense was approximately $ 82,723 . The lease agreement also provides the Company with an option to purchase the leased property for $ 1,500,000 at any time within 18 months from the effective date of the lease, subject to providing 90 days notice and maintaining timely rent payments as defined in the lease. The future minimum operating lease payments as of December 31, 2025, are as follows: SCHEDULE OF FUTURE MINIMUM OPERATING LEASE PAYMENTS Year Ending December 31 Amount ($) 2026 135,000 2027 144,000 2028 84,000 Total Lease Payments 363,000 Less: Imputed Interest (57,122 ) Present Value of Lease Liability 305,878 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Environmental Credits (Proposed Topic 818) - New guidance on how to account for environmental credits like carbon offsets and renewable energy certificates. Focus on consistent recognition, measurement, and disclosure. Still in proposal stage (comment period through April 2025). Disaggregation of Income Statement Expenses (ASU 2024-03) - Companies must break out major expense categories (e.g., labor, depreciation) in the notes to financial statements. Aimed at improving transparency. Effective for annual periods after Dec 15, 2026 (early adoption allowed). Income Tax Disclosure Improvements (ASU 2023-09) - Requires clearer details on income taxes paid (by federal, state, and foreign) and better breakdowns of rate reconciliations. Helps investors better understand a companys tax situation. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

13. RELATED PARTY TRANSACTIONS On January 22, 2018, the Company appointed James Geiskopf as Lead Director. On June 28, 2024, James resigned from the Companys Board of Directors. As of December 31, 2025, the Company has accounts payable and accrued expenses owed to this related party of $ 99,244 , and $ 75,245 at December 31, 2024. On April 1, 2021, the Company appointed Cameron Chell as Executive Chairman. On December 19, 2024, Cameron resigned from the Companys Board of Directors. As of December 31, 2025 and 2024, the Company had accounts payable and accrued expenses owed to this related party of $ 130,032 . Our former Chairman, Cameron Chell (Mr. Chell) is the founder of Business Instincts Group, Inc. (BIG), a firm in the business of guiding early-stage ventures. On April 1, 2021, Mr. Chell was appointed Executive Chairman of the Company. On December 19, 2024, Mr. Chell resigned from the Companys Board of Directors. Following his resignation from the Board, Mr. Chell was appointed chairman of the Companys advisory board, a position he continues to hold as of the date of this Annual Report. During 2024, in the normal course of preparing the Companys financial statements and evaluating historical transactions, the Company determined that Mr. Chell was a related party of the Company at the time certain obligations to BIG and to Mr. Chell individually were incurred. As a result, BIG and Mr. Chell are treated as related parties for purposes of this disclosure. As of December 31, …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared in conformity with accounting principals generally accepted in the United States of America of (US.GAAP) as found in the Accounting Standards Codification (ASC), and the Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB) and are expressed in US Dollars. The consolidated financial statements should be read in conjunction with the notes contained herein as part of the Companys Annual Report in its Form 10-K filing under the Securities Exchange Commission. Reclassification Certain reclassifications have been made to prior periods to conform with the current reporting period. These reclassifications did not affect net income, total assets, liabilities or equity reported. Basis of Consolidation The consolidated statements include the accounts of the Company and its subsidiaries. CurrencyWorks USA Inc.(CW) (formerly ICOx USA, Inc.), Energy Works Inc.(EG) and Enderby Works LLC (EW) are wholly owned subsidiaries. EW became a wholly owned subsidiary in 2023, see Note 7 Notes Receivable. MotoClub (MB) is a majority-owned subsidiary, 80 % held by (MWRKS). All intercompany transactions and balances have been eliminated. Discontinued Operations The Company accounts for discontinued operations in accordance with ASC 205-20, Presentation of Financial Statements Discontinued Operations. The disposal of a component or group …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

19. SUBSEQUENT EVENTS On February 27, 2026 the Company converted $ 16,454 of debt into 739,160 shares of our common stock at a value of $ .021 per share. On March 4, 2026 the Company converted $ 57,718 of debt into 2,772,229 shares of our common stock at a value of $ .022 per share. On March 5, 2026 the Company converted $ 14,000 of debt into 615,385 shares of our common stock at a value of $ .023 per share. On March 9, 2026 the Company converted $ 16,564 of debt into 728,088 shares of our common stock at a value of $ .023 per share. On March 16, 2026 the Company converted $ 15,000 of debt into 923,077 shares of our common stock at a value of $ .022 per share. On March 18, 2026 the Company converted $ 14,871 of debt into 994,733 shares of our common stock at a value of $ .015 per share. On March 20, 2026 the Company converted $ 15,000 of debt into 1,131,222 shares of our common stock at a value of $ .013 per share. On March 23, 2026 the Company converted $ 21,687 of debt into 1,771,824 shares of our common stock at a value of $ .012 per share. On March 24, 2026 the Company converted $ 20,000 of debt into 1,508,296 shares of our common stock at a value of $ .014 per share. On June 30 th 2026, Braden Glasbergen resigned as the Companys Chief Financial Officer, Treasurer and Secretary, effective immediately. Effective July 1, 2026, the Board of Directors appointed Scott Gallagher to serve as Interim Chief Financial Officer and W. Scott McBride to serve as Interim Treasurer and S …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

10. COMMITMENTS AND CONTINGENCIES Contingent Commitments The Company entered into a rental agreement with a related party on August 23, 2021, for its corporate office address on 3250 Oakland Hills Court, Fairfield, California, 94534. The lease expired on August 31,2022; it was originally for one year at a rate of $ 2,000 /month. Since its expiration there has been no formal agreement written to extend the rent arrangement, but it is informally extended on a month-to-month basis. During 2025 and 2024, a total of $ 24,000 was incurred for lease expense because of this. This lease arrangement is considered temporary due to the projected expansion of its business and may not be suitable within a 1-year period. The Company therefore is evaluating its lease needs on a year-to-year basis, and the lease is therefore exempt from ASC 842. Pledged Receivable In 2019, the Company agreed to pledge the collections of a specific uncollected customer invoice in the amount of $ 752,500 as collateral for a loan made by LarCo Holdings, LLC (LarCo), an unrelated party, to a vendor of the Company (the Vendor) and a former executive. The Company subsequently executed acknowledgments in connection with amendments to the loan dated July 2, 2019, July 8, 2020, April 1, 2021, and April 17, 2023, each confirming the same conditional undertaking: should the Company collect on the pledged invoice, in whole or in part, it would remit the proceeds of that collection to LarCo to be applied against the vendo …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

15. STOCK-BASED COMPENSATION The Company has adopted the 2017 Equity Incentive Plan (the Plan) under which non-transferable options to purchase common shares of the Company may be granted to directors, officers, employees, or consultants of the Company. The terms of the Plan provide that our board of directors may grant options to acquire common shares of the Company at not less than 100% of the greater of: (i) the fair market value of the shares underlying the options on the grant date and (ii) the fair market value of the shares underlying the options on the date preceding the grant date at terms of up to ten years . No amounts are paid or payable by the recipient on receipt of the options. On June 30, 2023, the maximum number of options available for grant was increased to 28,300,000 shares. On December 31, 2025 and 2024, there are 24,213,334 stock options issued and outstanding. The Company has also granted stock options to non-employees. These stock options were granted to consultants who have provided their services for cash compensation below cost, with the stock options providing additional compensation in lieu of cash. On February 10, 2021, the Company granted a total of 2,066,666 stock options to consultants. The stock options are exercisable at the exercise price of $ 1.17 per share for a period of ten years from the date of grant. The stock options have a fair value of $ 1.09 and are exercisable as follows: (i) 1/3 on the first anniversary date; (ii) 1/3 on the se …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

7. LOAN PAYABLES Notes Payable On June 14, 2022, the Company issued a promissory note payable for $ 117,000 (Note A). The promissory note is unsecured, payable on demand, and was set to mature on August 13, 2022 . The promissory note bore interest at a rate per annum equal to the Bank of Canadas Prime rate and has a one-time interest charge of $ 14,011 . On August 9, 2022, a promissory note extension was signed, extending the maturity date of the note payable to February 14, 2023 . The note requires monthly payment of $ 13,077 over 10 months. On January 31, 2023, the Company signed an amendment to extend the maturity date of the loan to February 14, 2024 at an interest rate equal to the Bank of Canadas Prime rate plus 3% . The Principal balance owed on March 31, 2026 and December 31, 2025 is $ 117,000 . Accrued interest on this loan is $ 33,335 and $ 31,957 on March 31, 2026 and December 31, 2025 respectively. The note went into default during 2024, and management is currently negotiating an extension with the loan holder. On July 2, 2024, the Company closed on a convertible promissory note and entered into a securities purchase agreement dated July 1 st , 2024 with one subscriber to raise a net amount of $ 90,000 , pursuant to the terms and subject to the conditions of the convertible promissory note issued to the subscriber. The promissory note is in the amount of $ 115,200 , is unsecured and matures on May 15, 2025 . We also agreed to an original issuance discount of $ 19, …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

16. INCOME TAXES For all results of operations to date, there has been no provision for income taxes and deferred tax assets have been entirely offset by valuation allowances. As of March 31, 2026 and December 31, 2025, the Company had net operating loss carry forwards of approximately $ 7,258,057 and $ 6,611,460 , respectively. The carry forwards expire through the year 2045 . The Companys net operating loss carry forwards may be subject to annual limitations, which could reduce or defer the utilization of the losses as a result of an ownership change as defined in Section 382 of the Internal Revenue Code. The Tax Cuts and Jobs Act was enacted on December 22, 2017, which reduced the U.S. corporate statutory tax rate from 35% to 21% beginning on January 1, 2018. We used 21% as an effective federal rate, and 1.5% as an effective state rate . Tax computations are as follows: SCHEDULE OF TAX COMPUTATIONS For the Three months Ended For the Three months Ended March 31, 2026 March 31, 2025 Net income (loss) before taxes $ (2,437,157 ) $ (23,068 ) Adjustments to arrive at taxable income/loss Permanent differences: 12,764 24,378 Temporary differences: 1,566,067 - Taxable income (loss) (858,326 ) 1,310 Current Year Taxable income (loss) (858,326 ) 1,310 NOL carried forward prior year (tax return) (6,611,460 ) (5,534,653 ) NOL carried forward at period end (7,469,786 ) (5,533,343 Deferred Tax Asset - Federal Rate ( 21% ) 180,248 275 Deferred Tax Asset - State Rate ( 1.5% ) 12,875 20 To …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

11. LEASE LIABILITY/RIGHT OF USE ASSET The Company entered into an operating lease for its office premises beginning July 15, 2025, and expiring July 31, 2028. Monthly rent payments range from $ 7,500 to $ 12,000 over the lease term, totaling $ 404,500 . At commencement, the Company recognized a right-of-use asset and lease liability of approximately $ 326,462 , based on the present value of future lease payments using an incremental borrowing rate of 13 %. Lease expense is recognized on a straight-line basis over the lease term. For the year ended March 31, 2026, total lease expense was approximately $ 82,723 . The lease agreement also provides the Company with an option to purchase the leased property for $ 1,500,000 at any time within 18 months from the effective date of the lease, subject to providing 90 days notice and maintaining timely rent payments as defined in the lease. The future minimum operating lease payments as of March 31, 2026, are as follows: SCHEDULE OF FUTURE MINIMUM OPERATING LEASE PAYMENTS Year Ending December 31 Amount ($) 2026 103,500 2027 144,000 2028 84,000 Total Lease Payments 331,500 Less: Imputed Interest (37,709 ) Present Value of Lease Liability 293,791 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Environmental Credits (Proposed Topic 818) - New guidance on how to account for environmental credits like carbon offsets and renewable energy certificates. Focus on consistent recognition, measurement, and disclosure. Still in proposal stage (comment period through April 2025). Disaggregation of Income Statement Expenses (ASU 2024-03) - Companies must break out major expense categories (e.g., labor, depreciation) in the notes to financial statements. Aimed at improving transparency. Effective for annual periods after Dec 15, 2026 (early adoption allowed). Income Tax Disclosure Improvements (ASU 2023-09) - Requires clearer details on income taxes paid (by federal, state, and foreign) and better breakdowns of rate reconciliations. Helps investors better understand a companys tax situation. …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

12. RELATED PARTY TRANSACTIONS On January 22, 2018, the Company appointed James Geiskopf as Lead Director. On June 28, 2024, James resigned from the Companys Board of Directors. As of December 31, 2025 and March 31, 2026, the Company has accounts payable and accrued expenses owed to this related party of $ 99,244 . On April 1, 2021, the Company appointed Cameron Chell as Executive Chairman. On December 19, 2024, Cameron resigned from the Companys Board of Directors. As of March 31, 2026 and December 31, 2025, the Company had accounts payable and accrued expenses owed to this related party of $ 130,032 . Our former Chairman, Cameron Chell (Mr. Chell) is the founder of Business Instincts Group, Inc. (BIG), a firm in the business of guiding early-stage ventures. On April 1, 2021, Mr. Chell was appointed Executive Chairman of the Company. On December 19, 2024, Mr. Chell resigned from the Companys Board of Directors. Following his resignation from the Board, Mr. Chell was appointed chairman of the Companys advisory board, a position he continues to hold as of the date of this Annual Report. During 2024, in the normal course of preparing the Companys financial statements and evaluating historical transactions, the Company determined that Mr. Chell was a related party of the Company at the time certain obligations to BIG and to Mr. Chell individually were incurred. As a result, BIG and Mr. Chell are treated as related parties for purposes of this disclosure. As of March 31, 2026 and …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP) as found in the Accounting Standards Codification (ASC), and the Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB) and are expressed in US Dollars. The unaudited condensed interim consolidated financial statements should be read in conjunction with the notes contained herein as part of the Companys Quarterly Report in its Form 10-Q filing under the Securities Exchange Commission, and with the audited financial statements and notes thereto included in the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Reclassification Certain reclassifications have been made to prior periods to conform with current reporting. These reclassifications did not affect net income, total assets, liabilities or equity reported. Basis of Consolidation The consolidated statements include the accounts of the Company and its subsidiaries. CurrencyWorks USA Inc. (CW) (formerly ICOx USA, Inc.), Energy Works Inc. (EWI) and Enderby Works LLC (EW) are wholly owned subsidiaries. EW became a wholly owned subsidiary in 2023, see Note 6 Notes Receivable. MotoClub (MB) is a majority-owned subsidiary, 80 % held by (WEC). All intercompany transactions and balances have been eliminated. …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

14. SHARE CAPITAL On January 6, 2024, the Company issued 920,000 shares of common stock of the Company at a deemed price of $ 0.02 per share in settlement of amounts owed for services totaling $ 18,400 . We issued these shares to Scott Gallagher, the president of our company. On March 1, 2024, the Company issued 2,500,000 shares of common stock of the Company at a price of $ 0.02 per share for aggregate gross proceeds of $ 50,000 . The purchaser is one individual investor. Upon conversion, there was no gain or loss recorded as the conversion was consummated under the terms of the original agreement. On March 1, 2024 the Company converted $ 25,000 of debt into 625,000 shares of our common stock at a value of $ .04 per share. Upon conversion, there was no gain or loss recorded as the conversion was consummated under the terms of the original agreement. On March 1, 2024 the Company issued 4,600,000 shares of our common stock in payment for a one-year production and media broadcast agreement valued at $ 184,000 . On June 7, 2024 the company converted $ 15,000 of debt into 1,499,400 shares of our common stock at a value of $ .01 per share. Upon conversion, there was no gain or loss recorded as the conversion was consummated under the terms of the original agreement. On June 20, 2024 the Company converted $ 15,000 of debt into 1,704,545 shares of our common stock at a value of $ .009 per share. Upon conversion, there was no gain or loss recorded as the conversion was consummated un …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

18. SUBSEQUENT EVENTS On June 30 th 2026, Braden Glasbergen resigned as the Companys Chief Financial Officer, Treasurer and Secretary, effective immediately. Effective July 1, 2026, the Board of Directors appointed Scott Gallagher to serve as Interim Chief Financial Officer and W. Scott McBride to serve as Interim Treasurer and Secretary. On April 21, 2026, the Company received a $ 50,000 payment from the client under its existing consulting agreement to renew the agreement for an additional one-year term. The agreement, originally effective March 1, 2025, permits the client to renew the engagement annually for a fee of $ 50,000 . Under the agreement, the Company provides ongoing technical, operational and strategic consulting services related to the development and management of waste-to-energy facilities and related technologies. The renewal payment was received after March 31, 2026 and, therefore, did not affect the Companys financial statements for the three months ended March 31, 2026. The Company will account for the payment in accordance with ASC 606 and recognize the related revenue over the renewal term as the applicable consulting services are provided. On May 14, 2026, May 26, 2026 and June 22, 2026, the Company entered into separate convertible promissory notes with an accredited investor and received proceeds of $ 50,000 under each note, for aggregate proceeds of $ 150,000 . The notes bear interest at 10 % per annum and mature on May 14, 2027 , May 26, 2027 and J …

SubsequentEventsTextBlock · excerpt; the full note is in the filing