NOTE 8 – LONG-TERM EQUITY INVESTMENT

On August 12, 2025, the Company purchased a non-controlling interest in Rift Dynamics AS (“Rift”), a Norway-based defense technology company specializing in affordable, mass-producible combat drone systems, for the aggregate price of $587,250 representing approximately 10% ownership in Rift at the time of the investment.

This long-term equity investment consists of an equity investment in a private company through common stock that is accounted for at cost, with adjustments for observable changes in prices or impairments, and is classified as long-term equity investment on our Condensed Consolidated Balance Sheets with adjustments recognized in Other (expense) income, net on our unaudited Condensed Consolidated Statements of Operations. The Company has determined that the equity investment does not have a readily determinable fair value and elected the measurement alternative. Therefore, the equity investment’s carrying amount will be adjusted to fair value at the time of the next observable price change for the identical or similar investment of the same issuer or when an impairment is recognized. Each reporting period, the Company performs a qualitative assessment to evaluate whether the investment is impaired. The assessment includes a review of recent operating results and trends, recent sales/acquisitions of the investee securities, and other publicly available data. If the investment is impaired, the Company writes it down to its estimated fair value. As of September 30, 2025 the long-term equity investment had a carrying value of $587,250.