Balance Labs, Inc.

On December 23, 2015, the Company issued a secured convertible promissory note in the amount of $25,000. The note carries a rate of 8% and was due on March 23, 2016. It is secured by all the assets of the Company. The note further contains a provision that the lender may convert any part of the note, including accrued interest that is unpaid, into the Company’s common stock at an exercise price of $0.50 per share. The note also contains a five-year warrant to purchase 100,000 shares of common stock at an exercise price of $1.00 per share until December 23, 2020. As of March 23, 2016, the note is in default and the interest rate has been increased to 18%. The accrued interest balance was $53,748 as of June 30, 2026.

In addition, the Company’s two promissory notes payable to The Farkas Group, Inc., a related party, each in the principal amount of $250,000, reached their stated maturities on May 3, 2026 and May 11, 2026, respectively, and were not repaid at maturity. As of June 30, 2026, the aggregate principal balance of $500,000, together with accrued interest of $25,753, remains outstanding. Under the terms of the notes, upon the Company’s failure to tender payment on the maturity date, the lender has the right, upon notice to the Company, to declare all outstanding principal and accrued interest immediately due and payable. As of the date of this report, the lender has not delivered a notice of acceleration or a demand for payment.