Note 5 — Note Receivable

On September 3, 2021, Balance Labs Inc. made a loan to Four Acquisition, Ltd., an unrelated party, in the principal amount of $22,000, which loan has an interest rate of 10% per annum and a maturity date of September 30, 2022. As of March 31, 2026, this receivable is fully reserved against. For the three months ended March 31, 2026, the Company recorded $0 of interest income in relation to this note.

On January 29, 2021, Balance Labs Inc. made a loan to Four Acquisitions Ltd., an unrelated party, in the principal amount of $119,000, which has an interest rate of 10% per annum and a maturity date of January 28, 2022. Additionally, in connection with the loan, the Company received a 20% interest in the recently acquired business and related assets of Four Acquisitions Ltd. Initially, this investment had a purchase price of $43,000, which was recorded as a discount from the note which would be amortized over the life of the note. The Company recorded an allowance of 100% against this receivable of $141,000 as of March 31, 2026.