VIVOS INC (RDGL) — 10-K

Filed 2026-03-31 · Period ending 2025-12-31 · 49,477 words · SEC EDGAR

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# VIVOS INC (RDGL) — 10-K

**Filed:** 2026-03-31
**Period ending:** 2025-12-31
**Accession:** 0001493152-26-013701
**Source:** [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1449349/000149315226013701/)
**Origin leaf:** 97e06868f5e341274a44c8dd2db0e3e7eff8cfcee59d17c0556789a89516de04
**Words:** 49,477



---

**
UNITED
STATES**
**SECURITIES
AND EXCHANGE COMMISSION**
**WASHINGTON,
D.C. 20549**
**FORM
10-K**
**ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934**
**For
the fiscal year ended December 31, 2025**
or
**TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934**
**For
the transition period from ________ to _________**
**Commission
file number: 0-53497**
**VIVOS
INC**
(Exact
name of registrant as specified in its charter)
| 
Delaware | 
| 
80-0138937 | |
| 
(State
or other jurisdiction of | 
| 
(I.R.S.
Employer | |
| 
incorporation
or organization) | 
| 
Identification
No.) | |
**1030
N Center Parkway**
**Kennewick,
Washington 99352**
(Address
of principal executive offices) (Zip Code)
**(509)
222-2222**
Registrants
telephone number, including area code
Securities
registered pursuant to Section 12(b) of the Act:
None
Securities
registered pursuant to Section 12(g) of the Act:
**Common
Stock, $0.001 Par Value**
Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No 
Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes No 
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes No 
Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes No 
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of large accelerated filer, accelerated filer,
smaller reporting company and emerging growth company in Rule 12b-2 of the Exchange Act.
| 
Large
Accelerated Filer | 
| 
Accelerated
Filer | 
| |
| 
Non-Accelerated
Filer | 
| 
Smaller
Reporting Company | 
| |
| 
| 
| 
Emerging
growth company | 
| |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Ex- change Act. 
Indicate
by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report. 
If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements. 
Indicate
by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b). 
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No 
The
aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which
the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrants
most recently completed second fiscal quarter was approximately $47,709,614. Shares of common stock held by each executive officer and
director and by each person who owns 10% or more of the outstanding common stock of the registrant have been excluded in that such persons
may be deemed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.
Without acknowledging that any individual director of registrant is an affiliate, all directors have been included as affiliates with
respect to shares owned by them.
As
of March 30, 2026, there were 482,688,356 shares of the registrants common stock outstanding, 2,071,007 shares of the registrants
Series A Convertible Preferred Stock outstanding, 363 of the registrants Series B Convertible Preferred Stock outstanding and
385,302 of the registrants Series C Convertible Preferred Stock outstanding.
| | |
****
**VIVOS
INC**
**Report
on Form 10-K**
**TABLE
OF CONTENTS**
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Page | |
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PART I. | 
| 
3 | |
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Item
1. | 
Business | 
3 | |
| 
Item
1A. | 
Risk Factors | 
19 | |
| 
Item
1B. | 
Unresolved Staff Comments | 
28 | |
| 
Item
1C | 
Cybersecurity | 
28 | |
| 
Item
2. | 
Properties | 
28 | |
| 
Item
3. | 
Legal Proceedings | 
28 | |
| 
Item
4. | 
Mine Safety Disclosures | 
28 | |
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PART II. | 
| 
29 | |
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| 
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Item
5. | 
Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 
29 | |
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Item
6. | 
[Reserved] | 
30 | |
| 
Item
7. | 
Managements Discussion and Analysis of Financial Condition and Results of Operations | 
30 | |
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Item
7A. | 
Quantitative and Qualitative Disclosures About Market Risk | 
34 | |
| 
Item
8. | 
Financial Statements and Supplementary Data | 
34 | |
| 
Item
9. | 
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 
34 | |
| 
Item
9A. | 
Controls and Procedures | 
34 | |
| 
Item
9B. | 
Other Information | 
35 | |
| 
Item
9C. | 
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 
35 | |
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PART III. | 
| 
36 | |
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| 
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Item
10. | 
Directors, Executive Officers and Corporate Governance | 
36 | |
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Item
11. | 
Executive Compensation | 
39 | |
| 
Item
12. | 
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 
41 | |
| 
Item
13. | 
Certain Relationships and Related Transactions, and Director Independence | 
43 | |
| 
Item
14. | 
Principal Accountant Fees and Services | 
43 | |
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PART IV. | 
| 
44 | |
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Item
15. | 
Exhibits and Financial Statement Schedules | 
44 | |
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Item
16. | 
Form 10-K Summary | 
45 | |
| 2 | |
****
**PART
I**
**FORWARD
LOOKING STATEMENTS**
Except
for statements of historical fact, certain information described in this Annual Report on Form 10-K (*Annual Report*)
contains forward-looking statements that involve substantial risks and uncertainties. You can identify these statements
by forward-looking words such as anticipate, believe, could, estimate, expect,
intend, may, should, will, would or similar words. The statements
that contain these or similar words should be read carefully because these statements discuss the Companys future expectations,
including its expectations of its future results of operations or financial position, or state other forward-looking information.
Vivos Inc. believes that it is important to communicate its future expectations to its investors. However, there may be events in the
future that the Company is not able to accurately predict or to control. Further, the Company urges you to be cautious of the forward-looking
statements which are contained in this Annual Report because they involve risks, uncertainties and other factors affecting its operations,
market growth, service, products, and licenses. The risk factors in the section captioned Risk Factors in Item 1A of the
Companys Annual Report, as well as other cautionary language in this Annual Report, describe such risks, uncertainties and events
that may cause the Companys actual results and achievements, whether expressed or implied, to differ materially from the expectations
the Company describes in its forward-looking statements. The occurrence of any of the events described as risk factors could have a material
adverse effect on the Companys business, results of operations and financial position.
**ITEM
1. BUSINESS.**
Vivos
Inc. (the Company, we, us, our) is a radiation oncology medical device company
engaged in the development of its yttrium-90 (Y-90) based precision radionuclide therapy devices. This includes RadioGel
Precision Radionuclide Therapy (Human Division) for treating solid tumors and positive surgical margins in humans and IsoPet
(Animal Division) for treating solid tumors in animals. The Company also sells PLGA-g-PEG polymers and PrecisionGel, a hydrogel
polymer platform for delivering active pharmaceutical ingredients and therapeutic agents. A prominent team of radiochemists, scientists,
and engineers, collaborating with strategic partners, including national laboratories, universities, and private corporations, lead the
Companys development efforts. The Companys overall vision is to globally empower physicians, medical researchers, veterinarians,
and patients by providing them with new isotope technologies and advanced polymer solutions that offer safe and effective treatments
for cancer in both humans and animals.
In
2013, the United States Food and Drug Administration (*FDA*) issued the determination that RadioGel
is a device for human therapy for non-resectable cancers in humans. This should result in a faster path than a drug for final approval.
In
January 2018, the Center for Veterinary Medicine Product Classification Group ruled that RadioGel (now marketed as IsoPet for
veterinary use) should be classified as a medical device for animal therapy, initially specified for feline sarcomas and canine soft
tissue sarcomas. Additionally, after legal review, the Company believes that this device classification from the FDA Center for Veterinary
Medicine is not strictly limited to canine and feline sarcomas but may extend to a broader population of veterinary cancers, including
all or most solid tumors in animals. As veterinary medical devices do not require premarket approval or notification (such as 510(k)
or PMA) for commercial distribution in the United States, IsoPet is authorized for marketing and commercial distribution following
this classification, provided the product is safe, effective, properly labeled, and compliant with applicable laws and regulations. The
FDA does not exercise premarket authority over veterinary devices, and manufacturers bear responsibility for ensuring ongoing compliance.
This classification enables the commercial distribution of IsoPet for treating solid tumors in animals.
Based
on the FDAs recommendation, RadioGel is being marketed as IsoPet for use by veterinarians
to avoid any confusion between animal and human therapy. The Company already has trademark protection for the IsoPet
name. IsoPet and RadioGel are used synonymously throughout this document. The only distinction between
IsoPet and RadioGel is the FDAs recommendation that we use IsoPet
for veterinarian usage, and reserve RadioGel for human therapy. Historically, the Companys primary
focus was on the development and marketing of Isopet for animal therapy, through the Companys IsoPet
Solutions division. Over the last four years much effort has been directed to completing the testing require to obtain FDA approval for
an Investigational Device Exemption and to obtain approval for clinical trials in India.
| 3 | |
The
Companys IsoPet Solutions division was established in May 2016 to focus on the veterinary oncology market, namely engagement of
university veterinarian hospital to develop detailed therapy procedures to treat animal tumors and ultimately use of the technology in
private clinics. In January 2025 the Company restructured and aligned its internal resources and focused efforts to align with animal
therapy, human therapy, and recently other applications of its patented technologies.
The
Company has worked with five different national laboratories or university veterinarian hospitals on IsoPet/RadioGel
testing and therapy. Washington State University treated five cats for feline sarcoma and served to develop the procedures which are
incorporated in our label. They concluded that the product was safe and effective in killing cancer cells. Colorado State University
demonstrated the CT and PET-CT imaging of IsoPet. The University of Missouri conducted an animal study to treat canine
sarcoma. Johns Hopkins University completed a study on VX2 Tumors in Rabbits. Every study confirmed that the Y-90 stayed at the injection
site with insignificant distribution outside that boundary.
Commencing
in July 2019, the Company recognized its first commercial sale of IsoPet. A veterinarian from Alaska brought his cat with a re-occurrent
spindle cell sarcoma tumor on his face. The cat had previously received external beam therapy, but now the tumor was growing rapidly.
He was given a high dose of 400Gy with heavy therapy at the margins.
The
Company anticipates that any near-term profits, if any, will be derived from direct sales of RadioGel (under the name
IsoPet) and related services, and from certifying veterinary clinics to administer IsoPet Therapy. Until recently the
Company certified clinics at its own expense, but the demand has increased to the point that starting in 2025 the Company billed its
first clinic for the certification process. The Company has transitioned to Volume Pricing to stimulate broader interest
and adoption. With significant growth achieved in 2025including a reported 1,200% year-over-year increase in administered therapies
and expansion of the certified clinic networkthe Animal Therapy Division (IsoPet) is positioned to reach breakeven status
in 2026, supported by ongoing profitability-focused initiatives, continued clinic expansion, and improved operational efficiency.
The
plan is to incorporate the data assembled from our work with Isopet in animal therapy to support the Companys
efforts in the development of our RadioGel device candidate, including obtaining approval from the FDA to market and sell RadioGel
as a Class II medical device. RadioGel is an injectable particle-gel for Precision Radionuclide Therapy radiation treatment
of cancerous tumors in people and animals. RadioGel is comprised of a hydrogel, or a substance that is liquid at room
temperature and then gels when reaching body temperature after injection into a tumor. In the gel are small, less than two microns, Y-90
phosphate particles. Once injected, these inert particles are locked in place inside the tumor by the gel, delivering a very high local
radiation dose. The radiation is beta, consisting of high-speed electrons. These electrons only travel a short distance so the device
can deliver high radiation to the tumor with minimal dose to the surrounding tissue. Optimally, patients can go home immediately following
treatment without the risk of radiation exposure to family members. Since Y-90 has a half-life of 2.7 days, the radioactivity drops to
5% of its original value after ten days.
In
2021 the Company modified its Indication for Use from skin cancer to cancerous tissue or solid tumors pathologically associated with
locoregional papillary thyroid carcinoma and recurrent papillary thyroid carcinoma having discernable tumors associated with metastatic
lymph nodes or extranodal disease in patients who are not surgical candidates or who have declined surgery, or patients who require post-surgical
remnant ablation (for example, after prior incomplete radioiodine therapy). Papillary thyroid carcinoma belongs to the general class
of head and neck tumors for which tumors are accessible by intraoperative direct needle injection. The Companys Medical Advisory
Board felt that demonstrating efficacy in clinical trials with this new indication provided a more efficient pathway to regulatory clearance.
On
September 17, 2025, the Board of Directors of the Company approved the creation of Vivos Scientific India LLP (VSIL), a
wholly owned separate legal entity in India. Vivos India was formally established in September 2025 (with incorporation completed and
government approvals finalized shortly thereafter), expanding the Companys strategic initiatives in the region. The primary objectives
include establishing the Companys first international manufacturing center for RadioGel and IsoPet, advancing expanded
human therapy demonstrations and clinical trials (including ongoing patient treatments initiated in December 2024 and progress toward
DCGI regulatory clearance for larger-scale trials), pursuing commercialization of therapies for both humans and animals in India, and
generating additional human trial data to support the Companys regulatory processes with the U.S. Food and Drug Administration
(FDA), such as the planned Investigational Device Exemption (IDE) submission in early 2026. As of February 2026, discussions continue
with experienced radiopharmaceutical contract manufacturers in India to support the establishment of this international production facility,
with a target for operational status by the end of 2026 to reduce shipping costs, enhance logistical efficiency, and facilitate broader
global access to the Companys precision radionuclide therapies.
| 4 | |
In
the third quarter ended September 30, 2025, the Company strengthened its leadership team to support accelerating growth in both the U.S.
and international markets by appointing Brad Allan Weeks as President (effective September 1, 2025) and David J. Swanberg as Chief Operating
Officer (effective September 15, 2025). These appointments reflect the Companys strategic response to rapid expansion, particularly
in the IsoPet Animal Therapy Divisionwhich achieved a reported 1,200% year-over-year increase in administered therapies from
2024 to 2025and ongoing advancements in RadioGel human therapy development, including progress toward FDA Investigational
Device Exemption (IDE) submission and the establishment of Vivos Scientific India LLP in September 2025. The new executive roles are
designed to enhance operational efficiency, scale commercial activities, drive clinic certifications and therapy adoption, and position
the Company for sustained growth and potential profitability in the Animal Therapy Division by 2026.
Strategic
Initiatives
| 
| 
| 
IDE
- In December 2023, the FDA granted RadioGel Precision Radionuclide Therapy
the
designation as a Breakthrough Device pursuant to the FDAs Breakthrough Devices Program, thereby giving the Company access
to the sprint rapid review process for IDE comments. For the first two quarters of 2025, the Company took advantage
of the process to resolve detailed FDA questions on a variety of topics. On August 13, 2025, the FDA rejected the Companys
IDE based on cited deficiencies. Based on the FDA recommendations, the Company used the pre-submission process to respond to the
FDAs comments. On October 14, 2025, the Company submitted the pre-submission document dedicated to sterility. This document
incorporated the new E-Beam sterilization process.
Over
the past several years, the Company has engaged extensively with the FDA, successfully addressing feedback from more than 40 individual
reviewersmany comments stemming from frequent review team changes within the Agency. Vivos has provided comprehensive data
and finalized the key technical parameters related to demonstrating precision delivery of RadioGel to the treatment
area and ensuring minimal exposure to non-target tissues.
In
a key strategic move, Vivos has engaged one of the top regulatory experts in the field of brachytherapy and combination radiotherapy
devices, with deep experience guiding such products through the FDAs Center for Devices and Radiological Health (CDRH). This
experts prior role at the FDA and proven track record of successful IDE approvals for Class III implantable radiation device,
several reviewed by the same branch overseeing RadioGel, have provided invaluable guidance.
With
this experts analysis of FDA feedback patterns, the Company is bolstering its IDE submission by: | |
| 
| 
1. | 
Fully
addressing all outstanding FDA concerns and adopting a submission format and structure proven effective by regulatory experts for similar
devices. | |
| 
| 
2. | 
Incorporating
additional information from clinical human data that has become available since the Companys last IDE submission, further
strengthening the evidence package. | |
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3. | 
Reformatting
and summarizing pre-clinical data in a manner that more directly and effectively addresses the remaining FDA concerns. | |
| 
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4. | 
Leveraging
extensive veterinary clinical data from IsoPet commercial use: Integrating comprehensive treatment outcomes from
over 100 safely administered therapies across diverse tumor types and species, with zero reportable serious adverse events attributable
to the product, to provide additional real-world safety and efficacy evidence supporting the Precision Radionuclide Therapy
platform. | |
| 
| 
5. | 
Highlighting
specialized equine ocular applications: Including detailed case data on successful treatments of ocular squamous cell carcinoma in
horses (with injections near or into the cornea), showing no major side effects in adjacent critical structures, to further demonstrate
the therapys precision, minimal invasiveness, and favorable risk profile in challenging anatomical locations. | |
These
enhancements maintain the intended use while maximizing the submissions clarity, completeness, and alignment with Agency expectations.
These recommendations required substantial effort to incorporate into our next submission.
| 5 | |
| 
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Commercialization
of Human Therapy in India - The Company is actively pursuing an expanded permit from
the Drugs Controller General of India (DCGI) to continue treating the initial cohort of up
to 30 patients focused on head and neck cancers (including cancerous lymph nodes) and to
initiate larger-scale clinical trials supporting potential commercial applications in India.
This next phase would involve a second hospital site with a new principal investigator, incorporating
an enhanced protocol that aligns with prior FDA feedbacksuch as post-treatment whole-body
PET examinations for broader safety validation and efficacy assessment across additional
tumor locations.
In
September 2025, the Company established Vivos Scientific India LLP (VSIL), a wholly owned subsidiary in India, to accelerate developmental
testing, support regulatory processes (including DCGI clearances), expand human and animal therapy demonstrations, and lay the groundwork
for the Companys first international manufacturing center for RadioGel and IsoPet. The entity has secured its Certificate
of Incorporation and completed key foundational steps (e.g., name reservation, digital signatures, and LLP Agreement filing), with
headquarters in Mumbai, supported by an Indian Advisory Board. As of February 2026, VSIL is operational and advancing these initiatives,
though full business activation and manufacturing setup remain in progress pending additional regulatory and logistical milestones.
This subsidiary strengthens the Companys long-term commitment to India as a key hub for clinical advancement, data generation
to bolster the U.S. FDA pathway (e.g., IDE support), and eventual commercialization in both human oncology and veterinary applications. | |
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Animal
Therapy in India In the second quarter of 2025, the Company sponsored a highly
successful Pets in the Park event in Mumbai, featuring a renowned speaker to
raise awareness about pet cancer and introduce IsoPet therapy. The event generated overwhelming
positive response and demonstrated strong interest in initiating animal therapy in India.
Building on this momentum, the Company has established solid contacts with interested veterinary
clinics and key stakeholders in the region.
The
establishment of Vivos Scientific India LLP (VSIL) in September 2025 further supports these efforts by providing a dedicated local
entity to advance developmental testing, pursue regulatory pathways for veterinary applications (complementing ongoing human therapy
progress with the DCGI), and explore commercialization opportunities for IsoPet in India. A local production site in Indiatargeted
as part of the Companys international manufacturing expansion, with one facility anticipated to become operational by the
end of 2026would significantly enhance cost-effectiveness by reducing shipping expenses, improving supply chain logistics,
and enabling broader, more affordable access to IsoPet Precision Radionuclide Therapy for veterinary use in the Indian
market and beyond. This aligns with the Companys global strategy to expand the IsoPet division, which has already seen
substantial growth in the U.S. (including a reported 1,200% year-over-year increase in administered therapies from 2024 to 2025),
and positions India as a promising hub for both animal and human applications of the platform. | |
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Alternate
Production Facilities Previous corporate filings have highlighted risk factors
associated with the Companys reliance on a single production site. For the past two
years, the Company has actively assessed alternate facilities to mitigate this risk and support
scalable growth.
In
a significant step announced on February 17, 2026, Vivos Inc. is advancing plans to diversify its manufacturing base. The Companys
strategic target is to establish one domestic production facilitywhere Vivos will serve as the manufacturer of recordand
one international production facility, both operational in 2026. These facilities will produce the yttrium-90 (Y-90) phosphate particles
and mix them with sterile hydrogel to create individual patient doses for RadioGel (human applications) and IsoPet (veterinary
applications).
For
the domestic site, Vivos has signed a contract for production space at the Applied Process Engineering Laboratory (APEL) in Richland,
Washington. Equipment has been ordered, installation is underway, and licensing applications have been submitted to support operational
readiness. The international facility is being pursued through ongoing discussions with experienced radiopharmaceutical contract
manufacturers in India, aligned with the establishment and activities of Vivos Scientific India LLP (VSIL), to reduce shipping costs,
enhance logistical efficiency, and expand access to global markets.
The
Company will continue production with its existing contract manufacturer through Q2 2026, ensuring continuity during the transition
to these new facilities. This multi-site approach is expected to address previous single-source vulnerabilities, improve supply chain
resilience, accommodate higher production volumes as demand grows (particularly in the IsoPet division, which reported substantial
therapy increases in 2025), and support the Companys broader commercialization and regulatory goals for both human and animal
therapies. | |
| 
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Future
Indications for Use and Alternate Isotopes In December 2024, the Company conducted an offsite strategic meeting with
our key technical staff, both our Medical and Veterinary Advisory Boards, our principal investigators from Mayo Clinic and India,
and the Chairman of our Board. The objective was to determine our next target indications for use and to ensure that Y-90 was the
best therapeutic isotope to treat these cancers. | |
| 6 | |
| 
| 
| 
Over
time we intend to expand the indications for use to include all lymph nodes, lung cancer,
childhood brain cancer, eyelid cancer, and finally all solid tumors. Our health physics experts
reviewed the benefits of every available isotope, with respect to the target range of potential
indication for use.
This
strategic group confirmed that our current isotope, Y-90 was effective for all the targeted indications for use. However, we also decided
to explore P-32, Lu-177, and Ac-225. | |
| 
| 
| 
P-32
is not as energetic as Y-90; however, we could modify the concentration, as it has a longer half-life, which could prove to be an
advantage for international shipments. | |
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| 
While
Lu-177 is relatively low-energy, we could adjust the concentration, as it has a lower penetration distance, which might be an advantage
in therapies near critical structures since that would result in a higher therapeutic ratio. | |
| 
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Ac-225
has a very low penetration distance, but it would be distributed homogeneously in our hydrogel. This could be an advantage in treating
brain tumors and bone cancer due to its extremely low alpha penetration. | |
Recent successful therapies of equine ocular tumors without damaging the eye and human therapy on cancerous nodes directly on the trachea without damaging that organ, confirm the use of Y-90 and may impact the business case of development of alternate isotopes. 
Our trademarks include BetaGel and AlphaGel and our provisional patents cover the isotopes P-32, Lu-177, and Ac-225. Depending on the business case conclusions, over the next three years we intend to conduct laboratory testing and then animal and finally human studies in India. 
| 
| 
| 
The
Company is exploring the viability of leveraging its technology to develop other businesses
unrelated to the Companys principal business of cancer treatment. Each business opportunity
could generate income to support our primary objectives or potentially be spun off as a separate
business activity to an interested party. To date the focus has been on:
| |
| 
| 
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PrecisionGel
The Company spent years refining the development of its hydrogel, in which gelation initiates at room temperature and is
completed as it warms to body temperature. The Company is currently investing in quantifying and controlling the hydrogel resorption
and agent dispersal characteristics. There has been enough interest in this component to warrant a serious business case assessment. | |
| 
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| |
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| 
The
Company has trademarked the name Precision Gel and, in addition to its current hydrogel patent, filed a new provisional patent
in January 2025. In 2026 Akina and Vivos will release a publication to summarize years of development on our hydrogel, including
rheology, resorption characteristics, concentration and composition control, and agent release data, including retention, transport,
and release of a broad range of agents. It is anticipated that this publication will be beneficial to marketing Precision Gel. | |
| 
| 
| 
In
the second quarter of 2025, we signed a contract with Akina, Inc to sell this polymer. It
is now in their catalog. The Company has had recent sales to universities and pharmaceutical
companies; we anticipate this will be a slow growing but solid market. The priority remains
IDE approval.
| |
| 
| 
| 
Duncan
Chiller Akina encouraged Vivos to leverage our Peltier Chiller technology to develop a general laboratory equipment
device for non-water localized chilling. An elementary device demonstrated proof of concept. A prototype will be produced at APEL
for testing at and eventual distribution by Akina. | |
| 7 | |
**Intellectual
Property**
The
Companys original license agreement with Battelle National Laboratory (the Battelle License) reached its end of
life in 2022. In anticipation of this expiration, Vivos has significantly expanded its proprietary knowledge base, along with robust
trademark and patent protections, over the past several years. The Company no longer relies on the Battelle license for any core intellectual
or proprietary technology, having developed and secured independent advancements in its Precision Radionuclide Therapy (PRnT)
platform.
Trademark
Protection continues to expand globally, now covering registrations and applications in 17 countries (with ongoing efforts to broaden
this footprint):
The
Company owns applications/registrations for the following key marks:
| 
| 
| 
ISOPET | |
| 
| 
| 
RADIOGEL | |
| 
| 
| 
ALPHA-GEL | |
| 
| 
| 
BETA-GEL | |
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| 
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GAMMA-GEL | |
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PRECISION
RADIONUCLIDE THERAPY | |
| 
| 
| 
PRECISIONGEL | |
| 
| 
| 
Peltier
Chlller | |
| 
| 
| 
Duncan
Chiller | |
Patent
Portfolio has been systematically strengthened through provisional and utility patent filings covering critical components of the platform,
including the hydrogel formulation, yttrium-90 phosphate particles, injection/delivery systems, and related methods. These protections
are pursued in the United States and in more than ten additional patent offices, encompassing approximately 63 countries.
Key
recent milestones include:
| 
| In
January 2025, the Company filed an additional provisional patent related to PrecisionGel. | |
| 
| On
September 3, 2025, a provisional patent (No. 63/873,014) was filed for sterile thermogels
using electron beam sterilization, enhancing manufacturing processes for the hydrogel component. | |
| 
| On
January 13, 2026, the United States Patent and Trademark Office (USPTO) issued U.S. Patent
No. 12,521,452 B2, titled Radiotherapy Gel and Method of Preparing the Same.
This patent protects critical advancements in the proprietary PRnT platform, including
the integration of biodegradable, thermosensitive PLGA-g-PEG hydrogel with yttrium-90 particles
for targeted beta radiation delivery into solid tumors while minimizing exposure to surrounding
healthy tissue. It underpins the flagship products RadioGel (human applications) and
IsoPet (veterinary use). | |
| 
| Concurrently,
PRECISIONGEL trademark approvals advanced, with publication in the U.S. and New Zealand. | |
| 
| Additionally,
the Company filed a new patent application in early 2026 to further protect and expand the
PrecisionGel hydrogel technology, including its use for timed-release delivery of
various therapeutic agents (e.g., anti-cancer drugs and gene therapies) beyond radionuclide
applications. | |
These
developmentshighlighted in the Companys January 28, 2026, press releasematerially enhance Vivos intellectual
property position, support ongoing clinical and regulatory progress (including FDA IDE efforts and international expansion via Vivos
Scientific India LLP (VSIL)), enable broader global commercialization, and position the Company for potential strategic partnerships
and licensing opportunities. The comprehensive IP portfolio, including four years of developmental data, validated Quality Management
System documentation, and worldwide protections, provides a strong foundation for the Precision Radionuclide Therapy platform
in both human and veterinary oncology.
**Financing
and Strategy**
In
March 2026, the Company filed with the SEC an offering statement on Form 1-A (including a preliminary offering circular dated
February 13, 2026, amended March 4, 2026) under Regulation A for the offering of up to $75.0 million of shares of its Common Stock,
which offering was qualified by the SEC as of March 5, 2026 (the 2026 Regulation A+
Offering and, together with the 2019 Regulation A+ Offering, 2021 Regulation A Offering, and July 2024 Regulation A+
Offering, the Regulation A+ Offerings).
| 8 | |
During
the year ended December 31, 2023, $1,179,245 was raised through the sale of 16,132,000 shares of Common Stock through the Regulation
A+ Offerings and concurrent private placements of 18,797,000 warrants. During the year ended December 31, 2024, $2,266,000 was raised
through the issuance of 24,950,000 shares of Common Stock through the Regulation A+ Offerings. During the year ended December 31, 2025,
$1,500,000 was raised through the issuance of 12,500,000 shares of Common Stock through the Regulation A+ Offerings and $6,250 through
a concurrent private placement of 6,250,000 warrants.
In March 2026, the Company raised
$1,553,000 through the sale of 19,200,000 shares of Common Stock through the Regulation A+ Offering and concurrent private placement of
17,000,000 warrants.
Cumulative
proceeds from these offerings have supported critical advancements, including Breakthrough Device designation (December 2023), ongoing
IDE resubmission preparations (with strengthened submission planned by end of Q1 or April 2026), international human therapy data generation
in India, manufacturing diversification (new domestic facility at APEL in Richland, WA, and international site discussions aligned with
Vivos Scientific India LLP (VSIL)), leadership enhancements, intellectual property expansion (e.g., U.S. Patent No. 12,521,452 B2 issued
January 13, 2026, and additional provisional filings), and substantial growth in the IsoPet Animal Therapy Division (1,200% year-over-year
increase in administered therapies from 2024 to 2025).
Upon
successful qualification, the 2026 Regulation A+ Offering would provide expanded capacity for equity fundraising to further advance RadioGel
human therapy development (including IDE submission and potential approval for clinical trials), scale IsoPet commercialization
(targeting breakeven in the Animal Therapy Division in 2026), support VSIL initiatives for local manufacturing and clinical trials in
India, mitigate single-site production risks through multi-facility operations (targeted for 2026 readiness), and pursue broader global
access to the Precision Radionuclide Therapy platform in both human and veterinary oncology. The Company continues to monitor
cash needs closely and explore additional financing avenues as it progresses toward regulatory milestones and operational profitability.
Following
receipt of required regulatory approvals (including potential FDA IDE clearance for human trials) and necessary financing to support
working capital and expansion, the Company plans to transition to greater operational control over key aspects of its supply chain. In
the U.S., Vivos is establishing Company-managed production facilities (with Vivos as the manufacturer of record) to produce Y-90 particles,
hydrogel mixtures, and patient doses, while continuing to leverage select contract manufacturing during the transition period through
Q2 2026. This approach aims to enhance supply chain resilience, reduce dependencies, and accommodate growing demand in both RadioGel
(human) and IsoPet (veterinary) applications. For international markets, the Company is pursuing direct commercialization pathways
through subsidiaries such as Vivos Scientific India LLP (VSIL), including local manufacturing and regulatory advancement in India, while
remaining open to strategic licensing arrangements, partnerships, or collaborations to accelerate global access and market penetration
for its Precision Radionuclide Therapy platform.
Long-term,
the Company intends to consider resuming research on additional products and technologies to improve cancer diagnosis and treatment (e.g.,
expanded PRnT indications or PrecisionGel applications for other therapeutics). These goals depend on:
| 
(i) | securing
adequate funding (e.g., via the pending 2026 Regulation A+ Offering or other sources); | |
| 
(ii) | obtaining
regulatory approvals for RadioGel and related brachytherapy products (e.g., FDA IDE
clearance, with submission planned by end of Q1/April 2026); and | |
| 
(iii) | successfully
commercializing current products (RadioGel for humans and IsoPet for veterinary
use), including scaling adoption and operationalizing new manufacturing facilities in 2026. | |
Based
on the Companys financial history since inception, the independent registered public accounting firm has expressed substantial
doubt about the Companys ability to continue as a going concern. The Company has limited revenue, nominal cash, and accumulated
significant deficits. Without sufficient additional capital, the Company may need to delay its business strategy or may be unable to
continue operations. Management continues to pursue fundraising (including the 2026 Regulation A+ Offering), cost controls, and key milestonessuch
as IsoPet growth and potential breakeven in the Animal Therapy Division in 2026to address liquidity challenges.
| 9 | |
The
Companys corporate headquarters are located in Kennewick, Washington (Suite N288, 1030 N. Center Parkway, Kennewick, WA 99336),
in the Tri-Cities region of Southeast Washington. The Company continues its marketing efforts in the IsoPet animal therapy market,
with a focus on expanding nationwide adoption across the U.S. Following substantial growth in 2025including a reported 1,200%
year-over-year increase in administered therapies, expansion to 17 certified clinics, and a sharp rise in inbound inquiries from veterinarians
and pet ownersthe Company is implementing profitability-focused initiatives starting in Q1 2026. These include ongoing clinic
certifications (now billing clinics for the process), volume pricing to stimulate broader interest, and efforts to increase exposure,
generate revenue, and scale the network of certified veterinary treatment centers nationwide. This national expansion builds on the therapys
proven safety and efficacy (over 100 treatments with zero reportable serious adverse events) and supports the goal of achieving breakeven
status in the Animal Therapy Division in 2026.
As
of December 31, 2025, the Company had $1,558,525 in cash on hand. There are currently commitments to vendors for products and services
purchased. To continue the development of the Companys products, the current level of cash will be insufficient to cover the fixed
and variable obligations of the Company.
The
Company anticipates allocating proceeds from the Regulation A+ Offerings (including the pending 2026 Regulation A+ Offering) primarily
to advance its core Precision Radionuclide Therapy (PRnT) platform across both veterinary and human applications, while
supporting operational growth, regulatory progress, and manufacturing enhancements.
For
the Animal Therapy Market (IsoPet):
| 
| Increase
marketing and outreach via the Company website, social media, conferences, and publications
to grow the number of certified veterinary clinics (for small animals and equine therapy)
and expand patient treatments. | |
| 
| Support
controlled IsoPet studies by providing complimentary products in exchange for data and
publications on specific cancers, ensuring broader treatment access for viable candidates. | |
| 
| Assist
new regional clinics with licensing, certification training, and therapy demonstrations (including
margin therapy applications). | |
| 
| Transition
to volume pricing to drive broader adoption and revenue growth. | |
For
the Human Market (RadioGel):
| 
| Expand
and diversify production sites (including the new domestic facility in Richland, WA, and
international site discussions aligned with Vivos Scientific India LLP (VSIL)) to mitigate
single-source risks and scale capacity. | |
| 
| Strengthen
the Quality Management System pedigree for regulatory compliance. | |
| 
| Initiate
automation in product manufacturing processes. | |
| 
| Secure
liability insurance for human clinical studies. | |
| 
| Fund
human clinical studies and trials in the U.S. (post-IDE approval) and India (ongoing demonstrations
and expanded DCGI-permitted trials). | |
| 
| Establish
and operationalize Vivos Scientific India LLP (VSIL) to support local manufacturing, regulatory
advancement, and commercialization in India. | |
These
allocations align with the Companys priorities of achieving breakeven in the Animal Therapy Division in 2026, securing FDA IDE
clearance (with resubmission targeted for end of Q1/April 2026), diversifying manufacturing (targeting operational facilities in 2026),
and generating additional clinical data to support global commercialization of RadioGel and IsoPet. Actual use may vary based
on regulatory timelines, funding levels, and strategic opportunities.
Research
and development of the Companys precision radionuclide therapy product line has been funded with proceeds from the sale of equity
and debt securities, including from the Regulation A+ Offerings. The Company requires additional funding of approximately $3.0 million
annually to maintain operating activities. Over the next 36 months, the Company believes it will require approximately $9.0 million in
additional capital to: (i) fund the FDA approval process to conduct human clinical trials; (ii) conduct Phase I, pilot, clinical trials;
(iii) activate several regional clinics to administer IsoPet across the U.S.; (iv) create an independent production center
within the current production site to create a template for future international manufacturing; and (v) initiate regulatory approval
processes outside of the United States. The proceeds raised from the Regulation A+ Offerings were used to fund this development and will
be used to continue such development efforts.
| 10 | |
The
continued deployment of precision radionuclide therapy products and a worldwide regulatory approval effort will require additional resources
and personnel. The principal variables in the timing and amount of spending for the precision radionuclide therapy products in the next
12 to 24 months will be the FDAs classification of the Companys precision radionuclide therapy products as Class II or
Class III devices (or otherwise) and any requirements for additional studies which may possibly include clinical studies. Thereafter,
the principal variables in the amount of the Companys spending and its financing requirements would be the timing of any approvals
and the nature of the Companys arrangements with third parties for manufacturing, sales, distribution and licensing of those products
and the products success in the U.S. and elsewhere. The Company intends to fund its activities through strategic transactions
such as licensing and partnership agreements or from proceeds raised from the Regulation A+ Offerings.
The
Company has vendor commitments for products and services, and current cash levels are insufficient to cover fixed and variable obligations
or sustain ongoing product development. To minimize overhead, the Company has operated with a virtual office for several years and retained
experienced industry consultants on an as-needed basis, allowing Regulation A+ Offering proceeds to focus on strategic objectives such
as regulatory advancement, manufacturing diversification, and therapy commercialization.
There
is no guarantee that the Company will secure additional funds or do so on favorable terms to stockholders.
The
financial statements do not include adjustments for the recoverability and classification of liabilities that might be necessary if the
Company cannot continue as a going concern. Continuation as a going concern depends on generating sufficient cash flow to meet obligations
timely and ultimately achieving profitability. The independent registered public accounting firm has expressed substantial doubt about
the Companys ability to continue as a going concern due to limited revenue, nominal cash, and accumulated deficits since inception.
Management plans to pursue additional funding through debt and equity financing (including the pending 2026 Regulation A+ Offering),
enhance operating performance via strategic focus on core products, process efficiencies, and cost structure improvements. There can
be no assurance of success in raising working capital or achieving profitable operations, and the financial statements include no adjustments
for outcomes of this uncertainty.
****
**IsoPet
Animal Division**
****
The
Company selected Vista Veterinary Hospital in Kennewick, Washington (Tri-Cities area), as the pilot private clinic for initiating commercial
IsoPet sales. This location facilitated close collaboration with Company personnel to refine processes, serving as a model before
national expansion. Vista has successfully passed multiple audits by the Washington State Department of Health, with the Company working
closely alongside the Department to enhance the radioactive material license by incorporating detailed procedures that benefit future
clinics. A second veterinarian at Vista has also been certified.
Clinical
experience at universities and Vista demonstrates IsoPets effectiveness in ablating cancer tissue near injection sites, performing
best in early-stage tumors before metastasis. Later-stage cancers are more challenging due to poorly defined tendrils, increasing recurrence
risk.
Johns
Hopkins University Veterinary Clinical Trials Network (Baltimore, MD) is now a certified IsoPet regional clinic, holding the required
radioactive material license and completing training. This partnership supports high-quality data collection across cancer types for
publication in leading journals, boosting awareness and acceptance in the veterinary oncology community. Johns Hopkins recently completed
a VX2 tumor study in rabbits, confirming IsoPet (and by extension RadioGel) safety, with hydrogel retention at the injection
site, activity decay curves, validation of Instructions for Use and Injection Guidance Table, and insights for refining human lymph node
treatments.
Animal
therapy safety and efficacy data from IsoPet contributed positively to RadioGels Breakthrough Device designation.
As
of December 31, 2025, the Company has 17 certified regional clinics nationwide, treating feline, canine, equine, and exotic animals:
| 
1. | Vista
Veterinary Hospital Kennewick WA (Drs. Michelle Meyer and Jeffrey Goebel) | |
| 
2. | University
of Missouri Columbia MO (Dr. Charle Maitz) | |
| 
3. | Johns
Hopkins University Baltimore MD (Dr. Rebecca Krimins) | |
| 
4. | Indian
Creek Veterinary Hospital - Fort Wayne IN (Dr. Kevin Cawood) | |
| 
5. | Hopkinton
Animal Hospital - Weare NH (Dr. Michael Dutton retiring, Dr. Jordan Gange) | |
| 11 | |
| 
6. | NorthStar
VETS - Robbinsville, NJ - (Dr. Diana Sanchez) | |
| 
7. | Animal
Emergency & Specialty Center of Knoxville, Knoxville, NJ (Dr. Jeffrey Phillips) | |
| 
8. | Sumner
Veterinary Hospital, Sumner, WA (Dr. Vanessa Rizzo) | |
| 
9. | New
England Equine Practice Patterson NY (Dr. Bill Bradley) | |
| 
10. | Myhre
Equine Clinic Rochester NH (Dr. Michael Myhre) | |
| 
11. | University
of Wisconsin School of Veterinary Medicine - (Dr. Kayla Le) | |
| 
12. | University
of Illinois College of Veterinary Medicine, Urbana, IL (Dr, Kimberly Selting) | |
| 
13. | Brazos
Equine Hospital, Navasota, TX (Dr. Ben Buchanan) | |
| 
14. | University
of Florida Large Animal Hospital (Dr. Diego De Gasperid) | |
| 
15. | Capital
Veterinary Specialists (Drs. Kevin Drygas, Carl Jehn) | |
| 
16. | University
of Florida Small Animal Hospital (Dr. Gutti, Dr. Takada) | |
| 
17. | Sun
City Veterinary Surgical Center, El Paso, TX (Dr. Silverman) | |
In
2024, three new dedicated websites were launched: the corporate site and separate ones for RadioGel (human) and IsoPet (veterinary),
featuring user-friendly designs, educational content, and blogs to build authority. Marketing materials effectively highlight Precision
Radionuclide Therapy.
During
2025, the IsoPet division achieved a reported 1,200% year-over-year increase in administered therapies, with over 100 safe treatments
(zero serious adverse events). The team staffed booths at six conferences, and LeeAnna Binder conducted nationwide outreach via a modified
IsoPet van. Active social media management on Facebook, Instagram, X, and LinkedIn drove engagement and website traffic.
The
division shifted from data collection to commercialization in 20242025, refining pricing for affordability, aligning production
with patient bookings to reduce costs, and implementing volume pricing. Starting Q1 2026, profitability initiatives include billing clinics
for certification and continued network expansion.
Objectives
include adding several more regional clinics in 2026 (with interested parties in the pipeline) and participating in at least four conferences
annually to promote IsoPet for small animal and equine tumors. The Veterinary Medicine Steering Board advises patient acquisition
strategies. This nationwide growth supports the goal of breakeven in the Animal Therapy Division in 2026.
****
**FDA
Regulatory Status- Recent Developments**
*Human
Therapy*
In
November 2020 the Company submitted a request for a Breakthrough Device Designation. Ultimately, this was denied, but the FDA acknowledged,
The FDA does believe that RadioGel meets criterion #2a: Device represents breakthrough technology. Your device *does
meet this criterion* because it is a novel application of a precision radionuclide therapy device outside of the liver. More
importantly, the process resulted in a rapid review of our existing data and approach. It led to a redirection of our efforts on writing
the Investigational Device Exemptions (*IDEs*) and saved the Company much time in the review of that future application.
Based
on advice from the FDA the Company scheduled a Pre-Submission meeting on November 30, 2021 to discuss a draft of an IDE for Early Feasibility
Medical Device Clinical Studies, including certain First in Human (*FIH*) Studies. Using this process results in more
rapid feedback to prepare the final IDE.
The
FDA was supportive and had suggested this Q-Submission path for rapid turnaround and dialog. The Mayo Clinic physicians did an excellent
job presenting the need for Radiogel to treat recurrent thyroid cancer and to answer a range of questions from the
new FDA review team. The FDA provided many helpful suggestions on a range of subjects from labeling to dosimetry to the Mayo Clinic protocol
for clinical testing, and the need for some additional specific testing. They suggested having another Q-Sub Review and conference call
dedicated to the details of the dosimetry calculations.
In
May of 2022 the Company held another pre-submission meeting with the FDA. They concurred with our dosimetry techniques and requested
one more animal test to confirm that the Y-90 stays at the injection site. We participated in another pre-submission meeting to discuss
this new animal test of VX-2 tumors in rabbits at Johns Hopkins. We have a meeting scheduled with the FDA in October to obtain their
feedback on our new animal test plan.
| 12 | |
We
held another pre-submission meeting with the FDA on October 17, 2022 to obtain detailed feedback on the proposed VX-2/Rabbit Animal Test
Plan and to submit the Risk Management Report (*RMR*). The RMR analyzed all hypothetical scenarios and concluded that
RadioGel is inherently safe.
We
participated in pre-submission meetings with the FDA on April 10, 2023, and September 29, 2023, to discuss the preliminary results of
the VX2 tumor animal study and to obtain feedback on the genotoxicity protocol.
After
providing addition information to the FDA on December 18, 2023, the FDA classified us as a Breakthrough device to our proposed Indication
for Use.
Since
September 2024 the company has been engaged in the sprint process to discuss several FDA comments in detail. There will continue through
February 2024, at which time we will re-submit the request for an IDE. In parallel, the Company is working with the Mayo Clinics
principal investigators to improve the clinical trial protocol for their Institutional Review Board.
In
July 2025 we applied for FDA IDE with an application approval containing new India human therapy data. In FDA August 2025 the FDA declined
approval based on their detailed questions/concerns. In November 2025 we participated in a Pre-Submission meeting focused on sterilization
to address their comments confirming completion of container closure integrity testing and to introduce the Agency to the Companys
enhanced Electron Beam (E-Beam) sterilization process for the RadioGel hydrogel to determine their reaction and recommendations.
To
maximize the probability of IDE approval on the next submission, in October 2025 the Company engaged one of the leading regulatory experts
in the field of brachytherapy and combination radiotherapy devices. This expert has over 25 years of direct experience guiding such products
through the FDAs Center for Devices and Radiological Health (CDRH), including prior senior roles within the FDAs Office
of Device Evaluation. He has a proven track record of leading successful IDE approvals for multiple Class III implantable radiation devices,
several of which were reviewed by the same Interventional Radiology and Oncology branch currently assigned to RadioGel. His in-depth
knowledge of this review teams expectations, historical precedents, and common deficiency patterns has been instrumental in shaping
the Companys regulatory strategy.
Currently,
the IDE is in preparation under this experts guidance. The Company is positioned to incorporate final FDA input and submit the
complete IDE application in the near term (targeted by the end of the first quarter or in April 2026). This experts proven ability
to present complex IDE data in a format that this specific review panel can easily digest and understand has strengthened the submission,
alongside integration of newly available human clinical data, reformatted pre-clinical information, and leveraging veterinary outcomes
from IsoPet (over 100 therapies with zero reportable serious adverse events). The Company remains encouraged by the constructive
ongoing dialogue with the FDA and is strongly positioned for IDE approval to advance human clinical trials.
The
Medical Advisory Board (*MAB*) selected 18 applications for RadioGel, each of which meet the criteria described
above. This large number confirms the wide applicability of the device and defines the path for future business growth. The Companys
application establishes a single Indication for Use - treatment of cancerous tissue or solid tumors pathologically associated with locoregional
papillary thyroid carcinoma and recurrent papillary thyroid carcinoma.
We
anticipate that this initial application will facilitate each subsequent application for additional Indications for Use. After the second
Indication for Use, our objective is to apply for a broad Indication for Use which we would target to obtain approval to treat all solid
tumors
*Radiogel
Device Designation:*
In
2014, the Company submitted a presubmission (Q130140) to obtain FDA feedback about the proposed product. The FDA requested that the Company
file a request for designation with the Office of Combination Products (RFD130051), which led to the determination that RadioGel
is a device for human therapy for non-resectable cancers, which must be reviewed and ultimately regulated by the Center for Devices and
Radiological Health (*CDRH*). The Company then submitted a 510(k) notice for RadioGel (K133368), which was
found Not Substantially Equivalent due to the lack of a suitable predicate, and RadioGel was assigned to the Class III product
code NAW (microspheres). Class III products or devices are generally the highest risk devices and are therefore subject to the highest
level of regulatory review, control, and oversight. Class III products or devices must typically be approved by FDA before they are marketed.
Class II devices represent lower risk products or devices than Class III and require fewer regulatory controls to provide reasonable
assurance of the devices safety and effectiveness. In contrast, Class I products and devices are deemed to be lower risk than
Class I or II, and are therefore subject to the least regulatory controls.
| 13 | |
A
pre-submission meeting (Q140496) was held with the FDA on June 17, 2014, during which the FDA maintained that RadioGel should
be considered a Class III device and therefore subject to pre-market approval. On December 29, 2014, the Company submitted a *de novo*petition for RadioGel (DEN140043). The *de novo* petition was denied by the FDA on June 1, 2015, with the FDA providing
numerous comments and questions. On September 29, 2015, the Company submitted a follow-up pre-submission informational meeting request
with the FDA (Q151569). This meeting took place on November 9, 2015, at which time the FDA indicated acceptance of the Companys
applied dosimetry methods and clarified the FDAs outstanding questions regarding RadioGel. Following the November 2015
pre-submission meeting, the Company prepared a new pre-submission package to obtain FDA feedback on the proposed testing methods, intended
to address the concerns raised by the FDA staff and to address the suitability of RadioGel for *de novo* reclassification.
This pre-submission package was presented to the FDA in a meeting on August 29, 2017. During the August 2017 meeting, the FDA clarified
their position on the remaining pre-clinical testing needed for RadioGel. Specifically, the FDA addressed proposed dosimetry calculating
techniques, dosimetry distribution between injections, hydrogel viscoelastic properties, and the details of the Companys proposed
animal testing.
**
**Product
Features**
The
Companys RadioGel device has the following product features:
| 
| 
| 
Beta
particles only travel a short distance so the device can deliver high radiation to the tumor with minimal dose to the nearby normal
tissues. In medical terms Y-90 beta emitter has a high efficacy rate; | |
| 
| 
| 
| |
| 
| 
| 
Benefitting
from the short penetration distance, the patient can go home immediately with no fear of exposure to family members, and there is
a greatly reduced radiation risk to the doctor. A simple plastic tube around the syringe, gloves and safety glasses are all that
is required. Other gamma emitting products require much more protection; | |
| 
| 
| 
| |
| 
| 
| 
A
2.7-day half-life means that only 5% of the radiation remains after ten days. This is in contrast to the industry-standard gamma
irradiation product, which has a half-life of 17 days; | |
| 
| 
| 
| |
| 
| 
| 
The
short half-life also means that any medical waste can be stored for thirty days then disposed as normal hospital waste; | |
| 
| 
| 
| |
| 
| 
| 
RadioGel
can be administered with small diameter needles (27-gauge) so there is minimal damage to the normal tissue. This contrasts with the
injection of metal seeds, which does considerable damage; and | |
| 
| 
| 
| |
| 
| 
| 
After
about 120 days the gel resorbs by a normal biological cycle, called the Krebs Cycle. The only remaining evidence of the treatment
are phosphate particles so small in diameter that it requires a high-resolution microscope to find them. This contrasts with permanent
presence of metal seeds. | |
**Steps
from Production to Therapy**
*Device
Production*
During
2025 the Company decided to expand its manufacturing capabilities and to target for on domestic and one international production center.
Several candidates were assessed.
*Production
of the Hydrogel*
RadioGel
is manufactured with a proprietary process under ventilated sterile hood by following strict Good Management Practices (*GMP*)
procedures. It is made in large batches that are frozen for up to three months. When the product is ready to ship, a small quantity of
the gel is dissolved in a sterile saline solution. It is then passed through an ultra-fine filter to ensure sterility. An alternate process
of E-Beam sterilization was developed and verified. Limited GDA recommended testing will be conducted next year to obtain FDA approval
for human therapy.
| 14 | |
*Production
of the Yttrium-90 Phosphate Particles*
The
Y-90 particles are produced with simple ingredients via a proprietary process, again following strict GMP procedures. They are then mixed
into a phosphate-buffered saline solution. They can be produced in large batches for several shipments. The number of particles per shipment
is determined by the dose prescribed by the doctor.
*Pre-Mixing
Ready to Use (RTU)*
The
Company now pre-mixes the particle solution and the hydrogel and places the RTU IsoPet in standard size vials. This innovation is
cost effective and reduces the probability of any accidental spills or biological contamination at the therapy sites. It also simplified
the certification training for new regional clinics.
*Shipment*
The
vials are shipped inside the specially designed plastic shipping pigs via FedEx or UPS, all following the proper protocols.
*At
the User*
The
quantities and activities are in the information on the product label.
The
specific injection technique described on the Instructions for Use. For small tumors, one centimeter in diameter or less, the cancer
is treated with a single injection. For larger tumors, the cancer is treated with a series of small injections from the same syringe
or multiple syringes.
**Principal
Markets**
The
Company is currently pursuing two synergistic business sectors, medical and veterinary, each of which are summarized below.
*Medical
Sector*
RadioGel
is currently fully developed, requiring only FDA approval before commercialization.
Building
on the FDAs ruling of RadioGel as a device, the Company incorporated the FDA suggestions and has invested in
the pre-clinical testing required for IDE submittal. This included two years of effort on biocompatibility testing. The last remaining
animal test has been completed, and the Company is engaged in the detailed sprint revie process, and the Company is engaged in the detailed
sprint revie process. It has recently utilized the pre-submission process and the expertise of a well-respected advisor.
Clinical
trials have initiated in India. It is anticipated that these data, when it is restructured and expanded, will help accelerate FDA approval
in the USA. We have applied for the regulatory approval to complete the remaining designated patients.
*Veterinary
Sector*
The
United States is home to approximately 163.6 million pet dogs and cats (with recent 2025 estimates from the American Veterinary Medical
Association (the *AVMA*) indicating about 87.3 million dogs and 76.3 million cats). Cancer remains a leading health
concern for these pets: roughly half of dogs over age 10 and a significant portion of older cats develop cancer, which is the number
one natural cause of death in senior dogs and cats, accounting for nearly 50% of pet deaths in many cases. The National Cancer Institute
and veterinary sources estimate that about 6 million dogs are diagnosed with cancer each year (more than 16,000 per day), with similar
high incidence in cats.
Product
development, application techniques, and animal testing for IsoPet (the veterinary branding of the yttrium-90 based therapy) are
permitted under FDA regulations. For commercial sales in animals, the FDAs Center for Veterinary Medicine (CVM) provides classification
guidance. In January 2018, the CVM Product Classification Group ruled that RadioGel (now marketed as IsoPet for veterinary
use) is classified as a medical device for animal therapy, initially for feline sarcomas and canine soft tissue sarcomas.
| 15 | |
Following
legal review, the Company believes this device classification is not strictly limited to those specific sarcomas but can extend to a
broader range of veterinary cancers, including most or all solid tumors in animals. As veterinary medical devices do not require premarket
approval, notification (e.g., 510(k)), or other premarket authorization from the FDA for commercial distribution in the United States,
IsoPet is authorized for marketing and use following this classificationprovided the product is safe, effective, properly
labeled, and compliant with all applicable laws and regulations. The FDA exercises no premarket authority over veterinary devices, placing
responsibility on manufacturers to ensure ongoing compliance. This classification enables the commercial distribution of IsoPet
for treating solid tumors in animals without additional regulatory approvals.
The
IsoPet division reported a 1,200% year-over-year increase in administered therapies from 2024 to 2025, as stated in the Companys
December 22, 2025, press release. This growth reflects accelerating nationwide adoption among veterinarians and pet owners seeking a
precise, minimally invasive, and cost-effective alternative to conventional radiation or surgery for solid tumors.
In
recent months, the Company has observed a significant increase in inbound inquiries from veterinarians and pet owners regarding access
to IsoPet therapy, indicating growing awareness and demand for this targeted Precision Radionuclide Therapy platform. Starting
in Q1 2026, the division is implementing profitability-focused initiatives, including billing clinics for certification training, applying
volume pricing to encourage broader adoption, refining production scheduling for efficiency, and continuing to expand the network of
certified clinics.
To
date, over 100 IsoPet treatments have been safely administered across dogs, cats, horses, and exotic animals, with zero reportable
serious adverse events attributable to the product. This veterinary clinical data supports ongoing commercialization efforts in the Animal
Therapy Division and provides supporting safety and efficacy evidence for the shared yttrium-90 platform in the RadioGel human program
(including contributions to the Breakthrough Device designation and the pending IDE resubmission).
With
17 certified clinics operational as of December 31, 2025, and additional interested sites in the pipeline, the Company is positioned
to continue building on this momentum through scaled adoption, operational efficiencies, and strategic outreach (such as conferences,
social media, and publications from case studies). These efforts support the target of achieving breakeven in the Animal Therapy Division
in 2026.
**Competitors**
The
Company competes in a market characterized by technological innovation, extensive research efforts, and significant competition.
The
pharmaceutical and biotechnology industries are intensely competitive and subject to rapid and significant technological changes. Several
companies are pursuing the development of pharmaceuticals and products that target the same diseases and conditions that our products
target. We cannot predict with accuracy the timing or impact of the introduction of potentially competitive products or their possible
effect on our sales. Certain potentially competitive products to our products may be in various stages of development. Also, there may
be many ongoing studies with currently marketed products and other developmental products, which may yield new data that could adversely
impact the use of our products in their current and potential future Indications for Use. The introduction of competitive products could
significantly reduce our sales, which, in turn would adversely impact our financial and operating results.
There
are a wide variety of cancer treatments approved and marketed in the U.S. and globally. General categories of treatment include surgery,
chemotherapy, radiation therapy and immunotherapy. These products have a diverse set of success rates and side effects. The Companys
Radiogel precision radionuclide therapy product would generally compete with brachytherapy devices currently marketed in the U.S.
and globally. The traditional iodine-125 (*I-125*) and palladium-103 (*Pd-103*) technologies are
well entrenched with powerful market players. The industry-standard I-125-based therapy was developed by Oncura, which is a unit of General
Electric Healthcare. Additionally, C.R. Bard, a major industry player competes in the I-125 marketplace. These market competitors are
also involved in the distribution of Pd-103 based products. Cs-131 brachytherapy products are marketed by GT MedTech. Several Y-90 therapies
have been FDA approved including SIR-Spheres by Sirtex, TheraSphere by Biocompatibles UK.
| 16 | |
**Raw
Materials**
The
Company currently subcontracts the manufacturing of RadioGel (and IsoPet) to its contract manufacturer in Texas (previously
IsoTherapeutics, acquired by Telix Pharmaceuticals in April 2024). This acquisition prompted the Company to accelerate plans for manufacturing
diversification to reduce dependency on a single provider and enhance supply chain resilience.
Eckert
& Ziegler serves as the sole supplier of yttrium-90 (Y-90), now sourced from their Massachusetts operations (previously from Germany).
The Company procures additional supplies, hardware, handling equipment, and packaging from various U.S. suppliers.
To
address single-source risks, the Company is advancing toward multiple production alternatives targeted for 2026 operational status:
| 
| One
domestic facility where Vivos will act as the manufacturer of record (contract signed for
space at the Applied Process Engineering Laboratory (APEL) in Richland, Washington; equipment
ordered, installation underway, and licensing applications submitted). | |
| 
| One
international facility (ongoing discussions with experienced radiopharmaceutical contract
manufacturers in India, aligned with Vivos Scientific India LLP (VSIL) activities to reduce
shipping costs and support global access). | |
The
Company will continue production with the existing Texas contract manufacturer through Q2 2026 to ensure continuity during the transition.
For
the hydrogel polymer component (PrecisionGel), the Company engaged Akina, Inc. as an alternate supplier in 2021. Efforts are underway
to further expand Akinas role to supply sterilized hydrogel (PrecisionGel), supporting manufacturing scalability and compliance
needs for both RadioGel (human) and IsoPet (veterinary) applications.
These
initiativesdetailed in the February 17, 2026, press release on manufacturing diversificationalign with the Companys
strategy to mitigate supply chain vulnerabilities, accommodate growing demand (particularly in the IsoPet division), and facilitate
broader commercialization following regulatory progress (e.g., pending IDE resubmission).
**Customers**
The
Company anticipates that potential customers for its Precision Radionuclide Therapy (PRnT) productsRadioGel
for human applications and IsoPet for veterinary usewill primarily include institutions and individuals already utilizing
brachytherapy or other oncology treatments. For the veterinary market (IsoPet), this encompasses certified veterinary clinics, university
veterinary hospitals, specialty animal oncology centers, and private practices treating small animals (dogs and cats), equine patients
(horses), and exotic species. Adoption has accelerated nationwide, with 17 certified regional clinics operational as of December 31,
2025, including academic institutions like the University of Florida (both small and large animal hospitals), Johns Hopkins University
Veterinary Clinical Trials Network, University of Missouri, University of Wisconsin, University of Illinois, and private facilities such
as Vista Veterinary Hospital, NorthStar VETS, and Sun City Veterinary Surgical Center. These clinics serve pet owners seeking minimally
invasive, targeted alternatives to traditional surgery or external radiation for solid tumors.
For
human applications (RadioGel), potential customers would include hospitals, oncology centers, interventional radiologists, and medical
professionals treating non-resectable solid tumors, particularly in challenging anatomical locations. The therapys precisiondelivering
localized beta radiation via direct injection while minimizing exposure to healthy tissuepositions it as a compelling option for
institutions focused on advanced radiotherapy.
The
veterinary and medical communities are expected to recognize Precision Radionuclide Therapy as an effective treatment for many
solid tumors, supported by real-world veterinary data (over 100 safe treatments with zero reportable serious adverse events) and ongoing
human demonstrations in India. Growing inbound inquiries from veterinarians, pet owners, and medical professionals, along with clinic
expansions, publications from case studies, and marketing efforts (e.g., conferences, social media, and dedicated websites), are driving
broader awareness and demand across both markets. The Companys strategy emphasizes direct sales to certified clinics (veterinary)
and eventual partnerships or institutional adoption (human), with scalability enhanced by manufacturing diversification targeted for
2026.
| 17 | |
**Government
Regulation**
The
Companys present and future intended activities in the development, manufacturing, and sale of cancer therapy products, including
RadioGel, are subject to extensive laws, regulations, regulatory approvals, and guidelines. Within the United States,
the Companys therapeutic radiological devices must comply with the U.S. Federal Food, Drug and Cosmetic Act, which is enforced
by FDA. The Company is also required to adhere to applicable FDA Quality System Regulations, also known as the Good Manufacturing Practices,
which include extensive record keeping and periodic inspections of manufacturing facilities.
In
the United States, the FDA regulates, among other things, new product clearances and approvals to establish the safety and efficacy of
these products. We are also subject to other federal and state laws and regulations, including the Occupational Safety and Health Act
and the Environmental Protection Act.
The
Federal Food, Drug, and Cosmetic Act and other federal statutes and regulations govern or influence the research, testing, manufacture,
safety, labeling, storage, record keeping, approval, distribution, use, reporting, advertising, and promotion of such products. Noncompliance
with applicable requirements can result in civil penalties, recall, injunction or seizure of products, refusal of the government to approve
or clear product approval applications, disqualification from sponsoring or conducting clinical investigations, preventing us from entering
government supply contracts, withdrawal of previously approved applications, and criminal prosecution.
In
the United States, medical devices are classified into three different categories over which the FDA applies increasing levels of regulation:
Class I, Class II, and Class III. Most Class I devices are exempt from premarket notification 510(k); most Class II devices require premarket
notification 510(k); and most Class III devices require premarket approval. RadioGel is currently classified as a Class
III device.
Approval
of new Class III medical devices is a lengthy procedure and can take several years and require the expenditure of significant resources.
There is a shorter FDA review and clearance process for Class II medical devices, the premarket notification or 510(k) process, whereby
a company can market certain Class II medical devices that can be shown to be substantially equivalent to other legally marketed devices.
As
a registered medical device manufacturer with the FDA, we are subject to inspection to ensure compliance with FDAs current Good
Manufacturing Practices, or cGMP. These regulations require that we and any of our contract manufacturers design, manufacture, and service
products, and maintain documents in a prescribed manner with respect to manufacturing, testing, distribution, storage, design control,
and service activities. Modifications or enhancements that could significantly affect the safety or effectiveness of a device or that
constitute a major change to the intended use of the device require a new 510(k) premarket notification for any significant product modification.
The
Medical Device Reporting regulation requires that we provide information to the FDA on deaths or serious injuries alleged to be associated
with the use of our devices, as well as product malfunctions that are likely to cause or contribute to death or serious injury if the
malfunction were to recur. Labeling and promotional activities are regulated by the FDA and, in some circumstances, by the Federal Trade
Commission.
As
a medical device manufacturer, we are also subject to laws and regulations administered by governmental entities at the federal, state,
and local levels. For example, our facility is licensed as a medical device manufacturing facility in the State of Washington and is
subject to periodic state regulatory inspections. Our customers are also subject to a wide variety of laws and regulations that could
affect the nature and scope of their relationships with us.
In
the United States, as a manufacturer of medical devices and devices utilizing radioactive byproduct material, we are subject to extensive
regulation by not only federal governmental authorities, such as the FDA and FAA, but also by state and local governmental authorities,
such as the Washington State Department of Health, to ensure such devices are safe and effective. In Washington State, the Department
of Health, by agreement with the federal Nuclear Regulatory Commission (*NRC*), regulates the possession, use, and
disposal of radioactive byproduct material as well as the manufacture of radioactive sealed sources to ensure compliance with state and
federal laws and regulations. RadioGel constitutes both medical devices and radioactive sealed sources and are subject
to these regulations.
Moreover,
our use, management, and disposal of certain radioactive substances and wastes are subject to regulation by several federal and state
agencies depending on the nature of the substance or waste material. We believe that we follow all federal and state regulations for
this purpose.
Vivos
Inc has applied to Washington state for the manufacturing license to produce IsoPet and RadioGel.
| 18 | |
**Environmental
Regulation**
Our
business does not require us to comply with any extraordinary environmental regulations. Our RadioGel product is manufactured
in an independently owned and operated facility. Any environmental effects or contamination event that could result would be from the
shipping company during shipment and misuse by the treatment facility upon arrival.
Future
operations in APEL have minimal environmental risk and are covered by liability insurance.
**Human
Capital**
Since
2017, the Company has followed the cost-effective model of having had one full-time employee, the CEO. The Company utilizes several independent
contractors to assist with its operations. This includes key positions, such as acting CFO and Quality Assurance Manager. The Company
does not have a collective bargaining agreement with any of its personnel and believes its relations with its personnel are good. This
enables the Company to operate on very low overhead, for cost-effective utilization of its investment and to manage our work scope like
projects.
In
September 2025 the Companys brought on a full-time President to assist the CEO in managing the Company which includes expansion
both domestically and internationally.
**Available
Information**
The
Company prepares and files annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and certain other
information with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC at http://www.sec.gov. Moreover, the Company maintains a website at http://www.RadioGel.com
that contains important information about the Company, including biographies of key management personnel, as well as information about
the Companys business. This information is publicly available and is updated regularly. The content on any website referred to
in this Annual Report is not incorporated by reference into this Annual Report, unless (and only to the extent) expressly so stated herein.
****
**ITEM
1A. RISK FACTORS.**
*Investing
in our common stock involves a high degree of risk. You should carefully consider the risks described below, as well as the other information
in this Annual Report, including our financial statements and the related notes and Managements Discussion and Analysis
of Financial Condition and Results of Operations, before deciding whether to invest in our securities. The occurrence of any of
the events or developments described below could harm our business, financial condition, operating results, and growth prospects. In
such an event, the market price of our common stock could decline, and you may lose all or part of your investment. Additional risks
and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations.*
**RISKS
ASSOCIATED WITH THE COMPANYS BUSINESS**
**Our
independent registered public accounting firms reports on its financial statements questions the Companys ability to continue
as a going concern.**
The
Companys independent registered public accounting firms reports on the Companys financial statements for the years
ended December 31, 2025 and 2024 express substantial doubt about the Companys ability to continue as a going concern. The reports
include an explanatory paragraph stating that the Company has suffered recurring losses, used significant cash in support of its operating
activities and based on its current operating levels, require additional capital or restructuring to sustain its operation for the foreseeable
future. There is no assurance that the Company will be able to obtain sufficient additional capital to continue its operations and to
alleviate doubt about its ability to continue as a going concern. If the Company obtains additional financing, such funds may not be
available on favorable terms and likely would entail considerable dilution to existing shareholders. Any debt financing, if available,
may involve restrictive covenants that restrict its ability to conduct its business. It is extremely remote that the Company could obtain
any financing on any basis that did not result in considerable dilution for shareholders. Inclusion of a going concern qualification
in the report of its independent accountants or in any future report may have a negative impact on our ability to obtain debt or equity
financing and may adversely impact our stock price.
| 19 | |
**A
combination of our current financial condition and the United States Food and Drug Administrations (FDA) determinations
to date regarding Radiogel raise material concerns about ability to continue as a going concern.**
The
Company will not be able to continue as a going concern unless the Company obtains financing. Depending upon the amount of financing,
if any, the Company can obtain, the Company may not receive adequate funds to continue the approval process for RadioGel or other
precision radionuclide therapy products with the FDA, which would disrupt our business operations or derail our business strategy, and
materially and adversely affect our business, financial condition, and results of operations.
**The
Company has generated operating losses since inception, which are expected to continue, and has increasing cash requirements, which it
may be unable to satisfy.**
The
Company has generated material operating losses since inception. The Company has had recurring net losses since inception which has resulted
in an accumulated deficit of $88,427,246 and $85,361,229 as of December 31, 2025 and 2024, respectively, including net losses of $3,066,017
and $2,910,448 for the years ended December 31, 2025 and 2024, respectively. Historically, the Company has relied upon investor funds
to maintain its operations and develop its business. The Company needs to raise additional capital from investors for working capital
as well as business expansion, and there is no assurance that additional investor funds will be available on terms acceptable to the
Company, or at all. If the Company is unable to unable to obtain additional financing to meet its working capital requirements, the Company
likely would cease operations.
The
Company requires additional funding of approximately $3.0 million annually to maintain operating activities. Over the next 36 months,
the Company believes it will require approximately $9.0 million in additional capital to: (i) fund the FDA approval process to conduct
human clinical trials; (ii) conduct Phase I, pilot, clinical trials; (iii) activate several regional clinics to administer IsoPet
across the U.S.; (iv) create an independent production center within the current production site to create a template for future
international manufacturing; and (v) initiate regulatory approval processes outside of the United States.
The
continued deployment of precision radionuclide therapy products and a worldwide regulatory approval effort will require additional resources
and personnel. The principal variables in the timing and amount of spending for the precision radionuclide therapy products in the next
12 to 24 months will be the FDAs classification of the Companys precision radionuclide therapy products as Class II or
Class III devices (or otherwise) and any requirements for additional studies which may possibly include clinical studies. Thereafter,
the principal variables in the amount of the Companys spending and its financing requirements would be the timing of any approvals
and the nature of the Companys arrangements with third parties for manufacturing, sales, distribution and licensing of those products
and the products success in the U.S. and elsewhere. The Company intends to fund its activities through strategic transactions
such as licensing and partnership agreements or from proceeds raised from the Regulation A+ Offerings.
Recent
geopolitical events, including the inherent instability and volatility in global capital markets, as well as the lack of liquidity in
the capital markets, could also impact the Companys ability to obtain financing and its ability to execute its business plan.
Recent
economic events, the inherent instability in global capital markets, as well as the lack of liquidity in the capital markets, could adversely
impact the Companys ability to obtain financing and its ability to execute its business plan, which would materially and adversely
affect our business and operations.
**The
Company has a limited operating history, which may make it difficult to evaluate its business and prospects.**
The
Company has a limited operating history upon which one can base an evaluation of its business and prospects. As a company in the development
stage, there are substantial risks, uncertainties, expenses, and difficulties to which its business is subject. To address these risks
and uncertainties, the Company must do the following:
| 
| 
| 
successfully
develop and execute the business strategy; | |
| 
| 
| 
| |
| 
| 
| 
respond
to competitive developments; and | |
| 
| 
| 
| |
| 
| 
| 
attract,
integrate, retain, and motivate qualified personnel. | |
| 20 | |
There
is no assurance that the Company will achieve or maintain profitable operations or that the Company will obtain or maintain adequate
working capital to meet its obligations as they become due. The Company cannot be certain that its business strategy will be successfully
developed and implemented or that the Company will successfully address the risks that face its business. If the Company does not successfully
address these risks, its business, prospects, financial condition, and results of operations could be materially and adversely affected.
**The
Companys products are regulated and require appropriate clearances and approvals to be marketed in the U.S. and globally.**
There
is no assurance the FDA or other global regulatory authorities will grant the Company permission to market the Companys precision
radionuclide therapy Y-90 RadioGel device.
The
Company has repeatedly attempted to gain FDA approval for the IDE and obtain clearance for its precision radionuclide therapy Y-90 RadioGelTM
device, but no assurances have been received.
The
next attempt to submit an IDE request is targeted to be submitted in the near future buttressed by additional animal and human therapy
communicated using the recommend format of a well-respected FDA advisor.
On
December 23, 2014, the Company announced that it submitted a *de novo* application to the FDA for marketing clearance for its patented
Y-90 RadioGelTM device pursuant to Section 513(f)(2) of the U.S. Food, Drug and Cosmetic Act (the *Act*).
In June 2015, the FDA notified the Company the *de novo* application was not granted. In February 2014, the FDA found the same device
under Section 510(k) of the Act not substantially equivalent and concluded that the device is classified by statute as a Class III medical
device, unless the device is reclassified. The Company is seeking reclassification of the product to Class II. If the Company is successful
in seeking reconsideration of the Companys *de novo* application, as a regulatory matter, the device could be on an easier
and faster path to market in the United States. However, there would still be the requirements to complete the in vitro and in vivo testing,
and then some human clinical trials. That testing date is submitted in a de novo pre-market application and if accepted we could then
go to market. As a practical matter, the Company would still need to secure funding and commercial arrangements before marketing could
commence. If the *de novo* application is declined and if the Company obtains funding to permit it to continue operations, the Company
will explore steps toward seeking approval for the device as a Class III medical device. Generally, the time and cost of seeking approval
as a Class III medical device is materially greater than the time and cost of seeking approval as a Class II medical device. If the Company
seeks approval as a Class III device, human clinical trials will be necessary. Generally, human trials for Class III products are larger,
of longer duration and costlier than those for Class II devices.
There
will be additional cost and time to reach marketing clearance or approval. Unless the Company obtains sufficient funding, it will be
unable to undertake such activities. There can be no assurance that the product will be approved as either a Class II or Class III device
by the FDA even if additional data is provided. There can be no assurance that the Company will receive FDA approval, or if it does,
the timing thereof.
****
**If
the Company is successful in increasing the size of its organization, the Company may experience difficulties in managing growth.**
The
Company is a small organization with a minimal number of employees. If the Company is successful, it may experience a period of significant
expansion in headcount, facilities, infrastructure and overhead and further expansion may be required to address potential growth and
market opportunities. Any such future growth will impose significant added responsibilities on members of management, including the need
to improve the Companys operational and financial systems and to identify, recruit, maintain and integrate additional managers.
The Companys future financial performance and its ability to compete effectively will depend, in part, on the ability to manage
any future growth effectively.
**The
Companys business is dependent upon the continued services of the Companys Chief Executive Officer, Michael Korenko. Should
the Company lose the services of Dr. Korenko, the Companys operations will be negatively impacted.**
The
Companys business is dependent upon the expertise of its Chief Executive Officer, Michael Korenko. Dr. Korenko is essential to
the Companys operations. Accordingly, an investor must rely on Dr. Korenkos management decisions that will continue to
control the Companys business affairs. The Company does not maintain life insurance on Dr. Korenkos life. The loss of the
services of Dr. Korenko would have a material adverse effect upon the Companys business.
| 21 | |
To
mitigate this risk Dr. Korenko has been working with two internal candidates with the potential to seamlessly assume authority. Both
David Swanberg, Chief Operating Officer of the Company, and Brad Weeks, President of the Company, have been identified as high potential
candidates to succeed Dr. Korenko. See *Directors, Executive Officers and Significant Consultants* on page 36.
**The
Company is heavily dependent on consultants for many of the services necessary to continue operations. The loss of any of these consultants
could have a material adverse effect on the Companys business, results of operations and financial condition.**
The
Companys success is heavily dependent on the continued active participation of certain consultants and collaborating scientists.
Loss of the services of any one or more of its consultants could have a material adverse effect upon the Companys business, results
of operations and financial condition.
**If
the Company is unable to hire and retain additional qualified personnel, the business and financial condition may suffer.**
The
Companys success and achievement of its growth plans depend on its ability to recruit, hire, train and retain highly qualified
technical, scientific, regulatory, and managerial employees, consultants, and advisors. Competition for qualified personnel among pharmaceutical
and biotechnology companies is intense, and an inability to attract and motivate additional highly skilled personnel required for the
expansion of the Companys activities, or the loss of any such persons, could have a material adverse effect on its business, results
of operations and financial condition.
**The
Companys revenues have historically been derived from sales made to a small number of customers. The Company has discontinued
prior operations related to its core business. To succeed, we will need to recommence our operations and achieve sales to a materially
larger number of customers.**
The
Companys revenues relate to their commercializing of its products and procedures performed. The Company had $68,379 and $27,995
in operating revenues, net of discounts, and the years ended December 31, 2025 and 2024, respectively
**Many
of the Companys competitors have greater resources and experience than the Company has.**
Many
of the Companys competitors have greater financial resources, longer history, broader experience, greater name recognition, and
more substantial operations than the Company has, and they represent substantial long-term competition for us. The Companys competitors
may be able to devote more financial and human resources than the Company can to research, new product development, regulatory approvals,
and marketing and sales. The Companys competitors may develop or market products that are viewed by customers as more effective
or more economical than the Companys products. There is no assurance that the Company will be able to compete effectively against
current and future competitors, and such competitive pressures may adversely affect the Companys business and results of operations.
**The
Companys future revenues depend upon acceptance of its current and future products in the markets in which they compete.**
The
Companys future revenues depend upon receipt of financing, regulatory approval and the successful production, marketing, and sales
of the various isotopes the Company might market in the future. The rate and level of market acceptance of each of these products, if
any, may vary depending on the perception by physicians and other members of the healthcare community of its safety and efficacy as compared
to that of any competing products; the clinical outcomes of any patients treated; the effectiveness of its sales and marketing efforts
in the United States, Europe, Far East, Middle East, and Russia; any unfavorable publicity concerning its products or similar products;
the price of the Companys products relative to other products or competing treatments; any decrease in current reimbursement rates
from the Centers for Medicare and Medicaid Services or third-party payers; regulatory developments related to the manufacture or continued
use of its products; availability of sufficient supplies to either purchase or manufacture its products; its ability to produce sufficient
quantities of its products; and the ability of physicians to properly utilize its products and avoid excessive levels of radiation to
patients. Any material adverse developments with respect to the commercialization of any such products may adversely affect revenues
and may cause the Company to continue to incur losses in the future.
| 22 | |
**The
Company currently relies on a single supplier for Y-90 particles, and that supplier is the only supplier in the United States. An inability
to procure Y-90 particles will materially harm the Companys business.**
There
is only one supplier of Y-90 particles in the United States, requiring us to rely entirely on this supplier to provide the Y-90 particles
needed to produce RadioGelTM. If we are unable to obtain a sufficient supply of Y-90 particles, we will not be able to proceed
with our development of RadioGelTM and our business would be materially harmed.
Eckert
and Ziegler is the sole supplier of the Y-90 particles used by IsoTherapeutics and is the only supplier of Y-90 particles in the United
States. In the event Eckert & Ziegler is unable to satisfy our supply requirements or stope producing Y-90 particles, we will be
unable to continue with development of RadioGel and our business would be materially harmed.
**The
Company relies on a sole manufacturing contact with IsoTherapeutics.**
The
Company currently relies on a single contract manufacturer in Texas (previously IsoTherapeutics, acquired by Telix Pharmaceuticals in
April 2024) for the production of RadioGel and IsoPet, including the yttrium-90 (Y-90) phosphate particles and their integration
with sterile hydrogel to create individual patient doses. This arrangement has been identified as a risk factor in prior corporate filings
due to potential single-source vulnerabilities.
To
mitigate these risks and support scalable growth, the Company is actively diversifying its manufacturing base. For the domestic side,
Vivos has signed a contract for production space at the Applied Process Engineering Laboratory (APEL) in Richland, Washington, where
the Company will serve as the manufacturer of record. Equipment has been ordered, installation is underway, and licensing applications
have been submitted to enable operational readiness.
For
international production, the Company is in ongoing discussions with experienced radiopharmaceutical contract manufacturers in India,
aligned with the activities of Vivos Scientific India LLP (VSIL), to establish a second facility. These efforts aim to reduce shipping
costs, improve logistical efficiency, and expand global market access for both RadioGel (human) and IsoPet (veterinary) therapies.
The
Companys strategic target is to have one domestic production facility (with Vivos as manufacturer of record) and one international
production facility operational in 2026. Production with the existing Texas contract manufacturer will continue through Q2 2026 to ensure
continuity during the transition.
In
parallel, the Company has secured alternate suppliers for the hydrogel polymer component (PrecisionGel), including Akina, Inc.
(engaged in 2021 and expanding to supply sterilized hydrogel) and SciPoly. For particle production, Vivos is actively assessing both
domestic and international candidates to develop additional alternatives beyond the current arrangement. These diversification stepsannounced
in the February 17, 2026, press releaseaddress sole-source dependencies, accommodate increasing demand (particularly in the IsoPet
division), and support broader commercialization following regulatory advancements.
**The
Company will rely heavily on a limited number of suppliers for the foreseeable future.**
Some
of the products the Company might market, and components thereof, are currently available only from a limited number of suppliers, several
of which are international suppliers. Failure to obtain deliveries from these sources would have a material adverse effect on the Companys
ability to operate.
**The
Company may incur material losses and costs because of product liability claims that may be brought against it.**
The
Company faces an inherent business risk of exposure to product liability claims if products supplied by the Company fail to perform as
expected or such products result, or is alleged to result, in bodily injury. Any such claims may also result in adverse publicity, which
could damage the Companys reputation by raising questions about the safety and efficacy of its products and could interfere with
its efforts to market its products. A successful product liability claim against the Company more than its available insurance coverage
or established reserves may have a material adverse effect on its business. Although the Company currently maintains liability insurance
in amounts it believes are commercially reasonable, any product liability the Company may incur may exceed its insurance coverage.
**The
Company is subject to the risk that certain third parties may mishandle the Companys products.**
If
the Company markets products, the Company likely will rely on third parties, such as commercial air courier companies, to deliver the
products, and on other third parties to package the products in certain specialized packaging forms requested by customers. The Company
thus would be subject to the risk that these third parties may mishandle its product, which could result in material adverse effects,
particularly given the radioactive nature of some of the products.
****
****
| 23 | |
****
**The
Company is subject to uncertainties regarding reimbursement for use of its products.**
Hospitals
and freestanding clinics may be less likely to purchase the Companys products if they cannot be assured of receiving favorable
reimbursement for treatments using its products from third-party payers, such as Medicare and private health insurance plans. Third-party
payers are increasingly challenging the pricing of certain medical services or devices, and there is no assurance that they will reimburse
the Companys customers at levels sufficient for it to maintain favorable sales and price levels for the Companys products.
There is no uniform policy on reimbursement among third-party payers, and there is no assurance that the Companys products will
continue to qualify for reimbursement from all third-party payers or that reimbursement rates will not be reduced. A reduction in or
elimination of third-party reimbursement for treatments using the Companys products would likely have a material adverse effect
on the Companys revenues.
**The
Companys future growth is largely dependent upon its ability to develop new technologies that achieve market acceptance with appropriate
margins.**
The
Companys business operates in global markets that are characterized by rapidly changing technologies and evolving industry standards.
Accordingly, future growth rates depend upon several factors, including the Companys ability to (i) identify emerging technological
trends in the Companys target end-markets, (ii) develop and maintain competitive products, (iii) enhance the Companys products
by adding innovative features that differentiate the Companys products from those of its competitors, and (iv) develop, manufacture,
and bring products to market quickly and cost-effectively. The Companys ability to develop new products based on technological
innovation can affect the Companys competitive position and requires the investment of significant resources. These development
efforts divert resources from other potential investments in the Companys business, and they may not lead to the development of
new technologies or products on a timely basis or that meet the needs of the Companys customers as fully as competitive offerings.
In addition, the markets for the Companys products may not develop or grow as it currently anticipates. The failure of the Companys
technologies or products to gain market acceptance due to more attractive offerings by the Companys competitors could significantly
reduce the Companys revenues and adversely affect the Companys competitive standing and prospects.
**The
Company may rely on third parties to represent it locally in the marketing and sales of its products in international markets and its
revenue may depend on the efforts and results of those third parties.**
The
Companys future success may depend, in part, on its ability to enter and maintain collaborative relationships with one or more
third parties, the collaborators strategic interest in the Companys products and the Companys products under development,
and the collaborators ability to successfully market and sell any such products.
The
Company intends to pursue collaborative arrangements regarding the marketing and sales of its products; however, it may not be able to
establish or maintain such collaborative arrangements, or if it is able to do so, the Companys collaborators may not be effective
in marketing and selling its products. To the extent that the Company decides not to, or is unable to, enter collaborative arrangements
with respect to the sales and marketing of its products, significant capital expenditures, management resources and time will be required
to establish and develop an in-house marketing and sales force with technical expertise. To the extent that the Company depends on third
parties for marketing and distribution, any revenues received by the Company will depend upon the efforts and results of such third parties,
which may or may not be successful.
**The
Company may pursue strategic acquisitions that may have an adverse impact on its business.**
Executing
the Companys business strategy may involve pursuing and consummating strategic transactions to acquire complementary businesses
or technologies. In pursuing these strategic transactions, even if the Company does not consummate them, or in consummating such transactions
and integrating the acquired business or technology, the Company may expend significant financial and management resources and incur
other significant costs and expenses. There is no assurance that any strategic transactions will result in additional revenues or other
strategic benefits for the Companys business. The Company may issue shares of the Companys stock as consideration for acquisitions,
joint ventures or other strategic transactions, and the use of stock as purchase consideration could dilute the interests of its current
stockholders. In addition, the Company may obtain debt financing in connection with an acquisition. Any such debt financing may involve
restrictive covenants relating to capital-raising activities and other financial and operational matters, which may make it more difficult
for the Company to obtain additional capital and pursue business opportunities, including potential acquisitions. In addition, such debt
financing may impair the Companys ability to obtain future additional financing for working capital, capital expenditures, acquisitions,
general corporate or other purposes, and a substantial portion of cash flows, if any, from the Companys operations may be dedicated
to interest payments and debt repayment, thereby reducing the funds available to the Company for other purposes.
****
****
| 24 | |
****
**The
Company will need to hire additional qualified accounting personnel in order to remediate a material weakness in its internal control
over financial accounting, and the Company will need to expend any additional resources and efforts that may be necessary to establish
and to maintain the effectiveness of its internal control over financial reporting and its disclosure controls and procedures.**
As
a public company, the Company is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, and the Sarbanes-Oxley
Act of 2002. The Companys management is required to evaluate and disclose its assessment of the effectiveness of the Companys
internal control over financial reporting as of each year-end, including disclosing any material weakness in the Companys
internal control over financial reporting. A material weakness is a control deficiency, or combination of control deficiencies, that
results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented
or detected. As a result of its assessment, management has determined that there is a material weakness due to the lack of segregation
of duties and, due to this material weakness, management concluded that, as of December 31, 2025 and 2024, the Companys internal
control over financial reporting was ineffective. This material weakness has the potential of adversely impacting the Companys
financial reporting process and the Companys financial reports. Because of this material weakness, management also concluded that
the Companys disclosure controls and procedures were ineffective as of December 31, 2025 and 2024. The Company has engaged the
services of both internal accounting and tax providers to resolve this material weakness. The Company also will need to expend any additional
resources and efforts that may be necessary to establish and to maintain the effectiveness of the Companys internal control over
financial reporting and disclosure controls and procedures.
**The
Companys patented or other technologies may infringe on other patents, which may expose us to costly litigation.**
It
is possible that the Companys patented or other technologies may infringe on patents or other rights owned by others. The Company
may have to alter its products or processes, pay licensing fees, defend infringement actions or challenge the validity of the patents
in court, or cease activities altogether because of patent rights of third parties, thereby causing additional unexpected costs and delays
to the Company. Patent litigation is costly and time consuming, and the Company may not have sufficient resources to pursue such litigation.
If the Company does not obtain a license under such patents, if it is found liable for infringement, or if it is not able to have such
patents declared invalid, the Company may be liable for significant money damages, may encounter significant delays in bringing products
to market or may be precluded from participating in the manufacture, use or sale of products or methods of treatment requiring such licenses.
**Protecting
the Companys intellectual property is critical to its innovation efforts.**
The
Company owns or has a license to use several U.S. and foreign patents and patent applications, trademarks, and copyrights. The Companys
intellectual property rights may be challenged, invalidated, or infringed upon by third parties, or it may be unable to maintain, renew
or enter new licenses of third party proprietary intellectual property on commercially reasonable terms. In some non-U.S. countries,
laws affecting intellectual property are uncertain in their application, which can adversely affect the scope or enforceability of the
Companys patents and other intellectual property rights. Any of these events or factors could diminish or cause the Company to
lose the competitive advantages associated with the Companys intellectual property, subject the Company to judgments, penalties,
and significant litigation costs, or temporarily or permanently disrupt its sales and marketing of the affected products or services.
**The
Company may not be able to protect its trade secrets and other unpatented proprietary technology, which could give competitors an advantage.**
The
Company relies upon trade secrets and other unpatented proprietary technology. The Company may not be able to adequately protect its
rights about such unpatented proprietary technology, or competitors may independently develop substantially equivalent technology. The
Company seeks to protect trade secrets and proprietary knowledge, in part through confidentiality agreements with its employees, consultants,
advisors and collaborators. Nevertheless, these agreements may not effectively prevent disclosure of the Companys confidential
information and may not provide the Company with an adequate remedy in the event of unauthorized disclosure of such information, and
as result the Companys competitors could gain a competitive advantage.
| 25 | |
**The
Company is subject to extensive government regulation in jurisdictions around the world in which it does business. Regulations address,
among other things, environmental compliance, import/export restrictions, healthcare services, taxes and financial reporting, and those
regulations can significantly increase the cost of doing business, which in turn can negatively impact operations, financial results,
and cash flow.**
If
the Company is successful in developing manufacturing capability, the Company will be subject to extensive government regulation and
intervention both in the U.S. and in all foreign jurisdictions in which it conducts business. Compliance with applicable laws and regulations
will result in higher capital expenditures and operating costs, and changes to current regulations with which the Company complies can
necessitate further capital expenditures and increases in operating costs to enable continued compliance. Additionally, from time to
time, the Company may be involved in proceedings under certain of these laws and regulations. Foreign operations are subject to political
instabilities, restrictions on funds transfers, import/export restrictions, and currency fluctuation.
**RISKS
RELATED TO THE COMPANYS COMMON STOCK**
**The
Companys common stock is currently quoted on the OTCQB Marketplace. Failure to develop or maintain a more active trading market
may negatively affect the value of the Companys common stock, may deter some potential investors from purchasing the Companys
common stock or other equity securities, and may make it difficult or impossible for stockholders to sell their shares of common stock.**
The
Companys average daily volume of shares traded for the years ended December 31, 2025 and 2024 was 1,085,874 and 1,268,973, respectively.
Failure to develop or maintain an active trading market may negatively affect the value of the Companys common stock, may make
some potential investors unwilling to purchase the Companys common stock or equity securities that are convertible into or exercisable
for the Companys common stock, and may make it difficult or impossible for the Companys stockholders to sell their shares
of common stock and recover any part of their investment.
**The
Companys outstanding securities, the stock or other securities that it may become obligated to issue under existing agreements,
and certain provisions of those securities, may cause immediate and substantial dilution to existing stockholders and may make it more
difficult to raise additional equity capital.**
The
Company had 455,494,238 shares of common stock outstanding as of December 31, 2025. The Company also had outstanding on that date dilutive
securities consisting of preferred stock, restricted stock units, options, and warrants (collectively, *Common Stock Equivalents*)
that if they had been exercised and converted in full on December 31, 2025, would have resulted in the issuance of up to 81,927,379 additional
shares of common stock. The issuance of shares upon the exercise of the Common Stock Equivalents may result in substantial dilution to
each stockholder by reducing that stockholders percentage ownership of the Companys total outstanding shares of common
stock. The issuance of some or all those warrants and any exercise of those warrants will have the effect of further diluting the percentage
ownership of the Companys other stockholders.
**Future
sales of the Companys securities, including sales following exercise or conversion of derivative securities, or the perception
that such sales may occur, may depress the price of common stock, and could encourage short sales.**
The
sale or availability for sale of substantial amounts of the Companys shares in the public market, including shares issuable upon
exercise of the Common Stock Equivalents, or the perception that such sales may occur, may adversely affect the market price of the Companys
common stock. Any decline in the price of the Companys common stock may encourage short sales, which could place further downward
pressure on the price of the Companys common stock.
****
**The
Companys stock price is likely to be volatile.**
For
the year ended December 31, 2025, the reported low closing price for the Companys common stock was $0.055 per share, and the reported
high closing price was $0.1634 per share. For the year ended December 31, 2024, the reported low closing price for the Companys
common stock was $0.049 per share, and the reported high closing price was $0.255 per share. There is generally significant volatility
in the market prices, as well as limited liquidity, of securities of early-stage companies, particularly early-stage medical product
companies. Contributing to this volatility are various events that can affect the Companys stock price in a positive or negative
manner. These events include, but are not limited to: governmental approvals, refusals to approve, regulations or other actions; market
acceptance and sales growth of the Companys products; litigation involving the Company or the Companys industry; developments
or disputes concerning the Companys patents or other proprietary rights; changes in the structure of healthcare payment systems;
departure of key personnel; future sales of its securities; fluctuations in its financial results or those of companies that are perceived
to be similar to us; investors general perception of us; and general economic, industry and market conditions. If any of these
events occur, it could cause the Companys stock price to fall, and any of these events may cause the Companys stock price
to be volatile.
| 26 | |
**The
Companys common stock is subject to the Penny Stock rules of the SEC and the trading market in its securities is
limited, which makes transactions in its common stock cumbersome and may reduce the value of an investment in the Companys stock.**
The
SEC has adopted Rule 3a51-1, which establishes the definition of a penny stock, for the purposes relevant to us, as any
equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject
to certain exceptions. For any transaction involving a penny stock, unless exempt, Rule 15g-9 requires that a broker or dealer approve
a persons account for transactions in penny stocks and that the broker or dealer receive from the investor a written agreement
to the transaction, setting forth the identity and quantity of the penny stock to be purchased.
To
approve a persons account for transactions in penny stocks, the broker or dealer must obtain financial information and investment
experience and objectives of the person and must make a reasonable determination that the transactions in penny stocks are suitable for
that person and that the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of
transactions in penny stocks.
The
broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating to
the penny stock market, which sets forth the basis on which the broker or dealer made the suitability determination, and that the broker
or dealer received a signed, written agreement from the investor prior to the transaction.
Generally,
brokers may be less willing to execute transactions in securities subject to the penny stock rules. This may make it more
difficult for investors to dispose of the Companys common stock and may cause a decline in the market value of its stock.
Disclosure
also must be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the commissions
payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies
available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements must be sent disclosing recent price
information for the penny stock held in the account and information on the limited market in penny stocks.
**As
a result of the Company issuing preferred stock, the rights of holders of the Companys common stock and the value of the Companys
common stock may be adversely affected.**
The
Companys Board of Directors is authorized to issue classes or series of preferred stock, without any action on the part of the
stockholders. The Companys Board of Directors also has the power, without stockholder approval, to set the terms of any such classes
or series of preferred stock, including voting rights, dividend rights and preferences over the common stock with respect to dividends
or upon the liquidation, dissolution, or winding-up of its business, and other terms. The Company has issued preferred stock that has
a preference over the common stock with respect to the payment of dividends or upon liquidation, dissolution, or winding-up, and with
respect to voting rights. In accordance with that and with the issuance of preferred stock, our common stockholders voting rights have
been diluted and it is possible that the rights of holders of the common stock or the value of the common stock have been adversely affected.
****
**The
Company does not expect to pay any dividends on common stock for the foreseeable future.**
The
Company has not paid any cash dividends on its common stock to date and does not anticipate it will pay cash dividends on its common
stock in the foreseeable future. Accordingly, stockholders must be prepared to rely on sales of their common stock after price appreciation
to earn an investment return, which may never occur. Any determination to pay dividends in the future will be made at the discretion
of the Companys board of directors and will depend on the Companys results of operations, financial conditions, contractual
restrictions, restrictions imposed by applicable law, and other factors that the Companys board deems relevant.
| 27 | |
**GENERAL
RISK FACTORS**
**Volatility
in raw material and energy costs, interruption in ordinary sources of supply, and an inability to recover from unanticipated increases
in energy and raw material costs could result in lost sales or could increase significantly the cost of doing business.**
Market
and economic conditions affecting the costs of raw materials, utilities, energy costs, and infrastructure required to provide for the
delivery of the Companys products and services are beyond the Companys control. Any disruption or halt in supplies, or
rapid escalations in costs, could adversely affect the Companys ability to manufacture products or to competitively price the
Companys products in the marketplace. To date, the ultimate impact of energy costs increases has been mitigated through price
increases or offset through improved process efficiencies; however, continuing escalation of energy costs could have a negative impact
upon the Companys business and financial performance.
****
**General
economic conditions in markets in which the Company does business can impact the demand for the Companys goods and services. Decreased
demand for the Companys products and services could have a negative impact on its financial performance and cash flow.**
Demand
for the Companys products and services, in part, depends on the general economic conditions affecting the countries and industries
in which the Company does business. A downturn in economic conditions in a country or industry that the Company serves may adversely
affect the demand for the Companys products and services, in turn negatively impacting the Companys operations and financial
results. Further, changes in demand for the Companys products and services can magnify the impact of economic cycles on the Companys
businesses. Unanticipated contract terminations by customers can negatively impact operations, financial results and cash flow. The Companys
earnings, cash flow and financial position are exposed to financial market risks worldwide, including interest rate and currency exchange
rate fluctuations and exchange rate controls. Fluctuations in domestic and world financial markets could adversely affect interest rates
and impact the Companys ability to obtain credit or attract investors.
**ITEM
1B. UNRESOLVED STAFF COMMENTS.**
This
item is not applicable to the Company because the Company is a smaller reporting company as defined by Rule 12b-2 under the Securities
Exchange Act of 1934.
**ITEM
1C. CYBERSECURITY**
**Risk
Management and Strategy**
Our
cybersecurity policies, standards, processes, and practices are based on applicable laws and regulations and informed by industry standards
and industry-recognized practices. Our strategy to assess, identify, and manage material cybersecurity risks is through a comprehensive,
cross-functional approach that is focused on preserving the confidentiality, security, and availability of our information systems and
data. We implement security measures and processes to identify, prevent, and mitigate cybersecurity threats and to effectively respond
to cybersecurity incidents when they occur. Our cyber risk management includes: (1) enterprise risk management to identify top cybersecurity
risks; (2) vulnerability management to identify software vulnerabilities and risks related to compute infrastructure; (3) vendor risk
management to identify risks related to third parties and business partners, which includes pre-engagement review, use of contractual
security provisions, and continued monitoring, as applicable; (4) privacy risk management to identify privacy risks in our product and
platforms and ensure regulatory compliance; (5) security monitoring to analyze and assess threat activity in real time; and (6) security
incident response to investigate, respond to, and mitigate cyber threats. We regularly engage third parties to identify risks in our
underlying software and infrastructure, to provide threat intelligence, and to assist in triaging, identifying, and responding to cyber
threats.
In
2024, we were part of an elaborate phishing scam that resulted in a loss. As a result, we enabled additional cybersecurity procedures
to mitigate any further losses. Other than this one incident, we did not identify any cybersecurity threats that have materially affected
or are reasonably likely to materially affect our business strategy, results of operations, or financial condition. However, despite
our efforts, we cannot eliminate all risks from cybersecurity threats, or provide assurances that we have not experienced undetected
cybersecurity incidents.
**Governance**
Our
Board of Directors maintains oversight of risks from cybersecurity threats by meeting with and receiving periodic updates from our Chief
Executive Officer, who is assigned oversight of cybersecurity risks. Our Chief Executive Officer is responsible for ensuring that management
has processes in place designed to identify and evaluate cybersecurity risks to which the Company is exposed and to implement processes
and programs to manage cybersecurity risks and mitigate cybersecurity incidents.
**ITEM
2. PROPERTIES.**
The
Company is headquartered in Kennewick, Washington. Our Chief Executive Officer currently works from his home office in virtual communication
with key personnel. Cadwell Laboratories, which is controlled by Carl Cadwell, a director of the Company, provides office space to management
on an as-needed basis until such time as the Company leases permanent office space. Management believes that the Companys sites
are adequate to support the business and suitable for present purposes, and the properties and equipment have been well maintained.
**ITEM
3. LEGAL PROCEEDINGS.**
The
Company may, from time to time, be involved in various legal proceedings incidental to the conduct of our business. Historically, the
outcome of all such legal proceedings has not, in the aggregate, had a material adverse effect on our business, financial condition,
results of operations or liquidity. There are no material pending or threatened legal proceedings at this time.
**ITEM
4. MINE SAFETY DISCLOSURES.**
Not
applicable.
| 28 | |
****
**PART
II**
**ITEM
5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.**
**Market
Information**
The
Companys common stock is traded on the OTCQB Marketplace under the symbol RDGL. The following table sets forth,
in U.S. dollars, the high and low closing prices for each of the calendar quarters indicated, as reported by the OTCQB Marketplace, for
the past two fiscal years. Such OTCQB Marketplace quotations reflect inter-dealer prices, without markup, markdown or commissions and,
particularly because our common stock is traded infrequently, may not necessarily represent actual transactions or a liquid trading market.
| 
| | 
High | | | 
Low | | |
| 
2025 | | 
| | | | 
| | | |
| 
Quarter ended December 31 | | 
$ | 0.0919 | | | 
$ | 0.055 | | |
| 
Quarter ended September 30 | | 
$ | 0.1446 | | | 
$ | 0.0785 | | |
| 
Quarter ended June 30 | | 
$ | 0.149 | | | 
$ | 0.0959 | | |
| 
Quarter ended March 31 | | 
$ | 0.1634 | | | 
$ | 0.108 | | |
| 
| | 
| | | | 
| | | |
| 
2024 | | 
| | | | 
| | | |
| 
Quarter ended December 31 | | 
$ | 0.1766 | | | 
$ | 0.0707 | | |
| 
Quarter ended September 30 | | 
$ | 0.1925 | | | 
$ | 0.085 | | |
| 
Quarter ended June 30 | | 
$ | 0.248 | | | 
$ | 0.078 | | |
| 
Quarter ended March 31 | | 
$ | 0.076 | | | 
$ | 0.05 | | |
**Holders**
As
of March 30, 2026, we had 482,688,356 shares of common stock, par value $0.001 per share,
issued and outstanding, which were held by approximately 232 shareholders of record. Our transfer agent is Pacific Stock Transfer,
6725 Via Austi Pkwy, Suite 300, Las Vegas, NV 89119.
**Securities
Authorized for Issuance Under Equity Compensation Plans**
The
following table sets forth information as of December 31, 2025 with respect to the Companys equity compensation plans previously
approved by stockholders and equity compensation plans not previously approved by stockholders.
| 
| | 
Equity Compensation Plan Information | | |
| 
Plan Category | | 
Number of securities to be issued upon exercise of outstanding options, warrants and rights | | | 
Weighted-average exercise price of outstanding options, warrants and rights | | 
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | | |
| 
| | 
(a) | | | 
(b) | | 
(c) | | |
| 
Equity compensation plans approved by stockholders | | 
| 25,777,500 | | | 
$ | 
0.09 | | | 
| 32,836,047 | | |
| 
Equity compensation plans not approved by stockholders | | 
| 34,115,309 | | | 
$ | 
0.07 | | | 
| - | | |
| 
Total | | 
| 34,115,309 | (1) | | 
$ | 
0.07 | (1) | | 
| - | | |
| 
(1) | 
In
addition to the 2015 Plan (defined below), the Company has individual compensation arrangements under which equity securities are
authorized for issuance in exchange for consideration in the form of goods or services of certain individuals. | |
| 29 | |
**Recent
Sales of Unregistered Securities**
Below
is a description of all unregistered securities issued by the Company during and subsequent to the quarter ended December 31, 2025, through
the date of this report. Each of the issuances identified below were issued in transactions exempt from registration under the Securities
Act of 1933, as amended, in reliance on Section 3(a)(9) and/or 4(2) thereof.
**Issuances
During the Quarter Ended December 31, 2025**
In
December 2025, the Company issued 329,281 shares of Common Stock for services rendered in the amount of $22,687 and issued 500,000 shares
of Common Stock upon the vesting of RSUs.
**Issuances
Subsequent to December 31, 2025**
In
January 2026, the Company issued 44,118 shares of common stock for services rendered.
****
In March 2026, the Company raised
$1,553,000 through the sale of 19,200,000 shares of Common Stock through the Regulation A+ Offering and concurrent private placement of
17,000,000 warrants.
****
****
**ITEM
6. [RESERVED]**
**ITEM
7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.**
****
*The
following discussion and analysis is intended as a review of significant factors affecting the Companys financial condition and
results of operations for the periods indicated. The discussion should be read in conjunction with the Companys financial statements
and the notes presented herein. In addition to historical information, the following Managements Discussion and Analysis of Financial
Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. The Companys actual
results could differ significantly from those anticipated in these forward-looking statements as a result of the risk factors set forth
above in Item 1A and other factors discussed in this Annual Report.*
**Results
of Operations**
**Comparison
for the Year Ended December 31, 2025 and December 31, 2024**
The
following table sets forth information from our statements of operations for the years ended December 31, 2025 and 2024:
| 
| | 
Year Ended December 31, 2025 | | | 
Year Ended December 31, 2024 | | |
| 
Revenues | | 
$ | 68,379 | | | 
$ | 27,995 | | |
| 
Cost of goods sold | | 
| 128,134 | | | 
| 30,979 | | |
| 
Gross loss | | 
| (59,755 | ) | | 
| (2,984 | ) | |
| 
Operating expense | | 
| (3,105,292 | ) | | 
| (2,601,400 | ) | |
| 
Operating loss | | 
| (3,165,047 | ) | | 
| (2,604,384 | ) | |
| 
Non-operating expense | | 
| 99,030 | | | 
| (306,064 | ) | |
| 
Net loss | | 
$ | (3,066,017 | ) | | 
$ | (2,910,448 | ) | |
**Revenues
and Cost of Goods Sold**
Revenue
was $68,379 and $27,995 for the years ended December 31, 2025 and 2024, respectively. All revenue recognized in the years ended December
31, 2025 and 2024 relate to the procedures performed with respect to the IsoPet therapies, sales of IsoPetand
freight. In 2025, we recognized revenue for the licensing and certification of clinics approximating $27,000.
Management
does not anticipate that the Company will generate sufficient revenue to sustain operations until such time as the Company secures multiple
revenue-generating arrangements with respect to RadioGel and/or any of our other brachytherapy technologies.
| 30 | |
Commencing
in 2025, the Company had started ordering Hydrogel to use in more than one treatment. This is anticipated to increase the number of treatments
that can be handled in a particular clinic monthly. As a result, we have inventory built up that when used will increase our cost of
goods sold over time.
**Operating
Expense**
Operating
expense for the years ended December 31, 2025 and 2024, respectively, consisted of the following:
| 
| | 
Year Ended December 31, 2025 | | | 
Year Ended December 31, 2024 | | |
| 
Professional fees, including stock-based compensation | | 
$ | 2,039,407 | | | 
$ | 1,682,350 | | |
| 
Payroll expense | | 
| 417,097 | | | 
| 352,597 | | |
| 
Research and development expense | | 
| 352,232 | | | 
| 324,629 | | |
| 
General and administrative expense | | 
| 296,556 | | | 
| 241,824 | | |
| 
Total operating expense | | 
$ | 3,105,292 | | | 
$ | 2,601,400 | | |
Operating
expense for the years ended December 31, 2025 and 2024 was $3,105,292 and $2,601,400, respectively. The increase in operating expense
from 2024 to 2025 can be attributed to the increase in professional fees ($1,682,350 for the year ended December 31, 2024 compared to
$2,039,407 for the year ended December 31, 2025) related to the fees incurred for the consultants engaged in 2025 versus 2024, including:
stock-based compensation; the increase in general and administrative expense ($241,824 for the year ended December 31, 2024 compared
to $296,556 for the year ended December 31, 2025); the increase in research and development expense ($324,629 for the year ended December
31, 2024 compared to $352,232 for the year ended December 31, 2025) as the Company continued to ramp up the development of their products
in 2025 in India as well as the US including research studies as well as continuing the steps necessary to be accepted by the FDA; and,
an increase in payroll expense ($352,597 for the year ended December 31, 2024 compared to $417,097 for the year ended December 31, 2025)
related to our Chief Executive Officers employment contract and the addition of our Chief Operating Officer in the fourth quarter
of 2025.
**Non-Operating
Expense**
Non-operating
expense for the years ended December 31, 2025 and 2024, respectively, consisted of the following:
| 
| | 
Years Ended December 31, 2025 | | | 
Years Ended December 31, 2024 | | |
| 
Interest income | | 
$ | 99,030 | | | 
$ | 74,936 | | |
| 
Loss on issuance of shares and exchange of warrants | | 
| - | | | 
| (381,000 | ) | |
| 
| | 
| | | | 
| | | |
| 
Non-operating expense | | 
$ | 99,030 | | | 
$ | 306,064 | | |
Non-operating
income (expense) for the year ended December 31, 2024 varied from the year ended December 31, 2025. In 2025, we recognized interest earned
on our bank accounts of $99,030. In 2024, we recognized a loss on the exchange of warrants of $381,000, and incurred interest income
of $74,936 related to our cash position in our bank accounts.
**Net
Loss**
Our
net loss for the years ended December 31, 2025 and 2024 was $(3,066,017) and $(2,910,448), respectively.
**Liquidity
and Capital Resources**
At
December 31, 2025, the Company had working capital of $1,533,177, compared to working capital of $2,147,247 at December 31, 2024. During
the year ended December 31, 2025, the Company experienced negative cash flows from operations of $2,057,743, used $103,185 in cash flows
from investing activities and realized $1,506,905 of cash flows from financing activities. As of December 31, 2025, the Company did not
have any commitments for capital expenditures. During the year ended December 31, 2024, the Company experienced negative cash flows from
operations of $1,684,039 and realized $2,304,300 of cash flows from financing activities. As of December 31, 2024, the Company did not
have any commitments for capital expenditures.
| 31 | |
Cash
used in operating activities was primarily a result of the Companys non-cash items, such as loss from operations, and share based compensation. Cash used in investing activities in 2025 relate to purchases of
fixed assets. Cash provided from financing activities decreased to $1,506,905 for the year ended December 31, 2025 from $2,304,300 for
the year ended December 31, 2024. In 2025, the Company raised $1,506,250 from sales of common stock. In 2024, the Company raised $2,284,950
from sales of common stock and warrants.
The
Company has generated material operating losses since inception. The Company had a net loss of $3,066,017 for the year ended December
31, 2025, and a net loss of $2,910,448 for the year ended December 31, 2024. The Company expects to continue to experience net operating
losses for the foreseeable future. Historically, the Company has relied upon investor funds to maintain its operations and develop the
Companys business. The Company anticipates raising additional capital within the next twelve months for working capital as well
as business expansion, although the Company can provide no assurance that additional capital will be available on terms acceptable to
the Company, if at all. If the Company is unable to obtain additional financing to meet its working capital requirements, it may have
to curtail its business or cease all operations.
The
Company requires funding of at least $3.0 million per year to maintain current operating activities. Over the next 36 months, the Company
believes it will require approximately $9.0 million in additional capital to: (i) fund the FDA approval process to conduct human clinical
trials; (ii) conduct Phase I, pilot, and clinical trials; (iii) activate several regional clinics to administer IsoPet across
the county; (iv) create an independent production center within the current production site to create a template for future international
manufacturing; and (v) initiate regulatory approval processes outside of the United States.
The
principal variables in the timing and amount of spending for the brachytherapy products in the next 12 to 24 months will be the FDAs
classification of the Companys brachytherapy products as Class II or Class III devices (or otherwise) and any requirements for
additional studies, which may possibly include clinical studies. Thereafter, the principal variables in the amount of the Companys
spending and its financing requirements would be the timing of any approvals and the nature of the Companys arrangements with
third parties for manufacturing, sales, distribution and licensing of those products and the products success in the U.S. and
elsewhere. The Company intends to fund its activities through strategic transactions such as licensing and partnership agreements or
additional capital raises.
Recent
geopolitical events, including the inherent instability and volatility in global capital markets, as well as the lack of liquidity in
the capital markets, could also impact the Companys ability to obtain financing and its ability to execute its business plan.
Our
Chief Executive Officer currently works from his home office in virtual communication with key personnel. Cadwell Laboratories, which
is controlled by Carl Cadwell, a director of the Company, provides office space to management on an as-needed basis until such time as
the Company leases permanent office space.
**Off-Balance
Sheet Arrangements**
The
Company does not have any off-balance sheet arrangements that are reasonably likely to have a current or future effect on the Companys
financial condition, revenues, results of operations, liquidity, or capital expenditures.
**Critical
Accounting Policies**
**Consolidation**
The
Company has a relationship with Vivos India, which is considered a variable interest entity (VIE) under the guidance in ASC 810, Consolidations.
A VIE is an entity in which the equity investors do not have sufficient equity investment at risk or lack the characteristics of a controlling
financial interest. The Company evaluates the interests in such entities to determine whether it is the primary beneficiary and therefore
required to consolidate the VIE in its financial statements.
The
Company has determined that it is the primary beneficiary of Vivos India because it has both (i) the power to direct the activities that
most significantly impact the VIEs economic performance, and (ii) the obligation to absorb losses or the right to receive benefits
that could potentially be significant to the VIE. Accordingly, the assets, liabilities, and results of operations of Vivos India will
be included in the Companys consolidated financial statements. As of December 31, 2025, the Company is still waiting on regulatory
approval in India to commence operations.
| 32 | |
****
****
**Use
of Estimates**
The
preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at
the date of financial statements and the reported amount of revenue and expense during the reporting period. Estimates the Company considers
include criteria for stock-based compensation expense, and valuation allowances on deferred tax assets. Actual results could differ from
those estimates.
**Revenue
Recognition**
In
May 2014, the Financial Accounting Standards Board (*FASB*) issued Accounting Standard Update (*ASU*)
No. 2014-09, Revenue from Contracts with Customers (Topic 606). This standard provides a single set of guidelines for revenue recognition
to be used across all industries and requires additional disclosures. The guidance introduces a five-step model to achieve its core principal
of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration
to which the entity expects to be entitled in exchange for those goods or services. The Company adopted the updated guidance effective
January 1, 2018 using the full retrospective method.
Under
ASC 606, in order to recognize revenue, the Company is required to identify an approved contract with commitments to perform respective
obligations, identify rights of each party in the transaction regarding goods to be transferred, identify the payment terms for the goods
transferred, verify that the contract has commercial substance and verify that collection of substantially all consideration is probable.
The adoption of ASC 606 did not have an impact on the Companys operations or cash flows.
The
Company recognized revenue as they (i) identified the contracts with each customer; (ii) identified the performance obligation in each
contract; (iii) determined the transaction price in each contract; (iv) were able to allocate the transaction price to the performance
obligations in the contract; and (v) recognized revenue upon the satisfaction of the performance obligation. Upon the sales of the product
to complete the procedures on the animals, the Company recognized revenue as that was considered the performance obligation.
The
Company in 2024 also implemented a license program for clinics that pay for certification to perform these therapies. These revenues
are recognized upon the certification being completed. In addition, due to a pricing discount from the manufacturer, the Company sold
to two of their customers the hydrogel vials that are used in the treatments. This practice is not likely to be continued in future periods.
**Fair
Value of Financial Instruments**
The
Company adopted ASC Topic 820 (Fair Value Measurements) as of January 1, 2008 for financial instruments measured as fair
value on a recurring basis. ASC Topic 820 defines fair value, established a framework for measuring fair value in accordance with accounting
principles generally accepted in the United States and expands disclosures about fair value measurements.
Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. ASC Topic 820 established a three-tier fair value hierarchy which prioritizes the inputs
used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets
or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include:
| 
| 
- | 
Level
1, defined as observable inputs such as quoted prices for identical instruments in active markets; | |
| 
| 
| 
| |
| 
| 
- | 
Level
2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted
prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active;
and | |
| 
| 
| 
| |
| 
| 
- | 
Level
3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,
such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |
| 33 | |
**Stock-Based
Compensation**
The
Company recognizes compensation costs under FASB ASC Topic 718, Compensation Stock Compensation, and ASU No. 2018-07 
Compensation Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Companies are required
to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs
in the financial statements over the period during which employees are required to provide services. Share based compensation arrangements
include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans.
As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over
the respective vesting periods of the option grant.
**Segment
Reporting**
The
Company follows Financial Accounting Standards Board issued Accounting Standards Update 2023-07 *(ASU 2023-07)* for
its segment reporting. ASU 2023-07 requires more detailed information about reportable segments and expenses including the requirement
to disclose qualitative information about factors used to identify reportable segments and quantitative information about profit and
loss measures and significant expense categories. The Company has not yet begun generating significant revenue from its planned principal
operations and operates as a single reportable segment. The revenue associated with the services that the clinics perform by way of treatments
and the licensure of these clinics are not considered two distinct segments for the years ended December 31, 2025 and 2024, respectively.
The benefit the clinics get by being licensed will assist in increased revenues associated with the treatments being administered. The
chief operating decision maker is the Companys chief executive officer who assesses performance based on total expenses, cash
flows, and progress made in the Companys ongoing development efforts. With the formation of the VIE, Vivos India, and the fact
that this is consolidated for financial reporting purposes, the activities of Vivos India are a defined segment for geographical purposes.
As of December 31, 2025, the Company is still waiting on regulatory approval in India to commence operations. All of the Companys
long-lived assets as of December 31, 2025 are located in the United States.
**ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**
This
item is not applicable to the Company because the Company is a smaller reporting company as defined by Rule 12b-2 under the Securities
Exchange Act of 1934.
**ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.**
All
financial information required by this Item is included on the pages immediately following the Index to Financial Statements appearing
on page F-1 and is hereby incorporated by reference.
**ITEM
9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.**
None
**ITEM
9A. CONTROLS AND PROCEDURES.**
**Disclosure
Controls and Procedures**
Based
on an evaluation as of the date of the end of the period covered by this report, the Companys Chief Executive Officer and Interim
Chief Financial Officer conducted an evaluation of the effectiveness of the design and operation of the Companys disclosure controls
and procedures, as required by Rule 13a-15 of the Securities Exchange Act of 1934, as amended (the *Exchange Act*).
Based on that evaluation, the Companys Chief Executive Officer and Interim Chief Financial Officer concluded that, because of
the disclosed material weaknesses in the Companys internal control over financial reporting, the Companys disclosure controls
and procedures were ineffective as of the end of the period covered by this report to ensure that information required to be disclosed
by the Company in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified by the SECs rules and forms.
Disclosure
controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in the
Companys reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods
specified in the SECs rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed in the Companys reports filed under the Exchange Act is accumulated
and communicated to management, including the Companys Chief Executive Officer and the Companys Interim Chief Financial
Officer, to allow timely decisions regarding required disclosure.
| 34 | |
**Managements
Annual Report on Internal Control Over Financial Reporting**
Management
is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Exchange Act Rule 13a-15(f).
Management conducted an evaluation of the effectiveness of the internal control over financial reporting as of December 31, 2025, using
the criteria established in *Internal Control Integrated Framework (2013 framework)*issued by the Committee of Sponsoring
Organizations of the Treadway Commission (*COSO*). Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies
or procedures may deteriorate.
A
material weakness is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that
a material misstatement of the annual or interim financial statements will not be prevented or detected. As a result of its assessment,
management has determined that there is a material weakness due to the lack of segregation of duties and, due to this material weakness,
management concluded that, as of December 31, 2025 and 2024, the Companys internal control over financial reporting was ineffective.
This material weakness has the potential of adversely impacting the Companys financial reporting process and the Companys
financial reports. Because of this material weakness, management also concluded that the Companys disclosure controls and procedures
were ineffective as of December 31, 2025 and 2024. The Company has engaged the services of both internal accounting and tax providers
to resolve this material weakness.
**Attestation
Report of Registered Public Accounting Firm**
This
Annual Report does not include an attestation report of our registered independent public accounting firm regarding internal control
over financial reporting pursuant to SEC rules for smaller reporting companies that permit us to provide only managements report
in this Annual Report.
**Changes
in Internal Control Over Financial Reporting**
There
have been no changes in the Companys internal control over financial reporting that occurred during the Companys last fiscal
quarter (the Companys fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely
to materially affect, the Companys internal control over financial reporting.
The
term internal control over financial reporting is defined as a process designed by, or under the supervision of, the registrants
principal executive and principal financial officers, or persons performing similar functions, and effected by the registrants
board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes
those policies and procedures that:
| 
(a) | 
Pertain
to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets
of the registrant; | |
| 
| 
| |
| 
(b) | 
Provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the registrant are being made only in accordance
with authorizations of management and directors of the registrant; and | |
| 
| 
| |
| 
(c) | 
Provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the registrants
assets that could have a material effect on the financial statements. | |
**ITEM
9B. OTHER INFORMATION.**
During
the quarter ended December 31, 2025, none of our directors or executive officers adopted or terminated a Rule 10b5-1 trading plan or
a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K).
**Item
9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**
Not
applicable.
| 35 | |
****
**PART
III**
**ITEM
10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE.**
The
Companys current directors and executive officers are as follows:
| 
NAME | 
| 
AGE | 
| 
POSITION | |
| 
Michael
K. Korenko | 
| 
80 | 
| 
Chief
Executive Officer and Director | |
| 
Brad
Allan Weeks | 
| 
44 | 
| 
President | |
| 
Michael
Pollack | 
| 
59 | 
| 
Interim
Chief Financial Officer | |
| 
David
J. Swanberg | 
| 
69 | 
| 
Chief
Operating Officer | |
| 
Carlton
M. Cadwell | 
| 
81 | 
| 
Chairman
of the Board and Secretary | |
**Term
of Office**
All
the Companys directors hold office until the next annual meeting of the stockholders or until their successors is elected and
qualified. The Companys executive officers are appointed by the Companys board of directors and hold office until their
resignation, removal, death or retirement.
**Background
and Business Experience**
The
business experience during the past five years of each of the Companys directors and executive officers is as follows:
**Dr.
Michael K. Korenko,**Chief Executive Officer of the Company since December 2016, and a member of the Board of Directors since
August 2017, joined the Company as an Advisor to the Board of the Company during 2009, served as member of the Board from May 2009 to
March 2010 and served as President from December 2016 to September 2025. Dr. Korenko has also served on the Hanford Advisory Board since
2009. Dr. Korenko served as Business Development Manager for Curtiss-Wright from 2006 to 2009, as Chief Operating Officer for Curtiss-Wright
from 2000 to 2005 and was Executive Vice President of Closure for Safe Sites of Colorado at Rocky Flats from 1994 to 2000. Dr. Korenko
served as Vice President of Westinghouse from 1987 to 1994 and was responsible for the 300 and 400 areas, including the Fast Flux Testing
Facility (*FFTF*) and all engineering, safety analysis, and projects for the Hanford site.
Dr.
Korenko is the author of 28 patents and has received many awards, including the National Energy Resources Organization Research and Development
Award, the U.S. Steelworkers Award for Excellence in Promoting Safety, and the Westinghouse Total Quality Award for Performance Manager
of the Year. Dr. Korenko has a Doctor of Science from MIT, was a NATO Postdoctoral Fellow at Oxford University, and was selected as a
White House Fellow for the Department of Defense, reporting to Secretary Cap Weinberger.
Dr.
Korenko brings to the Board over nine years experience working with and advising various small businesses, including companies
involved in turnarounds. Dr. Korenko has also been involved as an advisor to the Company since 2009 in the development of medical isotopes.
Dr.
Korenko was selected as President and CEO of Advanced Medical Isotopes (Vivos Inc) on December 14, 2016. Since then, has been credited
with turning around the financial health and reputation of the Company, completing the product development, obtaining the device classification
for animal therapy, and for setting the stage to obtaining IDE approval for human therapy.
**Brad
Allan Weeks**, President of the Company since September 2025, is a seasoned leader with extensive experience in the medical device
and biotechnology sectors. As President Brad plays a pivotal role in business development, team expansion, and strategic partnerships,
contributing to the Companys growth in targeted cancer therapies that deliver radioactive agents directly to tumors while minimizing
damage to healthy tissue. Brad has built a distinguished career in healthcare innovation, holding leadership positions at organizations
focused on advancing medical technologies and patient outcomes. His expertise includes forging international collaborations, such as
recent engagements in India. Passionate about groundbreaking solutions that improve lives, Brad is actively involved in promoting the
Companys mission to revolutionize oncology through safer, more effective radionuclide therapies. Mr. Weeks holds a Master of Business
Administration (MBA) with a focus on Technology Management.
| 36 | |
**Michael
Pollack CPA,**the Interim Chief Financial Officer, joined the Company as interim Chief Financial Officer in December 2018. Mr.
Pollack has been a partner in a certified public accounting firm for the past fifteen years and specializes in accounting and auditing
for small public companies. Mr. Pollack has approximately 30 years of experience in public accounting and consulting to over 100 publicly
traded and 250 private companies. Mr. Pollack has also held CFO and Controller positions in an array of industries. Mr. Pollack graduated
from the University of Maryland with a Bachelor of Arts in Economics. Mr. Pollack is a member of the American Institute of Certified
Public Accountants, as well as licensed to practice in New Jersey, and New York.
**David
J. Swanberg, M.S., P.E.,**Chief Operating Officer since September 2025, has over 35 years experience in Radiochemical Processing,
Medical Isotope Production, Nuclear Waste Management, Materials Science, Regulatory Affairs, and Project Management. He has worked in
diverse organizations ranging from small start-up businesses to corporations with multi-billion-dollar annual revenues. Most recently,
he served as Technology Development Project Manager for Washington River Protection Solutions, from 2010 to 2024. Prior to 2010, she
served as Senior Chemical/Environmental Engineer for Science Applications International Corporation since 2008. He has also previously
served as Executive Vice President of Operations for IsoRay Medical Inc. managing day-to-day operations, R&D, and New Product Development.
Mr. Swanberg was a co-founder of IsoRay and led the initial Cs-131 brachytherapy seed product development, FDA 510(k) submission/clearance,
and NRC Sealed Source review and registration. He led the radiation dosimetry evaluations to meet American Association of Physicists
in Medicine guidelines and is a current member of the AAPM. Mr. Swanberg served on the IsoRay Board of Directors and participated in
several capital financing rounds totaling over $30.0 million. Mr. Swanberg has been actively engaged with the Company in his previous
role as Chief Technical Manager since 2017. He has been integrally involved in product development, production, user training, regulatory
submissions, and intellectual property development. He holds a BA in Chemistry from Bethel University (MN) and an MS in Chemical Engineering
from Montana State University. He has numerous technical publications and holds several patents.
Mr.
Swanberg has over 35 years experience in Radiochemical Processing, Medical Isotope Production, Nuclear Waste Management, Materials
Science, Regulatory Affairs, and Project Management. He has worked in diverse organizations ranging from small start-up businesses to
corporations with multi-billion-dollar annual revenues. Most recently, he served as Technology Development Project Manager for Washington
River Protection Solutions, from 2010 to 2024. Prior to 2010, she served as Senior Chemical/Environmental Engineer for Science Applications
International Corporation since 2008. He has also previously served as Executive Vice President of Operations for IsoRay Medical Inc.
managing day-to-day operations, R&D, and New Product Development. Mr. Swanberg was a co-founder of IsoRay and led the initial Cs-131
brachytherapy seed product development, FDA 510(k) submission/clearance, and NRC Sealed Source review and registration. He led the radiation
dosimetry evaluations to meet American Association of Physicists in Medicine guidelines and is a current member of the AAPM. Mr. Swanberg
served on the IsoRay Board of Directors and participated in several capital financing rounds totaling over $30.0 million. Mr. Swanberg
has been actively engaged with the Company in his previous role as Chief Technical Manager since 2017. He has been integrally involved
in product development, production, user training, regulatory submissions, and intellectual property development. He holds a BA in Chemistry
from Bethel University (MN) and an MS in Chemical Engineering from Montana State University. He has numerous technical publications and
holds several patents.
**Carlton
M. Cadwell***,* Chairman of the Board and Secretary since December 2016, joined the Company as a director in 2006. Dr. Cadwell
brings over 30 years of experience in business management, strategic planning, and implementation. He co-founded Cadwell Laboratories,
Inc. in 1979 and has served as its President since its inception. Cadwell Laboratories, Inc. is a major international provider of neurodiagnostic
medical devices. After receiving his bachelors degree from the University of Oregon in 1966 and a doctoral degree from the University
of Washington in 1970, he began his career serving in the United States Army as a dentist for three years. From 1973 to 1980, Dr. Cadwell
practiced dentistry in private practice and since has started several businesses.
Mr.
Cadwell brings to the Board over ten years of service on the Board and over forty-five years of experience as a successful entrepreneur,
as well as medical expertise.
**Significant
Consultants**
**Fredrick
Swindler** is the Quality Assurance Manager for Vivos Inc. Fred provides expertise in quality assurance and regulatory affairs
in the medical device industry specific emphasis in development and auditing of quality systems as well as product submissions. Fred
holds an MBA and brings over 55 years of extensive experience to the Company.
| 37 | |
**Medical
and Veterinarian Advisory Boards**
**Dr.
Barry D. Pressman MD, FACR - Chairman Medical Advisory Board.**Dr. Pressman is Professor and Chairman of the S. Mark Taper Foundation
Imaging Centre and Department, and Chief of the Section of Neuroradiology and Head and Neck Radiology at Cedars-Sinai Medical Center,
located in Los Angeles, California.
Dr.
Pressman is a past President of The American College of Radiology, the Western Neuroradiological Society, as well as past President of
the California Radiological Society. Currently he is a member of the American Society of Neuroradiology and the American Society of Pediatric
Neuroradiology.
Dr.
Pressman earned his medical degree Cum Laude from Harvard Medical School after graduating Summa Cum Laude from Dartmouth College. After
a surgical internship at Harvards Peter Bent Brigham Hospital in Boston, he completed a diagnostic radiology residency at Columbia-Presbyterian
Medical Center in New York and a Neuroradiology fellowship at George Washington University Hospital. During this period, he wrote many
original papers for Computer Tomography (CT).
**Dr.
Albert S. DeNittis MD, MS, FCPP - Medical Advisory Board.**Dr. Albert S. DeNittis is currently is the Chief of Radiation Oncology
at Lankenau Medical Center and Clinical Professor at Lankenau Institute for Medical Research in Wynnewood, Pennsylvania, and the Director
of Radiation Oncology at Brodesseur Cancer Center in New Jersey. He is also the Principal Investigator and in charge of a grant awarded
by the NIH for its National Cancer Oncology Research Program (NCORP) at Main Line Health. Dr. DeNittis practice experience includes
image-guided radiosurgery, stereotactic body radiation therapy (SBRT), intensity modulated radiation therapy (IMRT), image guided radiation
therapy (IGRT), high-dose rate (HDR) precision radionuclide therapy, cranial and extracranial stereotactic radiosurgery, respiratory
gating, and Cyberknife.
Dr.
DeNittis has served on numerous regional, national and government committees related to key issues in Dr. DeNittis earned a BA and a
MS at Rutgers University and a MD from the Robert Wood Johnson Medical School at the University of Medicine and Dentistry of New Jersey.
He completed postdoctoral training internships and residency at the Department of Radiation Oncology at the Hospital of the University
of Pennsylvania. Dr. DeNittis is board certified by the American Board of Radiology and Licensed in New Jersey and Pennsylvania.
**Dr.
Beau Toskich, MD***, **FCPP - Medical Advisory Board***. Dr. Toskich is currently Mayo Clinic Senior Associate Consultant,
Vascular and Interventional Radiology, Mayo Clinic, Florida Campus, Board Certified Diagnostic Radiology, Vascular and Interventional
Radiology, and Nuclear Regulatory Commission Authorized User
**Dr.
Richard Weller, DVM, DACVIM (Internal Medicine; Oncology) DipMS - Veterinary Medicine Advisory Board Chairman.** Prior to his retirement
in 2014, Dr. Weller was a Senior Program Manager in the Radiation Biology Group of the Biological Sciences Division at Pacific Northwest
National Laboratory (PNNL), where he was involved in the development of RadioGel. A 1973 graduate of Washington State University. Dr.
Weller has extensive experience in designing and executing clinical studies, treatment planning, mechanisms of carcinogenesis, radiation
biology, targeted delivery systems for chemotherapeutic and radio-therapeutic agents, bio-markers of disease, and comparative oncology;
as well as over 30 years of experience developing and using animal models, including the use of spontaneous tumors in companion animals,
for bio-medical applications.
Dr.
Weller is board-certified by the American College of Veterinary Internal Medicine in Internal Medicine (1980) and Oncology (1987), Past
Chairperson of the Organizing Committee for the Specialty of Veterinary Medical Oncology, Past Chairperson of the Board of Regents of
the American College of Veterinary Internal Medicine, Past President of the Board of Regents of the American College of Veterinary Internal
Medicine, Past President of the Specialty of Oncology, and a Charter Member of the Veterinary Cancer Society which he served as Treasurer
for 16 years. He is an Honorary Professor of the Institute of Veterinary Medicine in Kyiv, Ukraine. Dr. Weller has lectured and trained
veterinarians worldwide and has authored or co-authored over 250 articles, technical reports, book chapters, and presentations in his
fields of expertise.
**Dr.
John Heindrick, DVM - Veterinary Medicine Advisory Board Member **Dr. Heindrick is a recently retired co-owner of VCA Ventana
Animal Hospital in Albuquerque NM. He brings practical experience in veterinary medicine and has accompanied us at our conference booths.
| 38 | |
**Section
16(a) Beneficial Ownership Reporting Compliance**
Section
16(a) of the Securities Exchange Act of 1934 requires the Companys executive officers, directors and persons who own more than
10% of the Companys common stock to file with the SEC initial reports of beneficial ownership on Form 3, changes in beneficial
ownership on Form 4, and an annual statement of beneficial ownership on Form 5. Such executive officers, directors and greater than 10%
stockholders are required by SEC rules to furnish the Company with copies of all such forms that they have filed.
Based
solely on its review of such forms filed with the SEC and received by the Company and representations from certain reporting persons,
the Company believes that all reports required to be filed by each of each of its executive officers, directors and 10% stockholders
were filed during the year ended December 31, 2025 and that such reports were timely.
**Code
of Ethics**
The
Companys Board of Directors has not adopted a code of ethics that applies to the principal executive officer, principal financial
officer, principal accounting officer or controller, or persons performing similar functions, because of the Companys limited
number of executive officers and employees that would be covered by such a code and the Companys limited financial resources.
The Company anticipates that it will adopt a code of ethics after it increases the number of executive officers and employees and obtain
additional financial resources.
**Audit
Committee and Audit Committee Financial Expert**
As
of the date of this Annual Report, the Company has not established an audit committee, and therefore, the Companys full board
of directors performs the functions that customarily would be undertaken by an audit committee. The Companys Board of Directors
during 2025 and 2024 was comprised of two directors, one of whom the Company had determined satisfied the general independence standards
of the NASDAQ listing requirements.
The
Companys Board of Directors has determined that none of its current members qualifies as an audit committee financial expert,
as defined by the rules of the SEC. In the future, the Company intends to establish board committees and to appoint such persons to those
committees as are necessary to meet the corporate governance requirements imposed by a national securities exchange, although it is not
required to comply with such requirements until the Company elects to seek listing on a national securities exchange.
**Board
of Directors; Attendance at Meetings**
The
Board held three meeting and acted by unanimous written consent three time during the year ended December 31, 2025. The Board held no
meetings and acted by unanimous written consent two times during the year ended December 31, 2024. We have no formal policy with respect
to the attendance of Board members at annual meetings of shareholders but encourage all incumbent directors and director nominees to
attend each annual meeting of shareholders.
**ITEM
11. EXECUTIVE COMPENSATION.**
**Summary
Compensation Table**
The
following table sets forth the compensation paid to the Companys Chief Executive Officer and those executive officers that earned
in excess of $100,000 during the year ended December 31, 2025 (collectively, the *Named Executive Officers*):
| 
Name and Principal Position | | 
Year | | | 
Salary ($) | | | 
Bonus ($) | | | 
Stock Awards ($)(1) | | | 
Option Awards ($)(1) | | | 
Total ($) | | |
| 
| | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | |
| 
Dr. Michael K. Korenko | | 
| 2025 | | | 
$ | 307,320 | | | 
$ | 40,000 | | | 
$ | - | | | 
$ | - | | | 
$ | 347,320 | | |
| 
CEO and Director | | 
| 2024 | | | 
$ | 295,500 | | | 
$ | 40,000 | | | 
$ | - | | | 
$ | - | | | 
$ | 335,500 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Brad Weeks | | 
| 2025 | | | 
$ | 181,500 | | | 
$ | - | | | 
$ | 12,000 | | | 
$ | - | | | 
$ | 193,500 | | |
| 
President | | 
| 2024 | | | 
$ | 155,764 | | | 
$ | - | | | 
$ | - | | | 
$ | - | | | 
$ | 155764 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Dave Swanberg | | 
| 2025 | | | 
$ | 132,125 | | | 
$ | - | | | 
$ | 12,000 | | | 
$ | - | | | 
$ | 145,125 | | |
| 
Chief Operating Officer | | 
| 2024 | | | 
$ | 111205 | | | 
$ | - | | | 
$ | - | | | 
$ | - | | | 
$ | 111,205 | | |
| 
(1) | 
The
amounts in this column represent the grant date fair value of stock option awards, computed in accordance with FASB ASC Topic 718. | |
| 39 | |
**Narrative
Disclosure to Summary Compensation Table**
*Dr.
Michael K. Korenko.*On October 24, 2018, Mr. Korenko entered into an employment agreement with the Company (the *Old Employment
Agreement*), which was scheduled to terminate on December 31, 2019. On June 4, 2019, the Company entered into an Executive
Employment Agreement (*Korenko Employment Agreement*) with Dr. Michael K. Korenko, the Companys Chief Executive
Officer. The employment term under the Korenko Employment Agreement commenced with an effective date of June 11, 2019 and expires on
December 31, 2020, and December 31 of each successive year if the Korenko Employment Agreement is extended, unless terminated earlier
as set forth in the Korenko Employment Agreement. The Company on December 31, 2020 extended this agreement through December 31, 2021
while renegotiating terms of a new employment agreement. On May 3, 2021, the Company and the Chief Executive Officer agreed the terms
of a new employment agreement with an effective date of January 1, 2021 that has a term of three years and expired December 31, 2023.
On December 19, 2023, the Company renewed the employment agreement for a term of two years expiring December 31, 2025.
Under
the terms of the Employment Agreement effective January 1, 2024, the Company shall pay to Dr. Korenko a base compensation of $295,500.
In addition, there is a discretionary bonus to be earned in the amount of $10,000 per quarter upon the satisfaction of conditions to
be determined by the Board of Directors of the Company. In addition, the Company granted Dr. Korenko 20,000,000 restricted stock units
on January 1, 2024 that vest over the two-year period.
*Brad
Allen Weeks*. On September 15, 2025, Mr. Weeks entered into an employment agreement with the Company (the *Weeks Employment
Agreement*). The Weeks Employment Agreement provides that Mr. Weeks shall serve as President of the Company for a term effective
September 1, 2025, ending on December 31, 2027, which term may be extended by written agreement of both parties. Pursuant to the Weeks
Employment Agreement, Mr. Weeks shall receive: (i) an annual base salary of $192,000; (ii) a monthly grant of $3,000 in shares common
stock of the Company at the end of each fiscal quarter based on the closing price of the Companys common stock at the end of such
fiscal quarter; and (iii) customary benefits and reimbursement for reasonable out-of-pocket business expenses. The Weeks Employment Agreement
also provides customary provisions relating to, among other things, clawback rights, confidentiality, non-competition, and non-solicitation.
*David
J. Swanberg*. On September 15, 2025, Mr. Swanberg entered into an executive consulting agreement withthe Company (the *Consulting
Agreement*). The Consulting Agreement provides that Mr. Swanberg shall serve as Chief Operating Officer for a term effective
September 1, 2025, ending on December 31, 2028, which term may be extended by written agreement of both parties. Pursuant to the Agreement,
Mr. Swanberg shall receive: (i) compensation for consulting a rate of $12,000 per month; and (ii) a monthly grant of $3,000 in shares
common stock of the Company at the end of each fiscal quarter based on the closing price of the Companys common stock at the end
of such fiscal quarter. The Consulting Agreement also provides customary provisions relating to, among other things, confidentiality,
non-competition, and non-solicitation.
**Outstanding
Equity Awards at Fiscal Year-End Table**
As
of December 31, 2025, there were no outstanding equity awards held by the Companys Named Executive Officers
**Compensation
of Directors**
During
the year ended December 31, 2025, the Companys non-employee directors were not paid any compensation.
There
are no employment contracts or compensatory plans or arrangements with respect to any director that would result in payments by the Company
to such person because of his or her resignation as a director or any change in control of the Company.
**Compensation
Committee Interlocks and Insider Participation**
None
of our officers currently serves, or has served during the last completed fiscal year, on the compensation committee or board of directors
of any other entity that has one or more officers serving as a member of our Board of Directors.
| 40 | |
**ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.**
The
following tables sets forth, as of March 30, 2026, the number of shares of our Common Stock, Series A Convertible Preferred, Series
B Convertible Preferred, and Series C Convertible Preferred beneficially owned by the following persons:
| 
| 
(i) | 
all
persons the Company knows to be beneficial owners of at least 5% of the Companys common stock; | |
| 
| 
(ii) | 
the
Companys current directors; | |
| 
| 
(iii) | 
the
Companys current executive officers; and | |
| 
| 
(iv) | 
all
current directors and executive officers as a group. | |
**Beneficial
Ownership of Common Stock**
Applicable
percentage is based on 482,688,356 shares of Common Stock outstanding as of March 30, 2026. In computing the percentage of shares
of common stock beneficially owned, we deemed to be outstanding all shares of Common Stock subject to options or warrants held by that
person or entity that are currently exercisable or exchangeable or that will become exercisable or exchangeable within 60 days of March 30, 2026.
| 
Name and Address of Beneficial Owner(1) | | 
Amount and Nature of Beneficial Ownership(2) | | | 
Percent of Class | | |
| 
| | 
| | | 
| | |
| 
Named Executive Officers and Directors: | | 
| | | | 
| | | |
| 
Michael K. Korenko (3) | | 
| 15,435,090 | | | 
| 3 | % | |
| 
Brad Weeks | | 
| - | | | 
| * | | |
| 
Dave Swanberg | | 
| - | | | 
| * | | |
| 
Carlton M. Cadwell (4) | | 
| 15,433,891 | | | 
| 3 | % | |
| 
Michael Pollack | | 
| - | | | 
| * | | |
| 
All executive officers and directors as a group (3 individuals) | | 
| 30,868,981 | | | 
| 6 | % | |
*
Less than 1%
| 
(1) | 
The
address of each of the beneficial owners above is c/o Vivos Inc, 1030 N Center Parkway, Kennewick, WA 99352, except that the address
of the Cadwell Family Irrevocable Trust (the Cadwell Trust) is 909 North Kellogg Street, Kennewick, WA 99336. | |
| 
| 
| |
| 
(2) | 
In
determining beneficial ownership of the Companys common stock as of a given date, the number of shares shown includes shares
of common stock which may be acquired upon exercise of the common stock equivalents within 60 days of that date. In determining the
percent of common stock owned by a person or entity on February 13, 2026, (a) the numerator is the number of shares of the class
beneficially owned by such person or entity, including shares which may be acquired within 60 days on exercise of the common stock
equivalents, and (b) the denominator is the sum of (i) the total shares of common stock outstanding on February 13, 2026, and (ii)
the total number of shares that the beneficial owner may acquire upon conversion of the common stock equivalents. Subject to community
property laws where applicable, the Company believes that each beneficial owner has sole power to vote and dispose of its shares,
except that under the terms of the Cadwell Trust, Dr. Cadwell does not have or share voting or investment power over the shares beneficially
owned by the Cadwell Trust. | |
| 
| 
| |
| 
(3) | 
Includes
55,000,000 shares issuable for vested RSUs. | |
| 
| 
| |
| 
(4) | 
Includes
1,136,137 shares issuable upon conversion of Series A Preferred; and 4,816,275 shares issuable upon conversion of Series C Preferred,
26,912 shares held by the Cadwell Family Irrevocable Trust, of which Mr. Cadwell is a trustee, and 2,316,830 shares of common stock
issued to AMIC Gift, LLC, an LLC controlled by Mr. Cadwell and his wife. | |
| 41 | |
**Beneficial
Ownership of Series A Convertible Preferred Stock**
As
of March 30, 2026, there were 2,071,007 shares of Series A Preferred issued and outstanding, convertible into 2,588,758 shares of
the Companys common stock. Applicable percentage is based on 2,071,007 shares of Series A Preferred outstanding as of March 30, 2026.
| 
Name and Address of Beneficial Owner (1)(2) | | 
Amount and Nature of Beneficial Ownership (3) | | | 
Percent of Class | | |
| 
| | 
| | | 
| | |
| 
Named Executive Officers and Directors: | | 
| | | | 
| | | |
| 
Carlton M. Cadwell | | 
| 1,057,219 | | | 
| 51.05 | % | |
| 
All Current Directors and Executive Officers as a group (1 individual)(3) | | 
| 1,057,219 | | | 
| 51.05 | % | |
| 
| | 
| | | | 
| | | |
| 
5%+ Stockholders: | | 
| | | | 
| | | |
| 
L. Bruce Jolliff | | 
| 197,979 | | | 
| 9.56 | % | |
| 
Stoel Rives | | 
| 133,333 | | | 
| 6.44 | % | |
| 
(1) | 
The
address of each of the beneficial owners above is c/o Vivos Inc, 1030 N Center Parkway, Kennewick, WA 99352, except that the address
of (i) the Cadwell Family Irrevocable Trust (the Cadwell Trust) is 909 North Kellogg Street, Kennewick, WA 99336;
(ii) L. Bruce Jolliff is 206 N 41st St. Unit 1, Yakima, WA 98901; and (iii) Stoel Rives is One Union Square, 600 University Street,
Suite 3600, Seattle, WA 98101. | |
| 
| 
| |
| 
(2) | 
Executive
Officers and Directors of the Company that do not hold any Series A Convertible Preferred have been omitted from this table. | |
| 
| 
| |
| 
(3) | 
Subject
to community property laws where applicable, the Company believes that each beneficial owner has sole power to vote and dispose of
its shares, except that Dr. Cadwell under the terms of the Cadwell Trust does not have or share voting or investment power over the
Series A Convertible Preferred beneficially owned by the Cadwell Trust. | |
| 
| 
| |
| 
(4) | 
Includes
148,309 shares held by the Cadwell Family Irrevocable Trust, of which. Mr. Cadwell is a Trustee. | |
**Beneficial
Ownership of Series B Convertible Preferred Stock**
As
of March 30, 2026, there were 363 shares of Series B Preferred issued and outstanding, convertible into 4,538 shares of the Companys
common stock. Applicable percentage is based on 363 shares of Series B Preferred outstanding as of March 30, 2026.
| 
Name and Address of Beneficial Owner (1) | | 
Amount and Nature of Beneficial Ownership (2) | | | 
Percent of Class | | |
| 
| | 
| | | 
| | |
| 
5%+ Stockholders: | | 
| | | | 
| | | |
| 
Firstfire Global Opportunities Fund(1) | | 
| 363 | | | 
| 100 | % | |
*
Less than 1%
| 
(1) | 
None
of the Companys named executive officers or directors hold any shares of the Companys Series B Convertible Preferred,
and they have therefore been omitted from this table. The address of the beneficial owners is as follows: (i) Firstfire Global Opportunities
Fund, 1040 1st Avenue, STE 190, New York, NY 10022 | |
| 
| 
| |
| 
(2) | 
Subject
to community property laws where applicable, the Company believes that each beneficial owner has sole power to vote and dispose of
its shares. | |
| 42 | |
**Beneficial
Ownership of Series C Convertible Preferred Stock**
As
of March 30, 2026, there were 385,302 shares of Series C Preferred issued and outstanding, convertible into 4,816,275 shares of the
Companys common stock. Applicable percentage is based on 385,302 shares of Series C Preferred outstanding as of March 30, 2026.
| 
Name and Address of Beneficial Owner (1) | | 
Amount and Nature of Beneficial Ownership (2) | | | 
Percent of Class | | |
| 
Carlton M. Cadwell | | 
| 385,302 | | | 
| 100 | % | |
| 
All Current Directors and Executive Officers as a group (3 individuals) (3) | | 
| 385,302 | | | 
| 100 | % | |
| 
(1) | 
The
address of each of the beneficial owners above is c/o Vivos Inc, 1030 N Center Parkway, Kennewick, WA 99352. | |
| 
| 
| |
| 
(3) | 
Executive
Officers and Directors of the Company that do not hold any Series C Convertible Preferred have been omitted from this table. | |
**Changes
in Control**
The
Company does not know of any arrangements, including any pledges of the Companys securities that may result in a change in control
of the Company.
**ITEM
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.**
**Indebtedness
from Related Parties**
There
has been no indebtedness from related parties for the years ended December 31, 2025 and 2024, except for a brief period in December 2024
in the amount of $40,949.
**Independent
Directors**
The
Companys common stock is traded on the OTCQB Marketplace, which does not impose any independence requirements on the Board of
Directors or the board committees of the companies whose stock is traded on that market. The Company has decided to adopt the independence
standards of the Nasdaq listing rules in determining whether the Companys directors are independent. Generally, under those rules
a director does not qualify as an independent director if the director or a member of the directors immediate family has had in
the past three years certain relationships or affiliations with the Company, the Companys auditors, or other companies that do
business with the Company. The Companys Board of Directors has determined that Mr. Cadwell is qualified as an independent director
under those Nasdaq rules, and accordingly, would have been qualified under those rules to serve on a compensation committee or a nominating
committee, if the Company had established such committees of the Companys Board of Directors. Dr. Korenko is not an independent
director due to his employment by the Company as an executive officer.
**ITEM
14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.**
**Audit
Fees**
The
aggregate fees incurred by the Companys principal accountant for the audit of the Companys annual financial statements,
review of financial statements included in the quarterly reports and other fees that are normally provided by the accountant in connection
with statutory and regulatory filings or engagements for the years ended December 31, 2025 and 2024 were $42,400 and $38,500, respectively,
all of which was paid to Fruci & Associates II, PLLC.
**Audit
Related Fees**
The
aggregate fees billed for professional services that are reasonably related to the performance of the audit or review of the
Companys financial statements but are not reported Audit Fees for the years ended December 31, 2025 and 2024 in
the amounts of $0 and $4,500, respectively. All services performed by the Companys Registered Public Accounting Firm, Fruci
& Associates II, PLLC have been pre-approved by the Companys Board of Directors.
**Tax
Fees**
The
aggregate fees billed for professional services rendered by principal accountant for tax compliance, tax advice and tax planning during
the years ended December 31, 2025 and 2024 were $4,350 and $3,850, respectively, all of which was paid to Fruci & Associates
II, PLLC.
**All
Other Fees**
All
other fees include fees billed for products or services provided by the Companys principal accountant during the years ended December
31, 2025 and 2024 other than those described above. During the years ended December 31, 2025 and 2024, there were no such fees billed
by Fruci & Associates II, PLLC.
| 43 | |
****
**PART
IV**
**ITEM
15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.**
(a)
Documents filed as part of this Report.
| 
1. | 
Financial
Statements. The Vivos Inc. Balance Sheets as of December 31, 2025 and 2024, the Statements of Operations for the years
ended December 31, 2025 and 2024, the Statements of Changes in Stockholders Equity for the years ended December 31, 2025 and
2024, and the Statements of Cash Flows for the years ended December 31, 2025 and 2024, together with the notes thereto and the reports
of Fruci & Associates II, PLLC as required by Item 8 are included in this 2025 Annual Report on Form 10-K as set forth in Item
8 above. | |
| 
| 
| |
| 
2. | 
Financial
Statement Schedules. All financial statement schedules have been omitted since they are either not required or not applicable,
or because the information required is included in the financial statements or the notes thereto. | |
| 
| 
| |
| 
3. | 
Exhibits.
The following exhibits are either filed as a part hereof or are incorporated by reference. Exhibit numbers correspond to the numbering
system in Item 601 of Regulation S-K. | |
| 
Exhibit
Number | 
| 
Description | |
| 
3.1 | 
| 
Certificate of Incorporation of Savage Mountain Sports Corporation, dated January 11, 2000 (incorporated by reference to Exhibit 3.1 to the Companys Registration Statement on Form 10-12G (File No. 000-53497) filed on November 12, 2008). | |
| 
3.2 | 
| 
By-Laws (incorporated by reference to Exhibit 3.2 to the Companys Registration Statement on Form 10-12G (File No. 000-53497) filed on November 12, 2008). | |
| 
3.3 | 
| 
Certificate of Amendment of Certificate of Incorporation changing the name of the Company to Advanced Medical Isotope Corporation, dated May 23, 2006 (incorporated by reference to Exhibit 3.5 to the Companys Registration Statement on Form 10-12G (File No. 000-53497) filed on November 12, 2008). | |
| 
3.4 | 
| 
Certificate of Amendment of Certificate of Incorporation increasing authorized capital dated September 26, 2006 (incorporated by reference to Exhibit 3.6 to the Companys Registration Statement on Form 10-12G (File No. 000-53497) filed on November 12, 2008). | |
| 
3.5 | 
| 
Certificate of Amendment to the Certificate of Incorporation increasing authorized common stock and authorizing preferred stock, dated May 18, 2011 (incorporated by reference to Exhibit 3.1 to the Companys Current Report on Form 8-K filed on May 18, 2011). | |
| 
3.6 | 
| 
Certificate of Amendment to the Certificate of Incorporation authorizing a series of Preferred Stock to be named Series A Convertible Preferred Stock, consisting of 2,500,000 shares, which series shall have specific designations, powers, preferences and relative and other special rights, qualifications, limitations and restrictions as outlined in the Certificate of Designations, filed June 30, 2015 (incorporated by reference to Exhibit 4.1 to the Companys Current Report on Form 8-K filed on July 7, 2015). | |
| 
3.7 | 
| 
Certificate of Amendment to the Certificate of Incorporation increasing the authorized series of Series A Convertible Preferred Stock to 5,000,000 shares, filed March 31, 2016 (incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed on April 7, 2016). | |
| 
3.8 | 
| 
Certificate of Amendment to the Certificate of Incorporation authorizing a series of Preferred Stock to be named Series B Convertible Preferred Stock, consisting of 5,000,000 shares, which series shall have specific designations, powers, preferences and relative and other special rights, qualifications, limitations and restrictions as outlined in the Certificate of Designations, filed October 10, 2018 (incorporated by reference to Exhibit 3.1 to the Companys Current Report on Form 8-K filed on October 17, 2018). | |
| 
3.9 | 
| 
Certificate of Designations, Preferences and Rights of Series C Convertible Preferred Stock of Vivos Inc., dated March 27, 2019 (incorporated by reference to Exhibit 3.1 to the Companys Current Report on Form 8-K, filed on April 2, 2019). | |
| 
3.10 | 
| 
Certificate of Amendment to its Certificate of Incorporation of Vivos Inc., as amended, effecting a 1-for-8 reverse split, dated June 26, 2019 (incorporated by reference to Exhibit 3.1 to the Companys Current Report on Form 8-K filed on July 2, 2019). | |
| 
4.1 | 
| 
Form of Warrant (incorporated by reference to Exhibit 4.1 to the Companys Current Report on Form 8-K filed on October 17, 2018). | |
| 
4.2 | 
| 
Form of Series A Warrant (incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed on July 11, 2022). | |
| 44 | |
| 
4.3 | 
| 
Form of Series B Warrant (incorporated by reference to Exhibit 10.2 to the Companys Current Report on Form 8-K filed on July 11, 2022). | |
| 
4.4 | 
| 
Form of Series C Warrant (incorporated by reference to Exhibit 4.1 to the Companys Current Report on Form 8-K filed on December 27, 2023). | |
| 
10.1 | 
| 
Agreement and Plan of Reorganization, dated as of December 15, 1998, by and among HHH Entertainment, Inc. and Earth Sports Products, Inc. (incorporated by reference to Exhibit 10.1 to the Companys Registration Statement on Form 10-12G (File No. 000-53497) filed on November 12, 2008). | |
| 
10.2 | 
| 
Agreement and Plan of Merger of HHH Entertainment, Inc. and Savage Mountain Sports Corporation, dated as of January 6, 2000 (incorporated by reference to Exhibit 10.2 to the Companys Registration Statement on Form 10-12G (File No. 000-53497), filed on November 12, 2008). | |
| 
10.3 | 
| 
Agreement and Plan of Acquisition by and between Neu-Hope Technologies, Inc., UTEK Corporation and Advanced Medical Isotope Corporation, dated September 22, 2006 (incorporated by reference to Exhibit 10.4 to the Companys Registration Statement on Form 10-12G (File No. 000-53497), filed on November 12, 2008). | |
| 
10.4 | 
| 
Agreement and Plan of Acquisition by and between Isonics Corporation and Advanced Medical Isotope Corporation dated June 13, 2007 (incorporated by reference to Exhibit 10.6 to the Companys Registration Statement on Form 10-12G (File No. 000-53497), filed on November 12, 2008). | |
| 
10.5 | 
| 
Form of Non-Statutory Stock Option Agreement (incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed on March 15, 2012). | |
| 
10.6 | 
| 
Promissory Note dated December 16, 2008 between Advanced Medical Isotope Corporation and Carlton M. Cadwell (incorporated by reference to Exhibit 10.11 to the Companys Annual Report on Form 10-K filed on March 3, 2012). | |
| 
10.7 | 
| 
2015 Omnibus Securities and Incentive Plan (incorporated by reference to Exhibit 10.12 to the Companys Annual Report on Form 10-K, filed May 25, 2016). | |
| 
10.8 | 
| 
Washington State University Sub-Award Agreement for the period December 15, 2017 through January 31, 2018.(incorporated by reference to Exhibit 10.13 to the Companys Annual report on Form 10-K, filed April 2, 2018). | |
| 
10.9 | 
| 
The Curators of the University of Missouri Sponsored Research Contract for the period November 1, 2017 through October 31, 2018. (incorporated by reference to Exhibit 10.14 to the Companys Annual report on Form 10-K, filed April 2, 2018). | |
| 
10.10 | 
| 
Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed on October 17, 2018). | |
| 
10.11 | 
| 
Employment Agreement between Vivos Inc. and Michael Korenko, dated May 3, 2021 (incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed on May 7, 2021. | |
| 
10.12 | 
| 
Amended and Restated Employment Agreement between Vivos Inc. and Michael Korenko. Dated December 19, 2023, with a deemed effective date of January 1, 2024 (incorporated by reference to Exhibit 10.12 to the Companys Current Report on Form 8-K filed March 25, 2024). | |
| 
10.13 | 
| 
Form of Series C Warrant Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Companys Current Report on Form 8-K filed on December 27, 2023). | |
| 
10.14 | 
| 
Form of Warrant Exchange Agreement (incorporated by reference to Exhibit 10.2 to the Companys Current Report on Form 8-K filed on December 27, 2023. | |
| 
23* | 
| 
Consent of Independent Registered Public Accounting Firm | |
| 
31.1* | 
| 
Certification of Chief Executive Officer pursuant to Sec. 302 of the Sarbanes-Oxley Act of 2002 | |
| 
31.2* | 
| 
Certification of Chief Financial Officer pursuant to Sec. 302 of the Sarbanes-Oxley Act of 2002 | |
| 
32.1* | 
| 
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 | |
| 
101.INS* | 
| 
Inline XBRL Instance Document | |
| 
101.SCH* | 
| 
Inline XBRL Taxonomy Extension
Schema | |
| 
101.CAL* | 
| 
Inline XBRL Taxonomy Extension
Calculation Linkbase | |
| 
101.DEF* | 
| 
Inline XBRL Taxonomy Extension
Definition Linkbase | |
| 
101.LAB* | 
| 
Inline XBRL Taxonomy Extension
Label Linkbase | |
| 
101.PRE* | 
| 
Inline XBRL Taxonomy Extension
Presentation Linkbase | |
| 
104 | 
| 
Cover Page Interactive
Data File (formatted as Inline XBRL and contained in Exhibit 101) | |
* Filed herewith.
**Item
16. Form 10-K Summary**
None.
| 45 | |
**SIGNATURES**
Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
| 
| 
VIVOS
INC. | |
| 
| 
| 
| |
| 
Date:
March 30, 2026 | 
By: | 
/s/
Michael K. Korenko | |
| 
| 
Name: | 
Michael
K. Korenko | |
| 
| 
Title: | 
Chief
Executive Officer | |
Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
| 
Date:
March 30, 2026 | 
By: | 
/s/
Michael K. Korenko | |
| 
| 
Name: | 
Michael
K. Korenko | |
| 
| 
Title: | 
Chief
Executive Officer | |
| 
| 
| 
(Principal
Executive Officer) | |
| 
| 
| 
| |
| 
Date:
March 30, 2026 | 
By: | 
/s/
Michael Pollack | |
| 
| 
Name: | 
Michael
Pollack | |
| 
| 
Title: | 
Interim
Chief Financial Officer | |
| 
| 
| 
(Principal
Financial and Accounting Officer) | |
| 
| 
| 
| |
| 
Date:
March 30, 2026 | 
By: | 
/s/
Carlton M. Cadwell | |
| 
| 
Name: | 
Carlton
M. Cadwell | |
| 
| 
Title: | 
Secretary
and Chairman of the Board | |
| 46 | |
****
**Vivos
Inc.**
**Index
to Consolidated Financial Statements**
| 
| 
Pages | |
| 
| 
| |
| 
Report of Independent Registered Public Accounting Firm (PCAOB ID No. 5525) | 
F-1 | |
| 
| 
| |
| 
Financial
Statements: | 
| |
| 
| 
| |
| 
Consolidated
Balance Sheets as of December 31, 2025 and 2024 | 
F-2 | |
| 
| 
| |
| 
Consolidated
Statements of Operations for the years ended December 31, 2025 and 2024 | 
F-3 | |
| 
| 
| |
| 
Consolidated
Statements of Changes in Stockholders Equity for the years ended December 31, 2025 and 2024 | 
F-4 | |
| 
| 
| |
| 
Consolidated
Statements of Cash Flow for the years ended December 31, 2025 and 2024 | 
F-5 | |
| 
| 
| |
| 
Notes
to Consolidated Financial Statements | 
F-6 | |
| 47 | |
*
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Board of Directors and Stockholders of Vivos, Inc.
Opinion
on the Financial Statements
We
have audited the accompanying consolidated balance sheets of Vivos, Inc. (the Company) as of December 31, 2025 and 2024,
and the related consolidated statements of operations, changes in stockholders equity, and cash flows for each of the years in
the two-year period ended December 31, 2025, and the related notes (collectively referred to as the financial statements). In our opinion,
the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and
2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity
with accounting principles generally accepted in the United States of America.
Going
Concern
The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note
1 to the financial statements, the Company has had recurring losses and has used significant cash in supports of its operating activities.
These factors, among others, raise substantial doubt about the Companys ability to continue as a going concern. Managements
plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result
from the outcome of this uncertainty.
Basis
for Opinion
These
financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on the Companys
financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities
laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,
we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion
on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion.
Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provide a reasonable basis for our opinion.
Critical
Audit Matters
Critical
audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be
communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. We determined that there were no critical audit matters.
Fruci
& Associates II, PLLC PCAOB ID #05525
We
have served as the Companys auditor since 2016.
Spokane,
Washington
March
30, 2026
| F-1 | |
**VIVOS INC** 
**CONSOLIDATED BALANCE SHEETS** 
**DECEMBER 31, 2025 AND 2024** 
| 
| | 
DECEMBER
31, | | | 
DECEMBER
31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
| | | 
| | |
| 
ASSETS | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | |
| 
Current
Assets: | | 
| | | | 
| | | |
| 
Cash | | 
$ | 1,558,525 | | | 
$ | 2,212,548 | | |
| 
Accounts
receivable | | 
| 22,331 | | | 
| 10,326 | | |
| 
Inventory | | 
| 57,257 | | | 
| - | | |
| 
Prepaid
expenses | | 
| 12,956 | | | 
| 10,582 | | |
| 
| | 
| | | | 
| | | |
| 
Total
Current Assets | | 
| 1,651,069 | | | 
| 2,233,456 | | |
| 
| | 
| | | | 
| | | |
| 
Fixed
assets, net | | 
| 102,811 | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
Other
Assets: | | 
| | | | 
| | | |
| 
Right
of use assets | | 
| 110,703 | | | 
| - | | |
| 
Other
assets | | 
| 3,000 | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
Total
Other Assets | | 
| 113,703 | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
TOTAL
ASSETS | | 
$ | 1,867,583 | | | 
$ | 2,233,456 | | |
| 
| | 
| | | | 
| | | |
| 
LIABILITIES
AND STOCKHOLDERS EQUITY | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | |
| 
LIABILITIES | | 
| | | | 
| | | |
| 
Current
Liabilities: | | 
| | | | 
| | | |
| 
Accounts
payable and accrued expenses | | 
$ | 92,472 | | | 
$ | 86,209 | | |
| 
Current
portion of lease liability | | 
| 25,420 | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
Total
Current Liabilities | | 
| 117,892 | | | 
| 86,209 | | |
| 
| | 
| | | | 
| | | |
| 
Non-current
Liabilities: | | 
| | | | 
| | | |
| 
Lease
liability, net of current portion | | 
| 88,851 | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
Total
Non-current Liabilities | | 
| 88,851 | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
Total
Liabilities | | 
| 206,743 | | | 
| 86,209 | | |
| 
| | 
| | | | 
| | | |
| 
Commitments
and contingencies | | 
| - | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
STOCKHOLDERS
EQUITY | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | |
| 
Preferred
stock, par value, $0.001, 20,000,000 shares authorized, Series A Convertible Preferred, 5,000,000 shares authorized, 2,071,007 shares
issued and outstanding, respectively | | 
| 2,071 | | | 
| 2,071 | | |
| 
Additional
paid in capital - Series A Convertible preferred stock | | 
| 8,842,458 | | | 
| 8,842,458 | | |
| 
Series
B Convertible Preferred, 5,000,000 shares authorized, 363 shares issued and outstanding, respectively | | 
| - | | | 
| - | | |
| 
Additional
paid in capital - Series B Convertible preferred stock | | 
| 4,538 | | | 
| 4,538 | | |
| 
Series
C Convertible Preferred, 5,000,000 shares authorized, 385,302 shares issued and outstanding, respectively | | 
| 385 | | | 
| 385 | | |
| 
Preferred
stock, value | | 
| 385 | | | 
| 385 | | |
| 
Additional
paid in capital - Series C Convertible preferred stock | | 
| 500,507 | | | 
| 500,507 | | |
| 
Additional
paid in capital | | 
| 500,507 | | | 
| 500,507 | | |
| 
Common
stock, par value, $0.001, 950,000,000 shares authorized, 455,494,238 and 440,873,806 issued and outstanding, respectively | | 
| 455,494 | | | 
| 440,874 | | |
| 
Additional
paid in capital - common stock | | 
| 80,282,633 | | | 
| 77,719,143 | | |
| 
Subscriptions
receivable | | 
| - | | | 
| (1,500 | ) | |
| 
Accumulated
deficit | | 
| (88,427,246 | ) | | 
| (85,361,229 | ) | |
| 
| | 
| | | | 
| | | |
| 
Total
Stockholders Equity | | 
| 1,660,840 | | | 
| 2,147,247 | | |
| 
| | 
| | | | 
| | | |
| 
TOTAL
LIABILITIES AND STOCKHOLDERS EQUITY | | 
$ | 1,867,583 | | | 
$ | 2,233,456 | | |
The accompanying notes are an integral part of these consolidated financial statements.
| F-2 | |
**VIVOS INC**
**CONSOLIDATED STATEMENTS OF OPERATIONS**
**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
| 
| | 
| | | 
| | |
| 
| | 
YEARS ENDED | | |
| 
| | 
DECEMBER 31, | | | 
DECEMBER 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
| | | 
| | |
| 
Revenues, net | | 
$ | 68,379 | | | 
$ | 27,995 | | |
| 
Cost of Goods Sold | | 
| 128,134 | | | 
| 30,979 | | |
| 
| | 
| | | | 
| | | |
| 
Gross (loss) profit | | 
| (59,755 | ) | | 
| (2,984 | ) | |
| 
| | 
| | | | 
| | | |
| 
OPERATING EXPENSES | | 
| | | | 
| | | |
| 
Professional fees, including stock-based compensation | | 
| 2,039,407 | | | 
| 1,682,350 | | |
| 
Payroll expenses | | 
| 417,097 | | | 
| 352,597 | | |
| 
Research and development | | 
| 352,232 | | | 
| 324,629 | | |
| 
General and administrative expenses | | 
| 296,556 | | | 
| 241,824 | | |
| 
| | 
| | | | 
| | | |
| 
Total Operating Expenses | | 
| 3,105,292 | | | 
| 2,601,400 | | |
| 
| | 
| | | | 
| | | |
| 
OPERATING LOSS | | 
| (3,165,047 | ) | | 
| (2,604,384 | ) | |
| 
| | 
| | | | 
| | | |
| 
NON-OPERATING INCOME | | 
| | | | 
| | | |
| 
Interest income | | 
| 99,030 | | | 
| 74,936 | | |
| 
Loss on issuance of shares and warrant exchange | | 
| - | | | 
| (381,000 | ) | |
| 
| | 
| | | | 
| | | |
| 
Total Non-Operating Income | | 
| 99,030 | | | 
| (306,064 | ) | |
| 
| | 
| | | | 
| | | |
| 
NET LOSS BEFORE PROVISION FOR INCOME TAXES | | 
| (3,066,017 | ) | | 
| (2,910,448 | ) | |
| 
| | 
| | | | 
| | | |
| 
Provision for income taxes | | 
| - | | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
NET LOSS | | 
$ | (3,066,017 | ) | | 
$ | (2,910,448 | ) | |
| 
| | 
| | | | 
| | | |
| 
Net loss per share - basic and diluted | | 
$ | (0.01 | ) | | 
$ | (0.01 | ) | |
| 
| | 
| | | | 
| | | |
| 
Weighted average common shares outstanding | | 
| 452,722,074 | | | 
| 409,673,533 | | |
The accompanying notes are an integral part of these consolidated financial statements.
| F-3 | |
**VIVOS INC**
**CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY**
**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
| 
| | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | |
| 
| | 
Series A Preferred | | | 
Additional
Paid-In
Capital -
Series A | | | 
Series B Preferred | | | 
Additional
Paid-In
Capital -
Series B | | | 
Series C Preferred | | | 
Additional
Paid-In
Capital -
Series C | | | 
Common Stock | | | 
Additional
Paid-In
Capital - | | | 
Subscription | | | 
Accumulated | | | 
| | |
| 
| | 
Shares | | | 
Amount | | | 
Preferred | | | 
Shares | | | 
Amount | | | 
Preferred | | | 
Shares | | | 
Amount | | | 
Preferred | | | 
Shares | | | 
Amount | | | 
Common | | | 
Receivable | | | 
Deficit | | | 
Total | | |
| 
| | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | | 
| | |
| 
Balance - December 31, 2023 | | 
| 2,071,007 | | | 
$ | 2,071 | | | 
$ | 8,842,458 | | | 
| 200,363 | | | 
$ | 200 | | | 
$ | 290,956 | | | 
| 385,302 | | | 
$ | 385 | | | 
$ | 500,507 | | | 
| 387,894,033 | | | 
$ | 387,894 | | | 
$ | 73,791,430 | | | 
$ | - | | | 
$ | (82,450,781 | ) | | 
$ | 1,365,120 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Stock issued for: | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Cash | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 24,950,000 | | | 
| 24,950 | | | 
| 2,241,050 | | | 
| - | | | 
| - | | | 
| 2,266,000 | | |
| 
Services | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 605,801 | | | 
| 606 | | | 
| 88,319 | | | 
| - | | | 
| - | | | 
| 88,925 | | |
| 
Exercise of warrants (cash and cashless) | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 25,336,472 | | | 
| 25,336 | | | 
| 376,514 | | | 
| (1,500 | ) | | 
| - | | | 
| 400,350 | | |
| 
Conversion of preferred stock to common stock | | 
| - | | | 
| - | | | 
| - | | | 
| (200,000 | ) | | 
| (200 | ) | | 
| (286,418 | ) | | 
| - | | | 
| - | | | 
| - | | | 
| 2,500,000 | | | 
| 2,500 | | | 
| 284,118 | | | 
| - | | | 
| - | | | 
| - | | |
| 
Vested RSUs | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 750,000 | | | 
| 750 | | | 
| (750 | ) | | 
| - | | | 
| - | | | 
| - | | |
| 
Adjustment for vested RSUs | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| (1,162,500 | ) | | 
| (1,162 | ) | | 
| 1,162 | | | 
| - | | | 
| - | | | 
| - | | |
| 
Warrants purchased for cash | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 18,950 | | | 
| - | | | 
| - | | | 
| 18,950 | | |
| 
RSUs granted to consultants that have vested | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 918,350 | | | 
| - | | | 
| - | | | 
| 918,350 | | |
| 
Net loss for the year | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| (2,910,448 | ) | | 
| (2,910,448 | ) | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Balance - December 31, 2024 | | 
| 2,071,007 | | | 
$ | 2,071 | | | 
$ | 8,842,458 | | | 
| 363 | | | 
$ | - | | | 
$ | 4,538 | | | 
| 385,302 | | | 
$ | 385 | | | 
$ | 500,507 | | | 
| 440,873,806 | | | 
$ | 440,874 | | | 
$ | 77,719,143 | | | 
$ | (1,500 | ) | | 
$ | (85,361,229 | ) | | 
$ | 2,147,247 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Balance - December 31, 2024 | | 
| 2,071,007 | | | 
$ | 2,071 | | | 
$ | 8,842,458 | | | 
| 363 | | | 
$ | - | | | 
$ | 4,538 | | | 
| 385,302 | | | 
$ | 385 | | | 
$ | 500,507 | | | 
| 440,873,806 | | | 
$ | 440,874 | | | 
$ | 77,719,143 | | | 
$ | (1,500 | ) | | 
$ | (85,361,229 | ) | | 
$ | 2,147,247 | | |
| 
Balance | | 
| 2,071,007 | | | 
$ | 2,071 | | | 
$ | 8,842,458 | | | 
| 363 | | | 
$ | - | | | 
$ | 4,538 | | | 
| 385,302 | | | 
$ | 385 | | | 
$ | 500,507 | | | 
| 440,873,806 | | | 
$ | 440,874 | | | 
$ | 77,719,143 | | | 
$ | (1,500 | ) | | 
$ | (85,361,229 | ) | | 
$ | 2,147,247 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Stock issued for: | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Cash | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 12,500,000 | | | 
| 12,500 | | | 
| 1,487,500 | | | 
| - | | | 
| - | | | 
| 1,500,000 | | |
| 
Services | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 527,525 | | | 
| 527 | | | 
| 42,223 | | | 
| - | | | 
| - | | | 
| 42,750 | | |
| 
Exercise of warrants (cash and cashless) | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 742,857 | | | 
| 743 | | | 
| (743 | ) | | 
| 1,500 | | | 
| - | | | 
| 1,500 | | |
| 
Vested RSUs | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 850,000 | | | 
| 850 | | | 
| (850 | ) | | 
| - | | | 
| - | | | 
| - | | |
| 
Warrants purchased for cash | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 6,250 | | | 
| - | | | 
| - | | | 
| 6,250 | | |
| 
RSUs granted to consultants that have vested | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| 1,029,110 | | | 
| - | | | 
| - | | | 
| 1,029,110 | | |
| 
Net loss for the year | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| - | | | 
| (3,066,017 | ) | | 
| (3,066,017 | ) | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Balance - December 31, 2025 | | 
| 2,071,007 | | | 
$ | 2,071 | | | 
$ | 8,842,458 | | | 
| 363 | | | 
$ | - | | | 
$ | 4,538 | | | 
| 385,302 | | | 
$ | 385 | | | 
$ | 500,507 | | | 
| 455,494,188 | | | 
$ | 455,494 | | | 
$ | 80,282,633 | | | 
$ | - | | | 
$ | (88,427,246 | ) | | 
$ | 1,660,840 | | |
| 
Balance | | 
| 2,071,007 | | | 
$ | 2,071 | | | 
$ | 8,842,458 | | | 
| 363 | | | 
$ | - | | | 
$ | 4,538 | | | 
| 385,302 | | | 
$ | 385 | | | 
$ | 500,507 | | | 
| 455,494,188 | | | 
$ | 455,494 | | | 
$ | 80,282,633 | | | 
$ | - | | | 
$ | (88,427,246 | ) | | 
$ | 1,660,840 | | |
The accompanying notes are an integral part of these consolidated financial statements.
| F-4 | |
**VIVOS INC**
**CONSOLIDATED STATEMENTS OF CASH FLOWS**
**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**
| 
| | 
2025 | | | 
2024 | | |
| 
CASH FLOW FROM OPERATING ACTIVITIES | | 
| | | | 
| | | |
| 
Net loss | | 
$ | (3,066,017 | ) | | 
$ | (2,910,448 | ) | |
| 
Adjustments to reconcile net loss to net cash used in operating activities | | 
| | | | 
| | | |
| 
Depreciation | | 
| 374 | | | 
| - | | |
| 
Common stock, stock options and warrants for services | | 
| 42,750 | | | 
| 88,925 | | |
| 
RSUs issued for services | | 
| 1,029,110 | | | 
| 918,350 | | |
| 
Loss on issuance of shares and warrant exchange | | 
| - | | | 
| 381,000 | | |
| 
Changes in assets and liabilities | | 
| | | | 
| | | |
| 
Accounts receivable | | 
| (12,005 | ) | | 
| (3,326 | ) | |
| 
Inventory | | 
| (57,257 | ) | | 
| - | | |
| 
Prepaid expenses and other assets | | 
| (5,374 | ) | | 
| 255 | | |
| 
Accounts payable and accrued expenses | | 
| 6,263 | | 
| (158,795 | ) | |
| 
Operating lease expense | | 
| 4,413 | | | 
| - | | |
| 
Total adjustments | | 
| 1,008,274 | | | 
| 1,226,409 | | |
| 
| | 
| | | | 
| | | |
| 
Net cash used in operating activities | | 
| (2,057,743 | ) | | 
| (1,684,039 | ) | |
| 
| | 
| | | | 
| | | |
| 
CASH FLOWS FROM INVESTING ACTIVITIES | | 
| | | | 
| | | |
| 
Purchases of fixed assets | | 
| (103,185 | ) | | 
| - | | |
| 
Net cash provided by investing activities | | 
| (103,185 | ) | | 
| - | | |
| 
| | 
| | | | 
| | | |
| 
CASH FLOWS FROM FINANCING ACTIVITIES | | 
| | | | 
| | | |
| 
Proceeds from short-term advances from related party | | 
| - | | | 
| 40,949 | | |
| 
Payments of related party notes | | 
| - | | | 
| (40,949 | ) | |
| 
Payments of lease liability | | 
| (845 | ) | | 
| - | | |
| 
Exercise of warrants | | 
| 1,500 | | | 
| 19,350 | | |
| 
Proceeds from common stock and warrants | | 
| 1,506,250 | | | 
| 2,284,950 | | |
| 
Net cash provided by financing activities | | 
| 1,506,905 | | | 
| 2,304,300 | | |
| 
| | 
| | | | 
| | | |
| 
NET (DECREASE) INCREASE IN CASH | | 
| (654,023 | ) | | 
| 620,261 | | |
| 
| | 
| | | | 
| | | |
| 
CASH - BEGINNING OF YEAR | | 
| 2,212,548 | | | 
| 1,592,287 | | |
| 
| | 
| | | | 
| | | |
| 
CASH - END OF YEAR | | 
$ | 1,558,525 | | | 
$ | 2,212,548 | | |
| 
| | 
| | | | 
| | | |
| 
CASH PAID DURING THE YEAR FOR: | | 
| | | | 
| | | |
| 
Interest expense | | 
$ | - | | | 
$ | - | | |
| 
| | 
| | | | 
| | | |
| 
Income taxes | | 
$ | - | | | 
$ | - | | |
| 
| | 
| | | | 
| | | |
| 
SUPPLEMENTAL INFORMATION - NON-CASH INVESTING AND FINANCING ACTIVITIES: | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | |
| 
Common stock issued in cashless exercise of warrants | | 
$ | 743 | | | 
$ | 23,251 | | |
| 
RSUs vested into common stock | | 
$ | 850 | | | 
$ | 750 | | |
| 
ROU assets for lease liability | | 
$ | 115,116 | | | 
$ | - | | |
The accompanying notes are an integral part of these consolidated financial statements.
| F-5 | |
**VIVOS
INC.**
**NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS**
**DECEMBER
31, 2025 AND 2024**
**NOTE
1: BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES**
Vivos
Inc. (the Company*, *we*, *us*, *our*) is a radiation oncology
medical device company engaged in the development of its yttrium-90 (*Y-90*) based precision radionuclide therapy
device, RadioGel, for the treatment of non-resectable tumors, now trademarked as Precision Radionuclide Therapy. A prominent
team of radiochemists, scientists, and engineers, collaborating with strategic partners, including national laboratories, universities,
and private corporations, lead the Companys development efforts. The Companys overall vision is to globally empower physicians,
medical researchers, and patients by providing them with new isotope technologies that offer safe and effective treatments for cancer.
In
2013, the United States Food and Drug Administration (*FDA*) issued the determination that RadioGel is a device
for human therapy for non-resectable cancers in humans. This should result in a faster path than a drug for final approval.
In
January 2018, the Center for Veterinary Medicine Product Classification Group ruled that RadioGel should be classified as a device
for animal therapy of feline sarcomas and canine soft tissue sarcomas. Additionally, after a legal review, the Company believes that
the device classification obtained from the FDA Center for Veterinary Medicine is not limited to canine and feline sarcomas, but rather
may be extended to a much broader population of veterinary cancers, including all or most solid tumors in animals. We expect the result
of such classification and label review will be that no additional regulatory approvals are necessary for the use of IsoPet
for the treatment of solid tumors in animals. The FDA does not have premarket authority over devices with a veterinary classification,
and the manufacturers are responsible for assuring that the product is safe, effective, properly labeled, and otherwise in compliance
with all applicable laws and regulations.
Based
on the FDAs recommendation, RadioGel is being marketed as IsoPet for use by veterinarians
to avoid any confusion between animal and human therapy. The Company already has trademark protection for the IsoPet
name. IsoPet and RadioGel are used synonymously throughout this document. The only distinction between IsoPet
and RadioGel is the FDAs recommendation that we use IsoPet for veterinarian usage,
and reserve RadioGel for human therapy. Historically, the Companys primary focus was on the development and
marketing of Isopet for animal therapy, through the Companys IsoPet Solutions division. Over the
last four years much effort has been directed to completing the testing require to obtain FDA approval for an Investigational Device
Exemption and to obtain approval for clinical trials in India.
The
Companys IsoPet Solutions division was established in May 2016 to focus on the veterinary oncology market, namely engagement of
university veterinarian hospital to develop the detailed therapy procedures to treat animal tumors and ultimately use of the technology
in private clinics. In January 2025 the Company restructured and aligned its internal resources and focused effort to align with animal
therapy, human therapy, and recently other applications of its patented technologies.
We
refer you to Item 7 *Managements Discussion and Analysis of Financial Condition and Results of Operations* of this
Form 10-K for more information about our business.
On
September 17, 2025, the Board of Directors of the Company approved the creation of Vivos Scientific India LLP (Vivos India
or the LLP), a wholly owned separate legal entity in India. Vivos India expands the Companys strategic initiatives,
with the objective of establishing a manufacturing center, expanding human therapies and pursuing commercialization of therapies in India.
In addition, we will generate additional human trial data to support our process with the Food and Drug Administration (FDA).
Vivos India was established on October 1, 2025 (deemed to have commenced on October 15, 2025). Pursuant to the LLP dated as of November
18, 2025, ownership of Vivos India is held jointly by Michael Korenko the Companys CEO, and Sandip Bali, a consultant of the Company
based in India. Since the Company will by the sole source of funding for Vivos India and the Company will control the activities of Vivos
India, the Company has consolidated this entity as a variable interest entity in accordance with ASC 810. Additionally, the business
of the LLP is the research and development of the patents held by the Company in India pursuant to the Product Transfer and License Deed
entered into November 18, 2025. It is not anticipated that this entity will incur revenues in the near term.
On
November 18, 2025, the Company and Vivos India entered into a Product Transfer and License Deed whereby the Company will grant Vivos
India an exclusive license and product transfer to develop, seek regulatory approvals, import, market, distribute, and commercialize
the Products in India, subject to the terms and conditions of the Deed. In accordance with this agreement, any inventions, improvements,
data or know-how developed by Vivos India in connection with the Companys products shall be promptly disclosed in writing and
are hereby irrevocably assigned to the Company.
| F-6 | |
**Going
Concern**
The
accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction
of liabilities in the normal course of business. As shown in the accompanying financial statements, the Company has suffered recurring
losses and used significant cash in support of its operating activities and the Companys cash position is not sufficient to support
the Companys operations and thus raises significant doubt about the Companys ability to continue as a going concern. Research
and development of the Companys brachytherapy product line has been funded with proceeds from the sale of equity and debt securities
as well as a series of grants. The Company requires funding of approximately $3 million annually to maintain current operating activities.
**Financing
and Strategy**
In
November 2019, the SEC qualified the Companys offering of its Common Stock, under Regulation A of Section 3(6) of the
Securities Act of 1933, as amended (the *Securities Act*) (*Regulation A*), which offering was
amended from time to time thereafter (the *2019 Regulation A+ Offering*). In September 2021, the SEC qualified
the Companys offering of Common Stock under Regulation A, which offering was amended from time to time thereafter (the
*2021 Regulation A Offering*). On July 17, 2024, the SEC qualified the Companys offering under Regulation
A to offer up to $60,000,000
shares of its Common Stock (the *July 2024 Regulation A+ Offering* and, together with the 2019 Regulation A+
Offering and the 2021 Regulation A Offering, the *Regulation A+ Offerings*). The Company filed with the SEC an
offering statement on Form 1-A (including a preliminary offering circular dated February 13, 2026, amended March 4, 2026) under
Regulation A for the offering of up to $75.0 million of shares of its Common Stock, which offering was qualified by the SEC as of
March 5, 2026 (the 2026 Regulation A+ Offering and, together with the 2019 Regulation A+ Offering, 2021 Regulation A
Offering, and July 2024 Regulation A+ Offering, the Regulation A+ Offerings).
During
the year ended December 31, 2023, we raised $1,179,245 through the sale of 16,132,000 shares of Common Stock through the Regulation A+
Offerings and concurrent private placements of 18,797,000 warrants. During the year ended December 31, 2024, $2,266,000 was raised through
the issuance of 24,950,000 shares of Common Stock through the Regulation A+ Offerings. During the year ended December 31, 2025, $1,500,000
was raised through the issuance of 12,500,000 shares of Common Stock through the Regulation A+ Offerings and $6,250 through a concurrent
private placement of 6,250,000 warrants.
In March 2026, the Company raised
$1,553,000 through the sale of 19,200,000 shares of Common Stock through the Regulation A+ Offering and concurrent private placement of
17,000,000 warrants.
Following
receipt of required regulatory approvals and necessary financing to fund our working capital requirements, the Company intends to outsource
material aspects of manufacturing, distribution, sales, and marketing for operations within the U.S. Outside of the U.S., the Company
intends to pursue licensing arrangements and/or partnerships to facilitate its global commercialization strategy.
Long-term,
the Company intends to consider resuming research efforts with respect to other products and technologies intended to help improve the
diagnosis and treatment of cancer and other illnesses. These long-term goals are subject to the Company: (i) receiving adequate funding;
(ii) receiving regulatory approval for RadioGel and other brachytherapy products; and (iii) being able to successfully
commercialize its brachytherapy products.
Based
on the Companys financial history since inception, the Companys independent registered public accounting firm has expressed
substantial doubt as to the Companys ability to continue as a going concern. The Company has limited revenue, nominal cash, and
has accumulated deficits since inception. If the Company cannot obtain sufficient additional capital, the Company will be required to
delay the implementation of its business strategy and may not be able to continue operations.
The
Companys headquarters are in Northeast Washington, however, our focus on the animal therapy market has been the Northwestern sector
of the U.S. The Company continues its marketing efforts on the animal therapy market and our attempts to increase the exposure to our
product, and generate revenue accordingly.
As
of December 31, 2025, the Company had $1,558,525 of cash on hand. There are currently commitments to vendors for products and services
purchased. To continue the development of the Companys products, the current level of cash is insufficient to cover the fixed
and variable obligations of the Company.
| F-7 | |
The
Company anticipates using additional proceeds from the July 2024 Regulation A+ Offering as follows:
For
the animal therapy market:
| 
| 
| 
Expand
communication on our website, the Companys social media presence, conferences, and journals, each intended to increase the
number of certified clinics for small animal and equine therapy and to increase the number of patients; | |
| 
| 
| 
Subsidize
certain IsoPet therapies, if necessary, to ensure that all viable candidates are treated; and. | |
| 
| 
| 
Assist
a new regional clinic with their license and certification training. | |
For
the human market:
| 
| 
| 
Enhance
the pedigree of the Quality Management System; | |
| 
| 
| 
Construct
and validate two new production facilities; and | |
| 
| 
| 
Fund
human clinical studies in the US and India. | |
Research
and development of the Companys precision radionuclide therapy product line has been funded with proceeds from the sale of equity
and debt securities, including from the prior Regulation A+ Offerings. The Company requires additional funding of approximately $3.0
million annually to maintain operating activities. Over
the next 36 months, the Company believes it will require approximately $9.0 million in additional capital to: (i) fund the FDA approval
process to conduct human clinical trials; (ii) conduct Phase I, pilot, clinical trials; (iii) activate several regional clinics to administer
IsoPet across the U.S.; (iv) create an independent production center within the current production site to create a template
for future international manufacturing; and (v) initiate regulatory approval processes outside of the U.S. The
proceeds raised from the Regulation A+ Offerings were used to fund this development and proceeds from the July 2024 Regulation A+ Offering
will be used to continue such development efforts.
The
continued deployment of the precision radionuclide therapy products and a worldwide regulatory approval effort will require additional
resources and personnel. The principal variables in the timing and amount of spending for the precision radionuclide therapy products
in the next 12 to 24 months will be the FDAs classification of the Companys precision radionuclide therapy products as
Class II or Class III devices (or otherwise) and any requirements for additional studies which may possibly include clinical studies.
Thereafter, the principal variables in the amount of the Companys spending and its financing requirements would be the timing
of any approvals and the nature of the Companys arrangements with third parties for manufacturing, sales, distribution and licensing
of those products and the products success in the U.S. and elsewhere. The Company intends to fund its activities through strategic
transactions such as licensing and partnership agreements or from proceeds raised from the Regulation A+ Offerings.
The
Company intends to expand the indications for use in phases: first, for lymph nodes associated with thyroid cancer, secondly, cancerous
lung nodules, and finally, all non-sectable solid tumors.
**Consolidation**
The
Company has a relationship with Vivos India, which is considered a variable interest entity (VIE) under the guidance in ASC 810, Consolidations.
A VIE is an entity in which the equity investors do not have sufficient equity investment at risk or lack the characteristics of a controlling
financial interest. The Company evaluates the interests in such entities to determine whether it is the primary beneficiary and therefore
required to consolidate the VIE in its financial statements.
The
Company has determined that it is the primary beneficiary of Vivos India because it has both (i) the power to direct the activities
that most significantly impact the VIEs economic performance, and (ii) the obligation to absorb losses or the right to
receive benefits that could potentially be significant to the VIE. Accordingly, the assets, liabilities, and results of operations
of Vivos India will be included in the Companys consolidated financial statements. All intercompany activity will be
eliminated in consolidation. As of December 31, 2025, the Company is still waiting on regulatory approval in India to commence
operations.
****
**Use
of Estimates**
The
preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at
the date of financial statements and the reported amount of revenue and expense during the reporting period. Estimates the Company considers
include criteria for stock-based compensation expense, and valuation allowances on deferred tax assets. Actual results could differ from
those estimates.
| F-8 | |
**Financial
Statement Reclassification**
Certain
account balances from prior periods have been reclassified in these financial statements so as to conform to current period classifications.
There were no changes to the net loss as a result of these reclassifications.
**Cash
Equivalents**
For
the purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity
of three months or less to be cash equivalents.
The
Company occasionally maintains cash balances in excess of the FDIC insured limit. The Company does not consider this risk to be material.
**Fair
Value of Financial Instruments**
Fair
value of financial instruments requires disclosure of the fair value information, whether or not recognized in the balance sheet, where
it is practicable to estimate that value. As of December 31, 2025 and 2024, the balances reported for cash, prepaid expense, accounts
receivable, accounts payable, and accrued expense, approximate the fair value because of their short maturities.
Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. Accounting Standards Codification (*ASC*) Topic 820 established a three-tier
fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs
(level 3 measurements). These tiers include:
Level
1, defined as observable inputs such as quoted prices for identical instruments in active markets;
Level
2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices
for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
Level
3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,
such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
The
Company measures certain financial instruments including options and warrants issued during the period at fair value on a recurring basis.
**Fixed
Assets**
Fixed
assets are recorded at cost. Expenditures for renewals and improvements that significantly add to the productive capacity or extend the
useful life of an asset are capitalized. Expenditures for maintenance and repairs are expensed as incurred. When equipment is retired
or sold, the cost and related accumulated depreciation are eliminated from the balance sheet accounts and the resultant gain or loss
is reflected in income.
Depreciation
is provided using the straight-line method, based on useful lives of the assets which range from 3three
to five years.
The
Company reviews the carrying value of its fixed assets for impairment whenever events and circumstances indicate that the carrying value
of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In
cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount
by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include
current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition,
and other economic factors.
**Patents
and Intellectual Property**
While
patents are being developed or pending, they are not being amortized. Management has determined that the economic life of the patents
to be 10
ten years and amortization, over such 10-year
period and on a straight-line basis will begin once the patents have been issued and the Company begins utilization of the patents through
production and sales, resulting in revenues.
The
Company evaluates the recoverability of intangible assets, including patents and intellectual property on a continual basis. Several
factors are used to evaluate intangibles, including, but not limited to, managements plans for future operations, recent operating
results and projected and expected undiscounted future cash flows.
There
have been no such capitalized costs in the periods ended December 31, 2025 and 2024, respectively. However, a patent was filed by Michael
Korenko and David Swanberg on July 1, 2019 (No. 1811.191) and assigned to the Company based on the Companys proprietary particle
manufacturing process. The timing of this filing was important given the Companys plans to make IsoPet commercially
available, which it did on or about July 9, 2019. This additional patent protection will strengthen the Companys competitive position.
It is the Companys intention to further extend this patent protection to several key countries within one year, as permitted under
international patent laws and treaties.
| F-9 | |
**Revenue
Recognition**
In
May 2014, the Financial Accounting Standards Board (*FASB*) issued Accounting Standard Update (*ASU*)
No. 2014-09, Revenue from Contracts with Customers (Topic 606). This standard provides a single set of guidelines for revenue recognition
to be used across all industries and requires additional disclosures. The guidance introduces a five-step model to achieve its core principal
of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration
to which the entity expects to be entitled in exchange for those goods or services. The Company adopted the updated guidance effective
January 1, 2018 using the full retrospective method.
Under
ASC 606, in order to recognize revenue, the Company is required to identify an approved contract with commitments to perform respective
obligations, identify rights of each party in the transaction regarding goods to be transferred, identify the payment terms for the goods
transferred, verify that the contract has commercial substance and verify that collection of substantially all consideration is probable.
The adoption of ASC 606 did not have an impact on the Companys operations or cash flows.
The
Company recognized revenue as they (i) identified the contracts with each customer; (ii) identified the performance obligation in each
contract; (iii) determined the transaction price in each contract; (iv) were able to allocate the transaction price to the performance
obligations in the contract; and (v) recognized revenue upon the satisfaction of the performance obligation. Upon the sales of the product
to complete the procedures on the animals, the Company recognized revenue as that was considered the performance obligation.
The
Company in 2024 also implemented a license program for clinics that pay for certification to perform these therapies. These revenues
are recognized upon the certification being completed. In addition, due to a pricing discount from the manufacturer, the Company sold
to two of their customers the hydrogel vials that are used in the treatments. This practice is not likely to be continued in future periods.
The
following table disaggregates the Companys revenue by major source for the years ended December 31, 2025 and 2024:
SCHEDULE
OF DISAGGREGATION OF REVENUE
| 
| | 
2025 | | | 
2024 | | |
| 
| | 
Years Ended December 31, | | |
| 
| | 
2025 | | | 
2024 | | |
| 
Revenue: | | 
| | | 
| | |
| 
Services - Treatments | | 
$ | 88,875 | | | 
$ | 29,995 | | |
| 
IsoPet | | 
| 143,025 | | | 
| - | | |
| 
Certification | | 
| 37,483 | | | 
| - | | |
| 
Freight | | 
| 1,050 | | | 
| - | | |
| 
Polymer | | 
| 1,056 | | | 
| - | | |
| 
Discount - Services | | 
| (71,815 | ) | | 
| (2,000 | ) | |
| 
Discount - IsoPet | | 
| (121,300 | ) | | 
| - | | |
| 
Discount - Certifications | | 
| (9,995 | ) | | 
| - | | |
| 
Total | | 
$ | 68,379 | | | 
$ | 27,995 | | |
**Inventory**
Since
the Company is selling a tangible good (IsoPet, which is considered a medical device) for the use in treatments, this is considered inventory
as it is awaiting consumption into the final product. Inventory is valued at the lower of cost or net realizable value. Management evaluates
quantities on hand and physical condition as these characteristics may be impacted by anticipated customer demand for current products.
Inventory as of December 31, 2025 amounts to $57,257. The Company did not hold inventory until February 2025.
The
Company purchases materials from two vendors that each ship to a third vendor who assembles the materials into a finished product which
is then shipped to the clinics for use in the treatments being performed. This vendor who completes the process is charged a fixed fee
which is directly charged to cost of sales. The only inventory not maintained by the Company is held at the vendor who assembles the
product.
There
have been no write-downs of inventory as of December 31, 2025, and the Company evaluates the inventory monthly for obsolescence. The
Company from time to time will write-off items for spoilage when the need arises in the normal course of business.
| F-10 | |
**Loss
Per Share**
The
Company accounts for its loss per common share by replacing primary and fully diluted earnings per share with basic and diluted earnings
per share. Basic loss per share is computed by dividing loss available to holders of our Common Stock (the numerator) by the weighted-average
number of common shares outstanding (the denominator) for the period, and does not include the impact of any potentially dilutive Common
Stock equivalents since the impact would be anti-dilutive. The computation of diluted earnings per share is similar to basic earnings
per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding
if potentially dilutive common shares had been issued. For the given periods of loss, of the periods ended December 31, 2025 and 2024,
the basic earnings per share equals the diluted earnings per share.
The
following represent Common Stock equivalents that could be dilutive in the future as December 31, 2025 and December 31, 2024, which include
the following:
SCHEDULE OF
DILUTIVE EARNINGS PER SHARE
| 
| | 
December 31, 2025 | | | 
December 31, 2024 | | |
| 
Preferred stock | | 
| 7,409,570 | | | 
| 7,409,570 | | |
| 
Restricted stock units | | 
| 56,150,000 | | | 
| 22,725,000 | | |
| 
Common stock options | | 
| 2,252,809 | | | 
| 2,252,809 | | |
| 
Common stock warrants | | 
| 16,115,000 | | | 
| 11,465,000 | | |
| 
Total potential dilutive securities | | 
| 81,927,379 | | | 
| 43,852,379 | | |
**Research
and Development Costs**
Research
and developments costs, including salaries, research materials, administrative expense and contractor fees, are charged to operations
as incurred. The cost of equipment used in research and development activities which has alternative uses is capitalized as part of fixed
assets and not treated as an expense in the period acquired. Depreciation of capitalized equipment used to perform research and development
is classified as research and development expense in the year computed.
The
Company incurred $352,232 and $324,629 in research and development costs for the years ended December 31, 2025 and 2024, respectively,
all of which were recorded in the Companys operating expense noted on the statements of operations for the periods then ended.
**Advertising
and Marketing Costs**
Advertising
and marketing costs are expensed as incurred except for the cost of tradeshows which are deferred until the tradeshow occurs. During
the years ended December 31, 2025 and 2024, the Company incurred nominal advertising and marketing costs.
**Contingencies**
In
the ordinary course of business, the Company is involved in legal proceedings involving contractual and employment relationships, product
liability claims, patent rights, and a variety of other matters. The Company records contingent liabilities resulting from asserted and
unasserted claims against it, when it is probable that a liability has been incurred and the amount of the loss is reasonably estimable.
The Company discloses contingent liabilities when there is a reasonable possibility that the ultimate loss will exceed the recorded liability.
Estimated probable losses require analysis of multiple factors, in some cases including judgments about the potential actions of third-party
claimants and courts. Therefore, actual losses in any future period are inherently uncertain. The Company has entered into various agreements
that require them to pay certain fees to consultants and/or employees that have been fully accrued for as of December 31, 2025 and 2024.
**Income
Taxes**
To
address accounting for uncertainty in tax positions, the Company clarifies the accounting for income taxes by prescribing a minimum recognition
threshold that a tax position is required to meet before being recognized in the financial statements. The Company also provides guidance
on de-recognition, measurement, classification, interest, and penalties, accounting in interim periods, disclosure and transition.
| F-11 | |
The
Company files income tax returns in the U.S. federal jurisdiction. The Company did not have any tax expense for the periods ended December
31, 2025 and 2024. The Company did not have any deferred tax liability or asset on its balance sheets as of December 31, 2025 and 2024.
Interest
costs and penalties related to income taxes, if any, will be classified as interest expense and general and administrative costs, respectively,
in the Companys financial statements. For the periods ended December 31, 2025 and 2024, the Company did not recognize any interest
or penalty expense related to income taxes. The Company believes that it is not reasonably possible for the amounts of unrecognized tax
benefits to significantly increase or decrease within the next twelve months.
**Stock-Based
Compensation**
The
Company recognizes compensation costs under FASB ASC Topic 718, Compensation Stock Compensation and ASU 2018-07. Companies are
required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize
the costs in the financial statements over the period during which employees are required to provide services. Share based compensation
arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase
plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized
over the respective vesting periods of the option grant.
**Segment
Reporting**
The
Company follows Financial Accounting Standards Board issued Accounting Standards Update 2023-07 *(ASU 2023-07)* for
its segment reporting. ASU 2023-07 requires more detailed information about reportable segments and expenses including the requirement
to disclose qualitative information about factors used to identify reportable segments and quantitative information about profit and
loss measures and significant expense categories. The Company has not yet begun generating significant revenue from its planned principal
operations and operates as a single reportable segment. The revenue associated with the services that the clinics perform by way of treatments
and the licensure of these clinics are not considered two distinct segments for the years ended December 31, 2025 and 2024, respectively.
The benefit the clinics get by being licensed will assist in increased revenues associated with the treatments being administered. The
chief operating decision maker is the Companys chief executive officer who assesses performance based on total expenses, cash
flows, and progress made in the Companys ongoing development efforts. With the formation of the VIE, Vivos India, and the fact
that this is consolidated for financial reporting purposes, the activities of Vivos India are a defined segment for geographical purposes.
As of December 31, 2025, the Company is still waiting on regulatory approval in India to commence operations. All of the Companys
long-lived assets as of December 31, 2025 are located in the United States.
**Recent
Accounting Pronouncements**
**Adoption
of ASU 2023-09**
In
December 2023, the Financial Accounting Standards Board issued ASU 2023-09, which requires enhanced disclosures related to the effective
tax rate reconciliation and income taxes paid. The guidance is intended to improve transparency regarding the nature and magnitude of
factors contributing to differences between the statutory tax rate and the effective tax rate, as well as cash taxes paid by jurisdiction.
The
Company adopted this standard effective January 1, 2025 on a prospective basis. The adoption did not have a material impact on the Companys
consolidated financial position, results of operations, or cash flows, as the amendments are disclosure-only in nature. Prior-period
amounts have been recast to conform to the current-period presentation, where applicable.
The
Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition,
results of operations, cash flows or disclosures.
**NOTE
2: RELATED PARTY TRANSACTIONS**
In
December 2024, our Chief Executive Officer advanced $40,949 to the Company, which amount was repaid within ten days.
**NOTE
3: FIXED ASSETS**
As
of December 31, 2025 and 2024, the Company has the following fixed assets:
SCHEDULE
OF FIXED ASSETS
| 
| | 
December 31, 2025 | | | 
December 31, 2024 | | |
| 
Production equipment 5 year-life | | 
$ | 101,199 | | | 
$ | - | | |
| 
Office equipment 5 year-life | | 
| 1,986 | | | 
| - | | |
| 
Accumulated depreciation | | 
| (374 | ) | | 
| - | |
| 
Fixed assets, net | | 
$ | 102,811 | | | 
$ | - | | |
Depreciation
expense for the years ended December 31, 2025 and 2024 was $374 and $0.
| F-12 | |
**NOTE
4: STOCKHOLDERS EQUITY**
**Common
Stock**
The
Company has authorized 950,000,000 shares of Common Stock. As of December 31, 2025 and 2024, there are 455,494,238 and 440,873,806 shares
of Common Stock issued and outstanding, respectively.
**Preferred
Stock**
The
Company has authorized 20,000,000 shares of Preferred Stock. There are currently three series of Preferred Stock outstanding; Series
A Convertible Preferred Stock, Series B Convertible Preferred Stock and Series C Convertible Preferred Stock. The Companys Board
of Directors is authorized to provide for the issuance of shares of Preferred Stock in one or more series, fix or alter the designations,
preferences, rights, qualifications, limitations or restrictions of the shares of each series, including the dividend rights, dividend
rates, conversion rights, voting rights, term of redemption including sinking fund provisions, redemption price or prices, liquidation
preferences and the number of shares constituting any series or designations of such series without further vote or action by the shareholders.
The issuance of Preferred Stock may have the effect of delaying, deferring, or preventing a change in control of management without further
action by the shareholders and may adversely affect the voting and other rights of the holders of Common Stock. The issuance of Preferred
Stock with voting and conversion rights may adversely affect the voting power of the holders of Common Stock, including the loss of voting
control to others.
Series
A Convertible Preferred Stock
On
June 30, 2015, a certificate of designations was filed with the Delaware Secretary of State to designate 2,500,000 shares of the Companys
Preferred Stock as Series A Convertible Preferred Stock, par value $0.001 per share (*Series A Preferred*) (the *Series
A COD*). Effective March 31, 2016, the Company amended the Series A COD, increasing the maximum number of shares of Series
A Preferred from 2,500,000 shares to 5,000,000 shares. As of December 31, 2025 and 2024, there are 2,071,007 shares of Series A Preferred
issued and outstanding, respectively.
The
following summarizes the current rights and preferences of the Series A Preferred:
*Liquidation
Preference*. The Series A Preferred has a liquidation preference of $5.00 per share.
*Dividends*.
Shares of Series A Preferred do not have any separate dividend rights.
*Conversion*.
Subject to certain limitations set forth in the Series A COD, each share of Series A Preferred is convertible, at the option of the holder,
into that number of shares of Common Stock (the *Series A Conversion Shares*) equal to the liquidation preference
thereof, divided by Conversion Price (as such term is defined in the Series A COD), currently $4.00.
In
the event the Company completes an equity or equity-based public offering, registered with the SEC, resulting in gross proceeds to the
Company totaling at least $5.0 million, all issued and outstanding shares of Series A Preferred at that time will automatically convert
into Series A Conversion Shares.
*Redemption*.
Subject to certain conditions set forth in the Series A COD, in the event of a Change of Control (defined in the Series A COD), or at
such time as a third party not affiliated with the Company or any holders of the Series A Preferred shall have acquired, in one or a
series of related transactions, equity securities of the Company representing more than fifty percent (50%) of the outstanding voting
securities of the Company), the Company, at its option, will have the right to redeem all or a portion of the outstanding Series A Preferred
in cash at a price per share of Series A Preferred equal to 100% of the Liquidation Preference.
*Voting
Rights*. Holders of Series A Preferred are entitled to vote on all matters, together with the holders of Common Stock, and have the
equivalent of five votes for every Series A Conversion Share issuable upon conversion of such holders outstanding shares of Series
A Preferred. However, the Series A Conversion Shares, when issued, will have all the same voting rights as other issued and outstanding
Common Stock of the Company, and none of the rights of the Series A Preferred.
| F-13 | |
*Liquidation*.
Upon any liquidation, dissolution, or winding-up of the Company, whether voluntary or involuntary (a *Liquidation*),
the holders of Series A Preferred shall be entitled to receive out of the assets, whether capital or surplus, of the Company an amount
equal to the liquidation preference of the Series A Preferred before any distribution or payment shall be made to the holders of any
junior securities, and if the assets of the Company are insufficient to pay in full such amounts, then the entire assets to be distributed
to the holders of the Series A Preferred shall be ratably distributed among the holders in accordance with the respective amounts that
would be payable on such shares if all amounts payable thereon were paid in full.
*Certain
Price and Share Adjustments*.
a)
Stock Dividends and Stock Splits. If the Company (i) pays a stock dividend or otherwise makes a distribution or distributions payable
in shares of Common Stock on shares of Common Stock or any other Common Stock equivalents; (ii) subdivides outstanding shares of Common
Stock into a larger number of shares; (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into
a smaller number of shares; or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock
of the Company, then the conversion price shall be adjusted accordingly.
b)
Merger or Reorganization. If the Company is involved in any reorganization, recapitalization, reclassification, consolidation or merger
in which the Common Stock is converted into or exchanged for securities, cash or other property than each share of Series A Preferred
shall be convertible into the kind and amount of securities, cash or other property that a holder of the number of shares of Common Stock
issuable upon conversion of one share of Series A Preferred prior to any such merger or reorganization would have been entitled to receive
pursuant to such transaction.
Series
B Convertible Preferred Stock
On
October 10, 2018, a certificate of designation was filed with the Delaware Secretary of State to designate 5,000,000 shares of our Preferred
Stock as Series B Convertible Preferred Stock, par value $0.001 per share (*Series B Preferred*) (the *Series
B COD*). As of December 31, 2025 and 2024, there are 363 shares of Series B Preferred issued and outstanding, respectively.
The
following summarizes the current rights and preferences of the Series B Preferred:
*Liquidation
Preference*. The Series B Preferred has a liquidation preference of $1.00 per share.
*Dividends*.
Shares of Series B Preferred do not have any separate dividend rights.
*Conversion*.
Subject to certain limitations set forth in the Series B COD, each share of Series B Convertible is convertible, at the option of the
holder, into that number of shares of Common Stock (the *Series B Conversion Shares*) equal to the liquidation preference
thereof, divided by the Conversion Price (as such term is defined in the Series B COD), currently $0.08.
*Redemption*.
Subject to certain conditions set forth in the Series B COD, in the event of a Change of Control (defined in the Series B COD), or at
such as a third party not affiliated with the Company or any holders of the Series B Convertible shall have acquired, in one or a series
of related transactions, equity securities of the Company representing more than fifty percent (50%) of the outstanding voting securities
of the Company), the Company, at its option, will have the right to redeem all or a portion of the outstanding Series B Preferred in
cash at a price per share of Series B Preferred equal to 100% of the Liquidation Preference.
*Voting
Rights*. Holders of Series B Preferred are entitled to vote on all matters, together with the holders of Common Stock, and have the
equivalent of two votes for every Series B Conversion Share issuable upon conversion of such holders outstanding shares of Series
B Preferred. However, the Series B Conversion Shares, when issued, will have the same voting rights as other issued and outstanding shares
of Common Stock of the Company, and none of the rights of the Series A Preferred.
*Liquidation*.
Upon any liquidation, dissolution, or winding-up of the Company, whether voluntary or involuntary (a *Liquidation*),
the holders of Series B Preferred shall be entitled to receive out of the assets, whether capital or surplus, of the Company an amount
equal to the liquidation preference of the Series B Preferred before any distribution or payment shall be made to the holders of any
junior securities, and if the assets of the Company are insufficient to pay in full such amounts, then the entire assets to be distributed
to the holders of the Series B Preferred shall be ratably distributed among the holders in accordance with the respective amounts that
would be payable on such shares if all amounts payable thereon were paid in full.
| F-14 | |
*Certain
Price and Share Adjustments*.
(a)
Stock Dividends and Stock Splits. If the Company (i) pays a stock dividend or otherwise makes a distribution or distributions payable
in shares of Common Stock on shares of Common Stock or any other Common Stock equivalents; (ii) subdivides outstanding shares of Common
Stock into a larger number of shares; (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into
a smaller number of shares; or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock
of the Company, then the conversion price shall be adjusted accordingly.
(b)
Merger or Reorganization. If the Company is involved in any reorganization, recapitalization, reclassification, consolidation or merger
in which the Common Stock is converted into or exchanged for securities, cash or other property than each share of Series B Preferred
shall be convertible into the kind and amount of securities, cash or other property that a holder of the number of shares of Common Stock
issuable upon conversion of one share of Series B Preferred prior to any such merger or reorganization would have been entitled to receive
pursuant to such transaction.
On
December 16, 2024, 200,000
Series B Preferred shares were converted into 2,500,000
shares of Common Stock. There were no conversions in 2025.
Series
C Convertible Preferred Stock
On
March 27, 2019, a certificate of designation was filed with the Delaware Secretary of State to designate 5,000,000 shares of our Preferred
Stock as Series C Convertible Preferred Stock, par value $0.001 per share (*Series C Preferred*) (the *Series
C COD*). As of December 31, 2025 and 2024, there were 385,302 shares of Series C Preferred issued and outstanding, respectively.
The
following summarizes the current rights and preferences of the Series C Preferred:
*Liquidation
Preference*. The Series C Preferred has a liquidation preference of $1.00 per share.
*Dividends*.
Shares of Series C Preferred do not have any separate dividend rights.
*Conversion*.
Subject to certain limitations set forth in the Series C COD, each share of Series C Preferred is convertible, at the option of the holder,
into that number of shares of Common Stock (the *Series C Conversion Shares*) equal to the liquidation preference
thereof, divided by Conversion Price (as such term is defined in the Series C COD), currently $0.08.
The
Series C Preferred will only be convertible at any time after the date that the Company shall have amended its Certificate of Incorporation
to increase the number of shares of Common Stock authorized for issuance thereunder or effect a reverse stock split of the outstanding
shares of Common Stock by a sufficient amount to permit the conversion of all Series C Preferred into shares of Common Stock (*Authorized
Share Approval*) (such date, the *Initial Convertibility Date*), each share of Series C Preferred shall
be convertible into validly issued, fully paid and non-assessable shares of Common Stock on the terms and conditions set forth in the
Series C COD under the definition *Conversion Rights*.
*Redemption*.
Subject to certain conditions set forth in the Series C COD, in the event of a Change of Control (defined in the Series C COD), or at
such time as a third party not affiliated with the Company or any holders of the Series C Preferred shall have acquired, in one or a
series of related transactions, equity securities of the Company representing more than fifty percent (50%) of the outstanding voting
securities of the Company), the Company, at its option, will have the right to redeem all or a portion of the outstanding Series C Preferred
in cash at a price per share of Series C Preferred equal to 100% of the Liquidation Preference.
*Voting
Rights*. Holders of Series C Preferred are entitled to vote on all matters, together with the holders of Common Stock, and have the
equivalent of thirty-two votes for every Series C Conversion Share issuable upon conversion of such holders outstanding shares
of Series C Preferred. However, the Series C Conversion Shares, when issued, will have the same voting rights as other issued and outstanding
shares of Common Stock of the Company, and none of the rights of the Series C Preferred.
| F-15 | |
*Liquidation*.
Upon any liquidation, dissolution, or winding-up of the Company, whether voluntary or involuntary (a *Liquidation*),
the holders of Series C Preferred shall be entitled to receive out of the assets, whether capital or surplus, of the Company an amount
equal to the liquidation preference of the Series C Preferred before any distribution or payment shall be made to the holders of any
junior securities, and if the assets of the Company are insufficient to pay in full such amounts, then the entire assets to be distributed
to the holders of the Series C Preferred shall be ratably distributed among the holders in accordance with the respective amounts that
would be payable on such shares if all amounts payable thereon were paid in full.
*Certain
Price and Share Adjustments*.
(a)
Stock Dividends and Stock Splits. If the Company (i) pays a stock dividend or otherwise makes a distribution or distributions payable
in shares of Common Stock on shares of Common Stock or any other Common Stock equivalents; (ii) subdivides outstanding shares of Common
Stock into a larger number of shares; (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into
a smaller number of shares; or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock
of the Company, then the conversion price shall be adjusted accordingly.
(b)
Merger or Reorganization. If the Company is involved in any reorganization, recapitalization, reclassification, consolidation or merger
in which the Common Stock is converted into or exchanged for securities, cash or other property than each share of Series C Preferred
shall be convertible into the kind and amount of securities, cash or other property that a holder of the number of shares of Common Stock
issuable upon conversion of one share of Series C Preferred prior to any such merger or reorganization would have been entitled to receive
pursuant to such transaction.
**Common
and Preferred Stock Issuances**
**Common
and Preferred Stock Issuances Year Ended December 31, 2025**
In
January 2025, the Company received $1,500 from warrants exercised in December 2024.
In
February 2025, the Company issued 12,500,000 shares of Common Stock pursuant to the Regulation A+ Offering, and 6,250,000 warrants for
cash proceeds of $1,506,250.
In
March 2025, the Company issued 38,422 shares of Common Stock for services rendered valued at $4,688.
In
April 2025, the Company issued 100,000 shares of Common Stock upon the vesting of Restricted Stock Units ( RSUs).
In
June 2025, the Company issued 250,000 shares of Common Stock upon the vesting of RSUs, and 41,778 shares for services rendered in the
amount of $4,687.
In
July 2025, 742,857 shares of Common Stock were issued for the cashless exercise of 1,600,000 warrants.
In
September 2025, the Company issued 118,094 shares of Common Stock for services rendered in the amount of $10,688.
In
December 2025, the Company issued 329,281 shares of Common Stock for services rendered in the amount of $22,687 and issued 500,000 shares
of Common Stock upon the vesting of RSUs.
**Common
and Preferred Stock Issuances Year Ended December 31, 2024**
The
Company issued 24,950,000 shares of Common Stock pursuant to the Regulation A+ Offerings for cash proceeds of $2,266,000.
The
Company issued 605,801 shares of Common Stock for services rendered valued at $88,925.
The
Company issued 20,336,472 shares of Common Stock in the cashless exercise of 28,619,000 warrants.
| F-16 | |
The
Company issued 5,000,000 shares of Common Stock in the exchange of 5,000,000 warrants and recognized a loss on the exchange of $381,000
which is included in the exercise of warrants in the consolidated statement of changes in stockholders equity.
There
were 200,000 Series B Preferred shares converted into 2,500,000 common shares.
The
Company settled 750,000 RSUs for Common Stock.
The
Company adjusted their common shares for vested RSUs in prior periods that were cancelled.
**NOTE
5: COMMON STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS**
**Common
Stock Options**
The
Company recognizes in the financial statements compensation related to all stock-based awards, including stock options and warrants,
based on their estimated grant-date fair value. The Company has estimated expected forfeitures and is recognizing compensation expense
only for those awards expected to vest. All compensation is recognized by the time the award vests.
The
following schedule summarizes the changes in the Companys stock options:
SCHEDULE
OF CHANGES IN STOCK OPTION
| 
| | 
Options Outstanding | | | 
Weighted Average | | | 
| | | 
Weighted Average | | |
| 
| | 
Number Of Shares | | | 
Exercise Price Per Share | | | 
Remaining Contractual Life | | | 
Aggregate Intrinsic Value | | | 
Exercise Price Per Share | | |
| 
Year Ended December 31, 2024 | | 
| | | 
| | | 
| | | 
| | | 
| | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Outstanding at January 1, 2024 | | 
| 2,252,809 | | | 
$ | 0.024-0.04 | | | 
| 5.70 years | | | 
$ | 78,886 | | | 
$ | 0.04 | | |
| 
Granted | | 
| - | | | 
$ | - | | | 
| - | | | 
| | | | 
$ | - | | |
| 
Exercised | | 
| - | | | 
$ | - | | | 
| - | | | 
| | | | 
$ | - | | |
| 
Expired/cancelled | | 
| - | | | 
$ | - | | | 
| - | | | 
| | | | 
$ | - | | |
| 
Outstanding at December 31, 2024 | | 
| 2,252,809 | | | 
$ | 0.024-0.04 | | | 
| 4.70 years | | | 
$ | 174,855 | | | 
$ | 0.04 | | |
| 
Exercisable at December 31, 2024 | | 
| 2,252,809 | | | 
$ | 0.024-0.04 | | | 
| 4.70 years | | | 
$ | 174,855 | | | 
$ | 0.04 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Year Ended December 31, 2025 | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Outstanding at January 1, 2025 | | 
| 2,252,809 | | | 
$ | 0.024-0.04 | | | 
| 4.70 years | | | 
$ | 174,855 | | | 
$ | 0.04 | | |
| 
Granted | | 
| - | | | 
$ | - | | | 
| - | | | 
| | | | 
$ | - | | |
| 
Exercised | | 
| - | | | 
$ | - | | | 
| - | | | 
| | | | 
$ | - | | |
| 
Expired/cancelled | | 
| - | | | 
$ | - | | | 
| - | | | 
| | | | 
$ | - | | |
| 
Outstanding at December 31, 2025 | | 
| 2,252,809 | | | 
$ | 0.024-0.04 | | | 
| 3.70 years | | | 
$ | 71,226 | | | 
$ | 0.04 | | |
| 
Exercisable at December 31, 2025 | | 
| 2,252,809 | | | 
$ | 0.024-0.04 | | | 
| 3.70 years | | | 
$ | 71,226 | | | 
$ | 0.04 | | |
During
the years ended December 31, 2025 and 2024, the Company recognized $0 of stock-based compensation expense related to the vesting of stock
options.
| F-17 | |
**Common
Stock Warrants**
The
following schedule summarizes the changes in the Companys stock warrants:
SCHEDULE
OF CHANGES IN STOCK WARRANTS
| 
| | 
Warrants Outstanding | | | 
Weighted Average | | | 
| | | 
Weighted Average | | |
| 
| | 
Number Of Shares | | | 
Exercise Price Per Share | | | 
Remaining Contractual Life | | | 
Aggregate Intrinsic Value | | | 
Exercise Price Per Share | | |
| 
Year Ended December 31, 2024 | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Outstanding at January 1, 2024 | | 
| 26,134,000 | | | 
$ | 0.06-0.10 | | | 
| 3.54 years | | | 
$ | - | | | 
$ | 0.0827 | | |
| 
Granted | | 
| 18,950,000 | | | 
$ | 0.075 | | | 
| - | | | 
$ | - | | | 
$ | - | | |
| 
Redeemed | | 
| - | | | 
$ | - | | | 
| - | | | 
$ | - | | | 
$ | - | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Exercised | | 
| (28,619,000 | ) | | 
$ | - | | | 
| - | | | 
$ | - | | | 
$ | - | | |
| 
Exchanged | | 
| (5,000,000 | ) | | 
$ | - | | | 
| - | | | 
$ | - | | | 
$ | - | | |
| 
Expired/cancelled | | 
| - | | | 
$ | - | | | 
| - | | | 
$ | - | | | 
$ | - | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Outstanding at December 31, 2024 | | 
| 11,465,000 | | | 
$ | 0.13 | | | 
| 4 years | | | 
$ | 123,690 | | | 
$ | 0.13 | | |
| 
Exercisable at December 31, 2024 | | 
| 11,465,000 | | | 
$ | 0.13 | | | 
| 4 years | | | 
$ | 123,690 | | | 
$ | 0.13 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Year Ended December 31, 2025 | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Outstanding at January 1, 2025 | | 
| 11,465,000 | | | 
$ | 0.13 | | | 
| 4
years | | | 
$ | 123,690 | | | 
$ | 0.13 | | |
| 
Granted | | 
| 6,250,000 | | | 
$ | 0.15 | | | 
| - | | | 
$ | - | | | 
$ | - | | |
| 
Redeemed | | 
| - | | | 
$ | - | | | 
| - | | | 
$ | - | | | 
$ | - | | |
| 
Exercised | | 
| (1,600,000 | ) | | 
$ | - | | | 
| - | | | 
$ | - | | | 
$ | - | | |
| 
Exchanged | | 
| - | | | 
$ | - | | | 
| - | | | 
$ | - | | | 
$ | - | | |
| 
Expired/cancelled | | 
| - | | | 
$ | - | | | 
| - | | | 
$ | - | | | 
$ | - | | |
| 
Outstanding at December 31, 2025 | | 
| 16,115,000 | | | 
| $0.075-0.15 | | | 
| 2.20 years | | | 
$ | - | | | 
$ | 0.143 | | |
| 
Exercisable at December 31, 2025 | | 
| 16,115,000 | | | 
| $0.075-0.15 | | | 
| 2.20 years | | | 
$ | - | | | 
$ | 0.143 | | |
Changes
to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each option/warrant is estimated
using the Black-Scholes valuation model. The following assumptions were used for the periods as follows:
SCHEDULE
OF ASSUMPTIONS USED IN FAIR VALUE MEASUREMENT
| 
| | 
| Year Ended | | | 
| Year Ended | | |
| 
| | 
| December 31, 2025 | | | 
| December 31, 2024 | | |
| 
Expected term | | 
| 0- | | | 
| 0- | | |
| 
Expected volatility | | 
| - | % | | 
| - | % | |
| 
Expected dividend yield | | 
| - | | | 
| - | | |
| 
Risk-free interest rate | | 
| - | % | | 
| - | % | |
The
Company granted 2,000,000
warrants in their Regulation A+ Offering in January 2024, with
an exercise price of $0.075
and a 3
three-year term and 5,000,000
warrants with the same terms on April 1, 2024.
In
November 2024, the Company sold 11,950,000 warrants, 30% of which expire December 31, 2024 at an exercise price of $0.01 and 70% of which
expire December 31, 2027 at an exercise price of $0.15 for $11,950 under Regulation D.
In
2024, the Company issued 25,336,468 shares of Common Stock in the exercise of 33,619,000 warrants.
The
Company granted 6,250,000 warrants in February 2025, with an exercise price of $0.15 that expire June 30, 2028. In July 2025, 1,600,000
warrants were exercised into 742,857 shares of Common Stock.
| F-18 | |
**Restricted
Stock Units**
The
following schedule summarizes the changes in the Companys restricted stock units:
SCHEDULE OF CHANGES IN RESTRICTED STOCK UNITS
| 
| | 
Number Of Shares | | | 
Weighted Average Grant Date Fair Value | | |
| 
Year Ended December 31, 2024 | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | |
| 
Outstanding at January 1, 2024 | | 
| 1,450,000 | | | 
$ | 0.09 | | |
| 
Granted | | 
| 21,850,000 | | | 
$ | 0.08 | | |
| 
Vested | | 
| (11,475,000 | ) | | 
$ | - | | |
| 
Forfeited | | 
| - | | | 
$ | - | | |
| 
Outstanding at December 31, 2024 | | 
| 11,825,000 | | | 
$ | 0.08 | | |
| 
| | 
| | | | 
| | | |
| 
Year Ended December 31, 2025 | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | |
| 
Outstanding at January 1, 2025 | | 
| 11,825,000 | | | 
$ | 0.08 | | |
| 
Granted | | 
| 1,650,000 | | | 
$ | 0.13 | | |
| 
Vested | | 
| (12,575,000 | ) | | 
$ | - | | |
| 
Forfeited | | 
| - | | | 
$ | - | | |
| 
Outstanding at December 31, 2025 | | 
| 900,000 | | | 
$ | 0.09 | | |
During
the years ended December 31, 2025 and 2024, the Company recognized $1,029,110 and $918,350 in expense related to the vesting of its restricted
stock units. As of December 31, 2025, the Company had $121,170 worth of expense yet to be recognized for restricted stock units not yet
vested.
On
January 1, 2024, the Company granted 20,000,000
restricted stock units to its Chief Executive Officer as part
of his new employment agreement that vest in four equal installments over a 2
two-year period beginning February 1, 2024. In May 2024, the
Company granted 1,050,000 restricted stock units to consultants that vest through December 31, 2025. In November 2024, the Company granted
800,000 restricted stock units that vest in May 2025. During the year ended December 31, 2024, 11,475,000 of these restricted stock units
vested.
During
the year ended December 31, 2025, 1,650,000 restricted stock units were granted to consultants that vest through December 31, 2028, and
12,575,000 restricted stock units vested.
**NOTE
6: LEASES**
The
Company has adopted ASU No. 2016-02, *Leases (Topic 842)* and as such accounted for our leases in terms of the right of use assets
and offsetting lease liability obligations under this pronouncement. The Company had had only short-term leases through entering into
a long-term lease agreement on November 1, 2025. The Company recorded these amounts at present value, in accordance with the standard,
using a discount rate of 4.5%. The right of use asset is composed of the sum of all lease payments, at present value, and is amortized
straight line over the life of the expected lease term. For the expected term of the lease the Company used the initial terms of 48 months.
Upon the election by the Company to extend the lease for additional years, that election will be treated as a lease modification and
the lease will be reviewed for re-measurement.
The
Company has chosen to implement this standard using the modified retrospective model approach with a cumulative-effect adjustment, which
does not require the Company to adjust the comparative periods presented when transitioning to the new guidance. The Company has also
elected to utilize the transition related practical expedients permitted by the new standard. The modified retrospective approach provides
a method for recording existing leases at adoption and in comparative periods that approximates the results of a modified retrospective
approach. Adoption of the new standard did not result in an adjustment to retained earnings for the Company.
As
of December 31, 2025, the value of the unamortized lease right of use asset was $110,703. As of December 31, 2025, the Companys
lease liability was $114,271.
SCHEDULE
OF OPERATING LEASE MATURITY
| 
| | 
| | |
| 
Maturity of lease liability for the operating lease for the period ended December 31, | | 
| | |
| 
2026 | | 
$ | 30,093 | | |
| 
2027 | | 
$ | 33,460 | | |
| 
2028 | | 
$ | 33,460 | | |
| 
2029 | | 
$ | 27,882 | | |
| 
Imputed interest | | 
$ | (10,624 | ) | |
| 
Total lease liability | | 
$ | 114,271 | | |
| 
| | 
| | | |
| 
Disclosed as: | | 
| | | |
| 
Current portion | | 
$ | 25,420 | | |
| 
Non-current portion | | 
$ | 88,851 | | |
| F-19 | |
SCHEDULE
OF LESSEE RIGHT OF USE OF ASSET AMORTIZATION
| 
| | 
| | | |
| 
Amortization of the right of use asset for the period ended December 31, 2026 | | 
$ | 26,977 | | |
| 
2027 | | 
$ | 28,268 | | |
| 
2028 | | 
$ | 29,649 | | |
| 
2029 | | 
$ | 25,809 | | |
| 
| | 
| | | |
| 
Total | | 
$ | 110,703 | | |
**Total
Lease Cost**
Individual
components of the total lease cost incurred by the Company is as follows:
SCHEDULE
OF LEASE COST
| 
| | 
Year ended December 31, 2025 | | | 
Year ended December 31, 2024 | | |
| 
| | 
| | | | 
| | | |
| 
Operating lease expense | | 
$ | 4,413 | | | 
$ | - | | |
**NOTE
7: CONCENTRATIONS**
Four
and three customers accounted for all of the revenues, each, more than 10% of total revenue. As of December 31, 2025 and 2024, six and
two customers represented 100% of the Companys accounts receivable, of which three and two customers represented greater than
10% of the total outstanding.
**NOTE
8: COMMITMENT**
On
June 4, 2019, the Company entered into an Executive Employment Agreement (*Employment Agreement*) with Dr. Michael
K. Korenko, the Companys Chief Executive Officer. The employment term under the Employment Agreement commenced with an effective
date of June 11, 2019 and expires on December 31, 2020, and December 31 of each successive year if the Employment Agreement is extended,
unless terminated earlier as set forth in the Employment Agreement. On December 31, 2020, the Company extended the Employment Agreement
through December 31, 2021 while renegotiating terms of a new Employment Agreement. On May 3, 2021, the Company and the Chief Executive
Officer agreed the terms of a new Employment Agreement with an effective date of January 1, 2021 that has a term of three years and expired
December 31, 2023. On December 19, 2023, the Company renewed the Employment Agreement for a term of two years expiring December 31, 2025.
Under
the terms of the Employment Agreement effective January 1, 2024, the Company shall pay to Dr. Korenko a base compensation of $295,500.
In addition, Dr. Korenko is entitled to a discretionary bonus to be earned in the amount of $10,000
per quarter upon the satisfaction of conditions to be determined
by the Board of Directors of the Company. In addition, the Company granted Dr. Korenko 20,000,000
restricted stock units on January 1, 2024 that vest over the
2
two-year period.
**NOTE
9: INCOME TAXES**
Deferred
taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating
loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences
are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a
valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets
will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of
enactment.
| F-20 | |
The
following table summarizes the significant differences between the U.S. Federal statutory tax rate and the Companys effective
tax rate for financial statement purposes for the years ended December 31, 2025 and 2024:
SCHEDULE OF EFFECTIVE TAX RATE
| 
| | 
2025 | | | 
2024 | | |
| 
Federal income taxes at statutory rate | | 
| 21.00 | % | | 
| 21.00 | % | |
| 
State income taxes at statutory rate | | 
| 0.00 | % | | 
| 0.00 | % | |
| 
Stock for services | | 
| 33.57 | % | | 
| 31.55 | % | |
| 
Change in valuation allowance | | 
| (54.57 | )% | | 
| (52.55 | )% | |
| 
Totals | | 
| 0.00 | % | | 
| 0.00 | % | |
Net
deferred tax assets consist of the following components as of December 31, 2025 and 2024:
SCHEDULE
OF NET DEFERRED TAX ASSETS
| 
| | 
December 31, 2025 | | | 
December 31, 2024 | | |
| 
Deferred tax assets: | | 
| | | | 
| | | |
| 
Net operating loss carryover | | 
$ | 7,690,000 | | | 
$ | 7,260,000 | | |
| 
Capital Loss Carryover | | 
| 3,400 | | | 
| 3,400 | | |
| 
Valuation allowance | | 
| (7,693,400 | ) | | 
| (7,263,400 | ) | |
| 
Net deferred tax asset | | 
$ | - | | | 
$ | - | | |
The
income tax provision differs from the amount of income tax determined by applying the U.S. Federal income tax rate to pretax income from
continuing operations for the years ended December 31, 2025 and 2024 due to the following:
SCHEDULE
OF FEDERAL INCOME TAX RATE
| 
| | 
December 31, 2025 | | | 
December 31, 2024 | | |
| 
Book income (loss) | | 
$ | (643,900 | ) | | 
$ | (611,200 | ) | |
| 
Depreciation | | 
| (1,000 | ) | | 
| (1,100 | ) | |
| 
Stock for services | | 
| 216,100 | | | 
| 192,900 | | |
| 
Valuation allowance | | 
| 428,800 | | | 
| 419,400 | | |
| 
Income tax expense | | 
$ | - | | | 
$ | - | | |
At
December 31, 2025, the Company had a net operating loss carryforward of approximately $36,620,700.
ASC
Topic 740 Income Taxes (*ASC 740*) provides guidance on the accounting for uncertainty in income taxes recognized
in a companys financial statements. ASC 740 requires a company to determine whether it is more likely than not that a tax position
will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company
must measure the tax position to determine the amount to recognize in the financial statements. At the adoption date of January 1, 2007,
the Company had no unrecognized tax benefit, which would affect the effective tax rate if recognized.
The
Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision
for income taxes. As of December 31, 2025, the Company had no accrued interest or penalties related to uncertain tax positions.
The
Company files income tax returns in the U.S. federal jurisdiction. The Company is located in the state of Washington and Washington state
does not require the filing of income taxes. With few exceptions, the Company is no longer subject to U.S. federal, state and local,
or non-U.S. income tax examinations by tax authorities for years before 2017.
****
**NOTE
10: SUBSEQUENT EVENTS**
The
Company has evaluated subsequent events through the date of this report and there were no items noted to be disclosed except for the
items below.
In
January 2026, the Company issued 44,118 shares of common stock for services rendered.
The Company filed with the SEC
an offering statement on Form 1-A (including a preliminary offering circular dated February 13, 2026, amended March 4, 2026) under Regulation
A for the offering of up to $75.0 million of shares of its Common Stock, which offering was qualified by the SEC as of March 5, 2026.
In March 2026, the Company raised
$1,553,000 through the sale of 19,200,000 shares of Common Stock through the Regulation A+ Offering and concurrent private placement of
17,000,000 warrants.
In addition, the Company issued
7,950,000 shares of Common Stock in a warrant exchange of 7,950,000 warrants. In this exchange, the Company repriced 1,450,000 warrants
from a $0.15 exercise price to a $0.075 exercise price and these warrants were extended to a maturity date of December 31, 2029 from June
30, 2028.
| F-21 | |