Company: CBLO
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001882781-25-000042
Chunk: 8

Company: C2 Blockchain, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 8
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 a viable long-term blockchain
asset with potential for growth and ecosystem development. However, during the period ended September 30, 2025, management made the decision
to fully divest its ADA token holdings.  

Note
8 - Accrued Expenses 

During
the period ended September 30, 2025, the Company accrued salary, totaling $23,000, payable to our sole officer and director, Levi Jacobson,
pursuant to the employment agreement dated February 1, 2025 (see Note 5).

During
the year ended June 30, 2025, the Company accrued salary, totaling $84,000, payable to our sole office and director, Levi Jacobson, pursuant
to the employment agreement dated February 1, 2025 (see Note 5). 

Note
9 - Convertible Notes Payable and Derivative Liability

On
July 22, 2025, the Company entered into an agreement with third party Coventry Enterprises LLC (“Coventry”) in which the
Company issued a $200,000 promissory note to Coventry (the “Coventry Note”) at 10% annual interest. The Coventry Note includes
$20,000 of guaranteed interest and was issued with an original issue discount of $20,000 and $10,000 allocated to legal documentation
fees, resulting in net proceeds to the Company of $170,000. The Coventry Note is repayable in 12 equal monthly installments of $18,333.33
beginning on August 22, 2025, and maturing on July 22, 2026. In the event of default this note is convertible into shares of the Company’s
common stock at a conversion price based on the lowest trading price for the twenty days previous to the conversion date if the Company
fails to pay the note by July 22, 2026. During the period ended September 30, 2025, the Company made payments totaling $36,667 and intends
to make monthly payments of $18,333 through July 2026 to pay the note in full. The Company has deemed that this convertible loan does
not require adjustments to bifurcate the conversion option from the host instrument and account for it as a free-standing derivative
financial instrument under ASC 815, Derivatives and Hedging Activities as the loan is only convertible upon default..
The aggregate debt discount of $50,000 is being amort