# EDGAR Filing Document

**Accession Number:** 0001437283
**File Stem:** 0001214659-26-004112
**Filing Date:** 2026-3
**Character Count:** 289004
**Document Hash:** 26119753b99e88a5cb8c4b597b033069
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001214659-26-004112.hdr.sgml**: 20260331

**ACCESSION NUMBER**: 0001214659-26-004112

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 79

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260331

**DATE AS OF CHANGE**: 20260331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** REGO PAYMENT ARCHITECTURES, INC.
- **CENTRAL INDEX KEY:** 0001437283
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 352327649
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-53944
- **FILM NUMBER:** 26822570

**BUSINESS ADDRESS:**
- **STREET 1:** 325 SENTRY PARKWAY
- **STREET 2:** SUITE 200
- **CITY:** BLUE BELL
- **STATE:** PA
- **ZIP:** 19422
- **BUSINESS PHONE:** 267-465-7530

**MAIL ADDRESS:**
- **STREET 1:** 325 SENTRY PARKWAY
- **STREET 2:** SUITE 200
- **CITY:** BLUE BELL
- **STATE:** PA
- **ZIP:** 19422

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VIRTUAL PIGGY, INC.
- **DATE OF NAME CHANGE:** 20110829

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Moggle, Inc.
- **DATE OF NAME CHANGE:** 20080610

?xml version='1.0' encoding='ASCII'? rpmt-20251231

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM 10-K**

(Mark One)

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| | |
|:---|:---|
| ☑ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

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**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 <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**Commission File Number 0-53944**

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| |
|:---|
| REGO PAYMENT ARCHITECTURES, INC. |
| (Exact Name of Registrant as Specified in Its Charter) |

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| | |
|:---|:---|
| Delaware | 35-2327649 |
| **(State or Other Jurisdiction of**<br> **Incorporation or Organization)** | **(I.R.S. Employer**<br> **Identification No.)** |
| **325 Sentry Parkway, Suite 200**<br> **Blue Bell, PA** | 19422 |
| (Address of Principal Executive Offices) | (Zip Code) |

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**(267) 465-7530**

**(Registrant's Telephone Number, Including Area Code)**

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |

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Securities registered pursuant to Section 12(g) of the Act:

**Common Stock, $0.0001 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 Section 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 (§232.405 of this chapter) 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.

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| | |
|:---|:---|
| 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 Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's 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 registrant's 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 Exchange Act). Yes ☐ No ☑

The aggregate market value of the common stock held by non-affiliates of the registrant was $51,439,828 as of June 30, 2025, based on the price at which the common stock of the registrant was last sold as reported by the OTC Bulletin Board. Shares of common stock held by each current executive officer and director and by each person who is known by the registrant to own 5% or more of the outstanding common stock have been excluded from this computation in that such persons may be deemed to be affiliates of the registrant. This determination of affiliate status is not a conclusive determination for other purposes.

We had 136,586,403 shares of common stock outstanding as of the close of business on March 31, 2026.

**DOCUMENTS INCORPORATED BY REFERENCE**

**NONE**

**REGO PAYMENT ARCHITECTURES, INC.**

FORM 10-K ANNUAL REPORT

Year Ended December 31, 2025

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| | | |
|:---|:---|:---|
|  |  | Page |
| PART I |  |  |
| Item 1. | [Business](#ITEM1) | 1 |
| Item 1A. | [Risk Factors](#ITEM1A) | 12 |
| Item 1B. | [Unresolved Staff Comments](#ITEM1B) | 23 |
| Item 1C. | [Cybersecurity](#ITEM1C) | 23 |
| Item 2. | [Properties](#ITEM2) | 24 |
| Item 3. | [Legal Proceedings](#ITEM3) | 24 |
| Item 4. | [Mine Safety Disclosures](#ITEM4) | 24 |
| PART II |  |  |
| Item 5. | [Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#ITEM5) | 24 |
| Item 6. | [\[Reserved\]](#ITEM6) | 25 |
| Item 7 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ITEM7) | 25 |
| Item7A. | [Quantitative and Qualitative Disclosures About Market Risk](#ITEM7A) | 31 |
| Item 8. | [Financial Statements and Supplementary Data](#ITEM8) | 31 |
| Item 9. | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](#ITEM9) | 31 |
| Item 9A. | [Controls and Procedures](#ITEM9A) | 31 |
| Item 9B. | [Other Information](#ITEM9B) | 32 |
| Item 9C. | [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](#ITEM9C) | 32 |
| PART III |  |  |
| Item 10. | [Directors, Executive Officers and Corporate Governance](#ITEM10) | 32 |
| Item 11. | [Executive Compensation](#ITEM11) | 34 |
| Item 12. | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#ITEM12) | 37 |
| Item 13. | [Certain Relationships and Related Transactions, and Director Independence](#ITEM13) | 40 |
| Item 14. | [Principal Accountant Fees and Services](#ITEM14) | 40 |
| PART IV |  |  |
| Item 15. | [Exhibits and Financial Statement Schedules](#ITEM15) | 41 |
| Item 16. | [Form 10-K Summary](#ITEM16) | 45 |

---

[**Table of Contents**](#toc)

**PART I**

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact included or incorporated by reference in this annual report on Form 10-K, including without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, projected costs and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to: our ability to raise additional capital, our limited revenues generated to date, our ability to attract and retain qualified personnel, our dependence on third party developers who we cannot control, our ability to develop and introduce a new service to the market in a timely manner, market acceptance of our services, our limited experience in a relatively new industry, the ability to successfully develop licensing programs and generate business, rapid technological change in relevant markets, unexpected network interruptions or security breaches, the ability to successfully complete our strategic alternatives process, changes in demand for current and future intellectual property rights, legislative, regulatory and competitive developments, intense competition with larger companies, general economic conditions, and other factors set forth under "Item 1A — Risk Factors" below. Except as required by law, we assume no duty to update or revise our forward-looking statements.

**ITEM 1. <u>BUSINESS</u>.**

**General Development**

REGO Payment Architectures, Inc. (the "Company," "REGO," "we", or "us") was incorporated in Delaware on February 11, 2008 under the name Chimera International Group, Inc. On April 4, 2008, we amended our certificate of incorporation and changed our name to Moggle, Inc. On August 22, 2011, we filed a Certificate of Ownership with the Secretary of State of Delaware, pursuant to which the Company's newly formed wholly owned subsidiary, Virtual Piggy Incorporated was merged into and with the Company (the "Merger"). In connection with the Merger and in accordance with Section 253 of the Delaware General Corporation Law, the name of the Company was changed from "Moggle, Inc." to "Virtual Piggy, Inc." On February 28, 2017, we amended our certificate of incorporation and changed our name to REGO Payment Architectures, Inc. Our principal offices are located at 325 Sentry Parkway, Suite 200, Blue Bell, PA 19422 and our telephone number is (267) 465-7530.

As of the date of this report, we have not generated significant revenues. Our initial business plan was to develop an online game platform to allow game companies to create, monetize and distribute massive multiplayer online games (MMOG). The Company's technology was the monetization component of this overall software platform (our "Platform"). During 2010, we analyzed the market potential for an expanded Company solution and decided to concentrate our efforts on the delivery of a full-featured Company solution that was not restricted to online gaming. The expanded Company solution was designed to provide a complete online solution for families and parents to teach their children about financial management and spending on gaming, retail, music and entertainment. In late 2013, we rebranded our Company product under the name "Oink®". In March 2016, we discontinued our prior Oink product offering.

Our focus currently is monetizing the Mazoola® Digital Wallet Platform in the Financial Technology ("FinTech") industry and mainstream financial services industry through white label, licensing and partnership agreements. We have successfully launched the Mazoola® App and are focused on improving and monetizing the existing Platform and App that will act as the foundation for the strategic alignment with the FinTech industry and mainstream financial services industry. The FinTech industry is composed primarily of startup companies that use software to provide financial services more efficiently and less costly than traditional financial service companies. With our Children's Online Privacy Protection Act ("COPPA") and GDPRkids<sup>TM</sup> Trustmark compliant technology as an added feature, we believe we may have better market success.

[**Table of Contents**](#toc)

**Overview**

REGO Payment Architectures, Inc. is a provider of consumer software that delivers a mobile payment platform - Mazoola® - a family-focused mobile banking solution. Headquartered in Blue Bell, Pennsylvania, the Company maintains a portfolio of trade secrets and four US patent awards. REGO offers an all-digital financial payments platform to enable minors, particularly under 13 years old, to transact, complete chores and learn in a secure online environment guided by parental permission, oversight, and control, while remaining COPPA and GDPR compliant.

COPPA applies not only to websites and mobile apps. It can apply to a growing list of connected devices that is included in the Internet of Things. Some of these include toys and products that could collect personal information, such as voice recordings or geolocation information. Non-compliance with COPPA has meant substantial fines for many violators.

Management believes that by building on its COPPA compliance advantage, the future of REGO Payment Architectures, Inc. will be based on the foundational architecture of its software platform (the "Platform") that will allow its use across multiple financial markets where secure controlled payments are needed. The Company intends to license in each alternative field of use the ability for its partners, distributors and/or value-added resellers to private label each of the alternative markets. These partners will deploy, customize and support each implementation under their own label, but with acknowledgement of the Company's proprietary intellectual assets as the base technology. Management believes this approach will enable the Company to reduce marketing expenses while broadening its reach.

Further, California passed the California Consumer Privacy Act of 2018 ("CCPA") on June 28, 2018. CCPA gives consumers (defined as natural citizens who are California residents) four rights relative to their personal information as follows:

· the right to know, through a general privacy policy and with more specifics available upon request, what personal information a business has collected about them, where it was sourced from, what it is being used for, whether it is being disclosed or sold, and to whom it is being disclosed or sold;

· the right to "opt out" of allowing a business to sell their personal information to third parties (or, for consumers who are under 16 years old, the right not to have their personal information sold absent their, or their parent's, opt-in);

· the right to have a business delete their personal information, with some exceptions; and

· the right to receive equal service and pricing from a business, even if they exercise their privacy rights under the CCPA.

In November 2020, California went even further by passing the California Privacy Rights Act ("CPRA") of 2020. The CPRA is the strongest consumer privacy law ever enacted in the United States and achieves broad general parity with the most comprehensive laws in other jurisdictions including Europe (GDPR), Japan, Israel, New Zealand, and Canada. Protection of children is a key component of the CPRA with significant expansion to enforcement also included. CPRA empowers the Attorney General, California's 62 different district attorneys, and a new California Privacy Protection Agency ("CPPA") to enforce it, The CPPA began enforcement on July 1, 2023. In 2023 privacy laws in Colorado, Connecticut, Utah, and Virginia went into effect. In 2024, Montana, Oregon, and Texas also put privacy laws into effect. In 2025, Delaware, Iowa, Maryland, Minnesota, Nebraska New Hampshire, New Jersey, and Tennessee all enacted privacy laws. Indiana, Kentucky, and Rhode Island are expected to enact privacy laws in 2026.

With respect to the evolving CCPA, the Company has designed its Platform and app to be in compliance.

[**Table of Contents**](#toc)

Additionally, the European Parliament and Council agreed upon the General Data Protection Regulation ("GDPR") in April 2016, to replace the Data Protection Directive 95/46/EC. This is the primary law regulating how companies protect European Union ("EU") citizens' personal data. GDPR became effective on May 25, 2018. Companies that fail to achieve GDPR compliance are subject to severe fines and penalties.

GDPR requirements apply to each member state of the European Union, aiming to create more consistent protection of consumer and personal data across EU nations. Some of the key privacy and data protection requirements of the GDPR include:

· Requiring the consent of subjects for data processing

· Anonymizing collected data to protect privacy

· Providing data breach notifications

· Safely handling the transfer of data across borders

· Requiring certain companies to appoint a data protection officer to oversee GDPR compliance

In short, the handling of EU citizens' data is mandated by GDPR using a baseline set of standards for companies that are designed to better safeguard the processing and movement of personal data. The Company has designed its Platform and app to be in compliance with GDPR and has received the GDPRkids<sup>TM</sup> Trustmark from PRIVO.

We anticipate that revenues generated from the Platform will come from multiple sources depending on the level of service and facilities requested. There would be levels of subscription revenue paid monthly, service fees, transaction fees and in some cases, revenue sharing and licensing with banking and distribution partners.

**Industry Background**

In 2025, global population data indicate that approximately 25% of the world's population is under age 15. With the global population now estimated to be around 8.2 billion, that equates to roughly 2.0 billion children under age 15. These children mostly belong to two demographic groups of interest: Generation Z ("Gen Z") and Generation Alpha ("Gen Alpha").

Gen Z, those born between 1997 and 2010, continues to be distinguished by growing up in a deeply digital environment. As younger consumers, they remain among the most internet-savvy generations. While authoritative, public "global spending power" estimates for Gen Z vary significantly, recent studies highlight sustained digital-first consumption patterns. Younger consumers increasingly rely on smartphones and digital wallets for purchases, accelerating a broader shift away from cash. A 2025 report observed that roughly half of global consumers now use a digital wallet - with younger users, especially under 24, disproportionately likely to use mobile payments for everyday spending.

Gen Alpha, those born since 2010, continues to grow as a group shaped entirely by 21st-century digital technologies. They stand to be the most technologically native generation yet, likely to demand high-quality digital products and show brand discernment from an early age. As they mature into teenagers and young adults over the coming years, their influence on family spending, peer consumption, and digital-first financial habits is expected to rise.

Because there is no direct financial solution for these generations, they still use either cash or their parent's funding source (credit card) and hence there is still a lack of quantification of the dollar size of the children's "spending" market, which is separate from the dollars spent on children. Marketers and regulators have taken note of the change and made a shift to a more "digital" approach to their overall strategy. Additionally, children's access to increasingly available technology has fueled concerns about security, safety and compliance with government regulations. As children march toward adulthood, parents are providing the means for children to have products (money), technology, and then providing them with the increasingly easy opportunity to do so.

[**Table of Contents**](#toc)

From a market perspective, the FinTech industry continues to expand significantly. The global fintech market was valued at approximately $340 billion (USD) in 2024 and is expected to be approximately $395 billion (USD) for 2025, with a long-range forecast exceeding $1 trillion (USD) by 2032.

Digital payments, one of FinTech's largest segments, remain a key growth driver. Recent data suggest the global digital payment market is expected to reach about $122 billion (USD) in 2025, with robust growth through the decade. Meanwhile, digital wallets are becoming increasingly abundant. A 2025 industry report estimates there are approximately 4.5 billion global digital wallet users this year, with forecasts pointing to about 6 billion by 2030.

Moreover, mobile payments continue to scale dramatically. Studies from 2024–2025 show that the number of mobile-payments users has surpassed 2 billion globally, reinforcing the trend toward mobile-first financial behavior.

The key metrics to the FinTech industry are as follows:

· The U.S. Fintech market has achieved a $4.56 trillion market size in 2025 and projects a Compound Annual Growth Rate (CAGR) of 11.2% over the next 10 years.

· In the U.S., the leading FinTech segment is digital payment, which exceeded $3 trillion in 2025 and projects an increase to approximately $7 trillion by 2029.

· Mobile POS Payments comprise the largest digital payment sector with a total transaction value of approximately $2 trillion in 2025.

· 60% of credit unions and 49% of banks believe partnerships with FinTech companies are important.

· In 2025, the U.S. accounted for more than 62% of the global FinTech transaction value.

· 75% of global consumers have used at least one FinTech service to pay online or by using a mobile application.

· 78% of U.S. consumers prefer to bank via a mobile app or website.

· In 2025, 9 out of 10 Americans were using digital payments.

FinTech companies are not restricted to the same degree by regulatory compliance or antiquated systems as the established financial services companies are. However, governments at all levels are increasing their interest in the industry. These companies can concentrate on single purpose solutions, which are designed to enhance the user's experience. In 2025, over three quarters (77%) of the U.S. population used a digital banking service. Additionally, a recent study found that 99% of Gen Z and 98% of millennials indicated that they use mobile banking.

Given these shifting demographics and rapid FinTech adoption, the opportunity for a financial platform tailored to younger generations remains compelling. With Gen Z already entrenched in mobile-first habits and Gen Alpha growing up in an entirely digital world, there is a growing need for financial solutions that address their unique behaviors and preferences.

The innovations taking place in FinTech can be summarized in four categories:

1. Peer-to-Peer ("P2P") value exchanges – Growth of applications has been stimulated by the popularity and use of social networks.

2. Applications with machine intelligence – Automation becoming a necessity in the do-it-yourself environment.

3. Data-driven services – The ability to access data and data analytics is leading to more individualized products and lower pricing of financial services.

4. Less definition between physical and virtual worlds – People are using financial services more in the virtual arena than in visiting physical locations.

Digital-only banking is growing. These banks offer virtual global payments, P2P transfers and opportunities to buy and exchange Bitcoin and other cryptocurrencies.

Blockchain, a distributed ledger technology, is also having a substantial impact on global finance. The two fastest-growing segments of FinTech are blockchain and regulatory technology ("regtech"). It is anticipated that blockchain technology will increase the global economy by $1.76 trillion by 2030. The largest economic impact will be tracking and tracing products and services estimated at $962 billion. Payments and financial services will be impacted by an approximate $433 billion. The sectors benefiting the most will be public administration, education and healthcare. The countries that will benefit the most are anticipated to be China ($440 billion) and the US ($407 billion).

[**Table of Contents**](#toc)

The global P2P payment market was valued at $4.3 trillion in 2025 and is projected to grow to almost $13 trillion by 2032. In 2025, the largest P2P money transfer service has an estimated annual transaction volume of $1 trillion with over 430 million users worldwide.

Artificial intelligence ("AI") is projected to reduce bank operating costs by 22% by the year 2030. This could mean savings of approximately $1 trillion. AI in the banking industry is well positioned to combat cybercrimes and financial fraud. Customer service in financial institutions is now being conducted by AI chatbots and other smart systems. Chatbot interactions saved operational costs in the banking industry of $7.3 billion globally in 2023. In 2025, Robo-advisors managed $16 trillion in assets. In the next 10 years, AI is anticipated to handle 95% of all customer interactions.

The global mobile payment market size was valued as high as $7 trillion in 2024 and is projected to grow to $28 trillion by 2032. Through 2024, mobile payment apps are used by more than 2 billion people globally, growing by millions each year. The number of unique contactless mobile payment users worldwide surpassed 1 billion in 2024.

In 2025 there were over 5 billion digital wallet users worldwide. This number is projected to increase by 35% over the next five years. Global digital wallet spending is projected to be approximately $15 trillion in 2025. In 2024, 81% of customers in the US used mobile devices to manage their bank accounts at least once per month.

Against this backdrop, REGO believes the market is primed for its unique digital family life cycle platform. This platform is designed to give Gen Z and Gen Alpha a safe, modern, and responsible alternative to traditional banking. It also solves current limitations on their ability to safely transact using mobile payment solutions for both brick & mortar retail outlets and online shopping. Furthermore, it includes the added benefit of teaching financial responsibility.

In 2024 the Company expanded its product offerings to address another vulnerable demographic: aging parents. There is an emerging demand for tools that help families manage and protect elder finances. A report published by Cornerstone Advisors states that in 2023, Americans over the age of 60 incurred more than $38 billion in losses due to financial exploitation, triple the amount they lost in 2022. Investment scams against the elderly in 2023 exceeded $1 billion for the first time. To that end, the percentage of consumers involved in managing their parents' financial lives is poised to explode. Surveys indicate that management of parental finances will grow to approximately 40% of the population within the next 10 years. The Cornerstone report estimates parental financial management to be a $1 billion opportunity for financial institutions.

In summary, demographic trends plus accelerating FinTech adoption underscore a generational shift in how people, young and old, access and manage money. REGO's strategic positioning and product suite align with that shift, potentially placing the Company at the forefront of a multi-decade movement toward digital, inclusive, and generation-aware financial services.

**The Company's Relationship to the Children's Online Privacy Protection Act**

Though the Company does not target or collect the personal information of the under 13 age group, and rather targets parents and families as a whole, the products must still be compliant with COPPA. The Company's products meet the requirements imposed by COPPA, including the recent amendments. The Company has gone further than dealing with the federal rules by mapping all state-by-state statutes and regulations that deviate from the federal laws and thus has a complete inter-state commerce view of the regulations that assure compliance for all participants in the system.

To be compliant the Company has renewed its COPPA certification and has received the GDPRkids<sup>TM</sup> Trustmark from PRIVO. PRIVO is an online privacy compliance company and with the certification and Trustmark the Company has joined PRIVO's Kids Privacy Assured Program, which helps companies navigate the online privacy landscape from COPPA and GDPR to the numerous student digital privacy laws, in addition to offering compliant technology solutions that include youth registration, age verification, parental consent and account management.

[**Table of Contents**](#toc)

**Other Consumer Privacy Protection Enforcement**

The Federal Trade Commission ("FTC") has been very active, since as far back as 2003, in penalizing companies for non-compliance with privacy promises, with COPPA at the core of the settlements. Possible penalties under COPPA provide for civil penalties of $42,350 per violation, however, the FTC considers many factors when levying penalties. Among these are the ability of the company to stay in business after the penalty is imposed. Google and YouTube paid a record $170 million in 2019 to settle civil penalties brought by the FTC. Musical.ly (TikTok) agreed to a settlement of $5.7 million in February 2019. TechCrunch's Verizon-owned parent, Oath, created from the merging of AOL and Yahoo, has agreed to pay approximately $5 million for violating COPPA in December 2018. The New York Attorney General has targeted Viacom, Mattel, JumpStart and Hasbro for investigations related to COPPA compliance issues. In July 2021, Kuuhuub, Inc. was fined $3 million for violating COPPA. Epic Games, Inc., the creator of the popular video game Fortnite, was fined in December 2022 $275 million for COPPA violations. In June 2023, Microsoft was fined $20 million for illegally collecting personal information from children without their parents' consent. In August 2024, the US Department of Justice filed a lawsuit against TikTok for several COPPA related violations. Among the violations, the lawsuit mentions failure to comply with COPPA for accounts specifically administered in the platform's "Kids Mode" and for improperly amassing profiles on "Kids Mode" users. The complaint seeks civil penalties of up to $51,744 per violation per day from January 10, 2024 to present for the improper collection of children's data, as well as permanent injunctive relief to prevent future violations of the COPPA Rule.

A number of foreign governments also have either adopted or are considering data privacy and security regulations. For example, the EU has adopted GDPR, as was previously discussed. The Company's initial target is the U.S. However, the Company has been doing research on compliance issues in European countries and is expanding its focus into the European market. With the GDPR Trustmark the Company is positioned to rapidly adapt to these new markets.

In 2022 there were 511 GDPR fines that totaled over €835 million. Among the top violators in 2022 were Meta/Facebook twice (totaling €670 million) and Clearview AI, Inc. several times (totaling €68 million). In 2023, TikTok was fined €345 million in relation to its processing of personal data relating to child users of the platform. The Walt Disney Company was fined $10 million in 2025 for COPPA violations associated with YouTube.

**The Opportunity**

Gen Z and Gen Alpha are the core target users of our mobile payment app, Mazoola®

*As consumers, Gen Z and Gen Alpha have deep pockets, but lack direct access to funds.*

Their spending power is significant and growing. As of 2025, Gen Z has approximately $450 billion globally in purchasing power. Over 70% of Gen Z say they influence family decisions around furniture, household goods, food and beverages purchases. They are two times more likely to shop on mobile devices than Millennials.

*Social and digital learning is key to Gen Z.*

85% of Gen Z uses social media to learn about new products.

*Gen Z's financial future and global impact has yet to be written.*

While 60% of Gen Z say 'a lot of money' is a sign of success and 72% of Gen Z want to start a business one day, the details of how to make smart choices about money are not being shared. As of 2025, 35 states have enacted a personal finance requirement for high schoolers. Gen Z is primed for deep engagement around future-focused payments solutions, but the conversation and learning and introduction of new financial technologies for this generation must occur within an experience that complements their values, interests and goals. To this end, the financial literacy facilities built within our Platform target both the parent and the child. These built-in guidelines will prepare children for the financial responsibilities they will have in the future and prepare them for the emerging digital economy.

[**Table of Contents**](#toc)

**Our Solution**

Our goal, moving forward is to enable both incumbent and new FinTech participants, as well as key verticals with a large base of 'family accounts,' to provide their consumers with safe and empowering youth money management and financial literacy content and tools via the mobile payment platform.

While some of the REGO Platform can be easily duplicated/commoditized, such as the app skin, APIs to retailers, APIs to financial infrastructure and cloud storage, we believe that defending our market position rests on three factors:

1. The ability to define data control settings from parent to child.

Our approach to this opportunity uses a master account to dictate purchase rules to sub-accounts via a hierarchical architecture. This approach adheres to data flow and privacy policy requirements specifically outlined for COPPA compliance. We believe other approaches based on machine learning, or other artificial intelligence methodologies are potentially viable alternatives but are likely too costly, do not meet current compliance timelines, and may defy the core of COPPA's "opt-in" parameters. There is considerable room for next-generation automation techniques to be layered on REGO's hierarchical approach. Given its current stability and scalability metrics, the REGO Platform strongly features these advances in its technical development roadmap without compromising any of its current data control performance.

2. The ability to (mis) attribute the child's transaction and personal identification.

REGO has solved this issue by masking user data and maintaining separate identity and financial data flows. As a result, REGO can verify the age of the internet user through the transaction lifecycle on its Platform. Authenticating and validating the identity of the actual user on the internet maintains one of the more difficult cybersecurity challenges. Current approaches are mainly not for commercial use; however, there is investment in commercial innovation in this area. REGO's data control features and its (mis)attribution approach is inextricably linked and a key to its scalability and extensibility.

3. The ability to disseminate transactional data on minors while remaining COPPA and GDPR compliant.

The highest value data will be that which shows the most nuanced detail afforded under current regulations. Without extreme data control features, such as in the REGO Platform, any lesser data precision will be less valuable.

These three factors are all supported by REGO's patented technology.

REGO addresses hard industry problems such as:

· COPPA compliant technology with a key component being its ability to verify the age of an internet user

· A master and sub-account architecture with the ability to administer user-specific controls

· An advanced rules engine to provide strict automated compliance of the parental rules for each child

· Near real-time buying behavior database on minors – anonymized geolocation, age range and purchases

Currently, we are targeting established brands with large family-focused account bases — including banks, telecommunication companies, faith-based organizations, media distributors, mobile device Original Equipment Manufacturers ("OEMs"), and merchants.

We are seeking partners that will leverage our Platform to:

**Buy vs. Build:** Partners can license or revenue share for their specific market or field of use a safe, compliant system, instead of building one on their own.

**Safety & Security**: Partners can safely engage a younger consumer segment and their families with a new family friendly peer-to-peer-payment approach. Vendors will be explicitly protected from non-compliant transactions and the underlying technology protects the privacy of the user.

**Youth Financial Literacy**: Partners can expand their brand story around empowerment and education of youth financial literacy while engaging their 'future customers' with Gen Z and Gen Alpha, a digital native population of post-millennial youth.

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The REGO Mazoola® app and associated digital wallet technology is designed to enable our partners to engage families with Gen Z and Gen Alpha youths through the leading money management, transactional and financial literacy platform that enables young people to make smart decisions about the things they value in life — including their money, their time, their ideas and their connections. The Mazoola® app enables a new way for individual users to own and monetize their purchasing behavior that is currently unavailable to them.

In addition, we are analyzing specific components of our technology for individual monetization as well as exploring opportunities in the Business to Business ("B2B") realm.

Other markets for potential licensed applications are:

Government social services payments where control over how benefits allowances are used is required. This is particularly necessary in some European countries where social benefits are not being used as intended by the government or where benefits are subject to fraud.

Closed network consumer to business (C2B) and business to business (B2B). An example is school lunch programs where the consumer can make direct mobile payments to the provider's point of sale (POS) terminal without the need to traverse the traditional merchant payment system. This reduces the cost per transaction for the vendor and provides instant non-repudiated settlement. Many school lunch programs are now provided by large catering companies. This is particularly valuable as credit card fees, transaction fees and service fees can exceed 3% in overhead costs per transaction dependent on the negotiated rate. Removing this overhead can have a significant positive financial impact on profitability. It also allows the closed network to own its own behavioral use data thus obviating the need to pay a third party for the same data.

**Our Intellectual Property**

Intellectual property is important to our business. The Company has four issued patents with the United States Patent and Trademark Office ("USPTO"), entitled "Parent Match," "System and Method for Verifying the Age of an Internet User," "System and Method for Virtual Piggy Bank Wish-List" and "System and Method for Virtual Piggy Bank." The Company has filed for one provisional U.S. patent application, as well as twelve non-provisional U.S. patent applications, one of which is pending, four of which have been allowed, and seven of which have been abandoned. Additionally, the Company has been granted two patents, entitled "Virtual Piggy Bank" and "Parent Match," in each of Germany, Canada, and Australia. The Company also has patents pending in the Republic of Korea under the Patent Cooperation Treaty ("PCT"). Costs associated with the registration and legal defense of the patents have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents.

The following are the names and brief descriptions of our patents:

<u>Parent Match:</u> A method of providing control preferences set by a person for a second person who is a prospective Internet user, the method comprising the steps of establishing a first account, the settings of the first account being stored in a database; establishing a second account, the settings of the second account being stored in the database; linking the first and second accounts such that control settings of the second account are determined through the first account; and viewing Internet content from the second account consistent with the control settings of the second account.

<u>System and Method for Virtual Piggy Bank:</u> A method of providing control preferences for a prospective Internet user, the method comprising the steps of establishing a first account, the settings of the first account being stored in a database; establishing a second account, the settings of the second account being stored in the database; linking the first and second accounts such that control settings of the second account are determined through the first account; and making a purchase from the second account consistent with the control settings of the second account.

<u>System and Method for Verifying the Age of an Internet User:</u> A system and method of verifying the age of a prospective internet user, the method comprising creating an age check account with a service requester; activating the age check system through the account; inputting into the age check system a user's information; checking user's information by age check system; and notifying service requester of checked user's information by the age check system.

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<u>System and Method for Virtual Piggybank Wish-List:</u> A non-transitory computer-readable storage medium, storing one or more programs configured for execution, the one or more programs for monitoring, transmitting, and recording usage of a computer or mobile device connected to a network, the one or more programs including instructions for establishing a first account, the settings of the first account being stored in a database; establishing a second account, the settings of the second account being stored in the database, wherein the second account includes a wish-list; linking the first and second accounts such that control settings of the second account are determined through the first account; and making a purchase from the wish-list of the second account consistent with the control settings of the second account.

Until such time as the remaining pending patents are awarded, if ever, we intend to also rely on trade secret protection and/or confidentiality agreements with our employees, customers, business partners and others to protect our intellectual property rights.

Furthermore, we have filed trademark applications pertaining to our service with the USPTO, the European Community, and Canada and a service mark application for Mazoola®. The USPTO has already granted us service mark registrations for Oink, Oink (stylized), PiggyPick, Virtual Piggy, Virtual Piggy and design (horizontal), the PIG design, Parent Match, Quickconnect, Virtual Piggy Youth Empowered Parent Approved and Design, Youth Empowered. Parent Approved, and Oink.com. In 2024, the Company sold the Oink.com domain name in a private sale to a third party for $60,000. The European Community has already granted us registration for Virtual Piggy, Virtual Piggy and Design, Virtual Piggy Youth Empowered Parent Approved and Design, PiggyPick, Wishlist Wednesday, the PIG design, and the PIG design (alternative). All European trademarks associated with Virtual Piggy were not renewed and expired in 2024. The Canadian Intellectual Property Office has already granted the registration for VP Authenticate.

Despite certain precautions taken by us, it may be possible for third parties to obtain and use our intellectual property without authorization. This risk may be increased due to the lack of patent and/or copyright protection. If any of our proprietary rights are misappropriated or we are forced to defend our intellectual property rights, we will have to incur substantial costs. Such litigation could result in substantial costs and diversion of our resources, including diverting the time and effort of our senior management, and could disrupt our business, as well as have a material adverse effect on our business, prospects, financial condition and results of operations. Management will from time to time determine whether applying for and pursuing additional patent and copyright protection is appropriate for us. We have no guarantee that any such applications will be granted or, if awarded, whether they will offer us any meaningful protection from other companies in our business, or that we will have the financial resources to oppose any actual or threatened infringement by any third party. Furthermore, any patent or copyrights that we may be granted may be held by a court to infringe on the intellectual property rights of others and subject us to the payment of damage awards.

In addition, we cannot be certain that our technology will not infringe upon patents, copyrights or other intellectual property rights held by third parties. While we know of no basis for any claims of this type, the existence of and ownership of intellectual property can be difficult to verify, and we have not made an exhaustive search of all patent filings. We may become subject to legal proceedings and claims from time to time relating to the intellectual property of others in the ordinary course of our business. If we are found to have violated the intellectual property rights of others, we may be enjoined from using such intellectual property, and we may incur licensing fees or be forced to develop alternative technology or obtain other licenses. In addition, we may incur substantial expenses in defending against these third-party infringement claims and be diverted from devoting time to our business and operational issues, regardless of the merits of any such claim.

**Research and Development**

During 2025 and 2024, our research and product development expenses were approximately $3.3 million and $3.3 million, all of which were borne by us.

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**Our Revenue Model**

Our ability to generate and grow revenue is affected by consumer spending patterns, merchants and consumer adoption of digital payment methods. We are relying on the growth of mobile devices and the applications that will be used by merchants and consumers on those devices, and the transition from cash and checks to digital forms of payment, including cryptocurrencies. Our strategy to drive revenue in our business includes the following:

· Utilize our COPPA compliant platform to capitalize on mobile device applications

· License or enter into revenue sharing agreements around our technology for use with compatible technologies focusing on digital forms of payment

· Utilize the blockchain component of the platform in conjunction with cryptocurrencies

As of the date of this report, we have not generated significant revenue. Our previous revenues were generated by taking a small percentage of every transaction from an online merchant. Until now this was our only revenue source. As we proceed through 2026, we expect to seek additional revenue streams as follows:

· Private labeling licenses for: financial institutions, FinTech companies, telecommunication vendors, distributors, and value-added resellers (VAR)

· User subscription fees based on premium services

· Transaction and processing fees for both closed and open network transactions

· Special services fees for ad hoc special requests

· Data analytics sales – using algorithms to analyze use data for sale to data brokers (meta data)

· Advertising revenue – for context-based push messaging to subscribers

· Shared transaction revenue or rebates from banking partners

On June 13, 2024, we executed a strategic partnership agreement with Computer Services, Inc. ("CSI"). Pursuant to this agreement, we will integrate our certified COPPA-compliant white label Family Wallet Banking-as-a-Platform into CSI's digital banking platform. The agreement will make our family wallet available to CSI's network of over 500 financial institution customers to allow end-user customers of subscribing financial institutions to utilize our family wallet. On November 14, 2024, we announced collaboration with Jack Henry & Associates to offer our family wallet to their network of approximately 7,500 financial institutions.

**Our Plan of Operation**

We launched our direct-to-consumer Mazoola® app in 2021. In 2025, we built upon this to launch our Family Wallet white-label solution for banks and credit unions, which included:

· Launched our first Family Wallet white-label solution for a $7 billion AUM bank with over 160,000 customers

· Advanced our second Family Wallet white-label solution integration to Beta stage for a $6 billion AUM credit union with expected launch in Q1 2026

· Created core integrations to support white-label clients which can be reused with other financial institutions

· Updated our database architecture to cost-effectively support separate table sets for banks of all sizes

· Created a child-only version of our mobile app for use by our white-label clients

· Passed both SOC 2 Type I and SOC 2 Type II audits

· Implemented systems for tracking and updating SOC requirements going forward to streamline annual SOC 2 Type II audits

· Implemented systems allowing us to send emails from domains belonging to our white-label clients

· Established strategic partnerships for staff-scaling to meet white-label client demand

· Worked with partners to create card controls integration

· Finished the prototype of the Senior Guard product

· Created a standard library of over 500 test cases to be used for automated frontend testing

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In addition to expanding the existing payment solution to a growing US and global customer base, management believes there is robust demand for:

1. A digital ecosystem for children embedded within a marketplace of service offerings, delivered via in-house technology and through third party integrations ("super app"). The inherent fenced design and systems architecture of the Mazoola® digital wallet aligns well with the overall purpose and approach of a "super app"— to offer a wide array of services within a controlled environment on mobile operating systems, such as iOS and Android.

2. Expanded in-application service modules such as investments, charitable giving, and financial literacy, as well as, the inclusion of new marketplaces, health centers, and logistics/inventory management systems.

3. Predictive analytic products and services based on REGO's anonymized data collection techniques.

**Sales and Marketing Strategy**

Brand Positioning:

Rego will position itself as the premier platform for family-focused financial solutions, with a unique value proposition that emphasizes ease of use, security, and customization. The brand will highlight its white-label capabilities, making it attractive to financial institutions seeking to provide innovative solutions to their customers.

Customer Acquisition:

Partnerships with Financial Institutions: By positioning Rego as an essential tool for family banking, Rego will seek partnerships with a wide range of financial institutions, from small credit unions to large national banks.

Digital Marketing: Targeted digital marketing campaigns will focus on families, specifically those with children, aging parents, or young adults starting to manage their finances. Social media, content marketing, and email campaigns will drive awareness and adoption.

Customer Retention:

Value-Added Features: Rego will offer personalized insights and educational content to engage users and keep them coming back to the platform.

Family-Focused Events & Webinars: Offering family-oriented financial education webinars and events will further cement Rego's role as a trusted advisor for family finances.

**Seasonality**

Our new model should not be subject to seasonality.

**Competition**

The global payments industry is highly competitive. There is a continuous introduction of new entrants into the market and the development of new technologies and product offerings in the global payments industry, which is already highly competitive. It is continuously changing, highly innovative, and increasingly subject to regulatory scrutiny and oversight. We compete against a wide range of businesses. Most of our current and potential competitors may be larger than we are, have larger customer bases, greater brand recognition, longer operating histories, a dominant or more secure position, or broader geographic scope than we do, or offer products and services that we do not offer. Although payment services such as Zelle, Venmo, PayPal, Amex Bluebird, FamZoo and Visa Buxx can be viewed as our competitors, we do not believe that these provide the type of family friendly solution that not only teaches young people about saving, spending, and giving, while being compliant with COPPA and other laws that users of all ages need to be aware of, including but not limited to privacy, data collection, and security. We will compete against many companies that are larger than we are in a wide range of businesses, including banks, credit card providers, technology and ecommerce companies and traditional retailers. We will compete against various forms of payment methods including cash and checks, credit and debit cards, automated clearing house, mobile payments and other online payment services.

To compete effectively, we will focus a majority of our 2026 resources on product distribution and integration costs associated with the rollout of the Platform to subscribing financial institutions.

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**Government Regulation**

The industry which we serve is subject to regulation by the FTC, laws such as COPPA, and other laws relating to data collection, use, retention, and security. Complying with these varying U.S. and international requirements, such as GDPR, could cause us to incur substantial costs or require us to change our business practices in a manner adverse to our business. In addition, we have and post on our websites our own privacy policies and practices concerning the collection, use and disclosure of user data. Any failure, or perceived failure, by us to comply with our posted privacy policies or with any regulatory requirements or orders or other federal, state or international privacy or consumer protection-related laws and regulations could result in proceedings or actions against us by governmental entities or others, subject us to significant penalties and negative publicity and adversely affect us. In addition, we are subject to the possibility of security breaches, which themselves may result in a violation of these laws.

The Company has added preventative measures to reduce the risk of non-compliance and security breaches. However, as the Company utilizes third party infrastructure, the risk of security breaches cannot be guaranteed but the Company has performed reasonable efforts to mitigate risk.

**Human Capital Resources**

As of December 31, 2025, we had 5 employees who were working in the areas of marketing, programming and product development, web development, finance and administration. None of our employees are represented by a union or covered by a collective bargaining agreement. We believe that our relations with our employees are good. We outsource our marketing efforts and most of our product development costs. Our relationship with all of these vendors is good.

**Company Information**

Our website can be found on the Internet at www.regopayments.com. The website contains information about the Company and our operations, however, the contents of our website are not incorporated into this Form 10-K. We make available free of charge through a link on our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and amendments to these reports, as soon as we electronically file such material with, or furnish such material to, the Securities and Exchange Commission (SEC). These reports may be accessed on our website by following the link under Investor Relations and then clicking on SEC filings.

**ITEM 1A. <u>RISK FACTORS</u>.**

*An investment in our common stock involves a high degree of risk. You should carefully consider the following risk factors in addition to other information in this Annual Report on Form 10-K before purchasing our common stock. The risks and uncertainties described below are those that we currently deem to be material and that we believe are specific to our company and our industry. In addition to these risks, our business may be subject to risks currently unknown to us. If any of these or other risks actually occurs, our business may be adversely affected, the trading price of our common stock may decline, and you may lose all or part of your investment.*

 

**RISKS RELATED TO OUR BUSINESS**

**We have a history of losses, have yet to begin generating significant revenue, will require additional capital, and our auditors have raised substantial doubt about our ability to continue as a going concern.**

We have experienced net losses in each fiscal year since our inception and as of December 31, 2025, have an accumulated deficit of approximately $160.2 million. We incurred net losses attributable to common stockholders of approximately $12.4 million during the year ended December 31, 2025 and approximately $11.6 million during the year ended December 31, 2024. As of March 31, 2026 we had a cash position of approximately $0.2 million. Depending on the speed at which we begin to generate revenue, and to the degree we continue to accelerate spending to take advantage of our market opportunity, we will need additional capital to execute our business plan. As a result of these conditions, the report of our independent accountants issued in connection with the audit of our financial statements as of and for our fiscal year ended December 31, 2025 contained a qualification raising a substantial doubt about our ability to continue as a going concern.

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**In order to execute our business plan and pay expenses in connection with unforeseen events, we will need to raise additional capital, which may not be available on terms acceptable to us, if at all.**

In order to execute our current business plan, we will need to raise additional capital. The amount of funding required will be determined by many factors, some of which are beyond our control, and we may require such funds sooner than currently anticipated or to cover unforeseen expenses. We expect that any such funding will be raised through sales of our debt or equity securities. When raising additional funding, general market conditions or the then-current market price of our common stock may not support capital-raising transactions. We have not made arrangements to obtain additional financing and we can provide no assurance that additional financing will be available in an amount or on terms acceptable to us, if at all. If we cannot raise funds when they are needed or if such funds cannot be obtained on acceptable terms, we may not be able to (a) pay our costs and expenses as they are incurred, (b) execute our business plan, (c) take advantage of future opportunities, or (d) respond to competitive pressures or unanticipated requirements, which may in the extreme case, require us to liquidate the Company. This may seriously harm our business, financial condition and results of operations.

**We are essentially a start-up company with an unproven business model which makes it difficult to evaluate our current business and future prospects.**

We are essentially a start-up company introducing new services and technologies. We are completing the development and rollout of our enhanced Platform, however, we have not generated significant revenue. We expect to generate all of our future revenues from the development and marketing of our COPPA compliant payment solution Platform to financial institutions and merchants. However, we have only a very limited operating history and have not generated significant revenue upon which to base an evaluation of our current business and future prospects. Although our management team has substantial experience in developing and managing businesses, they have never developed or offered such a technology and there can be no assurance that we will be able to successfully develop and market such technology. If we are unable to fully develop and commercialize our Platform, or manage other challenges facing development stage companies, such as raising additional capital, managing existing and expanding operations, and hiring qualified personnel, we may continue to be unprofitable or, in the extreme case, be forced to cease operations. Before purchasing our common stock, you should consider an investment in our common stock in light of the risks, uncertainties and difficulties frequently encountered by early-stage companies in new and evolving markets such as ours, including those described herein. We may not be able to successfully address any or all of these risks. Failure to adequately address such risks would have a material adverse effect on our financial condition and results of operation and could cause our business to fail.

**Our management has limited experience in our relatively new industry, which may make it difficult for you to evaluate our business prospects.**

Our senior management does not have direct experience in the online payment or retail industries. There can be no assurance that our management team will be successful in working together to develop and market our Platform. In addition, the online payment industry is a relatively new industry. Although there a number of online payment solutions, relatively few are directed specifically to the "Under 18" market segment. You must consider our business prospects in light of the risks and difficulties we will encounter in the future in a new and rapidly evolving industry. We may not be able to successfully address these risks and difficulties, which could materially harm our business prospects, financial condition and results of operations.

**We are developing a service platform which is new to the market and there is substantial uncertainty regarding the level of consumer and industry acceptance, if any, of our platform.**

Our Platform is intended to provide a solution to certain financial institutions, website operators and online merchants. As we do not believe any provider is currently offering such a solution, it is very difficult for us to predict the level of demand and market acceptance of our Platform by consumers or online retailers. As regulations, consumer and industry preferences and trends evolve, there is a high degree of uncertainty about whether users will value some or all of the key features which we are incorporating into the Platform. The failure of the marketplace to deem our features desirable may discourage use of our Platform and limit our ability to generate any meaningful revenues or profits which would have a material adverse effect on our business, operating results, and financial condition.

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**Fluctuations in demand for our Platform may have a material adverse effect on our business, operating results and financial condition.**

We are subject to fluctuations in demand for our Platform due to a variety of factors, including general economic conditions, including the possibility of a prolonged period of limited economic growth or possible economic decline in the U.S.; competition; disruptions to the credit and financial markets in Europe, the U.S., and elsewhere; contractions or limited growth in consumer spending or consumer credit; and adverse economic conditions that may be specific to the Internet, ecommerce and payments industries.

We are also subject to product obsolescence, technological change, shifts in buying patterns, financial difficulties and budget constraints of current and potential customers, levels of demand for virtual goods, awareness of security threats to IT systems, and other factors. While such factors may, in some periods, increase revenues, fluctuations in demand can also negatively impact our revenues.

**If we do not remain proactive with technological development to provide new products and services, the use of our services may not be adopted.**

Technological changes impact the industries in which we operate, including developments in payment card tokenization, ecommerce through social networks, authentication and virtual currencies. We cannot predict the effects of technological changes on our business. We expect that new services and technologies applicable to the industries in which we operate will continue to emerge and may be superior to, or render obsolete, the technologies we currently use in our products and services. Developing and incorporating new technologies into our products and services may require substantial expenditures, take considerable time, and ultimately may not be successful. In addition, our ability to adopt new products and services and to develop new technologies may be inhibited by industry-wide standards, payments networks, changes to laws and regulations, resistance to change from consumers or merchants, third-party intellectual property rights, or other factors. Our success will depend on our ability to develop and incorporate new technologies and adapt to technological changes and evolving industry standards; if we are unable to do so in a timely or cost-effective manner, our business could be harmed.

**Weak consumer spending may adversely affect our business prospects, financial condition and results of operations.**

Our ability to attract new users, and encourage users to use our payment services in times where consumer spending is weak could materially and adversely affect our business, financial condition and results of operations.

**Undetected programming errors or flaws in our Platform could harm our reputation or prevent market acceptance of the Platform which would materially and adversely affect our business prospects, reputation, financial condition and results of operations.**

The Platform may contain programming errors or flaws, which may become apparent only after sustained use in the market. In addition, the Platform was developed using programs and engines developed by and/or licensed from third party vendors, which may include programming errors or flaws over which we have no control. If our users or partners have a negative experience with the Platform, related to or caused by undetected programming errors or flaws, they may be less inclined to continue or resume use of the Platform or recommend the Platform to other potential users. Undetected programming errors in the Platform can also cause our users or partners to cease using the Platform or delay market acceptance of the Platform, either of which could materially and adversely affect our business, financial condition and results of operations.

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**Our future growth is largely dependent upon our ability to develop technologies that achieve market acceptance with acceptable margins.**

The markets for our products and services are characterized by constant technological changes, frequent introductions of new products and services and evolving industry standards. Our ability to execute our business plan depends upon a number of factors, including our ability to identify emerging technological and market trends in our target end-markets, develop and maintain competitive products, develop our Platform that differentiates our services from those of our competitors, and develop and bring services to market quickly and cost-effectively. In addition, we will need to effectively manage risks associated with new products and production ramp issues as well as risks that new products may have quality or other defects in the early stages of introduction. The process of developing new high technology products, services and solutions and enhancing our existing products is complex, costly and uncertain. Our ability to continually refine and successfully commercialize the Platform will require substantial technological innovation and requires the investment of significant resources. These development efforts may not lead to the ongoing evolution of the Platform on a timely basis or meet the needs of our customers as fully as competitive offerings. Any failure by us to anticipate customers' changing needs and emerging technology trends accurately could significantly harm our market share and results of operations. In addition, the markets for our services may not develop or grow as we anticipate. The failure of our products to gain market acceptance or their obsolescence due to more attractive offerings by competitors could significantly impact our revenues and adversely affect our business, operations and financial results.

**Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.**

The techniques used to attempt to obtain unauthorized or illegal access to systems and information (including customers' personal data), disable or degrade service, exploit vulnerabilities, or sabotage systems are constantly evolving, and in some circumstances may not be recognized or detected until after they have been launched against a target. Unauthorized parties have attempted, and we expect that they will continue to attempt, to gain access to our systems or facilities through various means, including, but not limited to, hacking into our systems or facilities or those of our customers, partners, or vendors, and attempting to fraudulently induce users of our systems (including employees and customers) into disclosing user names, passwords, payment card information, or other sensitive information used to gain access to such systems or facilities. This information may in turn be used to access our customers' personal or proprietary information and payment data that are stored on or accessible through our information technology systems and those of third parties with whom we partner. Numerous and evolving cybersecurity threats, including advanced and persisting cyberattacks, cyberextortion, distributed denial-of-service attacks, ransomware, spear phishing and social engineering schemes, the introduction of computer viruses or other malware, and the physical destruction of all or portions of our information technology and infrastructure and those of third parties with whom we partner could compromise the confidentiality, availability, and integrity of the data in our systems. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, and regulatory penalties, disrupt our operations and the services we provide to customers, and damage our reputation, and cause a loss of confidence in our products and services, which could adversely affect our business/operating margins, revenues and competitive position.

**Our plans are dependent upon key individuals and the ability to attract qualified personnel, as well as our relationship with outside developers.**

In order to execute our business plan, we will be dependent upon senior executives, as well as other key development personnel. The loss of any of the foregoing individuals could have a material adverse effect upon our business prospects. Moreover, our success continues to depend to a significant extent on our ability to identify, attract, hire, train and retain qualified professional, creative, technical and managerial personnel. Competition for such personnel is intense, and there can be no assurance that we will be successful in identifying, attracting, hiring, training and retaining such personnel in the future. The competition for software developers, and technical directors is especially intense because the software market has significantly expanded over the past several years. If we are unable to hire, assimilate and retain such qualified personnel in the future, our business, operating results, and financial condition could be materially adversely affected. We may also depend on third party contractors and other partners, to develop our Platform as well as any future enhancements thereto. There can be no assurance that we will be successful in either attracting and retaining qualified personnel or creating arrangements with such third parties. The failure to succeed in these endeavors would have a material adverse effect on our ability to consummate our business plans.

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**RISKS RELATED TO INTELLECTUAL PROPERTY, TECHNOLOGY AND REGULATION**

**Our lack of patent and/or copyright protection and any unauthorized use of the Platform by third parties may adversely affect our business.**

We have patents and have made patent applications with the United States Patent and Trademark Office related to our Platform, which we rely on for protection of our technology. We also rely on a combination of protections provided by contracts, including confidentiality and nondisclosure agreements, and common law rights, such as trade secrets, to protect our intellectual property. However, we cannot assure you that we will be able to adequately protect our technology or other intellectual property from misappropriation in the U.S. and abroad. This risk may be increased due to the lack of complete patent and/or copyright protection. Any patent issued to us could be challenged, invalidated or circumvented or rights granted thereunder may not provide a competitive advantage to us. Furthermore, patent applications that we file may not result in issuance of a patent or, if a patent is issued, the patent may not be issued in a form that is advantageous to us. Despite our efforts to protect our intellectual property rights, others may independently develop similar products, duplicate our products or design around our patents and other rights. In addition, it is difficult to monitor compliance with, and enforce, our intellectual property rights on a worldwide basis in a cost-effective manner. In jurisdictions where foreign laws provide less intellectual property protection than afforded in the U.S. and abroad, our technology or other intellectual property may be compromised, and our business would be materially adversely affected. If any of our proprietary rights are misappropriated or we are forced to defend our intellectual property rights, we will have to incur substantial costs. Such litigation could result in substantial costs and diversion of our resources, including diverting the time and effort of our senior management, and could disrupt our business, as well as have a material adverse effect on our business, prospects, financial condition and results of operations. We can provide no assurance that we will have the financial resources to oppose any actual or threatened infringement by any third party. Furthermore, any patents or copyrights that we may be granted may be held by a court to infringe on the intellectual property rights of others and subject us to the payment of damage awards.

**We may be subject to claims with respect to the infringement of intellectual property rights of others, which could result in substantial costs and diversion of our financial and management resource*s.***

Third parties may claim that we are infringing on their intellectual property rights. We may violate the rights of others without our knowledge. We may expose ourselves to additional liability if we agree to indemnify our clients against third party infringement claims. While we know of no basis for any claims of this type, the existence of and ownership of intellectual property can be difficult to verify, and we have not made an exhaustive search of all patent filings. Additionally, most patent applications are kept confidential for twelve to eighteen months, or longer, and we would not be aware of potentially conflicting claims that they make. We may become subject to legal proceedings and claims from time to time relating to the intellectual property of others in the ordinary course of our business. If we are found to have violated the intellectual property rights of others, we may be enjoined from using such intellectual property, and we may incur licensing fees or be forced to develop alternative technology or obtain other licenses. In addition, we may incur substantial expenses in defending against these third-party infringement claims and be diverted from devoting time to our business and operational issues, regardless of the merits of any such claim. In addition, in the event that we recruit employees from other technology companies, including certain potential competitors, and these employees are used in the development of portions of the Platform which are similar to the development in which they were involved at their former employers, we may become subject to claims that such employees have improperly used or disclosed trade secrets or other proprietary information. If any such claims were to arise in the future, litigation or other dispute resolution procedures might be necessary to retain our ability to offer our current and future services, which could result in substantial costs and diversion of our financial and management resources. Successful infringement or licensing claims against us may result in substantial monetary damages, which may materially disrupt the conduct of our business and have a material adverse effect on our reputation, business, financial condition and results of operations. Even if intellectual property claims brought against us are without merit, they could result in costly and time-consuming litigation and may divert our management and key personnel from operating our business.

**The impact of laws regulating financial institutions may adversely impact our business.**

The impact of laws regulating financial institutions, including the Dodd-Frank Wall Street Reform and Consumer Protection Act may adversely impact our business as a result of our reliance on merchants to provide services for our Platform.

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**Changes to payment card networks or bank fees, rules, or practices could harm our business and, if we do not comply with the rules, could result in the termination of our ability to accept credit cards**. **If we are unable to accept credit cards, our competitive position would be seriously damaged.**

We may belong to or directly access payment card networks, such as Visa, MasterCard and the National Automated Clearing House Association ("NACHA"), in order to accept or facilitate the processing of credit cards and debit cards (including some types of prepaid cards) for merchants. We also expect to rely on banks or other payment processors to process transactions and must pay fees for this service. From time to time, payment card networks have increased, and may increase in the future, the interchange fees and assessments that they charge for each transaction using one of their cards. Generally, payment card processors have the right to pass any increases in interchange fees and assessments on to payment systems like ours as well as increase their own fees for processing. Changes in interchange fees and assessments could increase our operating costs and reduce profit margins, if any. In addition, in some markets, governments have required Visa and MasterCard to reduce interchange fees or have opened investigations as to whether Visa or MasterCard's interchange fees and practices violate antitrust law. The financial reform law enacted in 2010 authorizes the Federal Reserve Board to regulate debit card interchange rates and debit card network exclusivity provisions, and the Federal Reserve Board has proposed rules that include caps on debit card interchange fees at significantly lower rates than Visa or MasterCard currently charge. We expect to be required by our processors to comply with payment card network operating rules, which generally include the obligation to reimburse processors for any fines they are assessed by payment card networks as a result of any rule violations by users of our Platform. The payment card networks set and interpret the card rules which could be more difficult or expensive to comply with. We also expect to be required to comply with payment card networks' special operating rules for Internet payment services. Some of these rules may be difficult or even impossible for us to comply with. If we are unable to comply with these rules, we may be subject to fines for any failure to comply with such rules or we may lose our ability to gain access to the credit card associations or NACHA.

**Any capacity constraints or system disruptions, including natural disasters, could have a material adverse effect on our business**.

Our business will rely significantly on Internet technologies and infrastructure. Therefore, the performance and reliability of our Internet sites and network infrastructure will be critical to our ability to attract and retain users, merchants and strategic partners. Any system error, outage or failure, or a sudden and significant increase in traffic, may result in the unavailability of sites and significantly delay response times. Individual sustained or repeated occurrences could result in a loss of potential or existing users. Our systems and operations will be vulnerable to interruption or malfunction due to certain events beyond our control, including natural disasters, international diseases, telecommunications failures and computer hacking. We will also rely on Web browsers and online service providers to provide Internet access to our sites. There can be no assurance that we will be able to expand our network infrastructure, either alone or through the use of third-party hosting systems or service providers, on a timely basis sufficient to meet demand. Our operations and services depend on the extent to which our computer equipment and the computer equipment of our third-party network providers is protected against damage from fire, earthquakes, terrorist acts, natural disasters, computer viruses, unauthorized entry, power loss, telecommunications failures, and similar events. Despite precautions taken by us and our third-party network providers, over which we have no control, a natural disaster, infectious disease, or other unanticipated problems at our headquarters or a third-party provider could cause interruptions in the services that we provide. If disruptions occur, we may have no means of replacing these network elements on a timely basis or at all. Any accident, incident, system failure, or discontinuance of operations involving our network or a third-party network that causes interruptions in our operations could have a material adverse effect on our ability to provide services to our partners and customers and, in turn, on our business, financial condition, and results of operations.

**Our business will be dependent upon broadband carriers.**

We will rely on broadband providers to provide high speed data communications capacity to our customers. We may experience disruptions or capacity constraints in these broadband services. If disruptions or capacity constraints occur, we may have no means of replacing these services, on a timely basis or at all. In addition, broadband access may be limited or unavailable in certain areas, thereby reducing our potential market.

**Use of our services for illegal purposes could be detrimental to our business.**

Our payment system is susceptible to potentially illegal use. Use of our payment system for illegal or improper purposes could subject us to claims, such as individual and class action lawsuits, government and regulatory investigations, inquiries or requests that could result in potential liability. Increased penalties for intermediaries providing payment services for certain illegal activities have become more prevalent. Any threatened or resulting claims could result in a material adverse effect on our business.

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**We may be subject to credit card transaction fraud.**

Our business model depends upon the processing of credit cards and may include the sale of gift cards. In cases where we are the merchant of record on a gift card sale, we could be held financially responsible for the value of gift cards which are purchased using a fraudulent or stolen credit card. While we use software and safeguards to ensure that credit cards we accept are valid, there can be no assurance that credit card fraud will not occur. In addition, in the case of transactions where our merchant is in the United States and is the merchant of record, we are not generally responsible for credit card fraud. However, given that our business will be dependent on the successful processing of credit cards and payment solutions, fraudulent processing could have an adverse effect on our merchant relationships and could result in liability. Additionally, other countries have varying rules on who the responsible party would be in certain variations of credit card or other payment fraud. While we are researching such international policies and rules, as necessary, and are implementing safeguards to minimize risk, there can be no assurance that we will not incur liability relating to credit card or other payment fraud.

**If we are unable to effectively protect our intellectual property rights on a worldwide basis, we may not be successful in the planned international expansion of our Platform.**

Access to worldwide markets depends in part on the strength of our intellectual property portfolio. There can be no assurance that, as our business expands into new areas, we will be able to independently develop the technology, software or know-how necessary to conduct our business or that we can do so without infringing the intellectual property rights of others. To the extent that we have to rely on licensed technology from others, there can be no assurance that we will be able to obtain licenses at all or on terms we consider reasonable. The lack of a necessary license could expose us to claims for damages and/or injunction from third parties, as well as claims for indemnification by our customers in instances where we have a contractual or other legal obligation to indemnify them against damages resulting from infringement claims. Regarding our own intellectual property, we intend to actively enforce and protect our rights to the extent practicable. However, there can be no assurance that our efforts will be adequate to prevent misappropriation or improper use of our protected technology in international markets.

**RISKS RELATED TO OUR COMMON STOCK**

**Our strategic alternatives process may not result in a successful corporate transaction or liquidity event.**

Our Board of Directors is continually exploring our strategic alternatives. Any process of exploring strategic alternatives includes market risk and other uncertainties. There can be no assurance that an exploration of strategic alternatives will result in the successful consummation of a liquidity event, capital raise or other corporate transaction, on a basis that will provide any specific level of value to our common stockholders or other security holders, or at all. On September 22, 2022 the Company engaged an investment banking firm to explore a potential sale of the Company. The Company and this investment banking firm mutually agreed to terminate their agreement on February 22, 2024 and a merchant bank was simultaneously engaged in a consultative capacity to advise on capital funding and strategic initiatives. We terminated our agreement with the merchant bank in March 2025 due to the incapacity of the principal and engaged a replacement investment banking firm on May 7, 2025. We remain committed to the exploration and assessment of our strategic alternatives.

**If we are unable successfully to manage growth, our operations could be adversely affected.**

Our progress is expected to require the full utilization of our management, financial and other resources, which to date has occurred with limited working capital. Our ability to manage growth effectively will depend on our ability to improve and expand operations, including our financial and management information systems, and to recruit, train and manage sales personnel. There can be no assurance that we will be able to manage growth effectively. If we do not properly manage the growth of our business, we may experience significant strains on our management and operations and disruptions in our business. Various risks arise when companies and industries grow quickly. If our business or industry grows too quickly, our ability to meet customer demand in a timely and efficient manner could be challenged. We may also experience development delays as we seek to meet increased demand for our products. Our failure to properly manage the growth that we or our industry might experience could negatively impact our ability to execute on our operating plan and, accordingly, could have an adverse impact on our business, our cash flow and results of operations, and our reputation with our current or potential customers.

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**As a public company, we are required to incur substantial expenses.**

We are subject to the periodic reporting requirements of the Exchange Act, which requires, among other things, review, audit, and public reporting of our financial results, business activities, and other matters. SEC regulations, including regulations enacted as a result of the Sarbanes-Oxley Act of 2002, have also substantially increased the accounting, legal, and other costs related to compliance with SEC reporting obligations. If we do not have current information about our Company available to market makers, they will not be able to trade our stock. The public company costs of preparing and filing annual and quarterly reports, and other information with the SEC will cause our expenses to be higher than they would be if we were privately held. These increased costs may be material and may include the hiring of additional employees and/or the retention of additional advisors and professionals. Our failure to comply with the federal securities laws could result in private or governmental legal action against us and/or our officers and directors, which could have a detrimental effect on our business and finances, the value of our stock, and the ability of stockholders to resell their stock.

**We operate in a highly competitive industry and compete against many large companies.**

Many companies worldwide are dedicated to providing online payment solutions including mobile payments, electronic funds transfer networks, cross-border access to networks, prepaid cards, bill pay networks and other online and offline payment methods. The market in which we operate is characterized by numerous and larger competitors, including PayPal, credit card companies, and credit card processors that offer services to online retailers, rapid technological changes, and intense competition. We expect more companies to enter the online payment business, particularly the segment aimed at serving the "Under 18" demographic. Most if not all of these competitors have longer operating histories, significantly greater financial, technical, marketing, customer service and other resources, and greater name recognition than us. As a result, they may respond to new or emerging technologies and changes in customer requirements faster and more effectively than we can. If any current online payment solution develops a COPPA compliant service, it would be substantially more difficult for us to introduce and distribute our Platform to the market, and our business, financial condition and results of operations would be materially and adversely affected.

**Trading in our common stock has been limited, there is no significant trading market for our common stock, and purchasers of our common stock may be unable to sell their shares.**

Our common stock is currently eligible for quotation on the Over-the-Counter Market ("OTC QB"), however trading to date has been limited. If activity in the market for shares of our common stock does not increase, purchasers of our shares may find it difficult to sell their shares. We currently do not meet the initial listing criteria for any registered securities exchange, including the Nasdaq Stock Market. The OTC Bulletin Board is a less recognized market than the foregoing exchanges and is often characterized by low trading volume and significant price fluctuations. These and other factors may further impair our stockholders' ability to sell their shares when they want to and/or could depress our stock price. As a result, stockholders may find it difficult to dispose of or obtain accurate quotations of the price of our securities because smaller quantities of shares could be bought and sold, transactions could be delayed, and security analyst and news coverage of our Company may be limited. These factors could result in lower prices and larger spreads in the bid and ask prices for our shares of common stock.

**We may not be able to qualify to have our common stock listed on a national stock exchange.**

The Company's common stock currently trades on the OTC QB in the United States. Listing requirements for exchanges such as NASDAQ include financial and trading requirements that, as of December 31, 2025 the Company does not meet. The listing process can be lengthy, discretionary, and ultimately must include meeting financial and trading requirements. There can be no assurance that the Company will ever be listed on a national stock exchange. Currently, the Company does not qualify for listing based on its stock price, among other things. Therefore, certain institutional investors may not be able to purchase the Company's common stock as a result of their own ownership guidelines and liquidity in the Company's common stock would remain more limited. Further, the Company's ability to raise money through subsequent offerings of its common stock will be more limited if the Company is not able to list on a national exchange.

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**Applicable SEC rules governing the trading of "penny stocks" may limit the trading and liquidity of our common stock which may affect the trading price of our common stock.**

Our common stock is a "penny stock" as defined under Rule 3a51-1 of the Exchange Act and is accordingly subject to SEC rules and regulations that impose limitations upon the manner in which our common stock can be publicly traded. Penny stocks generally are equity securities with a per share price of less than $5.00 (other than securities registered on some national securities exchanges or quoted on NASDAQ). The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and, if the broker-dealer is the sole market maker, the broker-dealer must disclose this fact and the broker-dealer's presumed control over the market, and monthly account statements showing the market value of each penny stock held in the customer's account. In addition, broker-dealers who sell these securities to persons other than established customers and "accredited investors" must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. Consequently, these requirements may have the effect of reducing the level of trading activity, if any, of our common stock and reducing the liquidity of an investment in our common stock.

**We have outstanding shares of preferred stock with rights and preferences superior to those of our common stock.**

The issued and outstanding shares of Series A Cumulative Convertible Preferred Stock and Series B Cumulative Convertible Preferred Stock, and the authorized but unissued shares of Series C Cumulative Convertible Preferred Stock, grant the holders of such preferred stock anti-dilution, voting, dividend and liquidation rights (including liquidation multiples) that are superior to those held by the holders of our common stock. In addition, upon the issuance or deemed issuance of additional shares of common stock in the future for a price below the applicable preferred stock conversion price (currently $0.90 per share), the conversion price of the Series A and Series B Cumulative Convertible Preferred Stock will be lowered based on a weighted average formula, and the conversion price of the Series C Cumulative Convertible Preferred Stock will be lowered based on a full-ratchet formula for twelve months from the original authorization date and pursuant to a weighted average formula thereafter, all of which will have the effect of immediately diluting the holders of our common stock.

**Sales of a substantial number of shares of our common stock in the public market originally issued through the conversion of preferred stock, exercise of options or warrants, or additional financing transactions could adversely affect the market price of our common stock and would have a dilutive effect upon our shareholders.**

Historically, our common stock has been thinly traded. This low trading volume may have had a significant effect on the market price of our common stock, which may not be indicative of the market price in a more liquid market. As of March 31, 2026, options for the purchase of 11,404,025 shares of our common stock were outstanding and 71,197,352 shares of common stock were issuable upon conversion of our outstanding Series A and B Cumulative Convertible Preferred Stock and 10% Secured Convertible Notes Payable convertible into Series B Cumulative Convertible Preferred Stock and 4% Secured Convertible Notes Payable convertible into Series C Cumulative Convertible Preferred Stock. Sales of a substantial number of shares of our common stock in the public market originally issued through the conversion of convertible notes, preferred stock, exercise of options or warrants, or additional financing transactions could adversely affect the market price of our common stock.

**We intend to raise additional funds in the future through issuances of securities and such additional funding may be dilutive to shareholders or impose operational restrictions.**

We intend to raise additional capital in the future to help fund our operations through sales of shares of our common stock or securities convertible into shares of our common stock, as well as issuances of debt. Such additional financing may be dilutive to our shareholders, and debt financing, if available, may involve the pledge of security interests in our assets, and restrictive covenants, which may limit our operating flexibility. If additional capital is raised through the issuances of shares of our common stock or securities convertible into shares of our common stock, the percentage ownership of existing shareholders will be reduced. These shareholders may experience additional dilution in net book value per share and any additional equity securities may have rights, preferences and privileges senior to those of the holders of our common stock.

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**Because we do not expect to pay dividends in the foreseeable future, investors seeking cash dividends should not purchase shares of common stock.**

We have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future. Our payment of any future dividends will be at the discretion of our board of directors after taking into account various factors, including but not limited to our financial condition, operating results, cash needs, growth plans and the terms of any credit agreements that we may be a party to at the time. Accordingly, investors must rely on sales of their shares, after price appreciation, which may never occur, as the only way to realize any return on their investment. Investors seeking cash dividends should not purchase our shares.

**We are not subject to certain corporate governance provisions of the Sarbanes-Oxley Act of 2002 and without voluntary compliance with such provisions, our shareholders will not receive the benefits and protections they were enacted to provide.**

Since our common stock is not listed for trading on a national securities exchange, we are not subject to certain of the corporate governance requirements established by the national securities exchanges pursuant to the Sarbanes-Oxley Act of 2002. These include rules relating to independent directors, and independent director nomination, audit and compensation committees. Unless we voluntarily elect to comply with those obligations, investors in our shares will not have the protections offered by those corporate governance provisions.

**We will be required to remain current in our filings with the SEC or our securities will not be eligible for continued quotation on the OTC QB.**

We are required to remain current in our filings with the SEC in order for our shares of common stock to continue to be eligible for quotation on the OTC QB. In the event that we become delinquent in our required filings with the SEC, quotation of shares of our common stock will be terminated following a 30-day grace period if we do not make our required filing during that time. In such an event purchasers of our common stock may find it difficult to sell their common stock.

**If we issue shares of preferred stock with superior rights to the shares of common stock, it could result in a decrease in the value of our common stock and delay or prevent a change in control of us.**

Our board of directors is authorized to issue up to 2,000,000 shares of preferred stock with such rights, designation, and preferences as determined by our board of directors. As of the date of this report, we have 379,519 shares of preferred stock outstanding (consisting of 98,350 shares of Series A Cumulative Convertible Preferred Stock and 281,169 shares of Series B Cumulative Convertible Preferred Stock), authorized the issuance of up to 300,000 shares of Series C Cumulative Convertible Preferred Stock, and 1,614,098 preferred shares remain unissued. Our board of directors has the power to establish the dividend rates, liquidation preferences, voting rights, redemption and conversion terms and privileges with respect to any series of preferred stock without shareholder approval. Depending upon our future financial needs, our board may, in the exercise of its business discretion, determine to issue additional shares of preferred stock having rights superior to those of our common stock which may result in a decrease in the value or market price of such shares. Holders of such preferred stock may have the right to receive dividends, certain preferences in liquidation and conversion rights. The issuance of preferred stock could, under certain circumstances, have the effect of delaying, deferring or preventing a change in control of us without further vote or action by the stockholders and may adversely affect the voting and other rights of the holders of the shares of our common stock.

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**Provisions of our certificate of incorporation, bylaws and Delaware law may make a contested takeover of our Company more difficult.**

Certain provisions of our certificate of incorporation, bylaws and the General Corporation Law of the State of Delaware ("DGCL") could deter a change in our management or render more difficult an attempt to obtain control of us, even if such a proposal is favored by a majority of our stockholders. For example, we are subject to the provisions of the DGCL that prohibit a public Delaware corporation from engaging in a broad range of business combinations with a person who, together with affiliates and associates, owns 15% or more of the corporation's outstanding voting shares (an "interested stockholder") for three years after the person became an interested stockholder, unless the business combination is approved in a prescribed manner. Our certificate of incorporation also includes undesignated preferred stock, which may enable our board of directors to discourage an attempt to obtain control of us by means of a tender offer, proxy contest, merger or otherwise. Finally, our bylaws include an advance notice procedure for stockholders to nominate directors or submit proposals at a stockholders' meeting. Delaware law and our charter may therefore inhibit a takeover.

**The influx of additional shares of our common stock onto the market pursuant to SEC Rule 144 may create downward pressure on the trading price of our common stock.**

A material percentage of the currently outstanding shares of our common stock were issued as *"restricted securities"* within the meaning of Rule 144 under the Securities Act of 1933, as amended. As restricted securities, these shares may be resold only pursuant to an effective registration statement, under the requirements of Rule 144, or other applicable exemptions from registration under the Securities Act and applicable state securities laws. Generally, Rule 144 provides that a person who has held restricted securities for a prescribed period may, under certain conditions, publicly resell such shares. Under Rule 144, a non-affiliate (i.e., a stockholder who has not been an officer, director or control person for at least 90 consecutive days) may freely resell restricted securities issued by a reporting company so long as such securities have been held by the owner for a period of at least one year, or under certain circumstances six months. The availability of a large number of shares for sale to the public under Rule 144 and the sale of such shares in public markets could have an adverse effect on the market price of our common stock.

**We may require shareholders to authorize additional shares for us to properly finance our business.**

Upon the Company's formation, and through subsequent approval, our shareholders authorized and approved 230,000,000 shares of common stock. Currently, only approximately 11.7 million such shares remain available for issuance. To finance and continue to grow our business, we will require additional capital and have historically relied upon the issuance of common stock, or securities convertible into common stock, for such financing. Should our shareholders be unwilling to approve a sufficient increase in the number of our authorized shares of common stock, we would be required to finance our business with debt or other instruments, which may be difficult or impossible to secure on terms acceptable to us. If that were to occur, we may not be able to (a) pay our costs and expenses as they are incurred, (b) execute our business plan, (c) take advantage of future opportunities, or (d) respond to competitive pressures or unanticipated requirements, which may, in the extreme case, require us to liquidate the Company.

**RISKS RELATED TO OUR FINANCIAL STATEMENTS**

**Management's judgment could impact the amount of non-cash compensation expense.**

To estimate the fair value of our stock option awards we currently use the Black-Scholes options pricing model. The determination of the fair value of equity-based awards on the date of grant using an options pricing model is affected by our current stock price as well as assumptions regarding a number of complex and subjective variables. Management is required to make certain judgments for these variables which include the expected stock price volatility over the term of the awards, the expected term of options based on employee exercise behaviors, and the risk-free interest rate. One of the factors used in determining such value is stock volatility. Because of the limited trading activity of our common stock, prior to January 1, 2014, we used the stock volatility of four peer companies. To the extent that we used different peer companies to measure volatility, a different stock volatility factor may have resulted which would have caused a different stock valuation and a related increase or decrease in non-cash compensation expense. Beginning January 1, 2014, volatility in all instances presented is the Company's estimate of volatility that is based on the historical volatility of the Company's stock price. If actual results are not consistent with our assumptions and judgments used in estimating key assumptions, in future periods, the stock option expense that we record for future grants may differ significantly from what we have recorded in the current period.

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**ITEM 1B. <u>UNRESOLVED STAFF COMMENTS</u>.**

None.

**ITEM 1C. <u>CYBERSECURITY</u>**

**Risk Management and Strategy**

Our corporate information technology, communication networks, enterprise applications, accounting and financial reporting platforms, and related systems, and those that we offer to our customers are necessary for the operation of our business. We use these systems, among others, to manage our customer and vendor relationships, for internal communications, for accounting to operate record-keeping functions, and for many other key aspects of our business. Our business operations rely on the secure collection, storage, transmission, and other processing of proprietary, confidential, and sensitive data.

We have implemented and maintain various information security processes designed to identify, assess and manage material risks from cybersecurity threats to our critical computer networks, third-party hosted services, communications systems, hardware and software, and our critical data, including intellectual property, confidential information that is proprietary, strategic or competitive in nature, and tenant data ("Information Systems and Data").

We identify and assess risks from cybersecurity threats by monitoring and evaluating our threat environment and our risk profile using various methods.

Depending on the environment, we implement and maintain various technical, physical, and organizational measures, processes, standards, and/or policies designed to manage and mitigate material risks from cybersecurity threats to our Information Systems and Data, including risk assessments and incident detection and response. We work with third parties from time to time that assist us to identify, assess, and manage cybersecurity risks, including professional services firms and consulting firms.

To operate our business, we utilize certain third-party service providers to perform a variety of functions. We seek to engage reliable, reputable service providers that maintain cybersecurity programs.

We are not aware of any risks from cybersecurity threats, including as a result of any cybersecurity incidents, which have materially affected or are reasonably likely to materially affect our Company, including our business strategy, results of operations, or financial condition.

**Governance**

Our full Board of Directors (the "Board") oversees the Company's enterprise risk management process, including the management of risks arising from cybersecurity threats. The Board receives prompt and timely information regarding any cybersecurity incident that meets established reporting thresholds, as well as ongoing updates regarding any such incident until it has been addressed.

Management plays a crucial role in assessing and managing material risks from cybersecurity threats. At the management level, the Company's cybersecurity risk management and strategy is led by its Head of Product and Operations, who reports to the CEO. The qualifications of the Head of Product and Operations include over 20 years of IT management, cybersecurity, and information governance experience. The Head of Product and Operations is regularly informed about the latest developments in cybersecurity, including emerging threats and technologies to adapt security measures accordingly. This ongoing knowledge acquisition is crucial for the effective prevention, detection, mitigation, and remediation of cybersecurity incidents. Management's role includes:

· *Risk Assessment*: Management conducts annual cybersecurity risk assessments to identify and evaluate potential threats and vulnerabilities. Management considers the likelihood and potential impact of various cybersecurity risks, considering the Company's assets, systems, and operations, to prioritize mitigation efforts.

· *Compliance with Regulations*: Management implements and maintains compliance with relevant cybersecurity regulations and standards applicable to the Company.

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The Head of Product and Operations is promptly informed of potential cybersecurity risks, threats, and vulnerabilities by any employees or consultants. Once an incident has been identified, the Head of Product and Operations and the security consulting team assess the criticality and impact of the incident on the Company's business operations. The Head of Product and Operations then formulates and oversees a response to contain, eradicate and resolve incidents in accordance with the Company's incident response plan. Management is responsible for reporting incidents to the appropriate authorities as necessary and engaging the senior leadership on all material incidents.

**ITEM 2. <u>PROPERTIES</u>.**

Our principal offices are currently located at 325 Sentry Parkway, Blue Bell, PA 19422, and are leased on a month- to-month basis at $450 per month.

**ITEM 3. <u>LEGAL PROCEEDINGS</u>.**

We are not a party to any pending legal proceedings, nor are we aware of any governmental authority contemplating any legal proceeding against us.

In September 2014, the Company received a subpoena from the Securities and Exchange Commission with respect to the preservation and production of documents relating to an investigation into trading in the Company's stock. The subpoena states that it should not be construed as an indication by the Securities and Exchange Commission that any violation of law has occurred, nor as a reflection upon any person, entity or security. The Company has been cooperating fully with the terms of the subpoena.

**ITEM 4. <u>MINE SAFETY DISCLOSURES</u>.**

Not applicable.

**PART II**

**ITEM 5. <u>MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES</u>.**

Our common stock is quoted on the OTC QB market under the trading symbol "RPMT.OB". The quoted prices on the OTC QB represent only prices between dealers on each trading day as submitted from time to time by certain of the securities dealers wishing to trade in our common stock, do not reflect retail mark-ups, mark-downs or commissions, and may not represent, or differ substantially from, prices in actual transactions.

**Common Stockholders**

As of March 31, 2026 our shares of Common Stock were held by 137 stockholders of record.

**Dividend Policy**

We have never declared or paid a cash dividend. At this time, we do not anticipate paying dividends in the foreseeable future. The declaration and payment of dividends is subject to the discretion of our board of directors and will depend upon our earnings (if any), our financial condition, and our capital requirements.

**Re-purchases of equity securities by the issuer and affiliated purchasers**

The Company and its affiliates did not repurchase any common stock in the fourth quarter of 2025.

**Sales of unregistered securities**

The Company did not make any sales of unregistered securities during the fourth quarter of 2025.

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**Transfer Agent**

Our Transfer Agent is Securities Transfer Corporation, and their address and phone number are 2901 N. Dallas Parkway, Suite 380, Plano, Texas 75093, (469) 633-0101.

**ITEM 6. <u>[RESERVED]</u>**

Not required.

**ITEM 7. <u>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</u>.**

*This Management's Discussion and Analysis of Financial Condition And Results Of Operations and other parts of this Annual Report on Form 10-K contain forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this Annual Report on Form 10-K are based on information available to us on the date hereof, and except as required by law, we assume no obligation to update any such forward-looking statements. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of a number of factors in Item 1A – Risk Factors herein. The following should be read in conjunction with our annual financial statements contained elsewhere in this report.*

**Overview**

REGO Payment Architectures, Inc. is a provider of consumer software that delivers a mobile payment platform—Mazoola® - a family-focused mobile banking solution. Headquartered in Blue Bell, Pennsylvania, the Company maintains a portfolio of trade secrets and four US patent awards. REGO offers an all-digital financial payments platform to enable minors, particularly under 13 years old, to transact, complete chores and learn in a secure online environment guided by parental permission, oversight, and control, while remaining COPPA and GDPR compliant.

COPPA applies not only to websites and mobile apps. It can apply to a growing list of connected devices that is included in the Internet of Things. Some of these include toys and products that could collect personal information, such as voice recordings or geolocation information. Non-compliance with COPPA has meant substantial fines for many violators.

Management believes that by building on its COPPA compliance advantage, the future of REGO Payment Architectures, Inc. will be based on the foundational architecture of its software platform (the "Platform") that will allow its use across multiple financial markets where secure controlled payments are needed. The Company intends to license in each alternative field of use the ability for its partners, distributors and/or value-added resellers to private label each of the alternative markets. These partners would deploy, customize and support each implementation under their own label, but with acknowledgement of the Company's proprietary intellectual assets as the base technology. Management believes this approach will enable the Company to reduce marketing expenses while broadening its reach.

Further, California passed the California Consumer Privacy Act of 2018 ("CCPA") on June 28, 2018. CCPA gives consumers (defined as natural citizens who are California residents) four rights relative to their personal information as follows:

· the right to know, through a general privacy policy and with more specifics available upon request, what personal information a business has collected about them, where it was sourced from, what it is being used for, whether it is being disclosed or sold, and to whom it is being disclosed or sold;

· the right to "opt out" of allowing a business to sell their personal information to third parties (or, for consumers who are under 16 years old, the right not to have their personal information sold absent their, or their parent's, opt-in);

· the right to have a business delete their personal information, with some exceptions; and

· the right to receive equal service and pricing from a business, even if they exercise their privacy rights under the CCPA.

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With respect to the evolving CCPA, the Company has designed its Platform and app to be in compliance.

Additionally, the European Parliament and Council agreed upon the General Data Protection Regulation ("GDPR") in April 2016, to replace the Data Protection Directive 95/46/EC. This is the primary law regulating how companies protect European Union ("EU") citizens' personal data. GDPR became effective on May 25, 2018. Companies that fail to achieve GDPR compliance are subject to severe fines and penalties.

GDPR requirements apply to each member state of the European Union, aiming to create more consistent protection of consumer and personal data across EU nations. Some of the key privacy and data protection requirements of the GDPR include:

· Requiring the consent of subjects for data processing

· Anonymizing collected data to protect privacy

· Providing data breach notifications

· Safely handling the transfer of data across borders

· Requiring certain companies to appoint a data protection officer to oversee GDPR compliance

In short, the handling of EU citizens' data is mandated by GDPR using a baseline set of standards for companies that are designed to better safeguard the processing and movement of personal data. The Company has designed its Platform and app to be in compliance with GDPR and has received the GDPRkids<sup>TM</sup> Trustmark from PRIVO.

We anticipate that revenues generated from the Platform will come from multiple sources depending on the level of service and facilities requested. There would be levels of subscription revenue paid monthly, service fees, transaction fees and in some cases, revenue sharing and licensing with banking and distribution partners.

Our goal, moving forward, is to enable both incumbent and new financial technology ("FinTech") participants, as well as key verticals with a large base of 'family accounts,' to provide their consumers with safe and empowering youth money management and financial literacy content and tools via the mobile payment platform.

While some of the REGO Platform can be easily duplicated/commoditized, such as the app skin, APIs to retailers, APIs to financial infrastructure and cloud storage, we believe that defending our market position rests on three factors:

1. The ability to define data control settings from parent to child.

Our approach to this opportunity uses a master account to dictate purchase rules to sub-accounts via a hierarchical architecture. This approach adheres to data flow and privacy policy requirements specifically outlined for COPPA compliance. We believe other approaches based on machine learning, or other artificial intelligence methodologies are potentially viable alternatives but are likely too costly, do not meet current compliance timelines, and may defy the core of COPPA's "opt-in" parameters. There is considerable room for next-generation automation techniques to be layered on REGO's hierarchical approach. Given its current stability and scalability metrics, the REGO Platform strongly features these advances in its technical development roadmap without compromising any of its current data control performance.

2. The ability to (mis)attribute the child's transaction and personal identification.

REGO has solved this issue by masking user data and maintaining separate identity and financial data flows. As a result, REGO can verify the age of the internet user through the transaction lifecycle on its Platform. Authenticating and validating the identity of the actual user on the internet remains one of the more difficult cybersecurity challenges. Current approaches are mainly not for commercial use; however, there is investment in commercial innovation in this area. REGO's data control features and its (mis)attribution approach are inextricably linked and a key to its scalability and extensibility.

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3. The ability to disseminate transactional data on minors while remaining COPPA and GDPR compliant.

The highest value data will be that which shows the most nuanced detail afforded under current regulations. Without extreme data control features, such as in the REGO Platform, any lesser data precision will be less valuable.

These three factors are all supported by REGO's patented technology.

REGO addresses hard industry problems such as:

· COPPA compliant technology with a key component being its ability to verify the age of an internet user

· A master and sub-account architecture with the ability to administer user-specific controls

· An advanced rules engine to provide strict automated compliance of the parental rules for each child

· Near real-time buying behavior database on minors - anonymized geolocation, age range and purchases

Currently, we are targeting established brands with large family-focused account bases — including banks, telecommunication companies, faith-based organizations, media distributors, mobile device Original Equipment Manufacturers ("OEMs"), and merchants.

We are seeking partners that will leverage our Platform to:

**Buy vs. Build:** Partners can license or revenue share for their specific market or field of use a safe, compliant system, instead of building one on their own.

**Safety & Security:** Partners can safely engage a younger consumer segment and their families with a new family friendly peer-to-peer-payment approach. Vendors will be explicitly protected from non-compliant transactions and the underlying technology protects the privacy of the user.

**Youth Financial Literacy:** Partners can expand their brand story around empowerment and education of youth financial literacy while engaging their 'future customers' with Gen Z and Gen Alpha, a digital native population of post-millennial youth.

The REGO Mazoola® app and associated digital wallet technology is designed to enable our partners to engage families with Gen Z and Gen Alpha youths through a money management, transactional and financial literacy platform that enables young people to make smart decisions about the things they value in life — including their money, their time, their ideas and their connections. The Mazoola® app enables a new way for individual users to own and monetize their purchasing behavior that is currently unavailable to them.

In addition, we are analyzing specific components of our technology for individual monetization as well as exploring opportunities in the Business to Business ("B2B") realm.

Other markets for potential licensed applications are:

· Government social services payments where control over how benefits allowances are used is required. This is particularly necessary in some European countries where social benefits are not being used as intended by the government or where benefits are subject to fraud.

· Closed network consumer to business (C2B) and business to business (B2B). An example is school lunch programs where the consumer can make direct mobile payments to the provider's point of sale (POS) terminal without the need to traverse the traditional merchant payment system. This reduces the cost per transaction for the vendor and provides instant non-repudiated settlement. Many school lunch programs are now provided by large catering companies. This is particularly valuable as credit card fees, transaction fees and service fees can exceed 3% in overhead costs per transaction dependent on the negotiated rate. Removing this overhead can have a significant positive financial impact on profitability. It also allows the closed network to own its own behavioral use data thus obviating the need to pay a third party for the same data.

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· Integration of our certified COPPA-compliant white label Family Wallet Banking-as-a-Platform into digital banking platforms. This will make the Company's family wallet available to financial institutions which will allow end-user customers of subscribing financial institutions to utilize the Company's family wallet.

We believe that our near-term success will depend particularly on our ability to develop customer awareness and confidence in our service. Since we have extremely limited capital resources, we will need to closely manage our expenses and conserve our cash by continually monitoring any increase in expenses and reducing or eliminating unnecessary expenditures. Our prospects must be considered in light of the risks, expenses and difficulties encountered by companies at an early stage of development, particularly given that we operate in new and rapidly evolving markets, that we have limited financial resources, and face an uncertain economic environment. We may not be successful in addressing such risks and difficulties.

**Results of Operations**

**Comparison of the Years Ended December 31, 2025 and 2024**

The following discussion analyzes our results of operations for the years ended December 31, 2025 and 2024. The following information should be considered together with our financial statements for such periods and the accompanying notes thereto.

<u>Revenue</u>

We have not generated significant revenue since our inception. For the years ended December 31, 2025 and 2024, we generated revenues of $2,250 and $0. Our historical revenue was generated from transactional sources with customers. Commencing in 2025, revenues will be generated primarily from business-to-business, SaaS subscriptions.

<u>Net Loss</u>

Our net loss attributable to common stockholders increased $0.8 million to $12.4 million for the year ended December 31, 2025 when compared to $11.6 million for the year ended December 31, 2024. This was due to increases to general and administrative costs ($0.9 million), interest expense ($0.1 million) and accrued preferred dividends ($0.1 million) partially offset by decreases in transaction expense ($0.1 million) and sales and marketing expense ($0.2 million) for the year ended December 31, 2025 when compared to the year ended December 31, 2024.

<u>Transaction Expense</u>

Transaction expense for the year ended December 31, 2025 was $0.2 million compared to $0.3 million for year ended December 31, 2024. These are transactional charges primarily for the operation of the Mazoola® app. The decrease is attributed to the shift away from business-to-consumer initiatives to more of a business-to-business focus.

<u>Sales and Marketing Expenses</u>

Sales and marketing expenses decreased by $0.2 million for the year ended December 31. 2025 to $0.4 million compared to $0.6 million for the year ended December 31, 2024. The decrease was due to lower marketing consulting and marketing event expenses, offset slightly by an increase in marketing options expense in 2025 as compared to 2024.

<u>Product Development Expenses</u>

Product development expenses remained unchanged at $3.3 million for the years ended December 31, 2025 and 2024.

Data Center costs and the timing of certain consulting expenditures decreased for the year ended December 31, 2025 when compared to the year ended December 31, 2024. However, these decreases were completely offset by increases to integration, payroll, and security/compliance cost increases associated with the rollout of the Platform to subscribing financial institutions for the year ended December 31, 2025 when compared to the year ended December 31, 2024.

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<u>General and Administrative Expenses</u>

The total 2025 general and administrative expenses increased by $0.8 million for the year ended December 31, 2025 to $4.5 million compared to $3.7 million for the year ended December 31, 2024. As a result of the revaluation of options awarded to certain consultants, the Company incurred additional consulting options expenses of approximately $1.0 million along with an increase in professional fees. These were partially offset by reductions in payroll costs for the year ended December 31, 2025 when compared to the year ended December 31, 2024.

<u>Interest Expense, net</u>

Interest expense, net of interest income, increased by $0.1 million for the year ended December 31, 2025 to $1.1 million compared to $1.0 million for the year ended December 31, 2024. Higher levels of outstanding debt from issuance of additional 10% Secured Promissory Notes caused the increase for the year ended December 31, 2025 when compared to the year ended December 31, 2024.

**Liquidity and Capital Resources**

Net cash used in operating activities decreased $0.9 million to $6.1 million for the year ended December 31, 2025 compared to $7.0 million for the year ended December 31, 2024. The decrease in 2025 resulted primarily from increased accounts payable and the change in share-based compensation, offset by the change in the fair value of common stock issued in exchange for services as compared to 2024.

Net cash used in investing activities increased $0.011 million to $0.012 million for the year ended December 31, 2025 compared to $0.001 million for the year ended December 31, 2024 as a result of an increase in expenditures related to investments in patents. The Company maintained its current patents in 2025.

Net cash provided by financing activities decreased by $0.4 million to $3.3 million for the year ended December 31, 2025 compared to $3.7 million for the year ended December 31, 2024. The Company did not receive any proceeds from the sale of Series B Preferred Stock in 2025. However, the Company did receive $3.3 million in proceeds from the sale of 10% secured convertible notes payable to stockholders in 2025. This was $0.4 million less than the $3.7 million in proceeds received from the sale of Series B Preferred Stock in 2024.

As we have not realized significant revenues since our inception, we have financed our operations through public and private offerings of debt and equity securities.

On March 13, 2023, Company entered into an Investor Private Line of Credit agreement (the "LOC Agreement") with James Davison (the "Lender"). The Lender is an existing shareholder of the Company. Pursuant to the LOC Agreement, the Lender may extend unsecured loans to the Company in the amount of up to twenty million dollars ($20,000,000) which may be drawn upon by the Company for a period of one year in order to provide additional capital to facilitate the Company's operations. Drawings may be made by the Company as long as there has not been any material change in the operations of the Company. Loans under the LOC Agreement bear interest at the rate of 7% per annum. Drawings under the LOC Agreement must be repaid in full: (i) upon the execution and completion of a sale, merger or other transaction of the Company whereby the Company transfers its ownership and/or its assets to a third party within thirty (30) days of the completion of the transaction (a "Change of Control") or (ii) if a Change of Control does not occur within one year from the date of the LOC Agreement, the Company will repay any amounts outstanding within sixty (60) days. This LOC Agreement was extended for one year on March 13, 2024, and then again on March 13, 2025 for an additional year. There were no draws on this LOC Agreement as of December 31, 2025. The LOC Agreement expired on March 13, 2026.

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Since our inception, we have focused on developing and implementing our business plan. We believe that our existing cash resources will not be sufficient to sustain our operations during the next twelve months. We currently need to generate sufficient revenues to support our cost structure to enable us to pay ongoing costs and expenses as they are incurred, finance enhancements to our Platform, and execute the business plan. If we cannot generate sufficient revenue to fund our business plan, we intend to seek to raise such financing through the sale of debt and/or equity securities. The issuance of additional equity would result in dilution to existing shareholders. The issuance of convertible debt may also result in dilution to existing stockholders. If we are unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms acceptable to us, we will be unable to execute upon the business plan or pay costs and expenses as they are incurred, which would have a material, adverse effect on our business, financial condition and results of operations. See Note 2 to our consolidated financial statements included in this Form 10-K.

Even if we are successful in generating sufficient revenue or in raising sufficient capital in order to commercialize the Platform, our ability to continue in business as a viable going concern can only be achieved when our revenues reach a level that sustains our business operations. We do not project that significant revenue will be developed until at the earliest the second quarter of 2026. There can be no assurance that we will raise sufficient proceeds, or any proceeds, for us to implement fully our proposed business plan. Moreover, there can be no assurance that even if the Platform is fully developed and successfully commercialized, that we will generate revenues sufficient to fund our operations. In either such situation, we may not be able to continue our operations and our business might fail.

As of March 31, 2026, the Company has a cash position of approximately $0.2 million. Based upon the current cash position and the Company's planned expense run rate, management believes the Company will be able to finance its operations through April 2026.

The foregoing forward-looking information was prepared by us in good faith based upon assumptions that we believe to be reasonable. No assurance can be given, however, regarding the attainability of the projections or the reliability of the assumptions on which they are based. The projections are subject to the uncertainties inherent in any attempt to predict the results of our operations, especially where new products and services are involved. Certain elements of the assumptions used will inevitably not materialize and unanticipated events will occur. Actual results of operations are, therefore, likely to vary from the projections and such variations may be material and adverse to us. Accordingly, no assurance can be given that such results will be achieved. Moreover, due to changes in technology, new product announcements, competitive pressures, system design and/or other specifications we may be required to change the current plans.

**Off-Balance Sheet Arrangements**

As of December 31, 2025, we did not have any relationships with unconsolidated entities or financial partners, such as entities often referred to as structured finance or special purpose entities, established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As such, we are not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

**Critical Accounting Policies**

Our financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. A complete summary of these policies is included in Note 1 of the Notes to Financial Statements included elsewhere herein. We have identified below the accounting policies that are of particular importance in the presentation of our financial position, results of operations and cash flows and which require the application of significant judgment by management.

<u>Stock-based Compensation</u>

We have adopted the fair value recognition provisions Financial Accounting Standards Board Accounting Standards Codification ("FASB ASC") 718. In addition, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 107 "*Share-Based Payment*" ("SAB 107"), which provides supplemental FASB ASC 718 application guidance based on the views of the SEC. Under FASB ASC 718, compensation cost recognized includes compensation cost for all share-based payments granted, based on the grant date fair value estimated in accordance with the provisions of FASB ASC 718.

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We have used the Black-Scholes option-pricing model to estimate the option fair values. The option-pricing model requires a number of assumptions, of which the most significant are, expected stock price volatility, the expected pre-vesting forfeiture rate and the expected option term (the amount of time from the grant date until the options are exercised or expire).

All issuances of stock options or other equity instruments to non-employees as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. Non-employee equity-based payments that do not vest immediately upon grant are recorded as an expense over the vesting period.

<u>Revenue Recognition</u>

In accordance with FASB ASC 606, *Revenue from Contracts with Customers*, the Company recognizes revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for fulfilling those performance obligations.

**Recently Issued Accounting Pronouncements**

Recently issued accounting pronouncements are discussed in Note 1 of the Notes to Financial Statements contained elsewhere in this report.

**ITEM 7A. <u>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</u>.**

Not required.

**ITEM 8. <u>FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</u>.**

The financial statements required to be filed pursuant to this Item 8 are appended to this report beginning on page

F-1 located immediately after the signature page.

**ITEM 9. <u>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</u>.**

None.

**ITEM 9A. <u>CONTROLS AND PROCEDURES</u>.**

**Disclosure Controls and Procedures**

Our management has evaluated, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15(d)-15(e) under the Exchange Act) as of the end of the period covered by this report pursuant to Rule 13a-15(b) under the Exchange Act. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2025, our disclosure controls and procedures were effective to ensure (i) that information we are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and (ii) that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, in order to allow timely decisions regarding required disclosure.

**Management's Report on Internal Control Over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934 as amended. Internal control over financial reporting is a process designed 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. 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.

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Our management conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2025 using criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Our management has concluded that our internal control over financial reporting was effective as of December 31, 2025.

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, which permits us to provide only management's report in this annual report.

**Changes in Internal Control Over Financial Reporting**

There have not been any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act) that occurred during the fiscal quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**ITEM 9B. <u>OTHER INFORMATION.</u>**

No director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement and/or a non-rule 10b5-1 trading arrangement (as such terms are defined in Item 408(a) of Regulation S-K) during the quarter ended December 31, 2025.

**ITEM 9C. <u>DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS</u>.**

Not applicable.

**PART III**

**ITEM 10. <u>DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE</u>.**

The current members of our board of directors and executive officers of the Company are as follows:

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| | | |
|:---|:---|:---|
| Name | Age | Position with Company |
| Gerald Hannahs | 74 | Chairman of the Board |
| Peter S. Pelullo | 74 | Director, Chief Executive Officer |
| Joseph R. Toczydlowski | 56 | Chief Financial Officer |

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Our directors serve annual terms. We believe that our board of directors should be composed of individuals with sophistication and experience in many substantive areas that impact our business. We believe that experience, qualifications, or skills in the following areas are most important: software development, ecommerce, the FinTech industry, accounting and finance; strategic planning; and human resources and development practices; and board practices of other corporations. These areas are in addition to the personal qualifications described in this section. We believe that all of our current board members possess the professional and personal qualifications necessary for board service and have highlighted particularly noteworthy attributes for each board member in the individual biographies below. The principal occupation and business experience, for at least the past five years of each current director and executive officer is as follows:

 ****

***Gerald Hannahs***

Gerald Hannahs has served as a director of Rego since 2015. Mr. Hannahs served as an Account Executive and First Vice President for EF Hutton, Prudential and Paine Webber from 1982 to 1986. Mr. Hannahs co-founded Texarkoma Crude & Gas Company in 1983. Mr. Hannahs has over 30 years of experience in the investment business and the oil and gas industry. As a result of these and other professional experiences, Mr. Hannahs possesses particular knowledge and experience in investing, finance and accounting, SEC reporting, sales and marketing that strengthen the board's collective qualifications, skills, and experience.

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***Peter S. Pelullo***

 ****

Peter S. Pelullo, has served as a director of Rego since 2020. Mr. Pelullo has been an entrepreneur for the past 20 years and has been Chief Executive Officer since August 2020. While his career has focused on the media and telecommunications industries, Mr. Pelullo has had extensive experience in both the construction and food and beverage industries. Mr. Pelullo founded Clariti Telecommunications International, LTD, a NASDAQ Small Cap listed company that developed proprietary digital wireless technology. Mr. Pelullo identified and organized through European banks, asset managers, and portfolio managers approximately $90 million in equity for such company's technology and business development. Mr. Pelullo has extensive experience in corporate finance, operating a public company, strategic planning, cash flow management and international business development. Mr. Pelullo was also the founder of Alpha International Recording Studios which he merged with the world-renowned Sigma Sound Studio which created the "Sound of Philadelphia". He also created Philly World Records (an independent record label), which he sold to MCA Records. Mr. Pelullo also has years of experience in the Real Estate sector as well as restructuring and work out services for companies that need to return to solvency and stable operations.

***Joseph R. Toczydlowski***

Mr. Toczydlowski was appointed the Chief Financial Officer in August 2022. Mr. Toczydlowski has held various financial positions at Sculptz, Inc. since 1998, most recently as Chief Financial Officer since April 2011. His other areas of expertise include taxation, business analytics and marketing. In early 2022, Mr. Toczydlowski provided CFO consulting services to a tech startup with publicly traded shares. He previously served as a Senior Tax Accountant at United Refrigeration, Inc. and Arthur Andersen & Co. Mr. Toczydlowski is a Certified Public Accountant and has a B.S. in Accounting from LaSalle University.

**Committees of the Board of Directors**

At this time, due to the small size of the Company's Board of Directors, the Company does not have any committees of the Board of Directors and the Board of Directors does not have an "audit committee financial expert," as defined by the SEC rules.

**Code of Ethics**

Our board of directors approved a Code of Ethics and Rules of Conduct in accordance with the rules of the Securities and Exchange Commission that govern the conduct of each of our directors, officers, consultants and employees. Our Code of Ethics and Rules of Conduct is maintained on our website at www.regopayments.com. Any amendments to, or waivers of the Code of Ethics and Rules of Conduct that apply to our principal executive officer, principal financial officer, or principal accounting officer and that relates to any element of the definition of the term "code of ethics," as the term is defined by the Securities and Exchange Commission, will be posted on our website at www.regopayments.com. There are currently no such amendments or waivers.

We recognize the importance of preventing both actual conflicts of interest and the appearance of such conflicts in dealings between the Company and "related persons" (our directors, director nominees, executive officers, stockholders beneficially owning 5% or greater of our common stock, or the immediate family members of any of the foregoing). The Board of Directors will regularly review our corporate policies with respect to conflicts of interest including related party transactions and investigate instances of such conflicts.

Each matter described below under "Item 13. Certain Relationships and Related Transactions, and Director Independence" was vetted and pre-approved by a majority of the disinterested members of our Board of Directors.

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**Insider Trading Policy**

Due to the Company's small number of directors, officers and employees, the Company has not adopted a formal Insider Trading Policy. However, the Board and management are cognizant of the need to promote compliance with applicable securities laws, known as "insider trading" laws, which prohibit persons who receive or become aware of material non-public information about the Company (or other companies that do business with the Company) from trading in the Company's (or such other company's) securities or providing material non-public information to others who may trade in the Company's (or such other company's) securities on the basis of that information.

**Delinquent Section 16(a) Reports**

Section 16(a) of the Exchange Act requires that our officers and directors and persons who beneficially own more than 10% of our common stock file initial reports of ownership and reports of changes in beneficial ownership of our common stock with the SEC. They are also required to furnish us with copies of all Section 16(a) forms that they file with the SEC. Based solely on our review of the copies of such forms received by us, or written representations from such persons that no reports were required for those persons, we believe that all Section 16(a) filing requirements were satisfied during our fiscal year ended December 31, 2025, except that Mr. Pelullo and Mr. Hannahs each failed to file one Form 4 with respect to receipt of a stock option grant and Mr. Pelullo failed to file one Form 4 with respect to a disposition of shares.

**ITEM 11. <u>EXECUTIVE COMPENSATION</u>.**

**Summary Compensation Table**

The following table sets forth the compensation earned by the Company's executive officers during the years ended December 31, 2025 and 2024:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | **Stock** |  | **Option** | **All Other** |  |
|  | | **Salary** | **Bonus** | **Awards (1)** |  | **Awards (1)** | **Compensation** | **Total** |
| **Name and Principal Position** | **Year** | **($)** | **($)** | **($)** |  | **($)** | **($)** | **($)** |
| Peter S. Pelullo, Chief Executive Officer | 2025 | 393558 | 30000 |  |  | 112933 |  | 536491 |
|  | 2024 | 422774 | 160000 | 406500 | (2) |  |  | 989274 |
| Joseph R. Toczydlowski, Chief Financial Officer | 2025 | 190000 | 30000 |  |  |  |  | 220000 |
|  | 2024 | 219231 | 65000 |  |  |  |  | 284231 |

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<sup>(1)</sup> The value of the stock awards is based on the closing stock price on the date that the stock awards were issued. The option awards were based on the Black-Scholes option pricing model with assumptions for dividend yield, risk free interest rate, expected volatility and expected life described in Note 12 to the financial statements included in this Form 10-K.

<sup>(2)</sup> Stock was issued to International Corporate Management, Inc., a company owned by Peter S. Pelullo.

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**Outstanding Equity Awards at Fiscal Year-End Table**

The following table sets forth information with respect to outstanding equity-based awards held by the named executive officers at December 31, 2025:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Option awards** | **Option awards** | **Option awards** | **Option awards** | **Option awards** | **Stock awards** | **Stock awards** | **Stock awards** | **Stock awards** |
|  |  |  |  |  |  |  |  |  | **Equity** |
|  |  |  |  |  |  |  |  |  | **incentive** |
|  |  |  |  |  |  |  |  | **Equity** | **plan awards:** |
|  |  |  | **Equity** |  |  |  |  | **incentive** | **Market or** |
|  |  |  | **incentive** |  |  |  |  | **plan awards:** | **payout** |
|  |  |  | **plan awards:** |  |  |  | **Market** | **Number of** | **value of** |
|  | **Number of** | **Number of** | **Number of** |  |  | **Number of** | **value of** | **unearned** | **unearned** |
|  | **securities** | **securities** | **securities** |  |  | **shares or** | **shares or** | **shares, units** | **shares, units** |
|  | **underlying** | **underlying** | **underlying** |  |  | **units of** | **units of** | **or other** | **or other** |
|  | **unexercised** | **unexercised** | **unexercised** | **Option** |  | **stock that** | **stock that** | **rights that** | **rights that** |
|  | **options** | **options** | **unearned** | **Exercise** | **Option** | **have not** | **have not** | **have not** | **have not** |
|  | **(#)** | **(#)** | **options** | **Price** | **Expiration** | **vested** | **vested** | **vested** | **vested** |
| **<u>Name</u>** | **exercisable** | **unexercisable** | **(#)** | **($)** | **Date** | **(#)** | **($)** | **(#)** | **($)** |
| Peter S. Pelullo **(a)** | 500000 |  |  | 0.33 | 7/30/2030 |  |  | 3750000 (d) | 1237500 |
| Peter S. Pelullo |  |  | 500000 | **(b)** | **(c)** |  |  |  |  |
| Joseph R. Toczydlowski | 250000 |  |  | 1.21 | 8/16/2027 |  |  |  |  |
| Joseph R. Toczydlowski |  |  | 250000 | **(b)** | **(c)** |  |  |  |  |

---

(a) Options were issued to International Corporate Management, Inc., a company owned by Peter S. Pelullo

(b) Option Exercise Price not currently determinable

(c) Expires five years from grant date

(d) Consists of awards of 2,000,000 and 1,750,000 shares of common stock contingent upon certain events including the sale of the Company

No named executive officers exercised stock options or warrants during 2025.

[**Table of Contents**](#toc)

**Narrative Disclosure to Compensation Tables**

<u>Employment Agreements</u>

On August 11, 2020 the Company appointed Peter S. Pelullo as Chief Executive Officer. In connection with his appointment, the Company also entered into an Employment Agreement with him, pursuant to which he will be employed on an at will basis with an annual salary of $200,000 during the first year of his employment and will be reviewed for increases thereafter. His annual base salary is currently $400,000. He is also eligible to receive an annual bonus.

The original Employment Agreement provided that Mr. Pelullo receive a grant of 250,000 shares of the common stock of the Company, vesting immediately and also provided for the grant of a non-statutory stock option to acquire 500,000 shares of the common stock of the Company at an exercise price of $0.25 per share (or if greater, the fair market value of such stock on the grant date), vesting immediately. In addition, upon the sale or change in control of more than 50% of the Company, Mr. Pelullo will be granted a non-statutory stock option to acquire 500,000 shares of the common stock of the Company at the exercise price of the closing price per share on the date of sale or change of control (or if greater, the fair market value of such stock on the grant date), vesting immediately upon issuance.

On April 1, 2024 the Company entered into a new Employment Agreement with Mr. Pelullo. This Employment Agreement has an initial two-year term, and renews for successive one-year periods unless either party gives 60 days prior notice of non-renewal. This Employment Agreement also provides that he will be employed on an at-will basis with an annual salary of $375,000 during the first year after the effective date with a $25,000 increase during the second year after the effective date, and such base salary will be reviewed for increases annually thereafter. Mr. Pelullo's annual base salary is currently $400,000. He is also eligible to receive an annual bonus at the discretion of the Board of Directors. This Employment Agreement also provides that Mr. Pelullo receive 1,750,000 shares of common stock (the "Contingent Grant Shares") upon the sale or change in control of more than 50% of the Company. Upon termination of employment prior to fulfillment of the term of the Employment Agreement, the Contingent Grant Shares shall be issued to Mr. Pelullo. Furthermore, upon termination prior to fulfillment of the term of the Employment Agreement, Mr. Pelullo will be entitled to medical and dental coverage for a period of one year.

On July 30, 2025, a five year, non-statutory stock option to acquire 500,000 shares of the Company's common stock at an exercise price of $0.33 per share was awarded to International Corporate Management, Inc., a company owned by Mr. Pelullo. The Company recognized share-based compensation expense of $112,933 in 2025 with respect to these options.

On August 16, 2022, the Company appointed Joseph R. Toczydlowski as Chief Financial Officer. Pursuant to an employment agreement effective August 16, 2022, Mr. Toczydlowski received an annual salary of $165,000 for the first year of employment, which was most recently increased to $190,000. Mr. Toczydlowski is eligible for an annual bonus at the discretion of the Board of Directors of the Company. The employment agreement has an initial term of two years and renews for successive one-year periods unless either party gives notice of intent to not renew the agreement at least 60 days prior to the renewal date. Notwithstanding the term, Mr. Toczydlowski's employment is "at will" and is terminable at any time by either party, without further economic obligation beyond the termination date except as required by law. Mr. Toczydlowski also received an option to purchase 250,000 shares of the Company's common stock upon commencement of his employment under the agreement with an exercise price of $1.21 per share and a five-year term.

[**Table of Contents**](#toc)

Upon the sale of the Company, Mr. Toczydlowski will receive an option to purchase 250,000 shares of the Company's common stock at an exercise price of the closing price per share on the date of sale or a change in control that will vest immediately.

**Directors Compensation Table**

The following table shows all compensation paid or granted, during or with respect to the 2025 fiscal year, to each of our directors (other than those who are also our named executive officers) for services rendered to REGO Payment Architectures, Inc. during 2025.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| <br>Name | <br>**Fees Earned or**<br>**paid in cash**<br>**($)** |<br>**Stock**<br>**awards**<br>**($)** |<br>**Option**<br>**awards**<br>**($)** |<br>**Non-equity incentive**<br>**plan**<br>**compensation**<br>**($)** | **Nonqualified**<br>**deferred**<br>**compensation**<br>**earnings**<br>**($)** |<br>**All Other**<br>**Compensation**<br>**($)** |<br><br>**Total**<br>**($)** |
| Gerald Hannahs | 120000 |  | 112933 |  |  |  | 232933 |

---

Mr. Hannahs outstanding equity awards consist of options to purchase 500,000 shares exercisable at $0.33 per share and a contingent award of 2,000,000 shares of the Company's common stock upon the sale of the Company.

**Narrative Disclosure to Directors Compensation Table**

We have no formal compensation program for our non-employee directors. Our non-employee directors are eligible to receive cash, options, restricted stock, and other equity-linked grants pursuant to non-plan grants. Each member of our board of directors receives reimbursement for expenses incurred in connection with his or her services as a member of our board or board committees.

**Timing of Option Grants**

The Company does not have a formal policy with respect to the timing of awards of options in relation to the disclosure of material non-public information. However, the Board of Directors generally seeks to avoid making grants four business days prior to, or one business day following, the filing of a periodic or current report with the SEC that discloses material non-public information.

**ITEM 12. <u>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS</u>**

The persons or groups known to us to be beneficial owners of more than 5% of our outstanding common stock, Series A Cumulative Convertible Preferred Stock or Series B Cumulative Convertible Preferred Stock as of March 31, 2026, are reflected in the charts below. The following information is based upon Schedules 13D and 13G filed with the Securities and Exchange Commission by the persons and entities shown as of the respective dates appearing or other information provided to the Company.

---

| | | | |
|:---|:---|:---|:---|
| **Title of**<br>**class** | **Name and address of beneficial**<br>**owner** | **Amount and nature of beneficial**<br>**ownership** | **Percent of**<br>**class** |
| Common | John Paul DeJoria Family Trust | 34804123 (b) | 22.6% |
| Series A Cumulative Convertible Preferred | 1888 Century Park East | 10000 | 10.2% |
| Series B Cumulative Convertible Preferred | Suite 1600 | 164446 | 58.5% |
|  | Century City, CA 90067 |  |  |
| Common | Peter S. Pelullo | 22043983 (c) | 16.1% |
|  | 325 Sentry Parkway, Suite 200 |  |  |
|  | Blue Bell, PA 19422 |  |  |
| Common | Gerald Hannahs, Jr. | 8457333 (d) | 6.0% |
| Series A Cumulative Convertible Preferred | 17710 Leatha Lane | 30000 | 30.5% |
|  | Little Rock, AR 72223 |  |  |

---

[**Table of Contents**](#toc)

(a) This table has been prepared based on 136,586,403 shares of our common stock, 98,350 shares of Series A Cumulative Convertible Preferred Stock and 281,169 shares of Series B Cumulative Convertible Preferred Stock outstanding on March 31, 2026.

(b) Information herein is derived in part from a Schedule 13D/A Amendment No. 1 (the "Schedule 13D") filed by: (1) John Paul DeJoria, in his individual capacity ("Mr. DeJoria"), (2) John Paul DeJoria Family Trust (the "Family Trust"), of which Mr. DeJoria is the settlor and the sole trustee, (3) JP's Nevada Trust (the "Nevada Trust"), of which Mr. DeJoria is the settlor and the investment trustee, (4) JPD Family Office Services, LLC ("Trust Services"), which is the distribution trustee of the Nevada Trust, and (5) JDP 2019 Gift Trust (the "Gift Trust"), of which Mr. DeJoria is the settlor and the sole trustee (the foregoing being collectively referred to as the "Reporting Persons") on May 20, 2024. Mr. DeJoria has sole voting power over all of the indicated shares, and sole dispositive power over 27,661,266 shares and shared dispositive power over 7,142,857 shares. Mr. DeJoria beneficially owns an aggregate of 34,804,123 shares of Common Stock, of which 17,248,412 are outstanding shares of Common Stock and 17,555,711 are shares of Common Stock that are issuable upon the conversion or exercise of other securities of the Company that are beneficially owned by Mr. DeJoria. The Schedule 13D contains additional information with respect to the ownership breakdown among the Reporting Persons. The business address of the Nevada Trust and Trust Services is 1701 Green Valley Parkway, Building 4, Suite A, Henderson NV 89074. The business address of Mr. DeJoria and the other affiliated entities is 109 West 7th Street, Suite 200, Georgetown, TX 78626.

(c) Consists of 4,792,858 shares of common stock, 16,751,125 shares of common stock held by International Corporate Management, Inc. an affiliate of Mr. Pelullo, and 500,000 shares underlying options exercisable at $0.33 per share. The options are held by International Corporate Management, Inc.

(d) Consists of 4,624,000 shares of common stock, 500,000 shares of common stock underlying options exercisable at $0.33 per share, and 30,000 shares of Series A convertible preferred stock, convertible into 3,333,333 shares of common stock held by Hannahs Value Investors, LLC an affiliate of Mr. Hannahs.

The following table shows beneficial ownership of the Company common stock as of March 31, 2026, by our directors and our executive officers and by all current directors and executive officers as a group:

---

| | | |
|:---|:---|:---|
| <br>**Name of beneficial owner** | **Number of shares of common stock**<br>**beneficially owned (a)** | **Percentage of**<br>**shares outstanding (a)** |
| Peter S. Pelullo | 22043983 (b) | 16.1% |
| Gerald Hannahs | 8457333 (c) | 6.0% |
| Joseph R. Toczydlowski | 525000 (d) | \* |
| All current directors and executive officers as a group (3 persons) | 31026316 | 22.7% |

---

(a) This table has been prepared based on 136,586,403 shares of our common stock outstanding on March 31, 2026. The address for each person listed above is c/o REGO Payment Architectures, Inc., 325 Sentry Parkway, Suite 200, Blue Bell, PA 19422.

(b) Consists of 4,792,858 shares of common stock, 16,751,125 shares of common stock held by International Corporate Management, Inc. an affiliate of Mr. Pelullo, and 500,000 shares underlying options exercisable at $0.33 per share. The options are held by International Corporate Management, Inc.

[**Table of Contents**](#toc)

(c) Consists of 4,624,000 shares of common stock, 500,000 shares of common stock underlying options exercisable at $0.33 per share, and 30,000 shares of Series A convertible preferred stock, convertible into 3,333,333 shares of common stock held by Hannahs Value Investors, LLC an affiliate of Mr. Hannahs.

(d) Consists of 275,000 shares of common stock and 250,000 shares of common stock underlying options exercisable at $1.21 per share.

\* Less than 1%

**Transfer Agent**

Our Transfer Agent is Securities Transfer Corporation, and their address and phone number are 2901 N. Dallas Parkway, Suite 380, Plano, Texas 75093, (469) 633-0101.

**Securities Authorized for Issuance Under Equity Compensation Plans**

The following table provides certain information with respect to all of our equity compensation plans as of December 31, 2025:

**EQUITY COMPENSATION PLAN INFORMATION**

---

| | | | |
|:---|:---|:---|:---|
|  | | | Number of |
|  | | | securities |
|  | Number of | | remaining available |
|  | securities to be | | for issuance under |
|  | issued upon | Weighted average | equity |
|  | exercise of | exercise price of | compensation plans |
|  | outstanding | outstanding | (excluding |
|  | options, warrants | options, warrants | securities reflected |
|  | and rights | and rights | in column (a)) |
| Plan Category | (col. a) | (col. b) | (col. c) |
| Equity compensation plans approved by security holders: (a) | 400000 | $0.50 |  |
| Equity compensation plans not approved by security holders: (b) | 11096525 | 0.81 |  |
| Total | 11496525 | $0.80 |  |

---

(a) Equity compensation plans approved by security holders consist of the 2008 Equity Compensation Plan and the 2013 Equity Compensation Plan.

(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options approved by the board but not governed by an Equity Compensation Plan.

**2008 Equity Incentive Plan**

We adopted our 2008 Equity Incentive Plan as of March 3, 2008 (the "2008 Plan"). Awards could be made under the 2008 Plan for up to 25,000,000 shares of our common stock in the form of stock options or deferred stock awards. Awards could be given to our employees, officers or directors as well as our consultants or advisors. The 2008 Plan is administered by our board of directors which has full and final authority to interpret the 2008 Plan, select the persons to whom awards may be granted, and determine the amount, vesting and all other terms of any awards.

[**Table of Contents**](#toc)

All stock options granted under the 2008 Plan are exercisable for a period of up to ten years from the date of grant, are subject to vesting as determined by the board upon grant, and have an exercise price equal to not less than the fair market value of our common stock on the date of grant (except for incentive stock options granted to 10% stockholders, which are required to have an exercise price of not less than 110% of the fair market value of the common stock on the date the option is granted). Unless otherwise determined by the board, awards may not be transferred except by will or the laws of descent and distribution. The board has discretion to determine the effect on any award granted under the 2008 Plan of the death, disability, retirement, resignation, termination or other change in employment or other status of any participant in the 2008 Plan.

Upon the occurrence of a "Change in Control", as defined in the 2008 Plan, the board may take any number of actions. These actions include providing for all options outstanding under the 2008 Plan to be assumed by the acquiring corporation or to become immediately vested and exercisable in full. The original expiration date of March 3, 2018 was extended for one year. The 2008 Plan expired on March 3, 2019 and no further grants may be made thereunder.

**2013 Equity Incentive Plan**

During 2013, the board and our stockholders adopted the 2013 Equity Incentive Plan ("2013 Plan"). Under the 2013 Plan, we were authorized to grant awards of stock options, restricted stock, restricted stock units and other stock-based awards of up to an aggregate of 5,000,000 shares of common stock to any officer, employee, director or consultant. The 2013 Plan is intended to permit stock options granted to employees under the 2013 Plan to qualify as incentive stock options. All options granted under the 2013 Plan, which are not intended to qualify as incentive stock options, are deemed to be non-statutory stock options. The 2013 Plan expired on November 18, 2023 and no further grants may be made thereunder.

**ITEM 13. <u>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.</u>**

**Related Party Transactions**

The Company entered into an employment agreement with Peter S. Pelullo, its Chief Executive Officer, who is a more than 5% beneficial owner. As of December 31, 2025, and December 31, 2024, the Company owed the Chief Executive Officer, who is also a more than 5% beneficial owner, a total of $6,154 and $4,327 in unpaid salary.

As of December 31, 2025, and December 31, 2024, the Company owed the Chief Financial Officer $2,923 and $2,192 in unpaid salary.

The Company has entered into a consulting agreement with the son of Mr. Pelullo, at a cost of $10,000 per month, plus expenses. As of December 31, 2025 and 2024, the Company owed the consultant $0 and $0. For each of the years ended December 31, 2025 and 2024, the Company expensed $120,000 to this consultant.

The amounts owed have been included in accounts payable and accrued expenses – related parties.

**Director Independence**

Our Board of Directors consists of two people. The Board has determined that Gerald Hannahs is an "independent director" within the meaning of the Nasdaq Listing Rules. Peter S. Pelullo, who is a member of the Board of Directors and also our Chief Executive Officer, is not independent within the meaning of the NASDAQ Listing Rules. Our common stock is not listed on Nasdaq, however, we have chosen Nasdaq's independence rules solely for purposes of this disclosure in accordance with the applicable rules of the Securities and Exchange Commission.

**ITEM 14. <u>PRINCIPAL ACCOUNTANT FEES AND SERVICES</u>.**

**Audit Fees**

The fees billed for professional services rendered by our principal accountant, Stephano Slack LLC, for the audit of our annual financial statements for the years ended December 31, 2025 and 2024 and the review of the financial statements included in each of our quarterly reports during the fiscal years ended December 31, 2025 and 2024 were $85,069 and $82,350 respectively.

[**Table of Contents**](#toc)

**Audit-Related Fees**

Fees billed for the years ended December 31, 2025 and 2024 for assurance and related services rendered by Stephano Slack LLC that are reasonably related to the performance of the audit or review of the Company's financial statements and are not reported under the category Audit Fees described above were $0 and $0, respectively.

**Tax Fees**

During the fiscal years ended December 31, 2025 and 2024, there were no fees billed for tax compliance, tax advice and/or tax planning by Stephano Slack LLC.

**All Other Fees**

During the fiscal years ended December 31, 2025 and 2024, there were no additional fees billed for products and services provided by Stephano Slack LLC other than those set forth above.

All services provided by Stephano Slack LLC are pre-approved by our Board of Directors.

**PART IV**

**ITEM 15. <u>EXHIBITS AND FINANCIAL STATEMENT SCHEDULES</u>.**

(a) Audited financial statements and any applicable schedules are set forth herein.

(b) The following exhibits are filed as part of this report.

---

| | |
|:---|:---|
| **Exhibit**<br> **Number** | Description |
| 3.1 | [Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company's registration statement on Form S-1 (Reg. # 333-152050) filed with the Commission on July 1, 2008).](https://www.sec.gov/Archives/edgar/data/1437283/000121465908001518/ex3_1.htm) |
| 3.2 | [Certificate of Ownership (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on August 30, 2011).](https://www.sec.gov/Archives/edgar/data/1437283/000121465911002926/ex3_1.htm) |
| 3.3 | [Certificate of Amendment of Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on December 19, 2013).](https://www.sec.gov/Archives/edgar/data/1437283/000121465913007149/ex3_1.htm) |
| 3.4 | [Certificate of Amendment of Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on August 20, 2014).](https://www.sec.gov/Archives/edgar/data/1437283/000121465914006094/ex3_1.htm) |
| 3.5 | [Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on March 7, 2012).](https://www.sec.gov/Archives/edgar/data/1437283/000121465912001046/ex3_1.htm) |
| 3.6 | [Certificate of Designations of Preferences, Rights and Limitations of Series A Cumulative Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on January 29, 2014).](https://www.sec.gov/Archives/edgar/data/1437283/000121465914000635/ex3_1.htm) |
| 3.7 | [Certificate of Designations of Preferences, Rights and Limitations of Series B Cumulative Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on October 31, 2014).](https://www.sec.gov/Archives/edgar/data/1437283/000121465914007299/ex3_1.htm) |

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| | |
|:---|:---|
| 3.8 | [Certificate of Amendment of Incorporation (incorporated by reference to Exhibit 3.8 to the Company's Annual Report on Form 10-K filed with the Commission on March 31, 2017.](https://www.sec.gov/Archives/edgar/data/1437283/000121465917002272/ex3_8.htm) |
| 3.9 | [Amendment to Certificate of Designation of Preferences, Rights and Limitations of Series C Cumulative Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company's Current Report on form 8-K filed with the Commission on August 24, 2021).](https://www.sec.gov/Archives/edgar/data/1437283/000121465921008948/ex3_1.htm) |
| 3.1 | [Amendment to Certificate of Designation of Preferences, Rights and Limitations of Series B Cumulative Convertible Preferred Stock](https://www.sec.gov/Archives/edgar/data/1437283/000121465921008948/ex3_1.htm) (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on October 17, 2022). |
| 3.11 | [Amendment to Certificate of Designation of Preferences, Rights and Limitations of Series B Cumulative Convertible Preferred Stock](https://www.sec.gov/Archives/edgar/data/1437283/000121465921008948/ex3_1.htm) (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on January 28, 2025). |
| 4.1 | [Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-1/A (Reg. # 333-152050) filed with the Commission on August 13, 2008).](https://www.sec.gov/Archives/edgar/data/1437283/000121465908001839/ex4_1.htm) |
| 4.2 | [Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on February 13, 2012).](https://www.sec.gov/Archives/edgar/data/1437283/000121465912000576/ex10_1.htm) |
| 4.3 | [Form of Warrant (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the Commission on February 13, 2012).](https://www.sec.gov/Archives/edgar/data/1437283/000121465912000576/ex10_2.htm) |
| 4.4 | [Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on April 3, 2013).](https://www.sec.gov/Archives/edgar/data/1437283/000121465913001848/ex10_1.htm) |
| 4.5 | [Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on May 29, 2013).](https://www.sec.gov/Archives/edgar/data/1437283/000121465913003098/ex10_1.htm) |
| 4.6 | [Form of Warrant to Purchase Common Stock (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the Commission on May 29, 2013).](https://www.sec.gov/Archives/edgar/data/1437283/000121465913003098/ex10_2.htm) |
| 4.7 | [Form of Note and Warrant Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on December 31, 2013).](https://www.sec.gov/Archives/edgar/data/1437283/000121465913007339/ex10_1.htm) |
| 4.8 | [Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on January 29, 2014).](https://www.sec.gov/Archives/edgar/data/1437283/000121465914000635/ex10_1.htm) |
| 4.9 | [Form of Warrant (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the Commission on January 29, 2014).](https://www.sec.gov/Archives/edgar/data/1437283/000121465914000635/ex10_2.htm) |
| 4.1 | [Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on October 31, 2014).](https://www.sec.gov/Archives/edgar/data/1437283/000121465914007299/ex10_1.htm) |
| 4.11 | [Form of Warrant (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the Commission on October 31, 2014).](https://www.sec.gov/Archives/edgar/data/1437283/000121465914007299/ex10_2.htm) |

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| | |
|:---|:---|
| 10.1\* | [2008 Equity Incentive Plan (incorporated by reference to Exhibit 4.2 to the Company's Registration Statement on Form S-1 (Reg. # 333-152050) filed with the Commission on July 1, 2008).](https://www.sec.gov/Archives/edgar/data/1437283/000121465908001518/ex4_2.htm) |
| 10.2\* | [2013 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on March 8, 2013).](https://www.sec.gov/Archives/edgar/data/1437283/000121465913001293/ex10_1.htm) |
| 10.3 | [Form of Securities Purchase Agreement (March 2015 Secured Convertible Notes) (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on March 12, 2015)](https://www.sec.gov/Archives/edgar/data/1437283/000121465915002241/ex10_1.htm) |
| 10.4 | [Form of Secured Convertible Promissory Note (March 2015 Secured Convertible Notes) (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the Commission on March 12, 2015)](https://www.sec.gov/Archives/edgar/data/1437283/000121465915002241/ex10_2.htm) |
| 10.5 | [Form of Security Agreement (March 2015 Secured Convertible Notes) (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the Commission on March 12, 2015)](https://www.sec.gov/Archives/edgar/data/1437283/000121465915002241/ex10_3.htm) |
| 10.6 | [Form of Securities Purchase Agreement (May 2015 Secured Convertible Notes) (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on May 11, 2015)](https://www.sec.gov/Archives/edgar/data/1437283/000121465915003822/ex10_1.htm) |
| 10.7 | [Form of Secured Convertible Promissory Note (May 2015 Secured Convertible Notes) (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the Commission on May 11, 2015)](https://www.sec.gov/Archives/edgar/data/1437283/000121465915003822/ex10_2.htm) |
| 10.8 | [Form of Security Agreement (May 2015 Secured Convertible Notes) (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the Commission on May 11, 2015)](https://www.sec.gov/Archives/edgar/data/1437283/000121465915003822/ex10_3.htm) |
| 10.9 | [Form of Promissory Note Agreement (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the Commission on November 6, 2015)](https://www.sec.gov/Archives/edgar/data/1437283/000121465915007598/ex10_1.htm) |
| 10.10 | [Form of Promissory Note Agreement (including commitment fee) (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed with the Commission on November 6, 2015)](https://www.sec.gov/Archives/edgar/data/1437283/000121465915007598/ex10_2.htm) |
| 10.11 | [Form of Warrant (incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q filed with the Commission on November 6, 2015)](https://www.sec.gov/Archives/edgar/data/1437283/000121465915007598/ex10_3.htm) |
| 10.12 | [Form of Amendment to Promissory Note Agreement (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the Commission on February 25, 2016)](https://www.sec.gov/Archives/edgar/data/1437283/000121465916009767/ex10_3.htm) |
| 10.13 | [ICM Consulting Agreement (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed with the Commission on May 13, 2016)](https://www.sec.gov/Archives/edgar/data/1437283/000121465916011538/ex10_2.htm) |
| 10.14 | [Form of Securities Purchase Agreement (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on August 29, 2016)](https://www.sec.gov/Archives/edgar/data/1437283/000121465916013436/ex10_1.htm) |
| 10.15 | [Form of Secured Convertible Promissory Note (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the Commission on August 29, 2016)](https://www.sec.gov/Archives/edgar/data/1437283/000121465916013436/ex10_2.htm) |
| 10.16 | [Form of Amended and Restated Security Agreement (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the Commission on August 29, 2016)](https://www.sec.gov/Archives/edgar/data/1437283/000121465916013436/ex10_3.htm) |

---

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| 10.17 | [Form of Note Exchange Agreement (incorporated by reference to Exhibit 10.4 to the Company's Current Report on Form 8-K filed with the Commission on August 29, 2016)](https://www.sec.gov/Archives/edgar/data/1437283/000121465916013436/ex10_4.htm) |
| 10.18 | [License Agreement between the Company and Crowd Cart, Inc. (incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q filed with the Commission on May 15, 2018).](https://www.sec.gov/Archives/edgar/data/1437283/000121465918003776/ex10_1.htm) |
| 10.19 | [Form of Simple Agreement For Future Equity (incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q filed with the Commission on May 15, 2018).](https://www.sec.gov/Archives/edgar/data/1437283/000121465918003776/ex10_2.htm) |
| 10.20 | [Convertible Debenture dated as of December 15, 2019 issued by REGO Payment Architectures, Inc. in favor of Nehemiah Partners I, LP (incorporated by reference to the Company's Current Report on Form 8-K filed with the Commission on January 3, 2020).](https://www.sec.gov/Archives/edgar/data/1437283/000121465920000098/ex10_1.htm) |
| 10.21 | [Purchase of Business Agreement dated as of January 1, 2021 between Chore Check, LLC and the Registrant (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed with the Commission on January 7, 2021).](https://www.sec.gov/Archives/edgar/data/1437283/000121465921000265/ex2_1.htm) |
| 10.22 | [Nonqualified Stock Option Agreement dated January 1, 2021 between Registrant and Chore Check, LLC (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on January 7, 2021).](https://www.sec.gov/Archives/edgar/data/1437283/000121465921000265/ex10_1.htm) |
| 10.23\* | [Employment Agreement between the Registrant and Peter S. Pelullo (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 10-Q filed with the Commission on August 14, 2020).](https://www.sec.gov/Archives/edgar/data/1437283/000121465920007182/ex10_1.htm) |
| 10.24\* | [Settlement Agreement dated June 1, 2021 between Registrant and Nehemiah Partners I, L.P. (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the Commission on August 16, 2021.](https://www.sec.gov/Archives/edgar/data/1437283/000121465921008679/ex10_1.htm) |
| 10.25\* | [Employment Agreement dated August 16, 2022 between the Company and Joseph Toczydlowski (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed with the Commission on November 14, 2022).](https://www.sec.gov/Archives/edgar/data/1437283/000121465922013728/ex10_1.htm) |
| 10.26 | [Investor Private Line of Credit dated March 13, 2023 between Rego Payment Architectures, Inc. and James Davison (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Commission on March 16, 2023).](https://www.sec.gov/Archives/edgar/data/1437283/000121465923003865/ex10_1.htm) |
| 10.27 | [Amendment to Investor Private Line of Credit dated March 13, 2024 between Rego Payment Architectures, Inc. and James Davison (incorporated by reference to Exhibit 10.1 to the Company's current report on Form 8-K filed with the Commission on March 19, 2024).](https://www.sec.gov/Archives/edgar/data/1437283/000121465924004839/ex10_1.htm) |
| 10.28 | [Second Amendment to Investor Private Line of Credit dated March 13, 2025 between Rego Payment Architectures, Inc. and James Davison (incorporated by reference to Exhibit 10.1 to the Company's current report on Form 8-K filed with the Commission on March 14, 2025).](https://www.sec.gov/Archives/edgar/data/1437283/000121465925004396/ex10_1.htm) |
| 10.29\* \*\* | [Employment Agreement dated April 1, 2024 between the Company and Peter S. Pelullo.](ex10_29.htm) |
| 21.1\*\* | [Subsidiaries of the Registrant.](ex21_1.htm) |
| 31.1\*\* | [Certification of the principal executive officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a)](ex31_1.htm) |
| 31.2\*\* | C[ertification of the principal financial officer of the Company, pursuant to Securities Exchange Act Rule 13a-14(a)](ex31_2.htm) |

---

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---

| | |
|:---|:---|
| 32.1\*\* | [Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by the chief executive officer of the Company](ex32_1.htm) |
| 32.2\*\* | [Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by the chief financial officer of the Company](ex32_2.htm) |
| 101.INS\*\* | XBRL Instance Document The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH\*\* | Taxonomy Extension Schema Document |
| 101.CAL\*\* | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\*\* | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\*\* | XBRL Taxonomy Extension Label Linkbase |
| 101.PRE\*\* | XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\*\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\* Management contract or compensatory plan or arrangement

\*\*filed herewith

**ITEM 16. <u>FORM 10-K SUMMARY.</u>**

Not provided.

[**Table of Contents**](#toc)

**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, on this 31st day of March, 2026.

---

| | |
|:---|:---|
| REGO Payment Architectures, Inc. | REGO Payment Architectures, Inc. |
| By: | /s/ Peter S. Pelullo |
|  | Peter S. Pelullo**,** Chief Executive <br> Officer and Principal Executive Officer |
|  | /s/ Joseph R. Toczydlowski |
|  | Chief Financial Officer and<br> Principal Accounting 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:

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| /s/ Peter S. Pelullo | Director, Chief Executive Officer and Principal Executive Officer | March 31, 2026 |
| Peter S. Pelullo |  |  |
| /s/Joseph R. Toczydlowski | Chief Financial Officer and Principal Accounting Officer | March 31, 2026 |
| Joseph R. Toczydlowski |  |  |
| /s/ Gerald Hannahs | Chairman of the Board, Director | March 31, 2026 |
| Gerald Hannahs |  |  |

---

[**Table of Contents**](#toc)

REGO Payment Architectures, Inc.

---

| | |
|:---|:---|
|  | PAGE |
| [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID# 3523)](#report) | F-2 |
| [CONSOLIDATED BALANCE SHEETS](#bs) | F-4 |
| [CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS](#cscl) | F-5 |
| [CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT](#cscsd) | F-6 |
| [CONSOLIDATED STATEMENTS OF CASH FLOWS](#cscf) | F-7 |
| [NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS](#notes) | F-8 to F-21 |

---

[**Table of Contents**](#toc)

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Stockholders of Rego Payment Architectures, Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Rego Payment Architectures, Inc. (the Company) as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive loss, changes in stockholders' deficit, 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 consolidated financial statements). In our opinion, the consolidated 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.

**Substantial Doubt about the Company's Ability to Continue as a Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company's losses from development activities raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. 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 audit 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 consolidated 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 audit, 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 Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated 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 consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

[**Table of Contents**](#toc)

To the Board of Directors and

Stockholders of Rego Payment Architectures, Inc.

(Continued)

**Critical Audit Matters**

Critical audit matters are matters arising from the current period audit of the consolidated 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 consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there were no critical audit matters.

/s/ Stephano Slack LLC

We have served as the Company's auditor since 2024.

Wayne, Pennsylvania

March 31, 2026

[**Table of Contents**](#toc)

REGO Payment Architectures, Inc.

Consolidated Balance Sheets

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASSETS |  |  |
| CURRENT ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $158687 | $3011493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 74000 | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 341 | 341 |
| TOTAL CURRENT ASSETS | 233028 | 3061834 |
| OTHER ASSETS |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patents and trademarks, net of accumulated amortization of $409,562 and $369,550 | 259263 | 286897 |
|  | 259263 | 286897 |
| TOTAL ASSETS | $492291 | $3348731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LIABILITIES AND STOCKHOLDERS' DEFICIT |  |  |
| CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $9818757 | $8470575 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses - related parties | 9077 | 6519 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans payable | 42600 | 42600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10% secured convertible notes payable - stockholders | 6141237 | 3036237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes payable - stockholders | 595000 | 595000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4% secured convertible notes payable - stockholders | 14981250 | 14981250 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock dividend liability | 16800495 | 13973422 |
| TOTAL CURRENT LIABILITIES | 48388416 | 41105603 |
| CONTINGENCIES |  |  |
| STOCKHOLDERS' DEFICIT |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $.0001 par value; 2,000,000 preferred shares authorized; 195,500 preferred shares Series A authorized; 98,350 shares issued and outstanding at December 31, 2025 and December 31, 2024 | 10 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $.0001 par value; 2,000,000 preferred shares authorized; 397,222 and 347,222 preferred shares Series B authorized at December 31, 2025 and December 31, 2024; 281,169 shares issued and outstanding at December 31, 2025 and December 31, 2024 | 29 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $.0001 par value; 2,000,000 preferred shares authorized; 300,000 preferred shares Series C authorized; 0 shares issued and outstanding at December 31, 2025 and December 31, 2024 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.0001 par value; 230,000,000 shares authorized; 136,586,403 and 136,248,105 shares issued and outstanding at December 31, 2025 and December 31, 2024 | 13659 | 13625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid in capital | 112254371 | 109973586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (160164194) | (147744122) |
| STOCKHOLDERS' DEFICIT | (47896125) | (37756872) |
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $492291 | $3348731 |

---

The accompanying notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#toc)

REGO Payment Architectures, Inc.

Consolidated Statements of Comprehensive Loss

---

| | | |
|:---|:---|:---|
|  | For the Years Ended | For the Years Ended |
|  | December 31, | December 31, |
|  | <u>2025</u> | <u>2024</u> |
| NET REVENUE | $2250 | $- |
| OPERATING EXPENSES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transaction expense | 238064 | 345625 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 401801 | 630664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product development | 3333785 | 3286232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 4544659 | 3676228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 8518309 | 7938749 |
| NET OPERATING LOSS | (8516059) | (7938749) |
| OTHER INCOME (EXPENSE) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income | 60176 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net | (1137117) | (988771) |
|  | (1076941) | (988771) |
| NET LOSS | (9593000) | (8927520) |
| LESS: Accrued preferred dividends | (2827072) | (2705635) |
| NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $(12420072) | $(11633155) |
| BASIC AND DILUTED NET LOSS PER COMMON SHARE | $(0.09) | $(0.09) |
| BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 136337082 | 136048927 |

---

The accompanying notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#toc)

REGO Payment Architectures, Inc.

Consolidated Statement of Changes in Stockholders' Deficit

For the years ended December 31, 2025 and 2024

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Preferred | Preferred | Preferred | Preferred | Preferred | Preferred | Common | Common | | | |
|  | Stock Series A | Stock Series A | Stock Series B | Stock Series B | Stock Series C | Stock Series C | Stock | Stock | | | |
|  | Number of<br>Shares |<br>Amount | Number of<br>Shares |<br>Amount | Number of<br>Shares |<br>Amount | Number of<br>Shares |<br>Amount |<br>Additional<br>Paid-In<br>Capital |<br>Accumulated<br>Deficit |<br><br>Total |
| Balance, December 31, 2023 | 98350 | $10 | 234403 | $24 |  | $- | 135848105 | $13585 | $104707296 | $(136110967) | $(31390052) |
| Sale of Series B Preferred stock |  |  | 41367 | 4 |  |  |  |  | 3723016 |  | 3723020 |
| Issuance of common stock to board members and employees |  |  |  |  |  |  | 400000 | 40 | 406460 |  | 406500 |
| Conversion of 10% secured convertible notes into Series B Preferred Stock |  |  | 5399 | 1 |  |  |  |  | 485893 |  | 485894 |
| Share-based compensation |  |  |  |  |  |  |  |  | 650921 |  | 650921 |
| Accrued preferred dividends |  |  |  |  |  |  |  |  |  | (2705635) | (2705635) |
| Net loss | - | - | - | - |  | - | - | - | - | (8927520) | (8927520) |
| Balance, December 31, 2024 | 98350 | $10 | 281169 | $29 |  | $- | 136248105 | $13625 | $109973586 | $(147744122) | $(37756872) |
| Conversion of 10% secured convertible notes into Series B Preferred Stock |  |  | 3383 | 1 |  |  |  |  | 304467 |  | 304468 |
| Conversion of Series B Preferred Stock into common stock |  |  | (3383) | (1) |  |  | 338298 | 34 | (33) |  |  |
| Share-based compensation |  |  |  |  |  |  |  |  | 1976351 |  | 1976351 |
| Accrued preferred dividends |  |  |  |  |  |  |  |  |  | (2827072) | (2827072) |
| Net loss | - | - | - | - |  | - | - | - | - | (9593000) | (9593000) |
| Balance, December 31, 2025 | 98350 | $10 | 281169 | $29 |  | $- | 136586403 | $13659 | $112254371 | $(160164194) | $(47896125) |

---

The accompanying notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#toc)

REGO Payment Architectures, Inc.

Consolidated Statements of Cash Flows

---

| | | |
|:---|:---|:---|
|  | For the Years Ended December 31, | For the Years Ended December 31, |
|  | 2025 | 2024 |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(9593000) | $(8927520) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value of common stock issued in exchange for services |  | 406500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 1976351 | 650921 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 40012 | 39371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (24000) | (31678) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 1452651 | 890903 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses - related parties | 2558 | 4460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (6145428) | (6967043) |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in patents | (12378) | (1118) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (12378) | (1118) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of 10% secured convertible notes payable - stockholders | 3305000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of Series B Preferred Stock | - | 3723020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 3305000 | 3723020 |
| DECREASE IN CASH AND CASH EQUIVALENTS | (2852806) | (3245141) |
| CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR | 3011493 | 6256634 |
| CASH AND CASH EQUIVALENTS - END OF YEAR | $158687 | $3011493 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid during period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | $- | $- |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued preferred dividends | $2827072 | $2705635 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conversion of 10% secured convertible note payable and accrued interest into 3,383 and 5,399 shares of Series B Preferred Stock | $304468 | $485894 |

---

The accompanying notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#toc)

REGO Payment Architectures, Inc.

Notes to the Consolidated Financial Statements

**NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***<u>Nature of the Business</u>***

REGO Payment Architectures, Inc. ("REGO") was incorporated in the state of Delaware on February 11, 2008.

REGO Payment Architectures, Inc. and its subsidiaries (collectively, except where the context requires, the "Company") is a provider of consumer software that delivers a mobile payment platform solution—Mazoola®- a family focused mobile banking solution. The Company maintains a portfolio of trade secrets and four US patent awards. REGO offers an all-digital financial payments platform (the "Platform") to enable minors, particularly under 13 years old, to purchase goods and services, complete chores and learn in a secure online environment guided by parental permission, oversight, and control, while remaining Children's Online Privacy Protection Act ("COPPA") and General Data Protection Regulation ("GDPR") compliant.

Management believes that building on its COPPA advantage the future of REGO Payment Architectures, Inc. will be based on the foundational architecture of the Platform that will allow its use across multiple financial markets where secure controlled payments are needed. The Company intends to license in each alternative field of use the ability for its partners, distributors and/or value-added resellers to private label each of the alternative markets. These partners would deploy, customize and support each implementation under their own label, but with acknowledgement of the Company's proprietary intellectual assets as the base technology. Management believes this approach will enable the Company to reduce expenses while broadening its reach.

Revenues generated from the Platform will come from multiple sources depending on the level of service and facilities requested by the parent. The Company's model contemplates levels of subscription revenue paid monthly, service fees, transaction fees and revenue sharing and licensing with banking and distribution partners.

The Company's principal office is located in Blue Bell, Pennsylvania.

***<u>Basis of Presentation</u>***

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP").

The Company's activities are subject to significant risks and uncertainties, including failing to secure additional financing to operationalize the Company's current technology before another company develops similar technology to compete with the Company.

 ****

***<u>Principles of Consolidation</u>***

These consolidated financial statements include the accounts of Rego Payment Architectures, Inc. and Rego Data Solutions, Inc. All intercompany transactions and balances have been eliminated upon consolidation.

***<u>Use of Estimates</u>***

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

***<u>Fair Value of Financial Instruments</u>***

The Company's financial instruments consist of accounts payable and accrued expenses and notes payable. The carrying value of accounts payable and accrued expenses approximate their fair value because of their short maturities. The Company believes the carrying amount of its notes payable approximate fair value based on rates and other terms currently available to the Company for similar debt instruments.

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The Company follows FASB ASC 820, *Fair Value Measurements and Disclosures*, and applies it to all assets and liabilities that are being measured and reported on a fair value basis. The statement requires that assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1: Quoted market price in active markets for identical assets or liabilities

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data

Level 3: Unobservable inputs that are not corroborated by market data

The level in the fair value hierarchy within which a fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

***<u>Concentration of Credit Risk Involving Cash</u>***

The Company maintains cash deposits at financial institutions in the United States. Cash balances may at times exceed the Federal Deposit Insurance Corporation ("FDIC") insurance limit of $250,000. At December 31, 2025, the Company's cash deposits did not exceed federally insured limits. The Company has not experienced any losses related to these balances

***<u>Cash and Cash Equivalents</u>***

For purposes of reporting cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and certificates of deposit and commercial paper with original maturities of 90 days or less to be cash or cash equivalents.

***<u>Property and Equipment</u>***

Property, equipment and leasehold improvements are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Maintenance and repairs of property are charged to operations, and major improvements are capitalized. Upon retirement, sale, or other disposition of property and equipment, the costs and accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is included in operations. The cost of leasehold improvements is amortized over the lesser of the length of the related leases or the estimated useful lives of the assets.

***<u>Patents and Trademarks</u>***

The Company has four issued patents with the United States Patent and Trademark Office ("USPTO"), entitled "System and Method for Verifying the Age of an Internet User," "System and Method for Virtual Piggy Bank Wish-List," "Parent Match" and "System and Method for Virtual Piggy Bank." The Company has filed for one provisional U.S. patent application, as well as twelve non-provisional U.S. patent applications, one of which is pending, four of which have been allowed, and seven of which have been abandoned. Additionally, the Company has been granted two patents, entitled "Virtual Piggy Bank" and "Parent Match," in each of Germany, Canada, and Australia. The Company also has patents pending in the Republic of Korea under the Patent Cooperation Treaty ("PCT"). Costs associated with the registration and legal defense of the patents have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents.

***<u>Long-Lived Assets</u>***

The Company evaluates the recoverability of its long-lived assets in accordance with FASB ASC 360 *Property, Plant, and Equipment.* The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets are measured by a comparison of the carrying amount of an asset to future cash flows expected to be generated by the asset, undiscounted and without interest or independent appraisals. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the assets.

***<u>Deferred Financing Costs</u>***

Costs incurred in securing long-term debt are deferred and amortized, as a charge to interest expense, over the term of the related debt. In accordance with FASB ASU No. 2015-03, *Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs*, the Company presents debt issuance costs in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. In the case of long-term debt modifications, the Company follows the guidance provided by FASB ASC 470-50, *Debt-Modification and Extinguishments.*

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***<u>Revenue Recognition</u>***

In accordance with FASB ASC 606, *Revenue from Contracts with Customers*, the Company recognizes revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for fulfilling those performance obligations.

Revenues for the years ended December 31, 2025 and 2024 were $2,250 and $0, respectively.

***<u>Income Taxes</u>***

The Company follows FASB ASC 740 when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. Tax years from 2022 through 2025 remain subject to examination by major tax jurisdictions.

***<u>Stock-based Payments</u>***

The Company accounts for stock-based compensation under the provisions of FASB ASC 718, *Compensation—Stock Compensation,* which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. In accordance with ASU No. 2018-07, *Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting* share-based payment transactions for acquiring goods and services from nonemployees are included. Consistent with the accounting requirement for employee share-based payment awards, nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied.

***<u>Advertising Costs</u>***

Advertising costs are expensed as incurred. Advertising costs were $0 and $125 for the years ended December 31, 2025 and 2024. These costs when incurred are included in sales and marketing expenses.

***<u>Product Development Costs</u>***

In accordance with FASB ASC 730, research and development costs are expensed when incurred. Product development costs were $3,333,785 and $3,286,232 for the years ended December 31, 2025 and 2024.

***<u>Loss Per Share</u>***

The Company follows FASB ASC 260 when reporting Earnings (Loss) Per Share resulting in the presentation of basic and diluted earnings (loss) per share. Because the Company reported a net loss for each of the years ended December 31, 2025 and 2024, common stock equivalents, including preferred stock, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and diluted loss per share were the same.

 ****

***<u>Segment Reporting</u>***

The Company follows ASC 280, Segment Reporting, and uses the management approach to identify operating segments. The Company's Chief Executive Officer is the Chief Operating Decision Maker ("CODM"). The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions and thus reports as a single reportable segment. The Company's singular focus is on developing its digital family lifecycle platform. All tangible assets are held in the United States.

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***<u>Recently Adopted Accounting Pronouncements</u>***

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures which requires public entities to disclose specific categories in the effective tax rate reconciliation, as well as expanded disclosures on income taxes paid by jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The adoption of ASU 2023-09 had no impact on the Company's consolidated financial statement disclosures.

***<u>Recently Issued Accounting Pronouncements Not Yet Adopted</u>***

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Topic 220), which requires disclosure in the notes to financial statements about specific types of expenses included in the expense captions presented on the face of the statement of operations. The requirements of the ASU are effective for annual periods beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact related to the adoption of ASU 2024-03 on its consolidated financial statement disclosures.

**NOTE 2 - GOING CONCERN**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant losses and experienced negative cash flow from operations since inception. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Since inception, the Company has focused on developing and implementing its business plan. The Company believes that its existing cash resources will not be sufficient to sustain operations during the next twelve months. The Company currently needs to generate revenue in order to sustain its operations. In the event that the Company cannot generate sufficient revenue to sustain its operations, the Company will need to reduce expenses or obtain financing through the sale of debt and/or equity securities. The issuance of additional equity would result in dilution to existing shareholders. If the Company is unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms acceptable to the Company, the Company would be unable to execute upon the business plan or pay costs and expenses as they are incurred, which would have a material, adverse effect on the business, financial condition and results of operations.

The Company's current monetization model is to derive revenues from levels of service fees, transaction fees and in some cases, revenue sharing with banking and distribution partners. As these bases of revenues grow, the Company expects to generate additional revenue to support operations.

As of March 31, 2026, the Company has a cash position of approximately $0.2 million. Based upon the current cash position and the Company's planned expense run rate, management believes the Company has funds currently to finance its operations through April 2026.

**NOTE 3 - PATENTS AND TRADEMARKS**

Costs associated with the registration of patents have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents (20 years). Trademarks are also being amortized on a straight-line basis over an estimated useful life of 20 years. At December 31, 2025 and 2024, capitalized patent and trademark costs, net of accumulated amortization, were $259,263 and $286,897. Amortization expense for patents and trademarks was $40,012 and $39,371 for the years ended December 31, 2025 and 2024.

The aggregate amortization expense for each of the next five fiscal years is expected to be as follows:

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| | |
|:---|:---|
| **Year** | **Estimated Amortization Expense** |
| 2026 | $39000 |
| 2027 | $39000 |
| 2028 | $39000 |
| 2029 | $39000 |
| 2030 | $39000 |

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The intangible assets are reviewed for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

**NOTE 4 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES – RELATED PARTIES**

As of December 31, 2025 and 2024, the Company owed the Chief Executive Officer, who is also a more than 5% beneficial owner, a total of $6,154 and $4,327 in unpaid salary.

As of December 31, 2025 and 2024, the Company owed the Chief Financial Officer $2,923 and $2,192 in unpaid salary.

**NOTE 5 - LOANS PAYABLE**

The balance of the loans payable as of December 31, 2025 and 2024 was $42,600. Interest accrued on the loans at 6% and 10% was $15,664 and $12,701 as of December 31, 2025 and 2024. Interest expense related to these loans payable was $2,962 and $2,971 for the years ended December 31, 2025 and 2024. There is no collateral associated with these loans.

**NOTE 6 - 10% SECURED CONVERTIBLE NOTES PAYABLE - STOCKHOLDERS**

On March 6, 2015, the Company, pursuant to a Securities Purchase Agreement (the "Purchase Agreement"), issued $2,000,000 aggregate principal amount of its 10% Secured Convertible Promissory Notes due March 5, 2016 (the "Notes") to certain stockholders. On May 11, 2015, the Company issued an additional $940,000 of Notes to stockholders. In June 2025, the Company issued an additional $2,000,000 of Notes to stockholders. In August and September 2025, the Company issued an additional $1,305,000 of Notes to stockholders. The maturity dates of the Notes have been extended most recently from December 31, 2024 to April 30, 2025, with the consent of the Note holders. An additional extension was provided by the Note holders on April 30, 2025. This extended the maturity date until May 31, 2025, with a provision stipulating that unless previously repaid in full such date shall be automatically extended on a month-to-month basis thereafter unless the Note holder submits notification in writing to the contrary.

The Notes are convertible by the holders, at any time, into shares of the Company's Series B Preferred Stock at a conversion price of $90.00 per share, subject to adjustment for stock splits, stock dividends and similar transactions with respect to the Series B Preferred Stock only. Each share of Series B Preferred Stock is currently convertible into 100 shares of the Company's common stock at a current conversion price of $0.90 per share, subject to anti-dilution adjustment as described in the Certificate of Designation of the Series B Preferred Stock. In addition, pursuant to the terms of a Security Agreement entered into on May 11, 2015 by and among the Company, the Investors and a collateral agent acting on behalf of the Investors (the "Security Agreement"), the Notes are secured by a lien against substantially all of the Company's business assets. Pursuant to the Purchase Agreement, the Company also granted piggyback registration rights to the holders of the Series B Preferred Stock upon a conversion of the Notes.

The Notes are recorded as a current liability, in the amount of $6,141,237 and $3,036,237 as of December 31, 2025 and 2024. Interest accrued on the notes was $3,306,659 and $2,940,724 as of December 31, 2025 and 2024. Interest expense related to these notes payable was $365,935 and $97,851 for the years ended December 31, 2025 and 2024.

During the year ended December 31, 2025, a 10% Secured Convertible Noteholder converted $200,000 of principal plus $104,468 of accrued interest into 3,383 shares of Series B Preferred Stock.

**NOTE 7 - NOTES PAYABLE - STOCKHOLDERS**

These notes payable have no formal repayment terms and $370,000 of the notes bear interest at 10% per annum and the remaining $225,000 of the notes bear interest at 20% per annum.

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The notes payable are recorded as a current liability as of December 31, 2025 and 2024 in the amount of $595,000. Interest accrued on the notes as of December 31, 2025 and 2024 was $526,652 and $443,952. Interest expense, including accretion of discounts, and warrants issued related to these notes payable was $82,700 and $82,927 for the years ended December 31, 2025 and 2024.

**NOTE 8 - 4.0% SECURED CONVERTIBLE PROMISSORY NOTES PAYABLE – STOCKHOLDERS**

On August 26, 2016, the Company, pursuant to a Securities Purchase Agreement, issued $600,000 aggregate principal amount of its 4.0% Secured Convertible Promissory Notes due June 30, 2019 (the "New Secured Notes") to certain accredited investors ("investors"). The Company issued additional New Secured Notes during the years 2016 through 2022.

The New Secured Notes are convertible by the holders, at any time, into shares of the Company's authorized Series C Cumulative Convertible Preferred Stock ("Series C Preferred Stock") at a conversion price of $90.00 per share, subject to adjustment for stock splits, stock dividends and similar transactions with respect to the Series C Preferred Stock only. Each share of Series C Preferred Stock is currently convertible into 100 shares of the Company's common stock at a current conversion price of $0.90 per share, subject to full ratchet anti-dilution adjustment for one year and weighted average anti-dilution adjustment thereafter, as described in the Certificate of Designation of the Series C Preferred Stock. Upon a liquidation event, the Company shall first pay to the holders of the Series C Preferred Stock, on a pari passu basis with the holders of the Company's outstanding Series A Preferred Stock and Series B Preferred Stock, an amount per share equal to 700% of the conversion price (i.e., $630.00 per share of Series C Preferred Stock), plus all accrued and unpaid dividends on each share of Series C Preferred Stock (the "Series C Preference Amount"). The Series C Preference Amount shall be paid prior and in preference to payment of any amounts to the Common Stock. After the payment of all preferential amounts required to be paid to the holders of shares of Series C Preferred Stock, Series A Preferred Stock, Series B Preferred Stock and any additional senior preferred stock, the Series C Preferred Stock participates in further distributions subject to an aggregate cap of seven and one-half times (7.5x) the original issue price thereof, plus all accrued and unpaid dividends. In addition, pursuant to an Amended and Restated Security Agreement by and among the Company, the investors, the holders of the Company's outstanding Notes and a collateral agent acting on behalf of the investors and holders of the Notes, the New Secured Notes are secured, pari passu with the Notes, by a lien against substantially all of the Company's business assets.

The maturity dates of the New Secured Notes were extended by the investors most recently to April 30, 2025. An additional extension was provided by the New Secured Note holders on April 30, 2025. This extended the maturity date until May 31, 2025, with a provision stipulating that unless previously repaid in full such date shall be automatically extended on a month-to-month basis thereafter unless the New Secured Note holder submits notification in writing to the contrary.

The New Secured Notes are recorded as a current liability in the amount of $14,981,250 as of December 31, 2025 and 2024. Interest accrued on the New Secured Notes was $3,948,199 and $3,348,949 as of December 31, 2025 and 2024. Interest expense, including accretion of discounts related to these notes payable was $599,250 for the years ended December 31, 2025 and 2024.

**NOTE 9 - INCOME TAXES**

The Company follows FASB ASC 740-10-10 whereby an entity recognizes deferred tax assets and liabilities for future tax consequences or events that have been previously recognized in the Company's financial statements or tax returns. The measurement of deferred tax assets and liabilities is based on provisions of enacted tax law. The effects of future changes in tax laws or rates are not anticipated.

As of December 31, 2025, the Company had net operating loss carry forwards of approximately $111,330,000, comprised of net operating losses in the amount of approximately $66,194,000 recorded in tax years beginning prior to January 1, 2018 expiring through the year ending December 31, 2038 and net operating losses recorded in tax years beginning January 1, 2018 and after in the amount of approximately $45,136,000 which are allowed for an indefinite carryforward period but may be subject to limitations. This amount can be used to offset future taxable income of the Company.

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The income tax (benefit) provision consists of the following:

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Current | $(2198000) | $(2387000) |
| Deferred | 449000 | (188000) |
| Change in valuation allowance | 1749000 | 2575000 |
|  | $- | $- |

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The Company adopted ASU 2023-09 effective January 1, 2025. The rate reconciliation for the years ended December 31, 2025 and 2024 is presented under the updated disclosure requirements.

The reconciliation of the statutory federal rate to the Company's effective income tax rate is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | December 31, 2025 | December 31, 2025 | December 31, 2024 | December 31, 2024 |
|  | Amount | % | Amount | % |
| U.S federal income tax benefit at Federal statutory rate | $(2015000) | (21) | $(1875000) | (21) |
| State tax, net of federal tax effect | (753000) | (8) | (700000) | (8) |
| Non-deductible share-based compensation | 1019000 | 11 |  |  |
| Change in valuation allowance | 1749000 | 18 | 2575000 | 29 |
| Net | $- | - | $- | - |

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The primary components of the Company's December 31, 2025 and 2024 deferred tax assets and related valuation allowances are as follows:

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Deferred tax asset for NOL carryforwards | $(36803000) | $(34605000) |
| Deferred tax asset for stock based compensation | (5294000) | (5743000) |
| Valuation allowance | 42097000 | 40348000 |
| Net | $- | $- |

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In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the net operating losses and temporary differences become deductible. Management considered projected future taxable income and tax planning strategies in making this assessment. The value of the deferred tax assets was offset by a valuation allowance, due to the current uncertainty of the future realization of the deferred tax assets.

The timing and manner in which the Company can utilize operating loss carryforwards in any year may be limited by provisions of the Internal Revenue Code regarding changes in ownership of corporations. Such limitation may have an impact on the ultimate realization of its carryforwards and future tax deductions.

The Company follows FASB ASC 740.10, which provides guidance for the recognition and measurement of certain tax positions in an enterprise's financial statements. Recognition involves a determination of whether it is more likely than not that a tax position will be sustained upon examination with the presumption that the tax position will be examined by the appropriate taxing authority having full knowledge of all relevant information.

The Company's policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of January 1, 2025, the Company had no unrecognized tax benefits and no charge during 2025, and accordingly, the Company did not recognize any interest or penalties during 2025 related to unrecognized tax benefits. There is no accrual for uncertain tax positions as of December 31, 2025.

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The Company files U.S. income tax returns and a state income tax return. With few exceptions, the U.S. and state income tax returns filed for the tax years ending on December 31, 2022 and thereafter are subject to examination by the relevant taxing authorities.

**NOTE 10 - CONVERTIBLE PREFERRED STOCK**

***<u>REGO Payment Architectures, Inc. Series A Preferred Stock</u>***

The Series A Preferred Stock has a preference in liquidation equal to two times the Original Issue Price, or $19,670,000, to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 2.5 times the Original Issue Price. The Series A Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series A Preferred Stock can be converted. The Series A Preferred Stock also contains customary approval rights with respect to certain matters. The Series A Preferred Stock accrues dividends at the rate of 8% per annum, or $8.00 per Series A Preferred share.

The conversion price of Series A Preferred Stock is currently $0.90 per share. The Series A Preferred Stock is subject to mandatory conversion if certain registration or related requirements are satisfied and the average closing price of Rego's common stock exceeds 2.5 times the conversion price over a period of twenty consecutive trading days.

The conversion feature of the Series A Preferred Stock issued in January 2014 is an embedded derivative, which is classified as a liability in accordance with FASB ASC 815 and was valued in accordance with FASB ASC 470 as a beneficial conversion feature at a fair market value of $1,648,825 at January 27, 2014, and $3,481,050 at December 31, 2020. This was classified as an embedded derivative liability and a discount to Series A Preferred Stock. Since the Series A Preferred Stock can be converted at any time, the full amount of the discount was accreted and reflected as a deemed distribution.

The conversion feature of the Series A Preferred Stock issued in April 2014 is an embedded derivative, which is classified as a liability in accordance with FASB ASC 815 and was valued in accordance with FASB ASC 470 as a beneficial conversion feature at a fair market value of $3,489,000 at April 30, 2014, and $5,349,800 at December 31, 2020. This was classified as an embedded derivative liability and a discount to Series A Preferred Stock. Since the Series A Preferred Stock can be converted at any time, the full amount of the discount was accreted and reflected as a deemed distribution.

The Warrants originally associated with the Series A Preferred Stock were classified as equity, in accordance with FASB ASC 480-10-25. Therefore, it was not necessary to bifurcate these Warrants from the Series A Preferred Stock.

On January 1, 2021, upon adoption of FASB ASU No. 2020-06, *Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity's Own Equity*, the Company reclassified the embedded derivative value of the beneficial conversion feature of the Series A Preferred Stock issued in January 2014 valued at $3,481,050 as of December 31, 2020, to accumulated deficit. The Company also reclassified the embedded derivative value of the beneficial conversion feature of the Series A Preferred Stock issued in April 2014 valued at $5,349,800 as of December 31, 2020, to accumulated deficit.

***<u>REGO Payment Architectures, Inc. Series B Preferred Stock</u>***

The Series B Preferred Stock is pari passu with the Series A Preferred Stock and has a preference in liquidation equal to two times the Original Issue Price, or $50,610,420 as of December 31, 2025, to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 2.5 times the Original Issue Price. The Series B Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series B Preferred Stock can be converted. The Series B Preferred Stock also contains customary approval rights with respect to certain matters. The Series B Preferred Stock accrues dividends at the rate of 8% per annum, or $7.20 per Series B Preferred share.

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The conversion price of the Series B Preferred Stock is currently $0.90 per share. The Series B Preferred Stock is subject to mandatory conversion if certain registration or related requirements are satisfied and the average closing price of the Company's common stock exceeds 2.5 times the conversion price over a period of twenty consecutive trading days.

The conversion feature of the Series B Preferred Stock is an embedded derivative, which is classified as a liability in accordance with FASB ASC 815 and was valued in accordance with FASB ASC 470 as a beneficial conversion feature at a fair market value of $375,841 at October 30, 2014, and $2,156,728 at December 31, 2020. This was classified as an embedded derivative liability and a discount to Series B Preferred Stock. Since the Series B Preferred Stock can be converted at any time, the full amount of the discount was accreted and reflected as a deemed distribution.

The Warrants originally associated with the Series B Preferred Stock were classified as equity, in accordance with FASB ASC 480-10-25. Therefore, it was not necessary to bifurcate these Warrants from the Series B Preferred Stock.

On January 1, 2021, upon adoption of FASB ASU No. 2020-06, *Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity's Own Equity*, the Company reclassified the embedded derivative liability relative to the beneficial conversion feature of the Series B Preferred Stock issued in October 2014 valued at $2,156,728 as of December 31, 2020, to accumulated deficit.

During the years ended December 31, 2025 and 2024, the Company sold 0 and 41,367 shares of the Company's Series B Preferred Stock in private placements to accredited investors and received proceeds of $0 and $3,723,021.

During the year ended December 31, 2025, a 10% Secured Convertible Noteholder converted $200,000 of principal plus $104,468 of accrued interest into 3,383 shares of Series B Preferred Stock (See Note 6). On September 26, 2025 all 3,383 of these Series B Preferred shares were converted into 338,298 shares of the Company's common stock.

***<u>REGO Payment Architectures, Inc. Series C Preferred Stock</u>***

In August 2016, REGO authorized 150,000 shares of REGO's Series C Cumulative Convertible Preferred Stock ("Series C Preferred Stock"). On August 23, 2021, REGO filed with the Delaware Secretary of State an Amendment to the Certificate of Designation of Preferences, Rights and Limitations of Series C Cumulative Convertible Preferred Stock, pursuant to which the amount of authorized Series C Preferred Stock was increased from 150,000 shares to 300,000 shares. As of December 31, 2025, none of the Series C Preferred Stock shares were issued or outstanding. After the date of issuance of Series C Preferred Stock, dividends at the rate of $7.20 per share will begin accruing and will be cumulative. The Series C Preferred Stock is pari passu with the Series A Preferred Stock and Series B Preferred Stock and has a preference in liquidation equal to seven times its original issue price to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 7.5 times its original issue price. The Series C Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series C Preferred Stock can be converted. The Series C Preferred Stock also contains customary approval rights with respect to certain matters.

As of December 31, 2025, the value of the cumulative 8% dividends for all REGO preferred stock was $16,800,495. Such dividends will be paid when and if declared payable by the Company's board of directors or upon the occurrence of certain liquidation events. In accordance with FASB ASC 260-10-45-11, the Company has recorded these accrued dividends as a current liability.

**NOTE 11 - STOCKHOLDERS' EQUITY**

On February 22, 2024, the Company engaged a merchant bank in a consultative capacity to advise on capital funding and strategic initiatives which include the prospective sale of the Company. The Company had agreed to pay a fee equal to 1.5% of the transaction value upon closing. On March 18, 2025, the Company terminated this agreement due to the incapacity of the principal of the merchant bank.

On May 7, 2025, the Company engaged a new investment banker to advise on capital funding and strategic alternatives which include the prospective sale of the Company. The Company agreed to pay a fee equal to 1.75% or 2.00% of the transaction value upon closing, which is dependent upon the aggregate consideration received. There is a minimum fee threshold amount of $1,000,000. No fees were paid to this new investment banker for the year ended December 31, 2025.

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***<u>Option Amendments and Adjustments</u>***

During the years ended December 31, 2024 and 2025, the Board of Directors approved modifications to certain outstanding, fully vested stock options primarily to extend their contractual expiration dates. In 2024, the Company extended the terms of approximately 1.98 million options with exercise prices ranging from $0.90 to $1.70 per share. The extensions generally lengthened the contractual term to December 31, 2025. The incremental fair value resulting from these modifications totaled approximately $396,000, which was recognized as compensation expense during the year ended December 31, 2024.

During the year ended December 31, 2025, the Company extended the terms of approximately 7.55 million options with exercise prices ranging from $0.25 to $1.67 per share. The extensions generally lengthened the contractual term to December 31, 2026 and December 31, 2027. The incremental fair value resulting from these modifications totaled approximately $1.56 million, which was recognized as compensation expense during the year ended December 31, 2025. The incremental fair value of the modified awards was determined using the Black-Scholes option pricing model.

Significant assumptions used in the valuation of the modified awards during 2024 and 2025 included:

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Risk Free Interest Rate | 3.5% - 4.2 | 3.9% - 4.9 |
| Expected Volatility | 63.0% - 81.8 | 58.7% - 62.8 |
| Expected Term (in years) | 1.7 – 2.4 | 1.3 - 2.0 |
| Dividend Yield | 0% | 0% |

---

 ****

***<u>Issuance of Restricted Shares</u>***

A restricted stock award ("RSA") is an award of common shares that is subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the shares before the restricted shares vest. Shares of nonvested restricted stock have the same voting rights as common stock, are entitled to receive dividends and other distributions thereon and are considered to be currently issued and outstanding. The Company's restricted stock awards generally vest over a period of one year. The Company expenses the cost of the restricted stock awards, which is determined to be the fair market value of the shares at the date of grant, straight-line over the period during which the restrictions lapse. For these purposes, the fair market value of the restricted stock is determined based on the closing price of the Company's common stock on the grant date. There were no RSAs granted during the year ended December 31, 2025.

On May 16, 2024, the Company granted the Chief Executive Officer, who is also a Board Member, 300,000 shares of the Company's common stock with an aggregate fair value of $307,500 as a performance-based bonus award pursuant to the raising of capital. The aggregate fair value of the shares was expensed immediately.

On November 14, 2024, the Company granted the Chief Executive Officer, who is also a Board Member, 100,000 shares of the Company's common stock with an aggregate fair value of $99,000 as a performance-based bonus award. The aggregate fair value of the shares was expensed immediately.

**NOTE 12 - STOCK OPTIONS**

In 2008, the Board of Directors ("Board") of the Company adopted the 2008 Equity Incentive Plan ("2008 Plan") that was approved by the shareholders. Under the 2008 Plan, the Company was authorized to grant options to purchase up to 25,000,000 shares of common stock to any officer, other employee or director of, or any consultant or other independent contractor who provides services to the Company. The 2008 Plan was intended to permit stock options granted to employees under the 2008 Plan to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended ("Incentive Stock Options"). All options granted under the 2008 Plan, which were not intended to qualify as Incentive Stock Options are deemed to be non-qualified options ("Non-Statutory Stock Options"). The 2008 Plan expired on March 3, 2019, and no additional grants may be made under the plan. However, options granted prior to the expiration date remain outstanding in accordance with their contractual terms. As of December 31, 2025, options to purchase 200,000 shares of common stock were outstanding and unexercised under the 2008 Plan. No shares remain available for future grants under the 2008 Plan.

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During 2013, the Board adopted the 2013 Equity Incentive Plan ("2013 Plan"), which was approved by stockholders at the 2013 annual meeting of stockholders. Under the 2013 Plan, the Company was authorized to grant awards of stock options, restricted stock, restricted stock units and other stock-based awards of up to an aggregate of 5,000,000 shares of common stock to any officer, employee, director or consultant. The 2013 Plan was intended to permit stock options granted to employees under the 2013 Plan to qualify as Incentive Stock Options. All options granted under the 2013 Plan, which were not intended to qualify as Incentive Stock Options, are deemed to be Non-Statutory Stock Options. The 2013 Plan expired on November 18, 2023, and no additional awards may be granted under the plan. However, awards granted prior to the expiration date remain outstanding in accordance with their respective terms. As of December 31, 2025, awards covering an aggregate of 200,000 shares of common stock were outstanding under the 2013 Plan, consisting of 200,000 shares underlying stock options and 0 shares of nonvested restricted stock or restricted stock units. No shares are available for future grants under the 2013 Plan.

The Company also grants stock options outside the option plans on terms determined by the Board.

In connection with Incentive Stock Options, the exercise price of each option may not be less than 100% of the fair market value of the common stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company).

Prior to January 1, 2014, volatility in all instances presented is the Company's estimate of volatility that is based on the volatility of other public companies that are in closely related industries to the Company. Beginning January 1, 2014, volatility in all instances presented is the Company's estimate of volatility that is based on the historical volatility of the Company's common stock.

The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted by the Company during the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Risk Free Interest Rate | 3.9% | 4.7% |
| Expected Volatility | 81.8% | 60.9% |
| Expected Life (in years) | 4.5 | 2.0 |
| Dividend Yield | 0% | 0% |
| Weighted average estimated fair value of options during the year | $0.23 | $0.37 |

---

The following table summarizes the activities for the Company's stock options for the years ended December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Options Outstanding** | **Options Outstanding** | **Options Outstanding** | **Options Outstanding** |
|  | <br>**Number of**<br>**Shares** | <br>**Weighted-**<br>**Average** <br>**Exercise Price** | **Weighted -**<br>**Average** <br>**Remaining**<br>**Contractual**<br>**Term**<br>**(in years)** | <br>**Aggregate**<br>**Intrinsic**<br>**Value**<br>**(in 000's) (1)** |
| Balance, December 31, 2023 | 14320000 | $0.90 | 1.5 | $8416 |
| Granted | 611150 | 1.03 | 1.5 | $- |
| Exercised |  |  |  |  |
| Expired/Cancelled | (797500) | 0.94 | - | - |
| Balance, December 31, 2024 | 14133650 | $0.90 | 0.8 | $2232 |
| Granted | 2315000 | 0.37 | 4.1 |  |
| Exercised |  |  |  |  |
| Expired/Cancelled | (4952125) | 0.88 | - | - |
| Balance, December 31, 2025 | 11496525 | $0.80 | 1.9 | $93 |
| Exercisable at December 31, 2025 | 11496525 | $0.80 | 1.9 | $93 |
| Exercisable at December 31, 2025 and expected to vest thereafter | 11496525 | $0.80 | 1.9 | $93 |

---

<sup>(1)</sup> The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $0.33 and $0.94 for Company's common stock on December 31, 2025 and 2024.

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During the years ended December 31, 2025 and 2024, the weighted average fair value per share of stock options granted during the year was $0.23 and $0.37. The fair value of stock options for employees is expensed over the vesting term in accordance with the terms of the related stock option agreements and for consultants is expensed over the vesting term, if that is shorter than the term of the consulting agreement, otherwise over the term of the consulting agreement. For the years ended December 31, 2025 and 2024, the Company expensed $527,637 and $650,921 relative to the fair value of stock options granted.

As of December 31, 2025, there was $0 of unrecognized compensation cost related to outstanding stock options. The difference, if any, between the stock options exercisable at December 31, 2025 and the stock options exercisable and expected to vest relates to management's estimate of options expected to vest in the future.

**NOTE 13 - OPERATING LEASES**

For the years ended December 31, 2025 and 2024, total rent expense under leases amounted to $4,917 and $5,291. The rent expense pertains to rented office space for the corporate headquarters. The Company has elected not to recognize right-of-use assets and lease liabilities arising from short-term leases. The Company has no long-term lease obligations as of December 31, 2025.

**NOTE 14 - RELATED PARTY TRANSACTIONS**

In August 2020, the Company entered into an employment agreement with the Chief Executive Officer who is a more than 5% beneficial owner. As of December 31, 2025 and 2024, the Company owed the Chief Executive Officer $6,154 and $4,327 relative to the employment agreement.

The Company entered into a consulting agreement with the son of the Chief Executive Officer, at a cost of $5,000 per month, plus expenses, which was increased to $10,000 per month on January 1, 2021. As of December 31, 2025 and 2024, the Company owed the consultant $0. For the years ended December 31, 2025 and 2024, the Company has expensed $120,000 and $120,000 to this consultant.

On March 1, 2024, the Chief Executive Officer and the Chief Financial Officer each received cash bonuses of $30,000 for a total of $60,000 in aggregate.

On May 16, 2024 the following performance bonuses were earned pursuant the successful completion of the Series B Preferred financing accomplished via a final $3.5 million private placement: 1) Shares of Common Stock: Chief Executive Officer: 300,000 shares; 2) Cash Compensation: Chairman: $50,000; Chief Executive Officer: $50,000; and Chief Financial Officer: $30,000. For the Common Stock award, the Company recorded share-based compensation expense of $307,500, the fair value of the Common Stock issued, in May 2024.

On November 14, 2024, the Chief Executive Officer was paid a performance bonus of 100,000 shares of the Company's common stock. The Company recorded share-based compensation expense of $99,000, the fair value of the Common Stock issued, in November 2024.

On February 19, 2025, the Chief Executive Officer and the Chief Financial Officer each received cash bonuses of $30,000 for a total of $60,000 in aggregate.

See Notes 4,6,7,8, and 15 which also include related party transactions.

[**Table of Contents**](#toc)

**NOTE 15 - INVESTOR PRIVATE LINE OF CREDIT**

On March 13, 2023, the Company entered into an Investor Private Line of Credit agreement (the "LOC Agreement") with an existing shareholder of the Company (the "Lender"). Pursuant to this agreement, the Lender may extend unsecured loans to the Company in the amount of up to twenty million dollars ($20,000,000) which may be drawn upon by the Company for a period of one year in order to provide additional capital to facilitate the Company's operations. Drawings may be made by the Company as long as there has not been any material change in the operations of the Company. Loans under the LOC Agreement bear interest at the rate of 7% per annum. Drawings under the LOC Agreement must be repaid in full:(i) upon the execution and completion of a sale, merger or other transaction of the Company whereby the Company transfers its ownership and/or its assets to a third party within thirty (30) days of the completion of the transaction (a "Change of Control") or (ii) if a Change of Control does not occur within one year from the date of the LOC Agreement, the Company will repay any amounts outstanding within sixty (60) days.

On March 13, 2024, the Company entered into an Amendment to Investor Private Line of Credit (the "Amendment") with the Lender. The Amendment extended the maturity date of the existing Investor Private Line of Credit Agreement with the Lender by one year, from March 13, 2024 to March 13, 2025. On March 13, 2025, the maturity date of this LOC Agreement was extended again for one year to March 13, 2026

As of December 31, 2025 the outstanding balance on this LOC Agreement was $0.

On March 13, 2026, this LOC Agreement expired.

**NOTE 16 – SEGMENT REPORTING**

The Company manages its operations on a consolidated basis and has determined that it operates in a single, reportable segment in accordance with ASC 280, *Segment Reporting*. The Company's reportable segment is a family financial solutions platform that safeguards children's privacy and provides anti-fraud protection for the elderly. The segment is data management and monetization. As the Company has one reportable segment, sales, transaction expense, marketing, product development, and general and administrative expenses are equal to consolidated results.

Financial results for the Company's reportable segment have been prepared using a management approach, which is consistent with the basis and manner in which financial information is evaluated by the Company's CODM in allocating resources and in assessing performance. The Company's CODM is the Chief Executive Officer. The measurement of segment profit or loss that the CODM uses to evaluate the performance of the Company's segment is net income attributable to Rego Payment Architectures, Inc. Financial budgets and actual results used by the CODM to assess performance and allocate resources, as well as strategic decisions related to headcount and other expenditures are reviewed on a consolidated basis. The CODM considers the impact of the significant segment expenses in the table below on net income when deciding where and when to make expenditures.

In accordance with ASC 280, the Company has disclosed below the significant segment expense categories that are regularly provided to the CODM and included in the measure of segment profit or loss.

---

| | | |
|:---|:---|:---|
|  | For the Years Ended | For the Years Ended |
|  | December 31, | December 31, |
|  | <u>2025</u> | <u>2024</u> |
| NET REVENUE | $2250 | $- |
| OPERATING EXPENSES |  |  |
| &nbsp;&nbsp;&nbsp;Transaction expense | 238064 | 345625 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 401801 | 630664 |
| &nbsp;&nbsp;&nbsp;Product development | 3333785 | 3286232 |
| &nbsp;&nbsp;&nbsp;General and administrative | 4544659 | 3676228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 8518309 | 7938749 |
| NET OPERATING LOSS | (8516059) | (7938749) |

---

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**NOTE 17 - SUBSEQUENT EVENTS**

In January and February 2026, the Company granted 250,000 options to purchase the Company's common stock with a weighted average fair value of $0.17 per share. The Company expensed $42,373 for the fair value of stock options granted during this period.

In January 2026, the Company extended the terms of 400,000 options with an exercise price of $0.90 per share. The extension lengthened the contractual term to December 31, 2030 and $65,392 was expensed for the incremental fair value resulting from this modification.

On March 13, 2026, the Company's Investor Private Line of Credit (See Note 15) expired.

## Exhibit 10.29

**Exhibit 10.29**

**EMPLOYMENT AGREEMENT**

THIS EMPLOYMENT AGREEMENT, entered into April 1, 2024 by and between Rego Payment Architectures, Inc., a Delaware corporation (the "Company") and Peter S. Pelullo (the "Employee").

WITNESSETH:

WHEREAS, the Company wishes to employ the Employee as President, Chief Executive Officer, and Board Director of the Company and the Employee is willing to serve the Company in such capacity.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the parties hereto agree as follows:

***Section 1. Employment***

The Company will employ the Employee, and the Employee will perform services for the Company and its subsidiaries, on the terms and conditions set forth in this Agreement.

***Section 2. Duties***

The Employee will serve the Company as its President, Chief Executive Officer and Board Director. The Employee will have such duties and responsibilities as are assigned to him by the Board of Directors of the Company commensurate with the Employee's position, including responsibility for all strategic and operational matters relating to the Company and its subsidiaries, subject to the direction of the Board of Directors. The Employee will perform his duties hereunder faithfully and to the best of his abilities and in furtherance of the business of the Company and its subsidiaries, and will devote his full business time, energy, attention and skill to the business of the Company and its subsidiaries and to the promotion of its interests, except as otherwise agreed by the Company.

***Section 3. Term***

This Agreement shall have an initial term of two years ("Term"), beginning on April 1, 2024 (the "Effective Date"). It shall be renewed for successive one-year periods unless either party gives notice of intent to not renew this Agreement at least 60 days prior to the renewal date. Notwithstanding the foregoing Section 3, this Agreement and the Employee's employment hereunder shall be "at will" and is terminable at any time by either party, without further economic obligation beyond the termination date except as required by law.

***Section 4. Salary***

The Employee will receive as compensation for his duties and obligations to the Company pursuant to this Agreement during its effectiveness a base salary at the annual rate of:

&nbsp;&nbsp;&nbsp;&nbsp;i. Three Hundred and Seventy-Five Thousand Dollars ($375,000) during the first year after the Effective Date and shall be paid in aggregate
upon the termination of the Employee prior to the fulfillment of the Term

&nbsp;&nbsp;&nbsp;&nbsp;ii. The base annual salary shall increase by $25,000 for the second year after the Effective Date and shall be paid in aggregate upon
the termination of the Employee prior to the fulfillment of the Term

&nbsp;&nbsp;&nbsp;&nbsp;iii. It is agreed between the parties that the Company will review the base annual salary annually and, in light of such review, may (but
will not be obligated to), in the discretion of the Board of Directors of the Company or any Compensation Committee thereof, increase
such applicable annual base salary taking into account any change in the Employee's responsibilities, increases in the cost of living,
performance by the Employee, and other pertinent factors.

***Section 5. Bonus***

The Employee will be eligible for an annual bonus in the form of cash or Company common stock as determined at the sole discretion of the Board of Directors of the Company or any Compensation Committee thereof.

Annual bonuses payable hereunder shall be calculated after the close of the end of the calendar year, and thereafter paid in a single lump sum by no later than the 15<sup>th</sup> day of the third month following the end of the calendar year in which the right to the bonus is no longer subject to a substantial risk of forfeiture (as defined for purposes of Internal Revenue Code Section 409A, including Treasury Regulations Section 1.409A-1(d)).

***Section 6. Equity Compensation***

&nbsp;&nbsp;&nbsp;&nbsp;i. Upon the sale of the Company or change in control of more than 50% of the Company's common stock ("Change in Control"),
the Employee shall be granted 1,750,000 shares of the common stock of the Company. The shares will vest immediately.

&nbsp;&nbsp;&nbsp;&nbsp;ii. In the event of termination of the Employee prior to the fulfillment of the Term or Change in Control, 1,750,000 shares of the Company's
common stock shall be granted, fully vested, upon separation.

***Section 7. Employee Benefits***

Subject to any applicable probationary or similar periods, during the period of his employment with the Company, the Employee will be entitled to participate in all employee medical and dental benefit programs of the Company applicable to senior officers of the Company, as such programs may be in effect from time to time. Subject to any applicable probationary or similar periods, during his period of employment with the Company, the Employee will also be entitled to participate in all retirement programs of the Company for which current employees are eligible, as such programs may be in effect from time to time (including the Company's 401(k) plan). Upon the termination of the Employee prior to the fulfillment of the Term, the Employee shall be entitled to medical and dental coverage as per the employee benefit program of the Company for one year after separation.

***Section 8. Business Expenses***

All reasonable travel and other out-of-pocket expenses incidental to the rendering of services by the Employee hereunder will be paid by the Company, and, if expenses are paid in the first instance by the Employee, the Company will reimburse his therefor upon presentation of proper invoices, subject in each case to compliance with the Company's reimbursement policies and procedures. All reimbursements will be paid in the same taxable year in which the expense is incurred, provided that expenses incurred toward the end of the calendar year that cannot administratively be reimbursed before the year end shall be reimbursed by no later than March 15<sup>th</sup> of the calendar year following the calendar year in which the expense was incurred.

***Section 9. Vacations and Sick Leave***

The Employee will be entitled to holidays, reasonable vacation and reasonable sick leave each year, in accordance with policies of the Company, as determined by the Board of Directors, provided, however, that the Employee will be entitled to a minimum of four (4) weeks' vacation per year.

***Section 10. Confidential Information***

The Employee agrees to keep secret and retain in the strictest confidence all confidential matters which relate to the Company or any affiliate of the Company, including, without limitation, customer lists, client lists, trade secrets, pricing policies and other business affairs of the Company and any affiliate of the Company learned by his from the Company or any such affiliate or otherwise before or after the date of this Agreement, and not to disclose any such confidential matter to anyone outside the Company, or any of its affiliates, whether during or after her period of service with the Company, except as may be required in the course of a legal or governmental proceeding. Upon request by the Company, the Employee agrees to deliver promptly to the Company upon termination of his services for the Company, or at any time thereafter as the Company may request, all Company or affiliate memoranda, notes, records, reports, manuals, drawings, designs, computer files in any media and other documents (and all copies thereof) relating to the Company's or any affiliate's business and all property of the Company or any affiliate associated therewith, which she may then possess or have under his control.

***Section 11. Successors and Assigns***

This Agreement will be binding upon and inure to the benefit of the Employee, his heirs, executors, administrators and beneficiaries, and the Company and its successors and assigns.

***Section 12. Governing Law***

This Agreement will be governed by and construed and enforced in accordance with the laws of the State of Pennsylvania, without reference to rules relating to conflicts of law.

***Section 13. Entire Agreement***

This Agreement constitutes the full and complete understanding and agreement of the parties and supersedes all prior understandings and agreements as to employment of the Employee. This Agreement cannot be amended, changed, modified or terminated without the written consent of the parties hereto.

***Section 14. Waiver of Breach***

The waiver of either party of a breach of any term of this Agreement will not operate nor be construed as a waiver of any subsequent breach thereof.

***Section 15. Notices***

Any notice, report, request or other communication given under this Agreement will be written and will be effective upon delivery when delivered personally, by overnight courier or by fax. Unless otherwise notified by any of the parties, notices will be sent to the parties as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. if to the Employee, at the address set forth in the Company's records;

&nbsp;&nbsp;&nbsp;&nbsp;ii. if to the Company: Rego Payment Architectures, Inc., 325 Sentry Parkway, Suite 200, Blue Bell, PA 19422, Attention: Board of Directors

***Section 16. Severability***

If any one or more of the provisions contained in this Agreement will be invalid, illegal or unenforceable in any respect under any applicable law, the validity, legality and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby.

***Section 17. Counterparts***

This Agreement may be executed in counterparts, each of which will be deemed to be an original but all of which together will constitute one and the same instrument. Delivery of signatures by facsimile or electronic image shall be valid for all purposes hereunder.

***Section 18. Internal Revenue Code Section 409A Compliance***

(a) The parties hereto recognize that certain provisions of this Agreement may be affected by Section 409A of the Internal Revenue Code and guidance issued thereunder, and agree to amend this Agreement, or take such other action as may be necessary or advisable, to comply with Section 409A.

(b) Notwithstanding anything herein to the contrary, it is expressly understood that at any time the Company (or any successor or related employer treated as the service recipient for purposes of Internal Revenue Code Section 409A) is publicly traded on an established securities market (as defined for purposes of Internal Revenue Code Section 409A), if a payment or provision of an amount or benefit constituting a deferral of compensation is to be made pursuant to the terms of this Agreement to the Employee on account of a Separation from Service at a time when the Employee is a Specified Employee (as defined for purposes of Internal Revenue Code Section 409A(a)(2)(B)(i)), such deferred compensation shall not be paid to the Employee prior to the date that is six (6) months after the Separation from Service or as otherwise permitted under Treasury Regulations Section 1.409A-3(i)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For purposes of this Agreement, the following definitions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Separation from Service" means, generally, a termination of employment with the Company (or any successor or related
employer treated as the service recipient for purposes of Internal Revenue Code Section 409A), and shall have the same meaning as such
term has for purposes of Internal Revenue Code Section 409A (including Treasury Regulation Section 1.409A-1(h)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Involuntary Separation from Service" means a Separation from Service due to the independent exercise of the unilateral
authority of the Company (or any successor or related employer treated as the service recipient for purposes of Internal Revenue Code
Section 409A) to terminate the Employee's employment, other than due to the Employee's implicit or explicit request, where
the Employee was willing and able to continue employment with the Company. Notwithstanding the foregoing, a termination for Good Reason
may constitute an Involuntary Separation from Service. Involuntary Separation from Service shall have the same meaning as such term has
for purposes of Internal Revenue Code Section 409A (including Treasury Regulation Section 1.409A-1(n)).

[**signature page follows**]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

The Company:

Rego Payment Architectures, Inc.

---

| | |
|:---|:---|
| By: | /s/ Gerald Hannahs |
| Name: | Gerald Hannahs |
| Title: | Chairman, Board of Directors |
| Employee: | Employee: |
| By: | /s/ Peter S. Pelullo |
| Name: | Peter S. Pelullo |

---

## Exhibit 21.1

**Exhibit 21.1**

**SUBSIDIARIES OF REGISTRANT**

<u>Name</u> <u>Jurisdiction</u> <br> 1. REGO Data Solutions, Inc. Delaware

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Peter S. Pelullo, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K for the year ended December 31, 2025, of Rego Payment Architectures, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: March 31, 2026 | By: | /s/ Peter S. Pelullo |
|  |  | Peter S. Pelullo |
|  |  | Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

I, Joseph R. Toczydlowski, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K for the year ended December 31, 2025, of Rego Payment Architectures, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;Date: March 31, 2026 | By: | /s/ Joseph R. Toczydlowski |
|  |  | Joseph R. Toczydlowski |
|  |  | Chief Financial Officer |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF**

**CHIEF EXECUTIVE OFFICER**

**OF REGO PAYMENT ARCHITECTURES, INC.**

**PURSUANT TO 18 U.S.C. SECTION 1350**

In connection with the Annual Report on Form 10-K of Rego Payment Architectures, Inc. (the "Company") for the year ended December 31, 2025, as filed with the Securities and Exchange Commission (the "Report"), I, Peter S. Pelullo, Chief Executive Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350, that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: March 31, 2026 | By: | /s/ Peter S. Pelullo |
|  |  | Peter S. Pelullo |
|  |  | Chief Executive Officer |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF**

**CHIEF FINANCIAL OFFICER**

**OF REGO PAYMENT ARCHITECTURES, INC.**

**PURSUANT TO 18 U.S.C. SECTION 1350**

In connection with the Annual Report on Form 10-K of Rego Payment Architectures, Inc. (the "Company") for the year ended December 31, 2025, as filed with the Securities and Exchange Commission (the "Report"), I, Joseph R. Toczydlowski, Chief Financial Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350, that to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: March 31, 2026 | By: | /s/ Joseph R. Toczydlowski |
|  |  | Joseph R. Toczydlowski |
|  |  | Chief Financial Officer |

---