# EDGAR Filing Document

**Accession Number:** 0000095572
**File Stem:** 0001213900-26-060156
**Filing Date:** 2026-5
**Character Count:** 91097
**Document Hash:** 945ba0c1eecfeb2aee963ce86fcd9f87
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-060156.hdr.sgml**: 20260521

**ACCESSION NUMBER**: 0001213900-26-060156

**CONFORMED SUBMISSION TYPE**: 8-K/A

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20260331

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260521

**DATE AS OF CHANGE**: 20260521

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KiNRG, Inc.
- **CENTRAL INDEX KEY:** 0000095572
- **STANDARD INDUSTRIAL CLASSIFICATION:** GOLD & SILVER ORES [1040]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 826008752
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-53035
- **FILM NUMBER:** 261009918

**BUSINESS ADDRESS:**
- **STREET 1:** 839 BESTGATE ROAD
- **STREET 2:** SUITE 400
- **CITY:** ANNAPOLIS
- **STATE:** MD
- **ZIP:** 21401
- **BUSINESS PHONE:** 443-227-4545

**MAIL ADDRESS:**
- **STREET 1:** 839 BESTGATE ROAD
- **STREET 2:** SUITE 400
- **CITY:** ANNAPOLIS
- **STATE:** MD
- **ZIP:** 21401

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SOLAR WIND ENERGY TOWER, INC.
- **DATE OF NAME CHANGE:** 20130311

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CLEAN WIND ENERGY TOWER, INC.
- **DATE OF NAME CHANGE:** 20110121

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SUPERIOR SILVER MINES INC
- **DATE OF NAME CHANGE:** 20000101

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K/A**

**Amendment No. 1**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d)**

**OF THE SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (Date of earliest event reported): March 31, 2026**

**KiNRG, Inc.**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| <br> **Nevada** | **000-53035** | **82-6008752** |
| **(State or other jurisdiction**<br> **of incorporation)** | **(Commission File Number)** | **(IRS Employer**<br> **Identification No.)** |

---

**1213 Culbreth Drive, Suite 103**

**Wilmington, North Carolina 28405**

**(Address of principal executive offices, including zip code)**

**Registrant's telephone number, including area code: (910) 509-7183**

**Not Applicable**

**(Former name or former address, if changed since last report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 under the Securities Act or Rule 12b-2 under the Exchange Act.

Emerging growth company ☐

If an emerging growth company, indicate by check mark whether 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. ☐

**Explanatory Note**

On April 2, 2026, KiNRG, Inc., a Nevada corporation (the "Company"), filed a Current Report on Form 8-K (the "Original Form 8-K") reporting, among other things, the completion of the Company's acquisition of Trinity Group Construction, Inc., a Virginia corporation ("Trinity"), pursuant to that certain Stock Purchase Agreement, dated April 1, 2026, by and among the Company, Trinity and Millard L. Wallen, III.

This Amendment No. 1 on Form 8-K/A amends the Original Form 8-K solely to provide the financial statements and unaudited pro forma financial information required by Item 9.01 of Form 8-K. Except as set forth herein, this Amendment No. 1 does not amend, modify or update any other disclosure contained in the Original Form 8-K.

**Item 9.01 Financial Statements and Exhibits.**

**(a) Financial Statements of Businesses Acquired.**

The audited financial statements of Trinity Group Construction, Inc. as of and for the years ended December 31, 2025 and 2024, together with the notes thereto and the report of Toole, Katz & Roemersma, LLP, are filed as Exhibit 99.1 to this Current Report on Form 8-K/A and are incorporated herein by reference.

**(b) Pro Forma Financial Information.**

The unaudited pro forma condensed combined financial information of the Company and Trinity, giving effect to the Company's acquisition of Trinity, is filed as Exhibit 99.2 to this Current Report on Form 8-K/A and is incorporated herein by reference.

**(d) Exhibits.**

---

| | |
|:---|:---|
| **Exhibit** | **Description** |
| 2.1 | [Stock Purchase Agreement, dated March 31, 2026, by and among KiNRG, Inc., Trinity Group Construction, Inc. and Millard L. Wallen, III. Incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed on April 2, 2026](http://www.sec.gov/Archives/edgar/data/95572/000121390026039507/ea028490401ex2-1.htm) |
| 10.1 | [Promissory Note, dated April 1, 2026, issued by KiNRG, Inc. to Millard L. Wallen, III. Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on April 2, 2026](http://www.sec.gov/Archives/edgar/data/95572/000121390026039507/ea028490401ex10-1.htm) |
| 23.1 | [Consent of Toole, Katz & Roemersma, LLP](ea029177301ex23-1.htm) |
| 99.1 | [Financial Statements of Trinity Group Construction, Inc. as of and for the years ended December 31, 2025 and 2024 and unaudited interim financial statements as of and for the three months ended March 31, 2026 and 2025, if applicable](ea029177301ex99-1.htm) |
| 99.2 | [Unaudited Pro Forma Condensed Combined Financial Information of KiNRG, Inc. and Trinity Group Construction, Inc.](ea029177301ex99-2.htm) |
| 104 | Cover Page Interactive Data File, formatted in Inline XBRL |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, KiNRG, Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

**KiNRG, Inc.**

---

| | |
|:---|:---|
| By: | /s/ Ronald W. Pickett |
| Name: | Ronald W. Pickett |
| Its: | Chief Executive Officer |

---

Date: May 21, 2026

## Exhibit 23.1

**Exhibit 23.1** 

**CONSENT OF INDEPENDENT AUDITOR**

We consent to the incorporation in Form 8-K/A of KiNRG, Inc. of the financial statements of TRINITY Group Construction, Inc. as of and for the years ended December 31, 2025 and 2024, and to the inclusion of our report dated April 27, 2026 with respect to such financial statements.

Very truly yours,

/s/ Toole Katz & Roemersma, LLP

Arlington, Virgina

## Exhibit 99.1

**Exhibit 99.1**

 ****

**INDEX TO THE FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| Financial Statements for period ended December 31, 2025 |  |
| [Report of Independent Registered Public Accounting Firm (PCAOB ID: 2738)](#f_001) | F-2 |
| [Consolidated Balance Sheets as of December 31, 2025 and 2024](#f_002) | F-3 |
| [Consolidated Statements of Operations for the years ended December 31, 2025 and 2024](#f_003) | F-4 |
| [Consolidated Statements of Stockholders' Deficit for the years ended December 31, 2025 and 2024](#f_004) | F-5 |
| [Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024](#f_005) | F-6 |
| [Notes to Consolidated Financial Statements](#f_006) | F-7 |

---

![](ea029177301_ex99-1img1.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Stockholders of KiNRG, Inc. and subsidiary

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of KiNRG, Inc. and subsidiary (the Company) as of December 31, 2025 and 2024 and the related consolidated statements of operations, stockholders' deficit, and cash flows for the two years period then ended, 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 consolidated 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.

The Company's Ability to Continue as a Going Concern

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 3 to the accompanying consolidated financial statements, the Company has not yet generated any significant revenue, has incurred recurring losses from operations, generated negative cash flows from operating activities and had an accumulated deficit that raises substantial doubt about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans in regarding these matters are also described in Note 3. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's 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 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.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Going Concern

As discussed in Note 3, the Company has not yet generated any significant revenue, has incurred recurring losses from operations, generated negative cash flows from operating activities and had an accumulated deficit that raises substantial doubt about the Company's ability to continue as a going concern.

We evaluated the appropriateness of the going concern, we examined and evaluated the financial information along with management's plans to mitigate the going concern and management's disclosure on going concern.

/s/ M&K CPAS, PLLC

We have served as the Company's auditor since 2022.

The Woodlands, Texas

March 20, 2026

**KiNRG, Inc.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash | $328466 | $23099 |
| Prepaid expenses |  | 12126 |
| Current assets - discontinued operations | - | 3909 |
| &nbsp;&nbsp;&nbsp;Total current assets | 328466 | 39134 |
| Right of use asset, operating lease | 9471 | 8525 |
| Total assets | $337937 | $47659 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT |  |  |
| Current liabilities: |  |  |
| Accounts payable | 32676 | 18780 |
| Accrued liabilities - related parties | 50000 | 100000 |
| Accrued payroll | 570164 | 476981 |
| Accrued interest | 133883 | 121883 |
| Lease liabilities - operating lease | 9471 | 8525 |
| Loans payable - related party |  | 250000 |
| Notes payable | 80000 | 80000 |
| Other liabilities | 7511 | 11511 |
| Current liabilities - discontinued operations | - | 31265 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | 883705 | 1098945 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 883705 | 1098945 |
| Commitments and Contingencies |  |  |
| Stockholders' equity (deficit) |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, par value $0.0001 per share; 10,000,000 shares authorized, 5,424,700 shares undesignated |  |  |
| &nbsp;&nbsp;&nbsp;Series A Convertible Preferred stock, par value $0.0001 per share, 500,000 shares designated, 0 shares issued and outstanding at December 31, 2025 and 2024 |  |  |
| &nbsp;&nbsp;&nbsp;Series AA Convertible Preferred stock, par value $0.0001 per share, 3,000,000 shares designated, 0 shares issued and outstanding at December 31, 2025 and 2024 |  |  |
| &nbsp;&nbsp;&nbsp;Series AAA Convertible Preferred stock, $0.0001 per share, 70,000 shares designated, 0 shares issued and outstanding at December 31, 2025 and 2024 |  |  |
| &nbsp;&nbsp;&nbsp;Series AAAA Convertible Preferred stock, $0.0001 per share, 1,005,300 shares designated, 0 shares issued and outstanding at December 31, 2025 and 2024 |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, par value $0.0001, 250,000,000 shares authorized, 56,900,743 and 51,538,193 shares issued and outstanding at December 31, 2025 and 2024, respectively | 5690 | 5154 |
| &nbsp;&nbsp;&nbsp;Common stock to be issued, 0 and 2,657,550 shares at December 31, 2025 and 2024, respectively |  | 265 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 28465847 | 25607397 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (29017305) | (26312700) |
| &nbsp;&nbsp;&nbsp;Stockholders' deficit attributable to KiNRG, Inc. | (545768) | (699884) |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | - | (351402) |
| Total stockholders' deficit | (545768) | (1051286) |
| Total liabilities and stockholders' equity | $337937 | $47659 |

---

See the accompanying notes to the consolidated financial statements.

**KiNRG, Inc.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| Operating expenses: |  |  |
| Selling, general, and administrative expenses | $2364934 | $1205354 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 2364934 | 1205354 |
| Operating loss | (2364934) | (1205354) |
| Other expenses: |  |  |
| Gain on settlement of accounts payable | 4000 |  |
| Interest expense | (26548) | (42082) |
| &nbsp;&nbsp;&nbsp;Total other expenses | (22548) | (42082) |
| Loss before provision for income taxes | (2387482) | (1247436) |
| Provision for income taxes | - | - |
| Net loss from continuing operations | (2387482) | (1247436) |
| Net loss from discontinued operations | (317123) | (104595) |
| Consolidated net loss | $(2704605) | $(1352031) |
| Less: Net loss attributable to non-controlling interest | - | (20089) |
| Net loss attributable to KiNRG, Inc. | $(2704605) | $(1331942) |
| Net loss per common share from continuing operations, basic and diluted | $(0.043) | $(0.024) |
| Net loss per common share from discontinued operations, basic and diluted | $(0.006) | $(0.002) |
| Net loss per common share, basic and diluted | $(0.049) | $(0.026) |
| Weighted-average number of common shares outstanding, basic and diluted | 54832811 | 51190679 |

---

**KiNRG, Inc.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT**

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Preferred** | **Series A Preferred** | **Series AA Preferred** | **Series AA Preferred** | **Series AAA Preferred** | **Series AAA Preferred** | **Series AAAA Preferred** | **Series AAAA Preferred** | **Common Stock** | **Common Stock** | **Common Stock<br> To Be Issued** | **Common Stock<br> To Be Issued** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br> Paid-in**<br>**Capital** | **Accumulated**<br>**Deficit** | **Non-controlling**<br>**Interest** |<br>**Total** |
| **Balance, December 31, 2023** |  | $&nbsp;&nbsp;&nbsp;&nbsp; - |  | $&nbsp;&nbsp;&nbsp;&nbsp; - |  | $&nbsp;&nbsp;&nbsp;&nbsp; - |  | $&nbsp;&nbsp;&nbsp;&nbsp; - | 50938193 | $5094 | 2657550 | $265 | $24838202 | $(24980758) | $(331313) | $(468510) |
| Vesting of compensatory warrants |  |  |  |  |  |  |  |  |  |  |  | **-** | 139173 |  |  | 139173 |
| Common stock sold for cash |  |  |  |  |  |  |  |  | 600000 | 60 |  |  | 599940 |  |  | 600000 |
| Imputed interest on related party loans |  |  |  |  |  |  |  |  |  |  |  |  | 30082 |  |  | 30082 |
| Net loss for the year ended December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  | (1331942) | (20089) | (1352031) |
| **Balance, December 31, 2024** |  | $- |  | $- |  | $- |  | $- | 51538193 | $5154 | 2657550 | $265 | $25607397 | $(26312700) | $(351402) | $(1051286) |
| Vesting of compensatory warrants |  |  |  |  |  |  |  |  |  |  |  | **-** | 139173 |  |  | 139173 |
| Common stock sold for cash |  |  |  |  |  |  |  |  | 750000 | 75 |  |  | 749925 |  |  | 750000 |
| Common stock issued for services |  |  |  |  |  |  |  |  | 1125000 | 113 |  |  | 1124887 |  |  | 1125000 |
| Common stock issued for exercise of warrants |  |  |  |  |  |  |  |  | 250000 | 25 |  |  | 249975 |  |  | 250000 |
| Common stock issued to directors for conversion of fees |  |  |  |  |  |  |  |  | 150000 | 15 |  |  | 149985 |  |  | 150000 |
| Common stock issued to officers for conversion of salaries |  |  |  |  |  |  |  |  | 180000 | 18 |  |  | 179982 |  |  | 180000 |
| Common stock issued for conversion of note payable |  |  |  |  |  |  |  |  | 250000 | 25 |  |  | 249975 |  |  | 250000 |
| Common stock issued from shares to be issued |  |  |  |  |  |  |  |  | 2657550 | 265 | (2657550) | (265) |  |  |  |  |
| Imputed interest on related party loans |  |  |  |  |  |  |  |  |  |  |  |  | 14548 |  |  | 14548 |
| Derecognition of subsidiary |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 351402 | 351402 |
| Net loss for the year ended December 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  | (2704605) |  | (2704605) |
| **Balance, December 31, 2025** |  | $- |  | $- |  | $- |  | $- | 56900743 | $5690 | - | $- | $28465847 | $(29017305) | $- | $(545768) |

---

**KiNRG, Inc.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **For the**<br>**Year Ended**<br>**December 31,**<br>**2025** | **For the**<br>**Year Ended**<br>**December 31,**<br>**2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net loss | $(2704605) | $(1352031) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Stock based compensation | 1264173 | 139173 |
| &nbsp;&nbsp;&nbsp;Imputed interest on loans payable | 14548 | 30082 |
| &nbsp;&nbsp;&nbsp;Loss on sale of subsidiary | 316343 |  |
| Changes in current assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Right-of-use asset | 10309 | 9892 |
| &nbsp;&nbsp;&nbsp;Prepaid assets | 12126 | (12126) |
| &nbsp;&nbsp;&nbsp;Accounts payable | 13690 | 18780 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities - related party | 100000 | 100000 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 12000 | 12000 |
| &nbsp;&nbsp;&nbsp;Accrued payroll | 273183 | 183516 |
| &nbsp;&nbsp;&nbsp;Other liabilities |  | (16842) |
| &nbsp;&nbsp;&nbsp;Operating lease liability | (10309) | (9892) |
| Net cash used in operating activities | (698542) | (897448) |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| None. |  |  |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of common stock | 750000 | 600000 |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants | 250000 | - |
| Net cash provided by financing activities | 1000000 | 600000 |
| Net increase (decrease) in cash and cash equivalents | 301458 | (297448) |
| Cash and cash equivalents at beginning of period | 27008 | 324456 |
| Cash and cash equivalents at end of period | $328466 | $27008 |
| Cash and cash equivalents at end of period - continuing operations | $328466 | $23099 |
| Cash and cash equivalents at end of period - discontinued operations | $- | $3909 |
| **SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:** |  |  |
| Interest paid | $- | $- |
| Income taxes paid | $- | $- |
| **NON-CASH INVESTING AND FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Establish right-of-use asset and liability | $11255 | $10130 |
| &nbsp;&nbsp;&nbsp;Common stock issued for conversion of loan payable - related party | $250000 | $- |
| &nbsp;&nbsp;&nbsp;Common stock issued to directors for conversion of fees | $150000 | $- |
| &nbsp;&nbsp;&nbsp;Common stock issued to officers for conversion of salaries | $180000 | $- |
| &nbsp;&nbsp;&nbsp;Common stock issued for services | $113 | $- |
| &nbsp;&nbsp;&nbsp;Common stock issued from shares to be issued | $265 | $- |

---

**KiNRG, Inc.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**December 31, 2025 and 2024**

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

<u>Description of Business</u>

KiNRG is a green energy company. Our core objective and focus is to become a leading provider of clean efficient green energy and green hydrogen to the world communities at a reasonable coast without the destructive residual of fossil fuel, while continuing to generate innovative technological solutions for today and tomorrow's electrical power needs. We have assembled a team of experienced business professionals, engineering and scientific consultants with the proven ability to bring the idea to market. We have filed and been issued patents. We have designed, engineered, developed and are preparing to construct both smaller and large HydroThermal Reactors that use benevolent, non-toxic natural elements to generate electricity economically by integrating and synthesizing numerous proven as well as emerging technologies. In addition to constructing smaller and large HydroThermal Reactors in the United States and abroad, the Company intends to establish partnerships at home and abroad to propagate these systems and meet increasing global demand for electricity. The Company is developing a smaller "modular" reactor to support AI data centers and other applications where a constant 24/7/365 base load is required.

<u>Basis of Presentation</u>

The accompanying consolidated financial statements present on a consolidated basis the accounts of the Company and subsidiaries. The Company presents noncontrolling interest within the equity section of its consolidated balance sheets and the amount of consolidated net income (loss) that is attributable to the Company and to the noncontrolling interest in its consolidated statement of operations. All significant intercompany accounts and transactions have been eliminated in consolidation.

<u>Discontinued Operations</u>

Pursuant to the guidance of Accounts Standards Codification ("ASC") 205-20, *Presentation of Financial Statements* – *Discontinued Operations,* the accounts of our discontinued entity Arizona Green Power ("AGP") have been included in "Net loss from discontinued operations" in our consolidated statements of operations until such time as the entity was sold; this sale occurred February 17, 2025. See note 2. Additionally, the assets and liabilities of this entity have been presented as discontinued operations in our consolidated balance sheets.

<u>Reclassifications</u>

Certain amounts presented in the financial statements of the prior period have been reclassified to conform with the current period presentation of discontinued operations. See Note 2.

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

The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification ("Paragraph 820-10-35-37") to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP) and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below:

Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. <br>Level 3 Pricing inputs that are generally observable inputs and not corroborated by market data.

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

Our short-term financial instruments, including cash, other assets, and accounts payable and accrued expenses consist primarily of instruments without extended maturities, the fair value of which, based on management's estimates, reasonably approximate their book value. The fair value of our notes and advances payable is based on management estimates and reasonably approximates their book value based on their current maturity.

<u>Use of Estimates</u>

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability and useful lives of long-lived assets, the fair value of the Company's stock, stock-based compensation, and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.

<u>Long-Lived Assets</u>

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with Topic ASC 360, "Property, Plant and Equipment". Recoverability is measured by comparison of the carrying amount to the future net cash flows which the assets are expected to generate. 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 assets exceeds the projected discounted future cash flows arising from the asset using a discount rate determined by management to be commensurate with the risk inherent to our current business model.

<u>Net Loss per Common Share</u>

The Company computes net loss per share under Accounting Standards Codification subtopic 260-10, Earnings Per Share ("ASC 260-10"). Basic net income (loss) per common share is computed by dividing net loss by the weighted average number of shares of common stock. Diluted net loss per share is computed using the weighted average number of common and common stock equivalent shares outstanding during the period. There is no effect on diluted loss per share since the common stock equivalents are anti-dilutive. Dilutive common stock equivalents consist of shares issuable upon the exercise of warrants. Fully diluted shares as of December 31, 2025 and 2024 were 56,915,743 and 55,335,743, respectively.

<u>Revenue Recognition</u>

The Company has generated no revenues to date. It is the Company's policy that revenue from product sales or services will be recognized in accordance with Financial Accounting Standards Board "FASB" Accounting Standards Codification "ASC" 606. A five-step analysis must be met as outlined in Topic 606: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations, and (v) recognize revenue when (or as) performance obligations are satisfied. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded.

<u>Stock Based Compensation</u>

The Company measures and recognizes stock-based compensation expense based on the grant date fair value of the awards. The Company accounts for forfeitures as they occur. The grant date fair value of stock options and warrants with service-based vesting only is estimated using the Black-Scholes option pricing model.

The Black-Scholes model requires the use of highly subjective assumptions, including the award's expected term, the fair value of the underlying common stock, the expected volatility of the price of the common stock, risk-free interest rates, and the expected dividend yield of the common stock.

The assumptions used to determine the fair value of the stock-based awards are management's best estimates and involve inherent uncertainties and the application of judgment. The expected term represents the period that the Company's stock-based awards are expected to be outstanding. As the Company does not have sufficient historical experience for determining the expected term of the stock option awards granted, it has based its expected term on the simplified method available under U.S. GAAP.

Stock-based compensation expense for awards with financial performance conditions is recognized over the requisite service period. Stock-based compensation expense for awards with service-based vesting only is recognized on a straight-line basis over the requisite service period of the awards. The vesting period of these awards is generally four years.

<u>Income Taxes</u>

The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that have been included or excluded in the financial statements or tax returns. Deferred tax assets and liabilities are determined on the basis of the difference between the tax basis of assets and liabilities and their respective financial reporting amounts ("temporary differences") at enacted tax rates in effect for the years in which the temporary differences are expected to reverse.

The Company adopted the provisions of Accounting Standards Codification ("ASC") Topic 740-10, which prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company's consolidated financial statements as of December 31, 2025 and 2024. The Company does not expect any significant changes in its unrecognized tax benefits within twelve months of the reporting date.

The Company's policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general and administrative expenses in the consolidated statements of operations.

<u>Advertising Costs</u>

All costs associated with advertising and promotion are expensed as incurred. Total recognized advertising and promotion expenses were $500 and $0 for the years ended December 31, 2025 and 2024, respectively.

<u>Research and Development</u>

In accordance with ASC 730, "Research and Development", the Company expenses all research and development costs as incurred. The Company incurred $0 of research and development costs for the years ended December 31, 2025 and 2024. The company expects the research and development costs to increase in the future as it continues to invest in the infrastructure that is critical to achieve our business goals and objectives.

<u>Cash and Cash Equivalents</u>

For purposes of the statement of cash flows, cash and cash equivalents includes demand deposits, saving accounts and money market accounts. The Company considers all highly liquid debt instruments with maturities of three months or less when purchased to be cash and cash equivalents. As of December 31, 2025 and 2024, the Company had cash in excess of the $250,000 FDIC insured amount in the amounts of $78,466 and $0, respectively.

<u>Related Parties</u>

The Company follows the ASC 850-10 Related Party for the identification of related parties and disclosure of related party transactions.

Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The consolidated financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

<u>Commitments and Contingencies</u>

The Company follows the ASC 450-20, Commitments to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company's financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company's business, financial position, and results of operations or cash flows.

<u>Recently Issued Accounting Pronouncements</u>

In November 2023, the FASB issued ASU 2023-07, *Segment Reporting* (Topic 280): *Improvements to Reportable Segment Disclosures*. The amended guidance requires incremental reportable segment disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable segment to provide all disclosures required by these amendments, and all existing segment disclosures. The amendments will be applied retrospectively to all prior periods presented in the financial statements and is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024, with early adoption permitted. We adopted this guidance on January 1, 2024 and have included it in our annual disclosures; however, it did not impact our financial condition, results of operations, or cash flows. For additional information, see "Note 15—Segment Information."

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the U.S. The OBBBA includes significant provisions, such as expensing of U.S. research expenditures and eligible capital expenditures, the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The impacts of the OBBBA are reflected in our results for the year ended December 31, 2025, and there was no impact to our income tax expense or effective income tax rate.

<u>Accounting Standards Issued, Not Adopted</u>

In July 2025, the FASB issued ASU 2025-05, which provides a practical expedient for estimating expected credit losses on short term receivables and contract assets from revenue transactions. The guidance permits a simplified loss rate approach based on historical write-off experience and current conditions. This update is effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted. We are evaluating the impact this update will have on our annual disclosures; however, we do not anticipate a material impact to our financial condition, results of operations, or cash flows.

In November 2024, the FASB issued Accounting Standard Update No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ("ASU 2024-03"). This standard requires additional disclosures over certain expenses, including purchases of inventory, employee compensation, depreciation, intangible asset amortization, and other specific expense categories. This standard also requires disclosure of the total amount of selling expenses and the Company's definition of selling expenses. This update is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We are evaluating the impact this update will have on our annual disclosures; however, we do not anticipate a material impact to our financial condition, results of operations, or cash flows.

**NOTE 2: DISCONTINUED OPERATIONS**

From November 17, 2015 through December 31, 2023, through its subsidiary Arizona Green Power ("AGP"), the Company had entered into an agreement (the "Land Option Agreement"), and a series of amendments to said agreement, to purchase land in Arizona. The Land Option Agreement expired in March 2024. With the expiration of the Land Option Agreement, the Company has made the strategic decision to divest itself from AGP.

On February 17, 2025, the Company completed the sale of its majority interest in AGP to Ron Pickett, its CEO, for the amount of $1. This amount was credited against the amount due to Mr. Pickett for business expenses. The were no assets on the books of AGP. The Company de-recognized the liabilities of AGP and the balance of non-controlling interest. The gain on sale of AGP to related party was recognized in additional paid-in capital as follows:

---

| | |
|:---|:---|
| Other Liabilities | $(35058) |
| Non-controlling interest | 351402 |
| Accounts payable | (1) |
| Loss on sale of subsidiary | $(316343) |

---

The following information presents the major classes of line item of assets and liabilities included as part of discontinued operations in the consolidated balance sheets:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Current assets - discontinued operations: |  |  |
| Cash | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $3909 |
| Total current assets - discontinued operations | $- | $3909 |
| Current liabilities - discontinued operations: |  |  |
| Other liabilities | - | 31265 |
| Total current liabilities - discontinued operations | $- | $31265 |

---

The following information presents the major classes of line items constituting the after-tax loss from discontinued operations in the consolidated statements of operations:

---

| | | |
|:---|:---|:---|
|  | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Selling, general, and administrative expenses | 780 | 104595 |
| Loss on sale of subsidiary | 316343 | - |
| Loss from discontinued operations, net of tax | $317123 | $104595 |

---

The following information presents the significant operating cash flow activities in the consolidated statements of cash flows relating to discontinued operations:

---

| | | |
|:---|:---|:---|
|  | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Operating activities of discontinued operations |  |  |
| Net loss from discontinued operations | $(317123) | $(104595) |
| Loss on sale of subsidiary | 316343 |  |
| Changes in current assets and liabilities: |  |  |
| Accounts payable | 3791 | (16844) |

---

**NOTE 3: GOING CONCERN**

For the years ended December 31, 2025 and 2024, the Company incurred a net loss from continuing operations of $2,387,482 and $1,247,436, respectively, and has an accumulated deficit of $29,017,305 as of December 31, 2025. At December 31, 2025, we have a working capital deficit of $555,239, compared to $1,059,811 at December 31, 2024.

The Company has been dependent on raising capital through debt and equity financings to meet its needs for cash used in operating and investing activities. During the year ended December 31, 2025, the Company received proceeds of $750,000 from the sale of common stock and proceeds of $250,000 from the exercise of common stock warrants. During the year ended December 31, 2024, the Company received proceeds of $600,000 from the sale of common stock. Until the Company can generate positive cash from operations, it will need to raise additional funding to meet its liquidity needs and to execute its business strategy. As in the past, the Company will seek debt and/or equity financing, which may not be available on reasonable terms, if at all.

The Company's audited consolidated financial statements for the year ended December 31, 2025 and 2024 were prepared under the assumption that it would continue operations as a going concern. However, the report of the Company's independent registered public accounting firm that accompanies the Company's consolidated financial statements for the year ended December 31, 2025 contains a qualification in which such firm expressed substantial doubt about the Company's ability to continue as a going concern.

**NOTE 4: RIGHT-OF-USE ASSETS AND LEASE LIABILITIES** – **OPERATING LEASES**

The Company has operating leases for offices and has recognized a right-of-use asset and a lease liability. The Company uses a 12% rate to determine the present value of the lease payments. The Company's leases have remaining lease terms of less than 1 year.

The Company's lease expense was entirely comprised of operating leases. Lease expense for the years ended December 31, 2025 and 2024 amounted to $11,000 and $10,550, respectively.

The Company's ROU asset amortization for the years ended December 31, 2025 and 2024 was $10,308 and $9,893, respectively. The difference between the lease expense and the associated ROU asset amortization consists of interest.

Right of use assets – operating leases are summarized below:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| Office | $9471 | $8525 |
| Right of use assets, net | $9471 | $8525 |

---

Operating lease liabilities are summarized below:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| Office | $9471 | $8525 |
| Lease liability | 9471 | 8525 |
| Less: current portion | (9471) | (8525) |
| Lease liability, non-current | $— | $— |

---

Maturity analysis under these lease agreements are as follows:

---

| | |
|:---|:---|
| For the year ended December 31, 2026 | $10000 |
| Less: Present value discount | (529) |
| Lease liability | $9471 |

---

**NOTE 5: ACCRUED LIABILITIES - RELATED PARTIES**

Accrued liabilities and expenses as of December 31, 2025 and 2024 consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| Board of Director fees | $50000 | $100000 |
| Total | $50000 | $100000 |

---

During the year ended December 31, 2025, the Company accrued fees due to the Board of Directors in the amount of $100,000 and converted accrued fees due to the Board of Directors in the amount of $150,000 into 150,000 shares of the Company's common stock. There was no gain or loss recorded on this transaction as the conversion occurred at the fair value price of $1.00 per share.

During the year ended December 31, 2024, the Company accrued fees due to the Board of Directors in the amount of $100,000.

**NOTE 6: ACCRUED PAYROLL**

Accrued payroll as of December 31, 2025 and 2024 consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| Accrued payroll | $542460 | $463274 |
| Accrued payroll taxes | 27704 | 13707 |
| Total | $570164 | $476981 |

---

The Company disputes the amount of $67,850 which is included in accrued payroll at December 31, 2025 and 2024. This amount was recorded during the period ended December 31, 2014 as due to its then CFO. The Company does not believe it has any liability to this individual*.*

*Activity during the year ended December 31, 2025*

The Company accrued salaries in the amount of $405,000, made payments of $145,814, and converted accrued salaries due to officers in the amount of $180,000 into 180,000 shares of the Company's common stock. There was no gain or loss recorded on this transaction as the conversion occurred at the market price at the time of the conversion. The Company accrued payroll taxes in the amount of $55,384 and made payments of $41,386.

*Activity during the year ended December 31, 2024*

The Company accrued salaries in the amount of $435,000 and made payments of $263,885. The Company accrued payroll taxes in the amount of $103,598 and made payments of $91,198.

**NOTE 7: NOTES PAYABLE IN DEFAULT**

Notes payable as of December 31, 2025 and 2024 consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, <br> 2025** | **December 31, <br> 2024** |
| Note payable issued April 7, 2014 | $80000 | $80000 |
| Total | 80000 | 80000 |
| Less current portion | (80000) | (80000) |
| Long term portion | $— | $— |

---

On April 7, 2014, Arizona Green Power, LLC, a majority owned subsidiary of the Company, issued a note payable for $80,000 with interest at 10% per annum with a 15% default rate of interest, due at maturity of April 6, 2016. In connection with the issuance of the note, the Company granted i) a 1.33% ownership interest in Arizona Green Power, LLC and ii) a warrant to purchase 4,800 shares of the Company's common stock exercisable at $2.00 per share. This warrant expired on March 7, 2016. During each of the years ended December 31, 2025 and 2024, the Company accrued interest in the amount of $12,000 on this note. As of December 31, 2025, the amount of principal and accrued interest due on this note is $80,000 and $133,883, respectively. As of December 31, 2024, the amount of principal and accrued interest due on this note is $80,000 and $121,883, respectively. This note is in default as of the filing date. See note 15.

**NOTE 8: LOANS PAYABLE – RELATED PARTIES**

On December 28, 2022, the Company received a non-interest bearing loan in the amount of $250,000 from a related party ("2022 Loan 1"). The Company imputed interest at a rate of 12% per annum, and charged interest expense in the amount of $14,548 and $30,082 to additional paid-in capital pursuant to 2022 Loan 1 during the years ended December 31, 2025 and 2024, respectively. On June 30, 2025, the Company issued 250,000 shares of common stock at a price of $1.00 per share for the conversion of 2022 Loan 1 in the amount of $250,000. There was no gain or loss recorded on this transaction as the conversion occurred at the market price at the time of the conversion. Principal in the amount of $0 and $250,000 was due under 2022 Loan 1 at December 31, 2025 and 2024, respectively.

**NOTE 9: COMMITMENTS AND CONTINGENCIES**

*Lease Obligations*

The Company leases an office at 1213 Culbreth Drive, Suite 103, Wilmington, North Carolina 28405, on an annual lease. See Note 4. Rental expenses charged to operations for the years ended December 31, 2025 and 2024 were $11,000 and $10,550, respectively.

*Employment and Consulting Agreements*

The Company has employment agreements with certain of its key employees which include non-disclosure and confidentiality provisions for protection of the Company's proprietary information.

The Company has consulting agreements with outside contractors to provide marketing and financial advisory services. The Agreements are generally for a term of 12 months from inception and renewable automatically from year to year unless either the Company or Consultant terminates such engagement by written notice.

On December 29, 2010, pursuant to the Merger, Solar Wind Energy, Inc. became a wholly-owned subsidiary of the Company. Solar Wind has employment agreements with its executive officers. Each of the employment agreements was entered into on September 22, 2010 and amended on November 22, 2010. On March 30, 2023, the Board of Directors approved the contracts of its President and of its Chief Operating Officer through December 31, 2023. Any unpaid salaries are accrued and included in Accrued Payroll on the balance sheet. See Note 6.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Position(s)** | **Term** | **Salary** | **Bonus** | **Severance** |
| Ronald W. Pickett | Chief Executive Officer | 3 years; renewable for 1 year on mutual consent | $200000 | Board Discretionary | Twelve (12) month salary and benefits for termination without cause. |
| Stephen Sadle | Chief Operating Officer | 3 years; renewable for 1 year on mutual consent | $175000 | Board Discretionary | Twelve (12) month salary and benefits for termination without cause. |
| Robert Crabb | Secretary | 1 year | $30000 | Board Discretionary | N/A |

---

Terms to modify the one-year contract extension by mutual consent have been agreed to by the Officers and Directors. Under the modification and extension, the contracts will be extended for an additional 4 years with current salaries being unchanged. Provisions for automatic salary increases based on specific events related to business development successes, rights for the officers to convert any accrued salary into Company notes, and rights to receive warrants to purchase Company stock at market plus 20% premium at the time of the grant while notes are outstanding will be incorporated in the new contracts. The parties have mutually agreed to a stock option plan, the specific terms to be negotiated as part of the final contract.

*Litigation*

 

 In March 2026, the Company received notification of a lawsuit by the holder of a note payable by AGP, demanding payment of principal in the amount of $80,000 and accrued interest in the amount $121,883. The Company's legal counsel is currently reviewing this case. The company believes this lawsuit is without merit, and plans to vigorously defend its position. The entire amount of principal and interest appears on the Company's balance sheet, and no additional liability has been recorded.

 

From time to time, we may become involved in various lawsuits and legal proceedings, which arise, in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are not aware of any such legal proceedings that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results.

**NOTE 10: STOCKHOLDERS' DEFICIT**

<u>Preferred stock</u>

The Company has authorized 10,000,000 shares of preferred stock, with a par value of $0.0001 per share. As of December 31, 2025 and 2024, the Company had 0 shares of preferred stock issued and outstanding.

Series A Convertible Preferred Stock:

On June 2, 2015, the Company designated 500,000 as Series A Convertible Preferred Stock ("Series A preferred") at $0.0001 par value. Each Series A preferred share i) shall rank senior in regard to dividend rights, rights of redemption and liquidation to all classes of common stock and any class or series of capital stock of the Company hereafter creates, ii) receive dividends if and when declared by the Company's board of directors, iii) each share of Series A preferred convertible into 0.386 shares of common and iv) each share of Series A preferred stock is entitled to 8,000 votes for each share of common stock into which Series A preferred could then be converted.

*Series A Convertible Preferred Stock transactions during the year ended December 31, 2025*

None.

*Series A Convertible Preferred Stock transactions during the year ended December 31, 2024*

None.

At December 31, 2025 and 2024, there are no shares of Series A Convertible Preferred Stock outstanding.

Series AA Convertible Preferred Stock:

On December 17, 2020, the Company designated 3,000,000 shares of Series AA Convertible Preferred stock (the "Series AA Preferred"), par value $0.0001, with a stated value of $1.00 per share. Each share of the Series AA Preferred is convertible to common stock at a rate of $0.40 per share, and will have voting rights on an as-converted basis. There are no provisions for coupons or any conversion terms into any form of debt or repayment in cash and therefore these series AA convertible preferred stock is classified as equity accounts.

*Series AA Convertible Preferred Stock transactions during the year ended December 31, 2025*

None.

*Series AA Convertible Preferred Stock transactions during the year ended December 31, 2024*

None.

At December 31, 2025 and 2024, there were no shares of Series AA Convertible Preferred Stock outstanding.

Series AAA Convertible Preferred Stock:

On March 31, 2021, the Company designated 70,000 shares of Series AAA Convertible Preferred Stock (the "Series AAA Preferred"), par value $0.0001, with a stated value of $1.00 per share. Each share of the Series AAA Preferred is convertible into ten shares of common stock and will have voting rights on an as-converted basis. There are no provisions for coupons or any conversion terms into any form of debt or repayment in cash and therefore the series AAA convertible preferred stock is classified as equity.

*Series AAA Convertible Preferred Stock transactions during the year ended December 31, 2025*

None.

*Series AAA Convertible Preferred Stock transactions during the year ended December 31, 2024*

None.

At December 31, 2025 and 2024, there were 0 shares of Series AAA Convertible Preferred Stock outstanding.

Series AAAA Convertible Preferred Stock:

On September 30, 2021, the Company designated 500,000 shares of Series AAAA Convertible Preferred Stock (the "Series AAAA Preferred"), par value $0.0001, with a stated value of $1.00 per share. On May 24, 2022, the Company designated an additional 500,000 shares of Series AAA Preferred. Each share of the Series AAAA Preferred is convertible into two shares of common stock, and will have voting rights on an as-converted basis. On May 24, 2022, the Company increased the number of shares designated as Series AAAA Preferred to 1,000,000. Thereafter, the Company further increased the number of shares designated as Series AAAA Preferred bringing the total to 1,005,300. There are no provisions for coupons or any conversion terms into any form of debt or repayment in cash and therefore the series AAAA convertible preferred stock is classified as equity.

 

*Series AAAA Convertible Preferred Stock transactions during the year ended December 31, 2025*

None.

*Series AAAA Convertible Preferred Stock transactions during the year ended December 31, 2024*

None.

At December 31, 2025 and 2024, there were 0 shares of Series AAAA Convertible Preferred Stock outstanding.

<u>Common Stock</u>

The Company has authorized 250,000,000 shares of common stock, with a par value of $0.0001 per share. As of December 31, 2025 and 2024, the Company had 56,900,743 and 51,538,193 shares of common stock issued and outstanding, respectively.

*Common stock transactions during the year ended December 31, 2025*

The Company received $250,000 from the sale of 250,000 shares of common stock and warrants to purchase an additional 250,000 shares of common stock at an exercise price of $1.00 per share.

The Company issued 500,000 shares of common stock for gross proceeds of $500,000.

The Company issued 150,000 shares of common stock at a price of $1.00 per share to Directors for the conversion of accrued director's fees in the amount of $150,000. There was no gain or loss recorded on this transaction as the conversion occurred at the market price at the time of the conversion.

The Company issued 250,000 shares of common stock at a price of $1.00 per share to a related party for the conversion of a note payable in the amount of $250,000. There was no gain or loss recorded on this transaction as the conversion occurred at the market price at the time of the conversion.

The Company issued 180,000 shares of common stock at a price of $1.00 per share to Officers for the conversion of accrued salary in the amount of $180,000. There was no gain or loss recorded on this transaction as the conversion occurred at the market price at the time of the conversion.

The Company issued 250,000 shares of common stock at a price of $1.00 per share for the exercise of warrants at a price of $1.00 per share. There was no gain or loss recorded on this transaction as the conversion occurred at the exercise price established in the warrant agreement.

The Company issued 1,125,000 shares of common stock with a fair value of $1,125,000 to its President as compensation for services. The Company charged the amount of $1,125,000 to stock based compensation.

The Company issued 2,657,550 shares of common stock to a board member from common stock to be issued. The par value of these shares in the amount of $265 was transferred from common stock to be issued to common stock. There was no gain or loss on this transaction as the value of the shares had been recorded when originally charged to common stock to be issued.

*Common stock transactions during the year ended December 31, 2024*

The Company sold 600,000 shares of common stock at a price of $1.00 per share.

<u>Common Stock to be Issued</u>

 

*Common stock to be issued transactions during the year ended December 31, 2025*

The Company issued 2,657,550 shares of common stock to a board member from common stock to be issued. The par value of these shares in the amount of $265 was transferred from common stock to be issued to common stock. There was no gain or loss on this transaction as the value of the shares had been recorded when originally charged to common stock to be issued.

*Common stock to be issued transactions during the year ended December 31, 2024*

None.

<u>Warrants</u>

During the years ended December 31, 2025 and 2024, a total of $139,173 and $139,173, respectively, was charged to operations for the amortization of warrants.

*Warrant activity for the year ended December 31, 2025*

The Company issued 250,000 warrants to purchase common shares of the Company at $1.00 per share in connection with the sale of $250,000 of common stock. The warrants vested upon issuance and carry an expiration date of December 31, 2025.

Investors exercised 250,000 warrants at a price of $1.00 per share for the issuance of 250,000 shares of common stock. The Company received gross proceeds in the amount of $250,000.

1,125,000 warrants with an exercise price of $0.40 per share expired.

*Warrant Activity for the Year Ended December 31, 2024*

None.

The following table summarizes the warrants outstanding and the related prices for the warrants to purchase shares of the Company's common stock issued by the Company as of December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|<br><br>**Range of**<br>**exercise**<br>**prices** |<br><br>**Number of**<br>**warrants**<br>**outstanding** |<br>**Weighted**<br>**average**<br>**remaining**<br>**contractual**<br>**life (years)** | **Weighted**<br>**average**<br>**exercise**<br>**price of**<br>**outstanding**<br>**warrants** |<br><br>**Number of**<br>**warrants**<br>**exercisable** | **Weighted**<br>**average**<br>**exercise**<br>**price of**<br>**exercisable**<br>**warrants** |
| $1.05 | 15000 | 1.50 | $1.05 | 15000 | $1.05 |
|  | 15000 | 1.50 | $1.05 | 15000 | 1.05 |

---

Transactions involving warrants are summarized as follows:

---

| | | |
|:---|:---|:---|
|  | **Number of<br> Shares** | **Weighted<br> Average<br> Exercise<br> Price** |
| Warrants outstanding at December 31, 2024 | 1140000 | $0.41 |
| Issued | 250000 | 1.00 |
| Exercised | (250000) | 1.00 |
| Cancelled/Expired | (1125000) | 0.40 |
| Warrants outstanding at December 31, 2025 | 15000 | $1.05 |

---

<u>Incentive Stock Plan</u>

On February 18, 2021, the Company's board of directors approved an incentive stock plan (the "2021 Incentive Stock Plan") in order to provide additional incentive to employees, directors, and consultants. The 2021 Incentive Stock Plan permits the grant of Incentive Stock Options, Non-statutory Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units and Performance Shares. The maximum number of aggregate shares available for issuance under the 2021 Incentive Stock Plan is 4,000,000. At December 31, 2025 and 2024, no shares have been issued pursuant to the 2021 Incentive Stock Plan. However, the Company intends to issue 72,000 options to employees to purchase common stock of the Company at $1.00 per share. The Company intends for the options to vest at a rate of 1/3 at the end of each year for three years and have an expiration date of September 30, 2028, or upon the employee's termination.

**NOTE 11: NON-CONTROLLING INTEREST**

On February 17, 2025, the Company completed the sale of its majority interest in AGP to Ron Pickett, its CEO, for the amount of $1. This amount was credited against the amount due to Mr. Pickett for business expenses. The were no assets on the books of AGP. The Company de-recognized the liabilities of AGP and the balance of non-controlling interest. The loss on sale of AGP to related party was recognized in income as follows:

---

| | |
|:---|:---|
| Other Liabilities | $(35058) |
| Non-controlling interest | 351402 |
| Accounts payable | (1) |
| Loss on sale of subsidiary | $(316343) |

---

At December 31, 2025 and 2024, the Company's ownership interest in AGP was 0% and 82.77%, respectively, and minority interest was 0% and 17.23%, respectively.

A reconciliation of the non-controlling loss attributable to the Company:

There was no non-controlling interest net loss attributable to the Company for the year ended December 31, 2025.

Net loss attributable to non-controlling interest for the three months ended December 31, 2024:

---

| | |
|:---|:---|
| Net loss generated by AGP | $116595 |
| Non-controlling interest percentage | 17.23% |
| Net loss attributable to non-controlling interest | $20089 |

---

**NOTE 12: INCOME TAXES**

Deferred income taxes result from the temporary differences primarily attributable to amortization of intangible assets and debt discount and an accumulation of net operating loss carryforwards for income tax purposes with a valuation allowance against the carryforwards for book purposes.

In assessing the realizability 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. Included in deferred tax assets are Federal and State net operating loss carryforwards of approximately $19.5 million, which will expire through 2040. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Due to significant changes in the Company's ownership, the Company's future use of its existing net operating losses may be limited.

Significant components of the Company's deferred tax assets as of December 31, 2025 and 2024 are summarized below.

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **December 31,<br> 2024** |
| Net operating loss carryforwards | $5693874 | $5303813 |
|  | 5693874 | 5303813 |
| Valuation allowance | (5693874) | (5303813) |
| Net deferred tax assets | $— | $— |

---

In assessing the potential 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 be realized. The ultimate realization of deferred tax assets is dependent upon the Company attaining future taxable income during the periods in which those temporary differences become deductible. As of December 31, 2025 and 2024, management was unable to determine if it is more likely than not that the Company's deferred tax assets will be realized and has therefore recorded an appropriate valuation allowance against deferred tax assets at such dates.

No U.S. federal tax provision has been provided for the Company for the years ended December 31, 2025 and 2024 due to the losses incurred during the periods.

The reconciliation below presents the difference between the income tax rate computed by applying the U.S. federal statutory rate and the effective tax rate for the years ended December 31, 2025 and 2024.

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **December 31,<br> 2024** |
| U. S. federal statutory tax rate | (21.0)% | (21.0)% |
| State statutory tax rate | (8.25)% | (8.25)% |
| Change in valuation allowance | 29.25% | 29.25% |
| Effective tax rate | 0.0% | 0.0% |

---

At December 31, 2025 and 2024, the Company has available net operating loss carryforwards for U.S. federal corporate income tax purposes of approximately $5,693,874 and $5,303,813, respectively. U.S. federal net operating losses, if not utilized earlier, expire through 2041.

**NOTE 13: RELATED PARTY TRANSACTIONS**

*For the year months ended December 31, 2025*

On February 17, 2025, the Company completed the sale of its majority interest in AGP to Ron Pickett, its CEO, for the amount of $1. This amount was credited against the amount due to Mr. Pickett for business expenses. The were no assets on the books of AGP. The Company de-recognized the liabilities of AGP and the balance of non-controlling interest. The loss on sale of AGP to related party was recognized in income (loss) from discontinued operations.

The Company accrued salaries in the amount of $405,000, made payments of $145,814, and converted accrued salaries due to officers in the amount of $180,000 into 180,000 shares of the Company's common stock. There was no gain or loss recorded on this transaction as the conversion occurred at the market price at the time of the conversion. The Company accrued payroll taxes in the amount of $55,384 and made payments of $41,386. At December 31, 2025, the amount of $474,610 of accrued salaries due to officers is included in the Company's balance sheet as Accrued Payroll. See note 6.

On June 30, 2025, the Company issued 180,000 shares of common stock at a price of $1.00 per share to Officers for the conversion of accrued salary in the amount of $180,000. There was no gain or loss recorded on this transaction as the conversion occurred at the market price at the time of the conversion.

On June 30, 2025, the Company issued 150,000 shares of common stock at a price of $1.00 per share to Directors for the conversion of accrued director's fees in the amount of $150,000. There was no gain or loss recorded on this transaction as the conversion occurred at the market price at the time of the conversion.

On June 30, 2025, the Company issued 250,000 shares of common stock at a price of $1.00 per share to a related party for the conversion of a note payable in the amount of $250,000. There was no gain or loss recorded on this transaction as the conversion occurred at the market price at the time of the conversion.

On September 30, 2025, the Company issued 2,657,550 shares of common stock to a board member from common stock to be issued. The par value of these shares in the amount of $265 was transferred from common stock to be issued to common stock. There was no gain or loss on this transaction as the value of the shares had been recorded when originally charged to common stock to be issued.

On December 29, 2025, the Company issued 1,125,000 shares of common stock with a fair value of $1,125,000 to its President as compensation for services. The amount of $1,125,000 was charged to stock based compensation. See Note 10.

During the year ended December 31, 2025, the Company accrued fees due to the Board of Directors in the amount of $100,000.

*For the year ended December 31, 2024*

The Company accrued salaries due to officers in the amount of $435,000 and made payments of accrued salaries due to officers in the amount of $263,885. At December 31, 2024, the amount of $395,423 of accrued salaries due to officers is included in the Company's balance sheet as Accrued Payroll. See note 7.

The Company accrued fees due to the Board of Directors in the amount of $100,000.

*Common stock to be issued*

The Company had committed to issue 710,220 shares at a price of $0.50 per share for the cashless conversion of 1,775,550 warrants. There was no gain or loss recorded on this transaction as the conversion occurred pursuant to the terms of the warrants.

The Company had committed to issue 700,000 shares of common stock at a price of $0.10 per share for the conversion of Series AAA Preferred Stock. There was no gain or loss recorded on this transaction as the conversion occurred pursuant to the terms of the Series AAA Preferred.

The Company had committed to issue 1,183,700 shares of common stock at a price of $0.50 per share for the conversion of 591,850 shares of Series AAAA Preferred Stock. There was no gain or loss recorded on this transaction as the conversion occurred pursuant to the terms of the Series AAAA Preferred.

The Company had committed to issue 63,630 shares of common stock at a price of $1.00 per share to a related party as compensation. There was no gain or loss recorded on this transaction as the transaction was recorded at the market price of the common stock.

The Company issued 2,657,550 shares of common stock to a board member from common stock to be issued. The par value of these shares in the amount of $265 was transferred from common stock to be issued to common stock. There was no gain or loss on this transaction as the value of the shares had been recorded when originally charged to common stock to be issued.

**NOTE 14: SEGMENT INFORMATION**

The Company operates in one reportable segment: the generation of green energy. The Company intends to leverage intellectual property and engage innovative clean energy technology to provide a reliable source of green electricity. The Company has not generated any revenues from operations. The accounting policies of the segment are the same as those described in the summary of significant accounting policies. The chief operating decision maker ("CODM") includes the chief executive officer and chief operating officer. The CODM decides how to allocate resources based on the components of net loss from continuing operations and significant expenses. The CODM evaluates expenses to ensure resources are appropriately allocated to foster progress. The segment net loss from continuing operations and significant segment expenses are presented in the table below. Segment assets are reported on the balance sheet as total assets, including assets of discontinued operations.

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Operating Expenses: |  |  |
| Advertising and promotion | $500 | $- |
| Bank service charges | 941 | 1189 |
| Office supplies | 17119 | 5265 |
| Payroll and related costs | 433796 | 469048 |
| Director compensation | 100000 | 100000 |
| Rent expense | 14000 | 3000 |
| Insurance | 46158 | 19013 |
| Filing fees | 9170 |  |
| Travel expense | 36044 | 6226 |
| Professional fees | 389546 | 226897 |
| Consulting expense | 51399 | 234000 |
| Taxes and licenses | 1627 | 1543 |
| Stock based compensation | 1264174 | 139173 |
| Other expenses | 460 | - |
|  | 2364934 | 1205354 |
| Other (income) expenses: |  |  |
| (Gain) on settlement of accounts payable | (4000) |  |
| Interest expense | 26548 | 42082 |
|  | 22548 | 42082 |
| Segment loss | $(2387482) | $(1247436) |
| Adjustments and reconciling items |  |  |
| Net loss from continuing operations | $(2387482) | $(1247436) |

---

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2025** | **December 31, <br> 2024** |
| Other segment disclosures: |  |  |
| Segment assets | $337937 | $47659 |

---

**NOTE 15: SUBSEQUENT EVENTS**

<u>Non-Binding Letter of Intent</u>

The Company has entered into a non-binding letter of intent (the "LOI") subject to a definitive agreement with Mil L. Wallen, CEO and owner of 100% of the shares of Trinity Group Construction, Inc. ("Trinity"). Mr. Wallen is President of KiNRG and a related party. Pursuant to the LOI, KiNRG would acquire 100% of the stock of Trinity. The parties intend to combine Trinity's expertise in constructing data centers with KiNRG's HydroThermal Reactor power generation technology to market a data center solution. Specific terms of the LOI have not been finalized.

Notification of Lawsuit by Noteholder

In March 2026, the Company received notification of a lawsuit by the holder of a note payable by AGP, demanding payment of principal in the amount of $80,000 and accrued interest in the amount $121,883. The Company's legal counsel is currently reviewing this case. The company believes this lawsuit is without merit, and plans to vigorously defend its position. The entire amount of principal and interest appears on the Company's balance sheet, and no additional liability has been recorded. See note 7.

## Exhibit 99.2

**Exhibit 99.2**

**KiNRG, INC.**

**UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET**

**AS OF DECEMBER 31, 2025**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **KiNRG, Inc.** | **Trinity Group<br> Construction, Inc.** | **Pro forma<br> Adjustments** | **Notes** | **Combined<br> Pro Forma** |
| ASSETS |  |  |  |  |  |
| Current assets: |  |  |  |  |  |
| Cash | $328466 | $8918182 | (1000000) | (A) | $8246648 |
| Contract receivables |  | 29467294 |  |  | 29467294 |
| Retention receivables |  | 16856094 |  |  | 16856094 |
| Costs and estimated earnings in excess of billings on uncompleted contracts |  | 2587083 |  |  | 2587083 |
| Investment in and advances to limited liability company |  |  |  |  |  |
| Due from stockholder |  | 575415 |  |  | 575415 |
| Due from affiliate |  | 10193064 |  |  | 10193064 |
| Prepaid expenses | 12126 | 243468 |  |  | 255594 |
| Current assets - discontinued operations | - | - |  |  | - |
| &nbsp;&nbsp;&nbsp;Total current assets | 340592 | 68840600 |  |  | 68181192 |
| Property and equipment, net |  | 149949 |  |  | 149949 |
| Right of use asset, operating lease | 9471 | 424466 |  |  | 433937 |
| Deposit |  | 10000 |  |  | 10000 |
| Indefinite-lived intangible assets | - | - | 4496587 | (B) | 4496587 |
| Total assets | $350063 | $69425015 |  |  | $73271665 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT |  |  |  |  |  |
| Current liabilities: |  |  |  |  |  |
| Accounts payable | 6311 | 35056470 |  |  | 35062781 |
| Retention payable |  | 16898127 |  |  | 16898127 |
| Accrued liabilities - related parties | 50000 |  |  |  | 50000 |
| Accrued salaries and other current liabilities | 570164 | 1153773 |  |  | 1723937 |
| Contract liabilities |  | 6249004 |  |  | 6249004 |
| Obligations under future receivables financing, net |  | 5544777 |  |  | 5544777 |
| Accrued interest | 133883 |  |  |  | 133883 |
| Current portion of operating lease liabilities | 9471 | 204104 |  |  | 213575 |
| Current portion of long-term debt |  | 14664 |  |  | 14664 |
| Notes payable | 80000 |  |  |  | 80000 |
| Note payable related party |  |  | 3000000 | (C) | 3000000 |
| Other liabilities | 7511 | - |  |  | 7511 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | 857340 | 65120919 |  |  | 68978259 |
| Operating lease liabilities, net of current portion |  | 224039 |  |  | 224039 |
| Long-term debt, net of current portion | - | 37895 |  |  | 37895 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 857340 | 65382853 |  |  | 69240193 |
|  |  | 4042162 |  |  |  |
| Commitments and Contingencies |  |  |  |  |  |
| Stockholders' equity (deficit) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, 56,900,743 shares | 5690 | 22500 | (22080) | (D),(E) | 6110 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 27790847 | 158411 | 4379918 | (D),(E) | 32329176 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (28303814) | 3861251 | (3861251) | (F) | (28303814) |
| Total stockholders' deficit | (507277) | 4042162 |  |  | 4031472 |
| Total liabilities and stockholders' equity | $350063 | $69425015 |  |  | $73271665 |

---

**KiNRG, INC.**

**UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS**

**FOR THE YEAR ENDED DECEMBER 31, 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **KiNRG** | **TRINITY** | **Adjustments** | **Combined** |
| Revenues | $- | $257274405 |  | $257274405 |
| Contract Costs | - | 248311805 |  | 248311805 |
| &nbsp;&nbsp;&nbsp;Gross profit |  | 8962600 |  | 8962600 |
| Operating expenses: |  |  |  |  |
| Selling, general, and administrative expenses | $1651443 | $5933422 |  | $7584865 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 1651443 | 5933422 |  | 7584865 |
| Operating profit (loss) | (1651443) | 3029178 |  | 1377735 |
| Other income (expense): |  |  |  |  |
| Interest income, net of interest expense | (26548) | 675255 |  | 648707 |
| Other income |  | 73986 |  | 73986 |
| Gain on settlement of accounts payable | 4000 |  |  | 4000 |
| Loss on investment in limited liability company | - | (709) |  | (709) |
| &nbsp;&nbsp;&nbsp;Total other income (expense) | (22548) | 748532 |  | 725984 |
| (Loss) income before provision for income taxes | (1673991) | 3777710 |  | 2103719 |
| Provision for income taxes | - | 2250 |  | 2250 |
| Net (loss) income from continuing operations | (1673991) | 3775460 |  | 2101469 |
| Net loss from discontinued operations | (317123) | - |  | (317123) |
| Consolidated net (loss) income | $(1991114) | $3775460 |  | $1784346 |
| Net loss per common share from continuing operations, basic and diluted | $0.0300 |  |  | $0.0300 |
| Net loss per common share from discontinued operations, basic and diluted | $(0.006) |  |  | $(0.005) |
| Net loss per common share, basic and diluted | $(0.036) |  |  | $0.027 |
| Weighted-average number of common shares outstanding, basic and diluted | 54832811 |  | 4200000 (E) | 59032811 |

---

**KiNRG, INC.**

**UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION**

**Introduction**

The following unaudited pro forma condensed combined financial information is presented to illustrate the estimated effects of the acquisition by KiNRG, Inc. ("KiNRG" or the "Company") of 100% of the issued and outstanding equity interests of Trinity Group Construction, Inc. ("Trinity), completed on April 1, 2026 (the "Acquisition"), pursuant to the Stock Purchase Agreement dated March 31, 2026.

The Acquisition was completed in exchange for (i) $1,000,000 in cash, (ii) 4,200,000 shares of KiNRG common stock, and (iii) a promissory note in the principal amount of $3,000,000 (the "Promissory Note").

The unaudited pro forma condensed combined balance sheet as of December 31, 2025 gives effect to the Acquisition as if it had been consummated on December 31, 2025. The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2025 gives effect to the Acquisition as if it had been consummated on January 1, 2025.

The pro forma financial information was prepared using the acquisition method under ASC 805, Business Combinations, with Spectral as the acquirer. The information is preliminary and subject to revision as valuations are finalized during the measurement period (up to one year). It should be read in conjunction with: (i) the audited financial statements of KiNRG (Exhibit 99.1); (ii) the audited consolidated financial statements of Trinity; and (iii) the notes herein.

**Preliminary Purchase Price**

The purchase consideration is as follows, based on sales of KiNRG stock at $2.00 per share on September 26, 2025:

---

| | |
|:---|:---|
| Cash | $1000000 |
| Note payable | 3000000 |
| Common stock (4,200,000 shares x $2.00) | 8400000 |
| **Total estimated purchase price** | $**12400000** |

---

**Preliminary Purchase Price Allocation**

The following table sets forth the preliminary allocation of the purchase price. Historical carrying values have been used as a reasonable approximation of fair value, subject to completion of a formal valuation during the measurement period:

---

| | |
|:---|:---|
| **Assets acquired:** | |
| Cash and cash equivalents | $8918182 |
| Contract receivables | 29467294 |
| Retention receivables | 16856094 |
| Costs and estimated earnings in excess of billings on uncompleted contracts | 2587083 |
| Due from stockholder | 575415 |
| Due from affiliate | 10193064 |
| Prepaid expenses and other current assets) | 243468 |
| Property and equipment, net | 149949 |
| Operating lease right-of-use assets | 424466 |
| Deposit | 10000 |
| **Total identifiable assets acquired** | $**69425015** |
| **Liabilities assumed:** |  |
| Accounts payable | $35056470 |
| Retention payable | 16898127 |
| Accrued salaries and other current liabilities | 1153773 |
| Contract liabilities | 6249004 |
| Obligation under future receivables financing, net | 5544777 |
| Current portion of operating lease liabilities | 204104 |
| Current portion of long-term debt | 14664 |
| Operating lease liabilities, net of current portion | 224039 |
| Long-term debt, net of current portion | 37895 |
| **Total liabilities assumed** | $**65382853** |
| Net identifiable assets acquired | $4042162 |
| Total purchase price | 12400000 |
| **Goodwill** | $**8357838** |

---

Goodwill represents the expected synergies from growth opportunities not separately identifiable. None of the goodwill is expected to be deductible for income tax purposes, as the transaction is intended to qualify as a tax-free reorganization under IRC Section 368(a)(1)(B).

**KiNRG, INC.** 

**NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION**

**Note 1. Description of the Acquisition**

On November 7, 2025, KiNRG (the "Company") and Mil L. Wallen, owner of 100% of the shares of Trinity Group Construction, a Virginia Corporation (the "Sellers") entered into a Letter of Intent for the acquisition of Trinity by the Company, subject to definitive agreement (the "LOI"). On March 31, 2026, the Company entered into a Stock Purchase Agreement (the "Purchase Agreement") with Trinity and Millard L. Wallen, III (the "Seller"), pursuant to which the Company agreed to acquire 100% of the issued and outstanding capital stock of Trinity (the "Acquisition"). The closing of the Acquisition occurred on April 1, 2026.

**Note 2. Purchase Price** 

The purchase price consists of the following: (i) $1,000,000 cash; (ii) 4,200,000 shares of KiNRG common stock, par value $0.0001 per share, at a price of $2.00 per share, the price of arms-length sales of the Company's common stock in March, 2026; (iii) a note payable in the amount of $3,000,000 an interest rate of 6% per annum due on the earlier of the closing of a public offering by the Company or September 30, 2026.

**Note 3. Basis of Presentation**

Historical KiNRG data is from the audited Form 10-K for FY2025 ($0 revenue, $350,063 total assets, $1,991,114 net loss). Historical Trinity data is from the audited financial statements for FY2025 ($257.3M revenue, $69.4M total assets, $3.8M net income). Transaction Accounting Adjustments reflect application of ASC 805 as described in Note 4. No Management's Adjustments or Autonomous Entity Adjustments have been included.

**Note 4. Pro Forma Adjustments**

Balance sheet adjustments:

&nbsp;&nbsp;&nbsp;&nbsp;(A) To record $1,000,000 Acquisition cash payment.

&nbsp;&nbsp;&nbsp;&nbsp;(B) Recognition of goodwill of $4,496,587 representing the excess
of total purchase consideration of $12,400,000 over the net book value of identifiable assets of $4,042,162, reduced by Trinity's
historical retained earnings of $3,861,251.

&nbsp;&nbsp;&nbsp;&nbsp;(C) To record $3,000,000 Acquisition note payable.

&nbsp;&nbsp;&nbsp;&nbsp;(D) To record cancellation of Trinity historical no par value
common stock of $22,500.

&nbsp;&nbsp;&nbsp;&nbsp;(E) To record the issuance of 4,200,000 shares of common stock, par value $0.0001, at a price of $2.00 per share; common stock was increased
by $420 and additional paid-in capital was increased by $8,399,580. Additional paid-in capital was also reduced by $4,042,162 representing
the net book value of assets acquired.

&nbsp;&nbsp;&nbsp;&nbsp;(F) To eliminate Trinity historical retained earnings of $3,861,251.

Income statement adjustments:

No adjustments recorded as no recurring changes to the cost structure of the combined entities are expected.

N**ote 5. Pro Forma Earnings Per Share**

Pro forma basic and diluted EPS are calculated as follows:

Pro forma net income: $1,784,346.

Pro forma weighted average basic shares: 54,832,811 (KiNRG historical) + 4,200,000 (closing shares as if outstanding since January 1, 2025) = 59,032,811.

Pro forma basic EPS Continuing Operations – basic and diluted: $1,784,346 / 59,032,811 = $0.03 per share.