NOTE 4. PREPAID EXPENSES

Prepaid expenses consist of the following:

On July 1, 2024, the Company purchased annual general risk and director and officers’ insurance policies prepaying annual premiums of $330,083 through an eight-month financing arrangement on the same date (see Note 8). The Company recorded $167,371 and $199,600 of insurance expense related to the prepaid annual general risk and directors & officers insurance premiums during the six-month periods ended June 30, 2025 and 2024. The Company recorded $83,519 and $106,764 of insurance expense related to the prepaid annual general risk and directors & officers insurance premiums during the six-month periods ended June 30, 2025 and 2024.