NOTE 4. PREPAID EXPENSES

Prepaid expenses consist of the following:

On July 1, 2025, the Company purchased annual general risk and director and officers’ insurance policies prepaying annual premiums of $341,306 through an eight-month financing arrangement on the same date (see Note 9). The Company recorded $254,371 and $283,119 of insurance expense related to the prepaid annual general risk and directors & officers insurance premiums during the nine months ended September 30, 2025 and 2024. The Company recorded $85,347 and $83,519 of insurance expense related to the prepaid annual general risk and directors & officers insurance premiums during the three months ended September 30, 2025 and 2024.