UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~June~~September 30, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 033-19411-C

OCEAN THERMAL ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

Nevada

20-5081381

(State or other jurisdiction

of incorporation or organization)

(I.R.S. Employer

Identification No.)

3675 Market Street, Suite 200, Philadelphia, PA 19104

(Address of principal executive offices, including zip code)

(717) 299-1344

(Registrant’s telephone number, including area code)

n/a

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Exchange Act: None

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☐	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of December 17, 2025, issuer had 190,012,124 outstanding shares of common stock, par value $0.001.

TABLE OF CONTENTS

	Description	Page
PART I-FINANCIAL INFORMATION
Item 1	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Changes in Stockholders’ Deficit	5
	Condensed Consolidated Statements of Cash Flows	7
	Notes to the Condensed Consolidated Financial Statements	8
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3	Quantitative and Qualitative Disclosures about Market Risk	14
Item 4	Controls and Procedures	14
PART II-OTHER INFORMATION
Item 1	Legal Proceedings	15
Item 1A	Risk Factors	15
Item 2	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	1516
Item 3	Defaults upon Senior Securities	1516
Item 6	Exhibits	18
	Signature	19

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30,2025			December 31,2024
	September 30,2025			December 31,2024
ASSETS
Current Assets
Cash	$	~~139~~56,~~743~~111		$	16,142
Costs in excess of billings		480,219			-
Accounts receivable		395,695			-
Costs in excess of billings		248,499			-
Prepaid expenses		5,000			5,000
Total Current Assets		~~624~~705,~~962~~305			21,142
Total Assets	$	~~624~~705,~~962~~305		$	21,142
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable and accrued expense	$	2829,~~600~~505,~~241~~547		$	26,473,157
Notes payable - related party		2,304,170			2,304,170
Convertible notes payable - related party, net		117,500			117,500
Notes payable		3,~~633~~623,131			3,638,131
Convertible note payable, net		2,~~534~~544,665			2,539,665
Advances payable - related party, net		59,~~848~~578			60,388
Derivative liability		~~103~~174,~~837~~819,~~415~~690			9,423,915
Total Current Liabilities		~~141~~212,~~086~~974,~~970~~281			44,556,926
Convertible notes payable due after one year, net		4356,~~340~~950			16,120
Total Liabilities		~~141~~213,~~130~~031,~~310~~231			44,573,046
Commitments and contingencies (See Note 7)		-			-
Stockholders' deficit
Preferred Stock, Series B, $0.001par value; 1,250,000 shares authorized, 518,750 and 518,750 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively		519			519
Preferred Stock, Series B, $0.001 par value; 1,250,000 shares authorized, 518,750 shares issued and outstanding as of September 30, 2025 and December 31, 2024		519			519
Preferred Stock, Series C, $0.001 par value; 2,700,000 shares authorized, 2,300,000 and 2,300,000 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively		2,300			2,300
Preferred Stock, Series C, $0.001 par value; 2,700,000 shares authorized, 2,300,000 shares issued and outstanding as of September 30, 2025 and December 31, 2024		2,300			2,300
Preferred Stock, Series D, $0.001 par value; 1,400 shares authorized, 1,400 and 1,400 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively		1			1
Preferred Stock, Series D, $0.001 par value; 1,400 shares authorized, 1,400 shares issued and outstanding as of September 30, 2025 and December 31, 2024		1			1
Common stock, $0.001 par value; 200,000,000 shares authorized, 190,012,124 and 190,012,124 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively		190,013			190,013
Common stock, $0.001 par value; 200,000,000 shares authorized, 190,012,124 shares issued and outstanding as of September 30, 2025 and December 31, 2024		190,013			190,013
Common stock subscribed		~~135~~307,~~000~~500			-
Additional paid-in capital		62,521,759			62,521,759
Accumulated deficit		(~~203~~275,~~354~~348,~~940~~018	)		(107,266,496	)
Total Stockholders' Deficit		(~~140~~212,~~505~~325,~~348~~926	)		(44,551,904	)
Total Liabilities and Stockholders' Deficit	$	~~624~~705,~~962~~305		$	21,142

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

Table of Contents

OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	For the three months ended						For the six months ended
	June 30,2025			June 30,2024			June 30,2025			June 30,2024
Revenue	$	846,382		$	-		$	1,019,419		$	-
Direct cost of contracts		629,827			-			758,590			-
Gross profit		216,555			-			260,829			-
Operating Expenses
Salaries and compensation		218,580			234,054			420,535			466,864
Professional fees		111,645			117,305			194,263			272,175
General and administrative		14,518			35,024			21,023			55,708
Total Operating Expenses		344,743			386,383			635,821			794,747
Loss from Operations		(128,188	)		(386,383	)		(374,992	)		(794,747	)
Other Income (Expenses)
Interest expense, net		(683,801	)		(602,833	)		(1,339,610	)		(1,228,389	)
Amortization of debt discount		(13,610	)		-			(27,220	)		-
Change in fair value of derivative liability		(93,860,116	)		7,309,946			(94,358,520	)		(3,172,160	)
Gain on conversion of debt		-			-			11,898			30,303
Total Other Income (Expense)		(94,557,527	)		6,707,113			(95,713,452	)		(4,370,246	)
Income (Loss) Before Income Taxes		(94,685,715	)		6,320,730			(96,088,444	)		(5,164,993	)
Provision for Income Taxes		-			-			-			-
Net Income (Loss)	$	(94,685,715	)	$	6,320,730		$	(96,088,444	)	$	(5,164,993	)
Net Income (Loss) per Common Share – Basic	$	(0.48	)	$	0.03		$	(0.50	)	$	(0.03	)
Net Income (Loss) per Common Share – Diluted	$	(0.48	)	$	(0.00	)	$	(0.50	)	$	(0.03	)
Weighted Average Number of Common Shares Outstanding – Basic		196,186,849			190,012,124			193,605,494			187,408,283
Weighted Average Number of Common Shares Outstanding – Diluted		196,186,849			967,522,167			193,605,494			187,408,283

OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	For the three months ended						For the nine months ended
	September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024

Revenue	$	413,567		$	-		$	1,432,986		$	-
Direct cost of contracts		307,752			-			1,066,342			-
Gross profit		105,815			-			366,644			-

Operating Expenses
Salaries and compensation		167,293			225,621			587,828			692,485
Professional fees		214,187			122,663			408,450			394,838
General and administrative		8,602			30,226			29,625			85,934
Total Operating Expenses		390,082			378,510			1,025,903			1,173,257

Loss from Operations		(284,267	)		(378,510	)		(659,259	)		(1,173,257	)

Other Income (Expenses)
Interest expense, net		(712,926	)		(628,141	)		(2,052,536	)		(1,856,530	)
Amortization of debt discount		(13,610	)		-			(40,830	)		-
Change in fair market value of derivative liability		(70,982,275	)		5,264,094			(165,340,795	)		2,091,934
Gain on conversion of debt		-			-			11,898			30,303
Total Other Income (Expense)		(71,708,811	)		4,635,953			(167,422,263	)		265,707

Income (Loss) Before Income Taxes		(71,993,078	)		4,257,443			(168,081,522	)		(907,550	)

Provision for Income Taxes		-			-			-			-

Net Income (Loss)	$	(71,993,078	)	$	4,257,443		$	(168,081,522	)	$	(907,550	)

Net Income (Loss) per Common Share – Basic	$	(0.38	)	$	0.02		$	(0.89	)	$	(0.01	)
Net Income (Loss) per Common Share – Diluted	$	(0.38	)	$	0.00		$	(0.89	)	$	(0.01	)
Weighted Average Number of Common Shares Outstanding – Basic		190,012,124			190,012,124			190,012,124			188,282,566
Weighted Average Number of Common Shares Outstanding – Diluted		190,012,124			1,602,305,775			190,012,124			188,282,566

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

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OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ ~~DEFICIT~~DEFICIENCY

(Unaudited)

FOR THE ~~SIX~~NINE MONTHS ENDED ~~JUNE~~SEPTEMBER 30, 2025 AND 2024

	Preferred Stock				Common Stock				Additional					Total
	Number of		Par		Number of		Par		Paid-in		Accumulated			Stockholders’
	Shares		Value		Shares		Value		Capital		Deficit			Deficiency
Balance December 31, 2023		2,819,952	$	2,820		184,370,469	$	184,371	$	61,962,151	$	(106,081,333	)	$	(43,931,991	)
Common stock issued for conversion of note		-		-		5,641,655		5,642		163,608		-			169,250
Series D Preferred Stock issued for cash		~~158~~198		-		-		-		~~316~~396,000		-			~~316~~396,000
Net Loss		-		-		-		-		-		(5907,~~164,993~~550	)		(5907,~~164,993~~550	)
Balance June 30, 2024 (Unaudited)		2,820,110	$	2,820		190,012,124	$	190,013	$	62,441,759	$	(111,246,326	)	$	(48,611,734	)
Balance September 30, 2024 (Unaudited)		2,820,150	$	2,820		190,012,124	$	190,013	$	62,521,759	$	(106,988,883	)	$	(44,274,291	)

	Preferred Stock				Common Stock				Common		Additional					Total
	Number of		Par		Number of		Par		Stock		Paid-in		Accumulated			Stockholders’
	Shares		Value		Shares		Value		Subscribed		Capital		Deficit			Deficiency
Balance December 31, 2024		2,820,150	$	2,820		190,012,124	$	190,013	$	-	$	62,521,759	$	(107,266,496	)	$	(44,551,904	)
Common stock subscribed		-		-		-		-		~~135~~307,~~000~~500		-		-			~~135~~307,~~000~~500
Net Loss		-		-		-		-		-		-		(96168,~~088~~081,~~444~~522	)		(96168,~~088~~081,~~444~~522	)
Balance June 30, 2025 (Unaudited)		2,820,150	$	2,820		190,012,124	$	190,013	$	135,000	$	62,521,759	$	(203,354,940	)	$	(140,505,348	)
Balance September 30, 2025 (Unaudited)		2,820,150	$	2,820		190,012,124	$	190,013	$	307,500	$	62,521,759	$	(275,348,018	)	$	(212,325,926	)

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

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OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIENCY

(Unaudited)

FOR THE THREE MONTHS ENDED ~~JUNE~~SEPTEMBER 30, 2025 AND 2024

	Preferred Stock				Common Stock				Additional					Total
	Number ofShares		Par Value		Number ofShares		Par Value		Paid-inCapital		AccumulatedDeficit			Stockholders’Deficiency
Balance March 31, 2024 (Unaudited)		2,819,977	$	2,820		190,012,124	$	190,013	$	62,175,759	$	(117,567,056	)	$	(55,198,464	)
Series D Preferred Stock issued for cash		133		-		-		-		266,000		-			266,000
Net Income		-		-		-		-		-		6,320,730			6,320,730
Balance June 30, 2024 (Unaudited)		2,820,110	$	2,820		190,012,124	$	190,013	$	62,441,759	$	(111,246,326	)	$	(48,611,734	)
Series D Preferred Stock issued for cash		40		-		-		-		80,000		-			80,000
Net Income		-		-		-		-		-		4,257,443			4,257,443
Balance September 30, 2024 (Unaudited)		2,820,150	$	2,820		190,012,124	$	190,013	$	62,521,759	$	(106,988,883	)	$	(44,274,291	)

	Preferred Stock				Common Stock				Common		Additional					Total
	Number ofShares		Par Value		Number ofShares		Par Value		Stock Subscribed		Paid-inCapital		AccumulatedDeficit			Stockholders’Deficiency
Balance March 31, 2025 (Unaudited)		2,820,150	$	2,820		190,012,124	$	190,013	$	95,500	$	62,521,759	$	(108,669,225	)	$	(45,859,133	)
Balance June 30, 2025 (Unaudited)		2,820,150	$	2,820		190,012,124	$	190,013	$	135,000	$	62,521,759	$	(203,354,940	)	$	(140,505,348	)
Common stock subscribed		-		-		-		-		39172,500		-		-			39172,500
Net Loss		-		-		-		-		-		-		(9471,~~685~~993,~~715~~078	)		(9471,~~685~~993,~~715~~078	)
Balance June 30, 2025 (Unaudited)		2,820,150	$	2,820		190,012,124	$	190,013		135,000	$	62,521,759	$	(203,354,940	)	$	(140,505,348	)
Balance September 30, 2025 (Unaudited)		2,820,150	$	2,820		190,012,124	$	190,013		307,500	$	62,521,759	$	(275,348,018	)	$	(212,325,926	)

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

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OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE ~~SIX~~NINE MONTHS ENDED ~~JUNE~~SEPTEMBER 30, 2025 AND 2024

(Unaudited)

	2025			2024
Cash Flows From Operating Activities:
Net loss	$	(96168,~~088~~081,~~444~~522	)	$	(5907,~~164,993~~550	)
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of derivative liability		94165,~~358~~340,~~520~~795			3(2,~~172~~091,~~160~~934	)
Amortization of debt discount		2740,~~220~~830			-
Gain on extinguishment of Derivative Liability		(11,898	)		(30,303	)
Gain on conversion of debt		(11,898	)		(30,303	)
Changes in assets and liabilities:
Costs in excess of billings		(480,219	)		-
Accounts receivable		(395,695	)		-
Accounts payable and accrued expenses		2,128,962			1,709,598
Costs in excess of billings		(248,499	)		-
Net Cash Used In Operating Activities		(65,859	)		(313,538	)
Accounts payable and accrued expenses		3,034,268			2,569,853
Net Cash Used In Operating Activities		(321,721	)		(459,934	)
Cash Flows From Financing Activities:
Advances from related parties		(~~540~~810	)		(~~540~~810	)
Repayment of notes payable		-			(1,300	)
Common stock subscribed		~~135~~307,~~000~~500			-
Proceeds from sale of convertible notes		55,000			-
Proceeds from sale of preferred stock		-			~~316~~396,000
Net Cash Provided by Financing Activities		~~189~~361,~~460~~690			~~314~~393,~~160~~890
Net increase in cash		123,601			622
Net increase (decrease) in cash		39,969			(66,044	)
Cash at beginning of period		16,142			115,149
Cash at End of Period	$	~~139~~56,~~743~~111		$	~~115~~49,~~771~~105
Supplemental disclosure of cash flow information
Cash paid for interest expense	$	3159,~~781~~493		$	223,~~507~~753
Cash paid for income taxes	$	-		$	-
Supplemental disclosure of non-cash investing and financing activities:
Initial value of derivative liability	$	67,895		$	-
Common stock issued upon conversion of note	$	-		$	169,250
Note payable converted to common stock	$	10,000		$	30,747
Accrued interest converted to common stock	$	2,047		$	-
Derivative liability extinguished upon conversion on note payable	$	-		$	168,~~806~~807

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

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OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE ~~SIX~~NINE MONTHS ENDED ~~JUNE~~SEPTEMBER 30, 2025 AND 2024

(UNAUDITED)

NOTE 1 – NATURE OF BUSINESS AND BASIS OF PRESENTATION

Ocean Thermal Energy Corporation ( “Company” “us” “we”) is designing ocean thermal energy conversion power plants, seawater air conditioning and lake water air conditioning (“SWAC/LSC”) plants for large commercial properties, utilities, and municipalities. We believe these technologies provide practical solutions to mankind’s three oldest and most fundamental needs: clean drinking water, plentiful food, and sustainable, affordable energy without the use of fossil fuels. The Company plans to provide a clean technology that continuously extracts energy from the temperature differentials between warm surface ocean water and cold deep seawater. In addition to producing electricity, our technology can efficiently desalinate seawater producing thousands of cubic meters of fresh water every day for use in agriculture and human consumption. This cold, deep, nutrient-rich water can also be used to cool buildings and for fish farming or aquaculture.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and presented in accordance with U. S. generally accepted accounting principles (“GAAP”).

The accompanying consolidated balance sheet at December 31, 2024, has been derived from audited consolidated financial statements, but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of ~~June~~September 30, 2025, and for the three and ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and related notes to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC. In the opinion of management, all material adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made to the unaudited condensed consolidated financial statements. The unaudited condensed consolidated financial statements include all material adjustments (consisting of normal recurring accruals) necessary to make the unaudited condensed consolidated financial statements not misleading as required by Regulation S-X Rule 10-01. Operating results for the three and ~~six~~nine months ended ~~June~~September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025, or any future periods.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Our unaudited condensed consolidated financial statements for the three and ~~six~~nine months ended ~~June~~September 30, ~~2024~~2025 and ~~2023~~2024 include the accounts of the Company and the following subsidiary:

Name

Place of Incorporation

/ Establishment

Principal Activities

Date Formed

OCEES International Inc. (“OCEES”)

Hawaii, USA

Research and development for the Pacific Rim

01/21/1998

Intercompany balances and transactions have been eliminated in consolidation. We have an effective interest of 100% in OCEES. Former subsidiaries Ocean Thermal Energy Bahamas LTD and OTE BM Ltd. were inactive and have been dissolved.

Accounts Receivable

Accounts receivable ~~consist~~consists of amounts invoiced to customers but not yet collected by the Company. The Company records an allowance for doubtful accounts to allow for any amounts that may not be recoverable, which is based on an analysis of the Company’s prior collection experience, customer creditworthiness, expected future losses and current economic trends. Accounts are considered delinquent when payments have not been received within the contractual payment terms and are written off when management determines that collection is not probable. There were no doubtful accounts as of ~~June~~September 30, 2025 and December 31, 2024.

Revenue recognition

The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers. The Company’s primary source of revenue is a long-term fixed-price contract to provide engineering and technical development services related to the design and delivery of a renewable energy system.

The contract includes a series of activities such as site-specific modeling, mechanical and structural integration, and engineering validation that are delivered as part of a single, combined project outcome. These services are highly interrelated and not separately identifiable within the context of the contract. Accordingly, the Company determined that the arrangement contains a single performance obligation.

Revenue is recognized over time using the cost-to-cost input method. This method compares actual costs incurred to total estimated costs to determine the percentage of completion and is used to calculate revenue earned to date. The cost-to-cost method reflects the Company’s progress toward satisfying its performance obligation and is consistent with how the project is managed internally.

Contract assets are recorded when revenue recognized exceeds billings to date (referred to as costs in excess of billings). Contract liabilities are recorded when billings exceed revenue recognized (billings in excess of costs). These amounts are presented separately on the condensed consolidated balance sheets.

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Use of Estimates

In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates include the assumptions used in the valuation of equity-based transactions, valuation of derivative liabilities, and valuation of deferred tax assets.

Business Segments

We operate in one segment and, therefore, segment information is not presented.

Loss per Share

Basic loss per share is calculated by dividing our net loss available to common shareholders by the weighted average number of common shares during the period. Diluted loss per share is calculated by dividing our net loss by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity.

The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding for the three months ended ~~June~~September 30, 2025 and the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, as they would be anti-dilutive:

	June 30,
	September 30,
	2025		2024
Shares underlying options and warrants outstanding		625,000		500,000
Shares underlying convertible notes outstanding		~~103~~109,~~904~~269,~~402~~537,~~182~~933		1,~~412~~491,~~360~~839,~~318~~514
Shares underlying convertible preferred stock outstanding		16,687,500		16,687,500
		103,921,714,682		1,429,547,818
		109,286,850,433		1,509,027,014

The weighed average shares outstanding for the three and six month periods ending June 30, 2025, includes subscribed shares as if those shares were issued during each respective period.

Recent Accounting Pronouncements

The Company currently believes there are no issued and not yet effective accounting standards that are materially relevant to our condensed consolidated financial statements.

NOTE 3 – GOING CONCERN

The accompanying unaudited condensed consolidated financial statements have been prepared on the assumption that we will continue as a going concern. As reflected in the accompanying unaudited condensed consolidated financial statements, we had a net loss of approximately $96168 million and used approximately $66322,000 of cash in operating activities for the ~~six~~nine months ended ~~June~~September 30, 2025. We had a working capital deficiency of approximately $~~141~~212 million and a stockholders’ deficiency of approximately $~~141~~212 million as of ~~June~~September 30, 2025. These factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to increase sales and obtain external funding for our projects under development. We continue to apply for grant funding from the U.S. Department of Energy. Our applications focus on desalinated water, ammonia, and hydrogen production from an OTEC facility. We plan to apply for funding to support projects where our technology would apply. The condensed consolidated financial statements do not include any adjustments that may result from the outcome of this uncertainty.

NOTE 4 – CONVERTIBLE NOTES AND NOTES PAYABLE

During January and February 2025, we sold an aggregate of $55,000 of convertible note units. Each unit costs $5,000 and consists of one convertible promissory note in the amount of $5,000 and one warrant to purchase 5,000 shares of the Company’s common stock at an exercise price of $0.01 per share. The Notes bear interest at the rate of 10% per year, compounded annually, and are due on January 4, 2027 (the “Maturity Date”). The Notes will be converted into common stock of the Company automatically upon the Maturity Date at the lower of (a) $0.10 per share, or (b) 90% of the Market Price, which shall be the average closing price of the Company’s common stock on the ten trading days immediately preceding the date of conversion. However, if the United States Army has issued a contract for the supply of sustainable power and water from the Company-designed and built ocean thermal energy system prior to the Maturity Date, within five business days the Notes will automatically be converted depending on the amount of Notes purchased by each holder.

During the ~~six~~nine months ended ~~June~~September 30, 2024, $30,747 of notes was converted into 5,641,655 shares of common stock.

NOTE 5 – DERIVATIVE LIABILITY

We measure the fair value of our assets and liabilities under the guidance of ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but its provisions apply to all other accounting pronouncements that require or permit fair value measurement.

We identified conversion features embedded within convertible debt issued. We have determined that the features associated with the embedded conversion option should be accounted for at fair value as a derivative liability. We have elected to account for these instruments together with fixed conversion price instruments as derivative liabilities as we cannot determine if a sufficient number of shares would be available to settle all potential future conversion transactions. We value the derivative liabilities using the Black-Scholes option valuation model. The derivative liabilities are valued at each reporting date and the change in fair value is reflected as change in fair value of derivative liability.

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Following is a description of the valuation methodologies used to determine the fair value of our financial liabilities, including the general classification of such instruments pursuant to the valuation hierarchy:

	Fair Value		Quoted market pricesfor identicalassets/liabilities(Level 1)		Significant otherobservable inputs(Level 2)		Significantunobservable inputs(Level 3)
Derivative Liability, June 30, 2025	$	103,837,415	$	-	$	-	$	103,837,415
Derivative Liability, September 30, 2025	$	174,819,690	$	-	$	-	$	174,819,690
Derivative Liability, December 31, 2024	$	9,423,915	$	-	$	-	$	9,423,915

The reconciliation of the derivative liability for the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024 is as follows:

	For the Six Months Ended June 30,
	For the Nine Months Ended September 30,
	2025			2024
Derivative liability as of January 1	$	9,423,915		$	12,404,707
Addition to derivative instruments		55,000			-
Derivative liability extinguished upon conversion of notes payable		(20	)		(168,806	)
Change in fair value of derivative liability		94165,~~358~~340,~~520~~795			3(2,~~172~~091,~~160~~934	)
Derivative liability as of March 31	$	103,837,415		$	15,408,061
Derivative liability as of September 30	$	174,819,690		$	10,143,967

The fair value of the derivative liability was estimated using a binomial option pricing model. The fair value at the commitment and remeasurement dates for our derivative liabilities were based upon the following significant inputs:

	For the Six Months Ended June 30,
	For the Nine Months Ended September 30,
	2025			2024
Expected dividends		0	%		0	%
Expected volatility	400%-~~667~~877		%	~~245~~118%-603		%
Risk free interest rate	3.7968%-4.41		%	54.0373%-5.48		%
Expected term (in years)	0.25– 4.76 years			0.25– 1 years

NOTE 6 – STOCKHOLDERS’ EQUITY

~~During~~Common ~~the~~Stock ~~six months ended June 30, 2025, we entered into stock purchase agreements with a number of investors. The investors agreed to purchase 6,750,000 shares of common stock,~~ and weCommon ~~received~~Stock ~~aggregate proceeds of $135,000. To date, no shares of common stock have been issued pursuant to these agreements.~~Subscribed

During the ~~three~~nine months ended ~~March~~September 3130, ~~2024~~2025, we ~~issued~~entered 5into stock purchase agreements with a number of investors. The investors agreed to purchase 22,~~641~~125,~~655~~000 shares of common stock, ~~upon~~and ~~conversion~~we received aggregate proceeds of $30307,~~747~~500. To date, no shares of ~~convertible~~common ~~notes~~stock ~~payable~~have been issued pursuant to these agreements.

During the nine months ended September 30, 2024, we issued 5,641,655 shares of common stock upon conversion of $30,747 of convertible notes payable.

Preferred Stock

During the ~~six~~nine months ended ~~June~~September 30, 2024, we issued ~~158~~198 shares of Series D Preferred Stock for cash proceeds of $~~316~~396,000.

NOTE 7 – COMMITMENTS AND CONTINGENCIES

From time to time, the Company may be involved in legal proceedings and regulatory proceedings arising from its operations. Management established reserves for specific liabilities in connection with legal actions that management deems to be probable and estimable. Certain lawsuits, claims and proceedings are described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. While the outcome of litigation cannot be predicted with certainty, and some of these lawsuits, claims or proceedings may be determined adversely to the Company, management does not believe that the disposition of any such pending matters is likely to have a material adverse effect on the Company’s financial condition or operation, although the resolution in any reporting period of one or more of these matters could have a material adverse effect on the Company’s results of operations for that period.

Accrued Salaries and Related Taxes

As of ~~June~~September 30, 2025, the Company has $6,~~704~~892,~~060~~509, in accrued payroll attributable to previous periods that has not been paid due to cash flow constraints. It is possible, at a future date, that some or all of this amount may be derecognized and result in a gain on the extinguishment of these liabilities in a future period.

Professional Services Agreement

On January 7, 2025 the Company entered into a Professional Services Agreement with Johnson Controls Government Systems, LLC, which provided for the design, engineering and pricing estimation for an Ocean Thermal Energy Conversion and Ocean Water Desalinization Potable Water solution on the island of Kwajalein. The contract includes a fixed fee of $3,504,796 and is expected to be completed by September 30, 2026.

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NOTE 8 – RELATED-PARTY TRANSACTIONS

In May 2023, we entered into a 36-month agreement with a company controlled by our chief executive officer for shared use of an office and facilities at $1,000 per month, increasing to $1,200 per month on May 1, 2024 and $1,400 per month on May 1, 2025. For the three months ended ~~June~~September 30, 2025 and 2024, rent expense was $54,200 and $3,000, respectively. For the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, rent expense was $813,~~800~~000 and $69,000, respectively

For the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, we recorded charges incurred to a company controlled by our chief executive officer for reimbursement of accounting and administrative services provided to us by an employee of that company. For the three months ended ~~June~~September 30, 2025 and 2024, we recorded expense of $3436,~~811~~660 and $3334,~~522~~342, respectively, to this company. For the ~~six~~nine months ended ~~June~~September 30, 2024 and 2023, we recorded expense of $69106,~~439~~099 and $67102,~~865~~207, respectively, to this company. At ~~June~~September 30, 2025 and December 31, 2024, we had a payable to the entity of $0 and $24,200, respectively.

Accrued interest on related-party notes was $1,~~252~~308,~~375~~203 and $1,142,539 at ~~June~~September 30, 2025 and December 31, 2024, respectively.

During each of the ~~six~~nine months ended ~~June~~September 30, 2025 and 2024, we repaid $~~540~~810 of net working capital advances from related parties.

During 2022, an aggregate of 847,262 shares of common stock were borrowed from our chief executive officer to enable conversions of $15,000 of notes and $1,946 of related accrued interest. We have accrued a liability for the shares to be reissued to our chief executive officer in the amount of $11,014, the fair value of the shares on the date of conversion. The replacement shares have not been issued at ~~June~~September 30, 2025.

During March 2025, an aggregate of 563,611 shares of common stock were borrowed from our chief executive officer to enable settlements of $10,000 of notes and $2,047 of related accrued interest. We have accrued a liability for the shares to be reissued to our chief executive officer in the amount of $169, the fair value of the shares on the date of conversion. The replacement shares have not been issued at ~~June~~September 30, 2025

NOTE 9 – SUBSEQUENT EVENTS

Subsequent to ~~June~~September 30, 2025, the Company entered into stock purchase agreements with a number of investors. The investors agreed to purchase 227,~~875~~500,000 shares of common stock, and we received aggregate proceeds of $~~252~~80,~~500~~000. To date, no shares of common stock have been issued pursuant to these agreements.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes to our financial statements included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors discussed elsewhere in this report.

Certain information included herein contains statements that may be considered forward-looking statements such as statements relating to our anticipated revenues, gross margins and operating results, estimates used in the preparation of our financial statements, future performance and operations, plans for future expansion, capital spending, sources of liquidity, and financing sources. Forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made herein. These risks and uncertainties include those relating to our liquidity requirements; the continued growth of our industry; the success of marketing and sales activity; the dependence on existing management; the availability and cost of substantial amounts of project capital; leverage and debt service (including sensitivity to fluctuations in interest rates); domestic and global economic conditions; the inherent uncertainty and costs of prolonged arbitration or litigation; and changes in federal or state tax laws or the administration of such laws.

Overview

Ocean Thermal Energy Corporation (“we,” “our, and the “Company”) develops and commercializes renewable energy, desalinated water, and sustainable cooling solutions using its proprietary Ocean Thermal Energy Conversion (OTEC) and Seawater Air Conditioning (SWAC) technologies. These systems extract energy from the natural temperature differential between warm surface water and cold deep ocean water to deliver continuous baseload power and clean water without reliance on fossil fuels. Our solutions are particularly well suited for tropical island communities, coastal military installations, and developing nations where access to reliable energy and freshwater is limited.

Our OTEC systems are designed for scalability and rapid deployment, supporting a range of commercial, governmental, and humanitarian applications. In addition to providing 24/7 renewable energy and potable water, our platforms offer opportunities for sustainable agriculture, aquaculture, and mariculture, contributing to local food security and economic development. Recent system designs also integrate with SWAC technology to enable district-level air conditioning using deep ocean water, significantly reducing energy consumption and carbon emissions in urban and resort environments.

We are currently executing a $3.5 million U.S. Army engineering and design contract in partnership with Johnson Controls for the U.S. Army Garrison-Kwajalein Atoll and are actively seeking to expand into additional Indo-Pacific markets such as Guam, Diego Garcia, and the Northern Marianas. Our project pipeline also includes commercial engagements in the Caribbean and Southeast Asia, including India and Indonesia.

Although we have generated only limited revenue since inception, we are transitioning from research and development to contract execution and revenue-generating power purchase agreements. We continue to rely on external funding to support operations, project development, and corporate initiatives, including a planned NYSE uplisting. There can be no assurance that such uplisting or funding will be available or that it can be obtained on acceptable terms.

Results of Operations

Comparison of Three Months Ended ~~June~~September 30, 2025 and 2024

During the three months ended ~~June~~September 30, 2025, the Company recognized revenue of $~~846~~413,~~382~~567 compared to $0 for the ~~second~~third quarter of 2024. The increase is solely due to the Company’s contract to provide services to the United States Department of Defense relative to the design and engineering of an OTEC unit on Kwajalein Atoll.

During the three months ending ~~June~~September 30, 2025, we had salaries and compensation of $~~218~~167,~~580~~293, compared to salaries and compensation of $~~234~~225,~~054~~621 during the third quarter of 2024, a decrease of 726% primarily due to the allocation of costs to cost of contracts and management’s continued cost cutting efforts for areas which are not specific to the fulfilment of ~~our contract with~~ the ~~United~~Kwajalein ~~States~~Atoll ~~Department of Defense~~contract.

During the three months ending ~~June~~September 30, 2025, and 2024, we recorded professional fees of $~~111~~214,~~645~~187 and $~~117~~122,~~305~~663, respectively, aan ~~decrease~~increase of 575%. ~~Beginning~~The ~~late~~increase inwas ~~the~~primarily ~~first~~related ~~quarter~~to ~~of 2025~~legal, ~~our~~audit ~~professional~~and accounting fees ~~decreased~~incurred asrelated ~~the Company has had less activities requiring the use of professional during the period which were not specific~~ to ~~fulfilling~~bringing our ~~contract~~delinquent ~~with~~SEC ~~the~~filings ~~United States Department of Defense~~current.

We incurred general and administrative expenses of $148,~~518~~602 during the three months ending ~~June~~September 30, 2025, compared to $3530,~~024~~226 for the ~~same~~third quarter of 2024, a decrease of 5972% due to the allocation of costs to cost of contracts and multiple factors associated with management cost reduction efforts for ancillary services not directly related to the fulfilment of ~~our contract with~~ the ~~United~~Kwajalein ~~States~~Atoll ~~Department of Defense~~contract.

Our interest expense was $~~683~~712,~~801~~926 for the three months ended ~~June~~September 30, 2025, compared to $~~602~~628,~~833~~141 for the ~~same~~third quarter of 2024, an increase of 1314%. This change was due to increased debt and higher interest rates on defaulted notes payable.

There was $13,610 debt discount amortization for the three months ended ~~June~~September 30, 2025, compared to $0 for the ~~second~~third quarter of 2024. The increase is due to new notes payable entered into during the period.

There was an increase in the fair value of the derivative liability of approximately $9471 million during the three months ended ~~June~~September 30, 2025, compared to a $75,~~309~~264,~~946~~094 decrease for the 2024 period, a 1,~~443~~448% increase. This change resulting results primarily from the reduction in the market value of our common stock in 2025 compared to 2024.

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Comparison of ~~Six~~Nine Months Ended ~~June~~September 30, 2025 and 2024

During the ~~six~~nine months ended ~~June~~September 30, 2025, the Company recognized revenue of $1,~~019~~432,~~419~~986 compared to $-0- for the previous period. The increase is solely due to the Company’s contract to provide services to the United States Department of Defense relative to the design and engineering of an OTEC unit on Kwajalein Atoll.

During the ~~six~~nine months ~~ending~~ended ~~June~~September 30, 2025, we had salaries and compensation of $~~420~~587,~~535~~828, compared to salaries and compensation of $~~466~~692,~~864~~485 during the same ~~six~~nine-month period for 2024, a decrease of 1015%, primarily due to the allocation of costs to cost of contracts and management’s continued cost cutting efforts for areas which are not specific to the fulfilment of ~~our contract with~~ the ~~United~~Kwajalein ~~States~~Atoll ~~Department of Defense~~contract.

During the ~~six~~nine months ~~ending~~ended ~~June~~September 30, 2025, and 2024, we recorded professional fees of $~~194~~408,~~263~~450 and $~~272~~394,~~175~~838, respectively, aan ~~decrease~~increase of 293%. ~~Our~~An ~~professional~~increase in legal audit and accounting fees ~~decreased~~incurred related to bringing our delinquent SEC filings current were partially offset by decreases in other areas, as the Company has had less activities requiring the use of professionals during the period which were not specific to fulfilling ~~our contract with~~ the ~~United~~Kwajalein ~~States~~Atoll ~~Department of Defense~~contract.

We incurred general and administrative expenses of $2129,~~023~~625 during the ~~six~~nine months ~~ending~~ended ~~June~~September 30, 2025, compared to $5585,~~708~~934 for the same ~~six~~nine-month period for 2024, a decrease of 6266% due to the allocation of costs to cost of contracts and multiple factors associated with management cost reduction efforts for ancillary services not directly related to the fulfilment of ~~our contract with~~ the ~~United~~Kwajalein ~~States~~Atoll ~~Department of Defense~~contract.

Our interest expense was $12,~~339~~052,~~610~~536 for the ~~six~~nine months ended ~~June~~September 30, 2025, compared to $1,~~228~~856,~~389~~530 for the same period for 2024, an increase of ~~12.05~~11%. This change was due to increased debt and higher interest rates on defaulted notes payable.

There was $2740,~~220~~830 debt discount amortization for the ~~six~~nine months ended ~~June~~September 30, 2025, compared to $0 for the same period of the previous year. The increase is due to new notes payable entered into during the period.

There was an increase in the fair value of the derivative liability of approximately $94165 million during the ~~six~~nine months ended ~~June~~September 30, 2025, compared to a $32,~~172~~091,~~160~~934 ~~increase~~decrease for the 2024 period, a 28,~~863~~003% increase. This change resulting results primarily from the reduction in the market value of our common stock in 2025 compared to 2024.

We recognized gain on conversion of notes payable of $11,998 during the ~~six~~nine months ended ~~June~~September 30, 2025, compared to a gain of $30,303 in the 2024 period. This change is primarily driven by changes in the market value of our common stock which was used to settle outstanding notes payable during the period.

Liquidity and Capital Resources

At ~~June~~September 30, 2025, our principal source of liquidity consisted of $~~139~~56,~~743~~111 of cash, as compared to $16,142 of cash at December 31, 2024. At ~~June~~September 30, 2025, we had negative working capital (current assets minus current liabilities) of approximately $~~140~~212 million. In addition, our stockholders’ deficit was approximately $~~141~~212 million at ~~June~~September 30, 2025. We are focusing our efforts on promoting and marketing our technology by developing and executing contracts. We are exploring external funding alternatives, as our current cash is insufficient to fund operations for the next 12 months.

Our operations used net cash of $65321,~~859~~721 during the ~~six~~nine months ended ~~June~~September 30, 2025, as compared to using net cash of $~~313~~459,~~538~~934 during the ~~first~~nine ~~half~~months ofended September 30, 2024. The decrease in net cash used in operations is primarily due to our net loss partially offset by the increase in the change in the fair value of derivative liability, a gain on debt conversion and an increase in accounts payable and accrued expenses.

Financing activities provided cash of $~~189~~361,~~460~~690 during the ~~six~~nine months ended ~~June~~September 30, 2025, as compared to $~~314~~393,~~160~~890 for the ~~first~~nine ~~half~~months ofended September 30, 2024. During the ~~six~~nine months ending ~~June~~September 30, 2025, and 2024, we received cash proceeds from the sale of common and preferred stock and issuance of notes payable which was the primary financing activity during the period.

The accompanying unaudited condensed consolidated financial statements have been prepared on the assumption that we will continue as a going concern. As reflected in the accompanying unaudited condensed consolidated financial statements, we had a net loss of approximately $96168 million and used approximately $66322,000 of cash in operating activities for the ~~six~~nine months ended ~~June~~September 30, 2025. We had a working capital deficiency of approximately $~~140~~212 million and a stockholders’ deficiency of approximately $~~141~~212 million as of ~~June~~September 30, 2025. These factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to increase sales and obtain external funding for our projects under development. We continue to apply for grant funding from the U.S. Department of Energy. Our applications focus on desalinated water, ammonia, and hydrogen production from an OTEC facility. We plan to apply for funding to support projects where our technology would apply. The condensed consolidated financial statements do not include any adjustments that may result from the outcome of this uncertainty.

We have no significant contractual obligations or commercial commitments not reflected on our balance sheet as of the date of this report.

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Critical Accounting Estimates

Management’s Discussion and Analysis of Financial Condition and Results of Operations are based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with those accounting principles requires management to use judgment in making estimates and assumptions based on the relevant information available at the end of each period. These estimates and assumptions have a significant effect on reported amounts of assets and liabilities, revenue and expenses, as well as the disclosure of contingent assets and liabilities because they result primarily from the need to make estimates and assumptions on matters that are inherently uncertain. Actual results may differ from these estimates. If updated information or actual amounts are different from previous estimates, the revisions are included in our results for the period in which they become known.

13Management ~~Table~~believes there have been no significant changes during the nine months ended September 30, 2025, to the items that we disclosed as our critical accounting estimates in “Management’s Discussion and Analysis of ~~Contents~~Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Management believes there have been no significant changes during the six months ended June 30, 2025, to the items that we disclosed as our critical accounting estimates in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Recent Accounting Pronouncements

Information concerning recently issued accounting pronouncements is set forth in Note 2 of our notes to unaudited condensed consolidated financial statements appearing elsewhere in this report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us, in the reports that we file or submit to the SEC under the Exchange Act, is recorded, processed, summarized, and reported within the periods specified by the SEC’s rules and forms and that information is accumulated and communicated to our management, including our principal executive and principal financial officer (whom we refer to in this periodic report as our Certifying Officer), as appropriate to allow timely decisions regarding required disclosure. Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our management evaluated, with the participation of our Certifying Officer, the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of ~~June~~September 30, 2025, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our Certifying Officer concluded that, as of ~~June~~September 30, 2025, our disclosure controls and procedures were not effective to provide reasonable assurance because certain deficiencies involving internal controls constituted material weaknesses.. Our controls were not effective due to the size of the company and available resources. There are limited personnel to assist with the accounting and financial reporting function, which results in: (i) a lack of segregation of duties and (ii) controls that may not be adequately designed or operating effectively. The material weaknesses identified did not result in the restatement of any previously reported financial statements or any other related financial disclosure, and management does not believe that the material weaknesses had any effect on the accuracy of our financial statements for the current reporting period.

Limitations on Effectiveness of Controls

A system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the system will meet its objectives. The design of a control system is based, in part, upon the benefits of the control system relative to its costs. Control systems can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. In addition, over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Also, the design of any control system is based in part upon assumptions about the likelihood of future events.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the fiscal quarter ended ~~June~~September 30, 2025, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. The Company is in the process of seeking additional skilled financial employees to improve its internal controls and financial reporting.

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PART II-OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are involved in legal proceedings and regulatory proceedings arising from operations. We establish reserves for specific liabilities in connection with legal actions that management deems to be probable and estimable. Certain of such lawsuits, claims and proceedings are described in our Annual Report on Form 10-K for the year ended December 31, 2024. There were no material changes during the first quarter of 2025 in the status of the legal matters disclosed in our 2024 Annual Report on Form 10-K. While the outcome of litigation cannot be predicted with certainty, and some of these lawsuits, claims or proceedings may be determined adversely to the Company, management does not believe that the disposition of any such pending matters is likely to have a material adverse effect on the Company’s financial condition or liquidity, although the resolution in any reporting period of one or more of these matters could have a material adverse effect on the Company’s results of operations for that period.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

We are in default under and have failed to pay timely numerous loans, totaling $~~19.5~~ 20 million in combined principal and interest, $3.4 5 million of which is owed to related parties. Several loans that are in default were automatically convertible into shares of our common stock when the loans came due. However, L2 Capital, one of our lenders, has instructed our transfer agent to reserve all of our remaining authorized shares for issuance to L2, effectively blocking us from paying our other defaulted loans in stock. We intend increase our authorized shares to complete the conversion of these defaulted loans, but cannot guarantee when or if we will be able to do that.

On December 1, 2007, we borrowed funds from the Eastern Idaho Development Corporation (the EIDC loan). The interest rate is 7%, and the maturity date was September 1, 2015. The loan principal is $85,821 and the accrued interest is $7980,~~014~~549 as of ~~June~~September 30, 2025. This note is in default.

On September 25, 2009, we borrowed funds from the Pocatello Development Authority. The interest rate is 5%, and the maturity date was October 25, 2011. The loan principal is $50,000 and the accrued interest is $37,~~219~~858 as of ~~June~~September 30, 2025. This note is in default.

On December 23, 2009, we borrowed funds from SICOG (EDA-#273 loan). The interest rate is 7%, and the maturity date was December 23, 2014. The loan principal is $77,030 and the accrued interest is $4849,~~487~~865 as of ~~June~~September 30, 2025. This note is in default.

15On ~~Table~~December 23, 2009, we borrowed funds from SICOG (MICRO I-#274 loan). The interest rate is 7%, and the maturity date was December 23, 2014. The loan principal is $21,401 and the accrued interest is $12,227 as of ~~Contents~~September 30, 2025. This note is in default.

On December 23, 2009, we borrowed funds from SICOG (MICRO III-#~~274~~275 loan). The interest rate is 7%, and the maturity date was December 23, 2014. The loan principal is $21,~~401~~391 and the accrued interest is $1113,~~844~~908 as of ~~June~~September 30, 2025. This note is in default.

OnDuring ~~December 23~~2012, ~~2009,~~ we ~~borrowed~~issued ~~funds~~a ~~from~~note ~~SICOG~~payable ~~(MICRO~~for ~~II-#275 loan)~~$1,000,000. The note had an interest rate isof 710% per annum, was secured by a first lien in all of our assets, and was due on February 3, 2015. On March 6, 2018, the ~~maturity~~note was amended to extend the due date ~~was~~to December 2331, ~~2014~~2018. ~~The~~On ~~loan~~March ~~principal~~29, ~~is $21~~2019,~~391~~ ~~and~~the maturity date of the ~~accrued~~note ~~interest~~was isextended ~~$13~~to December 31,~~526~~ as2019. As of ~~June~~September 30, 2025, the outstanding note balance was $1,000,000, plus accrued interest of $1,360,556. This note is in default.

During ~~2012~~2013, we issued a note payable for $1290,000~~,000.~~ ~~The~~in ~~note~~connection ~~had~~with anthe ~~interest~~reverse ~~rate~~merger oftransaction ~~10%~~with ~~per~~Broadband ~~annum~~Network Affiliates, ~~was~~Inc. ~~secured~~We byhave adetermined ~~first~~that ~~lien~~no infurther ~~all~~payment of ~~our~~principal ~~assets,~~or ~~and~~interest ~~was due~~ on ~~February~~this 3,note ~~2015.~~should Onbe ~~March~~made 6,because ~~2018,~~ the note ~~was~~holder ~~amended~~failed to ~~extend~~perform ~~the~~his ~~due~~underlying ~~date~~obligations giving rise to ~~December~~this 31note. As described in Note 7, ~~2018.~~the Onnote ~~March~~holder 29filed suit on May 21, 2019, and we remain confident that the ~~maturity~~court ~~date~~will ofdecide in our favor by either voiding the note ~~was~~or ~~extended~~awarding damages sufficient to ~~December~~offset ~~31,~~the ~~2019~~note value. As of ~~June~~September 30, 2025, the ~~outstanding~~ note balance outstanding was $1130,000,~~000,~~ ~~plus~~and the accrued interest as of that date was $1122,~~335,000~~069. This note is in default.

~~During~~On ~~2013~~January 18, we2018, ~~issued~~Jeremy aP. ~~note~~Feakins ~~payable~~& ~~for~~Associates, ~~$290~~LLC,~~000~~ inan ~~connection~~investment ~~with~~entity ~~the~~owned ~~reverse~~by ~~merger~~our ~~transaction~~chief ~~with~~executive, ~~Broadband~~chief ~~Network~~financial ~~Affiliates~~officer, ~~Inc.~~and Wea ~~have~~director, ~~determined~~agreed ~~that~~to noextend ~~further~~the ~~payment~~due ofdate ~~principal~~for orrepayment ~~interest~~of ona ~~this~~$2,265,000 note ~~should~~issued bein ~~made~~2014 ~~because~~to the ~~note~~earlier ~~holder~~of ~~failed~~December to31, ~~perform~~2018, ~~his~~or ~~underlying~~the ~~obligations~~date ~~giving~~of ~~rise~~the tofinancial ~~this~~closings ~~note.~~of Asour ~~described~~Baha inMar ~~Note~~project 7,(or ~~the~~any ~~note~~other ~~holder~~project ~~filed~~of ~~suit~~$25 onmillion ~~May~~or 21more), ~~2019,~~whichever ~~and~~occurs wefirst. ~~remain~~In ~~confident~~January ~~that~~2023 ~~the~~we ~~court~~issued ~~will~~500 ~~decide~~shares inof ~~our~~preferred ~~favor~~stock byupon ~~either~~conversion ~~voiding~~of ~~the~~$35,303 ~~note~~of orprincipal ~~awarding~~and ~~damages~~$964,697 ~~sufficient~~of toaccrued ~~offset the note value~~interest. As of ~~June~~September 30, 2025, the note balance ~~outstanding~~ was $~~130~~1,~~000~~067,197 and the accrued interest ~~as of that date~~ was $~~119~~297,~~411~~629. This note is in default.

OnDuring ~~January 18~~2013, ~~2018,~~we ~~Jeremy~~issued P.notes ~~Feakins~~payable &aggregating ~~Associates~~$158,334 ~~LLC,~~bearing aninterest ~~investment~~at ~~entity~~13% ~~owned~~per byyear ~~our~~with ~~chief executive, chief financial officer, and~~ a ~~director,~~maturity ~~agreed to extend the due~~ date ~~for repayment~~ of aOctober ~~$2,265,000 note issued in 2014 to the earlier of December~~ 31, ~~2018,~~2023. orOutstand ~~the~~principal ~~date~~is ~~of the financial closings of our Baha Mar project (or any other project of~~ $25158,334 ~~million~~at orSeptember ~~more)~~30, ~~whichever~~2025 ~~occurs~~and ~~first.~~accrued Ininterest ~~January~~totaled ~~2023 we issued 500 shares of preferred stock upon conversion of~~ $35202,~~303~~598 as of ~~principal~~September ~~and $964~~30,~~697~~ ~~of accrued interest~~2025. As of ~~June~~September 30, 2025, the ~~note~~notes ~~balance~~are ~~was~~in ~~$1,067,197~~default. ~~and~~We intend to repay the notes and accrued interest ~~was~~upon ~~$270,357.~~the ~~This~~project’s ~~note~~financial ~~is in default~~closing.

During ~~2013~~2014, we issued notes payable ~~aggregating~~of $~~158~~300,~~334 bearing interest at 13% per year with a maturity date of October 31, 2023~~000. ~~Outstand~~Accrued ~~principal is $158,334 at June 30, 2025 and accrued~~ interest totaled $~~197~~698,~~338~~962 as of ~~June~~September 30, 2025. As of ~~June~~September 30, 2025, the notes are in default. We intend to repay the notes and accrued interest upon the project’s financial closing.

~~During~~We ~~2014~~have a $50,000 wepromissory ~~issued~~note ~~notes~~with an unaffiliated investor that was payable ofon ~~$300~~April 7,~~000~~ 2018. ~~Accrued~~The note and accrued interest ~~totaled~~can ~~$682,095~~be asconverted ofinto ~~June~~our ~~30,~~common ~~2025.~~stock Asat a conversion rate of ~~June~~$0.75 ~~30,~~per ~~2025,~~share ~~the~~at ~~notes~~any ~~are~~time inprior ~~default~~to the repayment. WeThis ~~intend~~conversion price is not required to ~~repay~~adjust for the ~~notes~~reverse ~~and~~stock ~~accrued~~split as per the note agreement. Accrued interest ~~upon~~totaled $91,111 as of September 30, 2025. As of the ~~project’s~~date ~~financial~~of ~~closing~~this report, the note is in default.

WeDuring ~~have~~the third quarter of 2017, we completed a $502,000,000 convertible promissory note ~~with~~private anplacement ~~unaffiliated~~offering. ~~investor~~The ~~that~~terms ~~was~~of the note are as follows: (i) interest is payable onat ~~April~~6% 7,per ~~2018.~~annum; ~~The~~(ii) ~~note~~payable two years after purchase; and ~~accrued~~(iii) all principal and interest ~~can~~on beeach ~~converted~~note automatically converts on the conversion maturity date into shares of our common stock at a conversion ~~rate~~price of $04.7500 per share, atas ~~any~~long ~~time~~as ~~prior~~the toclosing share price of our common stock on the ~~repayment.~~trading ~~This~~day immediately preceding the conversion ~~price~~maturity date is ~~not~~at ~~required~~least to$4.00, ~~adjust~~as adjusted for ~~the~~stock ~~reverse~~splits, stock ~~split~~dividends, asreclassification, and the like. If the price of our shares on such date is less than $4.00 per share, the note ~~agreement.~~(principal ~~Accrued~~and interest) ~~totaled~~will ~~$88,556~~be asrepaid in full. During the third quarter of ~~June~~2019, 30$15,000 ~~2025~~of the note was repaid. As of September 30, 2025, the ~~date~~outstanding balance of ~~this~~these ~~report~~notes was $65,000, ~~the~~plus ~~note~~accrued isinterest of $32,038. The notes are in default.

~~During~~On ~~the~~November ~~third~~6, ~~quarter of~~ 2017, we ~~completed~~entered into an agreement and promissory note with JPF Venture Group, Inc.., an investment entity owned by our chief executive, chief financial officer, and a director, to loan up to $2,000,000 ~~convertible~~to ~~promissory note private placement offering~~us. The terms of the note are as follows: (i) interest is payable at 610% per annum; (ii) ~~payable~~all ~~two~~unpaid ~~years~~principal ~~after purchase;~~ and ~~(iii)~~ all ~~principal~~accrued and unpaid interest onis ~~each~~due ~~note~~and ~~automatically~~payable ~~converts~~at on the ~~conversion~~earliest ~~maturity date into shares~~ of ~~our common stock at~~ a ~~conversion~~resolution ~~price~~ of ~~$4.00 per share, as long as~~ the ~~closing~~Memphis ~~share~~litigation ~~price of our common stock on the trading day immediately preceding the conversion maturity date is at least $4.00,~~ (as ~~adjusted~~defined ~~for stock splits~~therein), ~~stock~~December ~~dividends~~31, ~~reclassification~~2018, ~~and~~or ~~the~~when ~~like.~~we Ifare ~~the~~otherwise ~~price~~able ofto ~~our shares on such date is less than $4~~pay.00 ~~per share, the note (principal and interest) will be repaid in full. During the third quarter of 2019, $15,000 of the note was repaid.~~ As of ~~June~~September 30, 2025, the outstanding note balance ~~of these notes~~ was $65543,~~000,~~093 ~~plus~~and the accrued interest ofwas $31460,~~055~~888. ~~The~~This ~~notes~~note ~~are~~is in default.

On November 6, 2017, we entered into an agreement and promissory note with JPF Venture Group, Inc.., an investment entity owned by our chief executive, chief financial officer, and a director, to loan up to $2,000,000 to us. The terms of the note are as follows: (i) interest is payable at 10% per annum; (ii) all unpaid principal and all accrued and unpaid interest is due and payable at the earliest of a resolution of the Memphis litigation (as defined therein), December 31, 2018, or when we are otherwise able to pay. As of June 30, 2025, the outstanding note balance was $543,093 and the accrued interest was $447,009. This note is in default.

In December 2017, we entered into a series of unsecured promissory notes and warrant purchase agreements with accredited investors. These notes accrue interest at a rate of 20% per annum payable on a quarterly basis and are not convertible into shares of our capital stock. As of June 30, 2025, the balance of the notes outstanding was $859,156 and the accrued interest was $1,099,615. These notes are in default.

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~~During~~In ~~the~~December ~~year~~2017, ~~ended~~we ~~December~~entered ~~31,~~into ~~2018,~~a weseries ~~borrowed~~of ~~$482,222~~unsecured ~~from~~promissory L2notes ~~Capital~~and inwarrant ~~five~~purchase ~~separate~~agreements ~~tranches~~with accredited investors. ~~The~~These notes accrue interest at a rate isof 820%, ~~and~~per ~~the~~annum ~~maturity~~payable ~~dates~~on ~~are~~a ~~three~~quarterly ~~months~~basis ~~from~~and ~~the~~are ~~date~~not convertible into shares of ~~issue.~~our ~~The~~capital ~~outstanding~~stock. ~~loan~~As ~~balance~~of ~~was~~September $130,~~161~~ 2025,~~136,~~ ~~which~~the ~~includes~~balance of the ~~default~~notes ~~penalty~~outstanding was $859,156 and the accrued interest was $21,~~628~~140,~~202 as of June 30, 2025~~432. These notes are in default.

OnDuring ~~December 14, 2018, L2 Capital LLC purchased our note payable from Collier Investments, LLC. The total consideration was $371,250, including~~ the ~~outstanding~~year ~~note~~ended ~~balance~~December ~~of $281~~31,~~250,~~ ~~the accrued interest of $33~~2018,~~750,~~ ~~and~~we ~~liquidated~~borrowed ~~damages of~~ $56482,~~250.~~222 ~~There~~from ~~was also a default penalty of $153,123. In addition, we issued 400,000 shares of common stock to~~ L2 Capital, ~~LLC as commitment shares with a fair value of $21,200~~ in ~~connection~~five ~~with~~separate ~~the purchase of the note~~tranches. WeThe ~~executed a convertible note with L2 Capital in the amount of $371,250 with an~~ interest rate ofis 128% ~~per annum. The maturity date of the note was December 22~~, ~~2018.~~and ~~The holder of~~ the ~~note~~maturity ~~can~~dates ~~convert~~are ~~the~~three ~~note,~~months orfrom ~~any portion of it, into shares of common stock at any time after~~ the ~~issuance~~ date. ~~The conversion price is 65%~~ of ~~the market price, which is defined as the lowest trading price for our common stock during the 20-trading-day period prior to the conversion date~~issue. AsThe ~~of June 30, 2025, the~~ outstanding ~~note~~loan balance was $~~547~~1,~~328~~161,136, which includes athe default penalty, and the accrued interest was $2,~~404~~800,~~483~~124 as of September 30, 2025. ~~This~~These ~~note~~notes isare in default.

On ~~September~~December 1914, 2018, weL2 ~~executed~~Capital aLLC purchased our note payable ~~for~~from Collier Investments, LLC. The total consideration was $10371,~~000~~250, ~~with~~including anthe ~~unrelated~~outstanding ~~party~~note ~~that~~balance ~~bears~~of $281,250, the accrued interest atof 6%$33,750, ~~per~~and ~~annum~~liquidated damages of $56,250. ~~which~~There iswas ~~due~~also ~~quarterly~~a ~~beginning~~default penalty of $153,123. In addition, we issued 400,000 shares of common stock to L2 Capital, LLC as commitment shares with a fair value of ~~September~~$21,200 30in connection with the purchase of the note. We executed a convertible note with L2 Capital in the amount of $371,250 ~~2018~~with an interest rate of 12% per annum. The maturity date ~~for~~of the note was ~~three~~December ~~years~~22, ~~after~~2018. ~~date~~The holder of ~~issuance.~~the Innote ~~addition,~~can convert the ~~lender~~note, ~~received~~or ~~warrants~~any toportion ~~purchase~~of 2it,~~000~~ into shares of common stock ~~upon~~at ~~signing~~any time after the ~~promissory~~issuance ~~note~~date. The ~~warrant~~conversion ~~can~~price beis ~~exercised~~65% atof athe market price, ~~per~~which ~~share~~is ~~equal~~defined toas athe ~~15%~~lowest ~~discount~~trading ~~from the~~ price offor our common stock onduring the ~~last~~ 20-trading -day ~~before~~period ~~such~~prior ~~purchase~~to the conversion date. As of ~~June~~September 30, 2025, the ~~balance~~ outstanding note balance was $10547,~~000~~328, which includes a default penalty, and the accrued interest was $42,~~127~~583,048. WeThis ~~have~~note ~~defaulted~~is in ~~payment of the note principal and the quarterly interest payments~~default.

On ~~August~~September 1419, ~~2019~~2018, we executed a note payable for $2610,~~200~~000 with an unrelated party that bears interest at 86% per annum, ~~and~~which ~~has~~is adue ~~maturity~~quarterly ~~date~~beginning as of ~~October~~September 3130, ~~2021~~2018. The ~~note~~maturity ~~automatically~~date ~~converts~~for ~~into~~the ~~1,310,000~~note ~~shares~~was ofthree ~~our~~years ~~common~~after ~~stock~~date ~~either~~of atissuance. ~~the~~In ~~time~~addition, the ~~closing~~lender ~~sale~~received ~~price~~warrants ~~for~~to ~~our~~purchase ~~common~~2,000 ~~stock~~shares isof ~~equal~~common tostock orupon ~~greater~~signing ~~than~~the $1promissory note.00 ~~per~~The ~~share,~~warrant ascan ~~adjusted~~be ~~for~~exercised ~~stock~~at ~~splits,~~a ~~stock~~price ~~dividends,~~per ~~reclassification,~~share ~~and~~equal ~~the~~to ~~like,~~a or15% atdiscount from the ~~maturity~~price ~~date~~ of ~~October~~common ~~31,~~stock ~~2021,~~on ~~whichever~~the ~~occurs~~last ~~first~~trading day before such purchase. As of ~~June~~September 30, 2025, the balance outstanding was $2610,~~200,~~000 and the accrued interest was $154,~~210~~280. ~~This~~We ~~note~~have isdefaulted in ~~default~~payment of the note principal and the quarterly interest payments.

InOn August 14, 2019, we ~~issued~~executed a ~~series~~note ofpayable ~~convertible~~for ~~promissory notes to accredited investors that totaled~~ $~~105~~26,~~000.~~200 Ofwith ~~the~~an ~~amount~~unrelated ~~received,~~party ~~$10,000~~that ~~was~~bears ~~from our chief executive officer and our independent director. The notes bear simple~~ interest ~~on outstanding principal~~ at ~~the rate of~~ 8% per annum, ~~computed based~~and ~~on the~~has ~~actual number of days elapsed in~~ a ~~year~~maturity date of ~~365~~October ~~days~~31, 2021. ~~Each~~The ~~$5,000~~note ~~loan~~ automatically converts into ~~250~~1,310,000 shares of our common stock, either at the time the closing sale price for our common stock is equal to or greater than $1.00 per share, as adjusted for stock splits, stock dividends, reclassification, and the like, or at the maturity date of October 31, 2021, whichever ~~comes~~occurs first. As of ~~June~~September 30, 2025, the ~~total~~balance outstanding ~~balances~~was ~~of all these loans are~~ $4026,~~000~~200, and the accrued interest was $1815,~~221~~870. ~~These~~This ~~notes~~note ~~are~~is in default.

In ~~2020 and~~ 2019, we issued a series of convertible promissory notes to accredited investors ~~aggregating~~that totaled $~~306~~105,~~750~~000. Of the amount received, $2010,000 was from our chief executive officer and anour independent director. The notes bear simple interest on outstanding principal at the rate of 8% per annum, computed based on the actual number of days elapsed in a year of 365 days. Each $5,000 loan automatically converts into 250,000 shares of our common stock, either at the time the closing sale price for our common stock is equal to or greater than $1.00 per share, as adjusted for stock splits, stock dividends, reclassification, and the like, or at the maturity date of ~~January~~October 231, ~~2022~~2021, whichever comes first. As ~~June~~of September 30, 2025, the total outstanding ~~balance~~balances of all these loans ~~was~~are $~~225~~40,000 and accrued interest was $9719,~~579~~028. These notes are in default.

In 2020 and 2019, we issued a series of convertible promissory notes to accredited investors aggregating $306,750. ~~which~~Of ~~totaled~~the amount received, $1520,000 was from our chief executive officer and an independent director. The notes bear simple interest on outstanding principal at the rate of 8% per annum, computed based on the actual number of days elapsed in a year of 365 days. Each $5,000 loan automatically converts into 250,000 shares of our common stock, either at the time the closing sale price for our common stock is equal to or greater than $1.00 per share, as adjusted for stock splits, stock dividends, reclassification, and the like, or at the maturity date of ~~May~~January 122, 2022, whichever comes first. As ofSeptember ~~June~~ 30, 2025, the total outstanding ~~value~~balance of these loans was $10225,000 and accrued interest was $5102,~~877~~116. These notes are in default.

In ~~2021 and~~ 2020, we issued a series of convertible promissory notes to accredited investors, ~~aggregating~~which totaled $~~170~~15,000. The notes bear simple interest on outstanding principal at the rate of 8% per annum, computed based on the actual number of days elapsed in a year of 365 days. Each $5,000 loan automatically converts into 250,000 shares of our common stock, either at the time the closing sale price for our common stock is equal to or greater than $1.00 per share, as adjusted for stock splits, stock dividends, reclassification, and the like, or at the maturity date of ~~September~~May 112, 2022, whichever comes first. As Atof ~~June~~September 30, 2025, the total outstanding ~~balance~~value of these loans was $~~155~~10,000 and accrued interest was $536,~~488~~079. These notes are in default.

In 2021 and 2020, we issued a series of convertible promissory notes to accredited investors aggregating $~~285~~170,000. The notes bear simple interest on outstanding principal at the rate of 8% per annum, computed based on the actual number of days elapsed in a year of 365 days. Each $5,000 loan automatically converts into 250,000 shares of our common stock, either at the time the closing sale price for our common stock is equal to or greater than $1.00 per share, as adjusted for stock splits, stock dividends, reclassification, and the like, or at the maturity date of ~~August~~September 301, ~~2023~~2022, whichever comes first. At ~~June~~September 30, 2025, the total outstanding balance of these loans was $~~280~~155,000 and accrued interest was $8756,~~515~~614. These notes are in default.

In 2021, we issued a ~~$5,000~~series of convertible promissory ~~note~~notes to aaccredited ~~related~~investors ~~party~~aggregating $285,000. The ~~note~~notes ~~bears~~bear simple interest on outstanding principal at the rate of 8% per annum, computed based on the actual number of days elapsed in a year of 365 days. ~~The~~Each $5,000 loan automatically converts into 250,000 shares of our common stock, either at the time the closing sale price for our common stock is equal to or greater than $1.00 per share, as adjusted for stock splits, stock dividends, reclassification, and the like, or at the maturity date of ~~November~~August 1130, 2023, whichever comes first. At ~~June~~September 30, 2025, the total outstanding balance of ~~this~~these ~~note~~loans was $5280,000 and accrued interest was $193,~~455~~161. ~~This~~These ~~note~~notes isare in default.

In 2021, we issued a $5,000 convertible promissory note to a related party. The note bears simple interest on outstanding principal at the rate of 8% per annum, computed based on the actual number of days elapsed in a year of 365 days. The $5,000 loan automatically converts into 250,000 shares of our common stock, either at the time the closing sale price for our common stock is equal to or greater than $1.00 per share, as adjusted for stock splits, stock dividends, reclassification, and the like, or at the maturity date of November 11, 2023, whichever comes first. At September 30, 2025, the total outstanding balance of this note was $5,000 and accrued interest was $1,556. This note is in default.

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ITEM 4. MINE SAFETY DISCLOSURES

No applicable.

ITEM 5. OTHER INFORMATION

We have disclosed on Form 8-K all reportable events that occurred in the quarter ended June 30, 2025.

ITEM 6. EXHIBITS

The following exhibits are filed as a part of this report:

Exhibit Number*	Title of Document	Location
Item 31	Rule 13a-14(a)/15d-14(a) Certifications
31.1	Certification of Principal Executive Officer Pursuant to Rule 13a-14	This filing.
31.2	Certification of Principal Financial Officer Pursuant to Rule 13a-14	This filing.

Item 32	Section 1350 Certifications
32.1	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	This filing.
32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	This filing.

Item 101**	Interactive Data File
101.INS	XBRL Instance Document	This filing.
101.SCH	XBRL Taxonomy Extension Schema	This filing.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase	This filing.
101.DEF	XBRL Taxonomy Extension Definition Linkbase	This filing.
101.LAB	XBRL Taxonomy Extension Label Linkbase	This filing.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase	This filing.

All exhibits are numbered with the number preceding the decimal indicating the applicable SEC reference number in Item 601 and the number following the decimal indicating the sequence of the particular document.

The XBRL related information in Exhibit 101 will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and will not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as is expressly set forth by specific reference in such filing or document.

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SIGNATURE

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

	OCEAN THERMAL ENERGY CORPORATION
Date: December 18, 2025	By:	/s/ Jeremy P. Feakins
Date: December 19, 2025	By:	/s/ Jeremy P. Feakins
		Jeremy P. Feakins
		Chief Executive Officer and Chief Financial Officer
		(Principal Executive and Financial Officer)

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