Note 10. Subsequent Events

We have evaluated all events that occurred after the balance sheet date through the date when our financial statements were issued to determine if they must be reported. Management has determined that other than those disclosed below, there were no additional reportable subsequent events to be disclosed.

Financing Transaction

On April 12, 2024, the Company issued a secured promissory note in the face amount of $330,000, in exchange for which it received cash in the amount of $300,000. In addition to the original issue discount of $30,000, the note bears interest at the rate of 5% per annum, was originally due May 10, 2024 and subsequently extended until July 12, 2024 and was secured by all the Company assets. The promissory note was rolled into proceeds from the following securities purchase agreement.

On July 16, 2024, the Company closed a Securities Purchase Agreement (the “SPA”) with certain accredited investors. Under the SPA, the Company sold a series of senior secured convertible notes with an aggregate principal amount of $1,155,000, including the exchange of the April 12, 2024 secured promissory note, that had an initial conversion price of $1.43 per share, subject to certain adjustments and maturity date of December 31, 2024. The Company also issued five year warrants to acquire up to an aggregate 4,846,158 additional shares of the Company’s common stock with exercise prices ranging from $1.43 to $1.573 per share.

Issuance of Shares as Settlement of Accounts Payable

Between April 8, 2024 and July 11, 2024, the Company issued an aggregate 108,634 shares of common stock in full settlement of $210,330 of accounts payable. The shares had fair values ranging from $1.59 to $2.65 per share.

Issuance of Shares as settlement of other obligations

On May 30, 2024, the Company issued 37,500 shares valued at $67,200 or $1.79 per share which were owed as part a prior legal settlement.

On July 15, 2024, the Company issued 38,052 shares of common stock in full settlement of threatened litigation. The shares were valued at $53,653 or $1.41 per share.

On July 18, 2024, the Company issued 159,776 shares of common stock as part of a stock settlement agreement for payment of its obligation under its judgement from Core IR in the amount of $502,000