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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>As
filed with the U.S. Securities and Exchange Commission on December 30, 2024.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Registration
No. 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 12pt"><B>UNITED
STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
</B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif">Washington, D.C. 20549</FONT></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FORM
S-1<BR>
REGISTRATION STATEMENT</B></FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"><BR>
<FONT STYLE="font-size: 10pt"><B>UNDER THE SECURITIES ACT OF 1933</B></FONT></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Nxu,
Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">(Exact
name of registrant as specified in its charter)</FONT></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>3711</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 32%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>92-2819012</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(State or other jurisdiction
    of incorporation or organization)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Primary Standard
    Industrial <BR>
Classification Code Number)</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(I.R.S. Employer <BR>
Identification
    No.)</FONT></TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="text-align: justify; width: 33%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 1.5pt solid; text-align: justify; width: 34%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; width: 33%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>1828
        N Higley Rd., Suite 116<BR>
        Mesa, Arizona 85205</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(602)
    309-5425</B></FONT></P></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address, including
    zip code, and telephone number, including area code, of registrant&rsquo;s principal executive offices)</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Mark
        Hanchett</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Chief
    Executive Officer</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>1828
    N Higley Rd., Suite 116</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Mesa,
    Arizona 85205</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(602)
309-5425</B></FONT></P></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Name, address,
    including zip code, and telephone number, including area code, of agent for service)</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD COLSPAN="3" STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-top: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Copies to:</I></B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Michael
                                            M. Donahey</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Eileen
    K. Vernon<BR>
    Snell &amp; Wilmer L.L.P.</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>One
    East Washington Street, Suite 2700<BR>
    Phoenix, Arizona 85004<BR>
    (602) 382-6000</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  </TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Approximate
date of commencement of proposed sale to the public:</B> As soon as practicable after this Registration Statement becomes effective.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;) check the following box: &#9746;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
&#9744;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or emerging growth company. See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller
reporting company,&rdquo; and &ldquo;emerging growth company&rdquo; in Rule 12b-2 of the Securities Exchange Act of 1934, as amended
(the &ldquo;Exchange Act&rdquo;).</FONT></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large accelerated filer</FONT></TD>
    <TD STYLE="width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD>
    <TD STYLE="width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated filer</FONT></TD>
    <TD STYLE="width: 10%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller reporting company</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging growth company</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">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 7(a)(2)(B) of the Securities Act. &#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the
registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act or until the registration statement shall become effective on such date as the
Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Red">The
information in this prospectus is not complete and may be changed. The securities may not be sold until the registration statement filed
with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell the securities and is not
soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Red"><B>SUBJECT
TO COMPLETION DATED DECEMBER 30, 2024<BR>
PRELIMINARY PROSPECTUS</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><IMG SRC="image_001.jpg" ALT=""></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Nxu,
Inc.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Up
to 114,503,816 Shares of Class A Common Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
prospectus relates to the resale, from time to time, by the selling stockholders identified in this prospectus under the caption
&ldquo;Selling Stockholders&rdquo; of up to an aggregate of (i) 6,800,000 shares (the &ldquo;Purchased Shares&rdquo;) of the
Company&rsquo;s Class A common stock, $0.0001 par value per share (&ldquo;Class A common stock&rdquo;), of Nxu, Inc.
(&ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; the &ldquo;Company,&rdquo; or &ldquo;Nxu&rdquo;), (ii) pre-funded warrants
to purchase 5,200,000 shares of Class A common stock (the &ldquo;Pre-Funded Warrants&rdquo;), (iii) Series A warrants to purchase up
to 57,251,908 shares of Class A common stock (the &ldquo;Series A Warrants&rdquo;), and (iv) Series B warrants to purchase up to
45,251,908 shares of Class A common stock (the &ldquo;Series B Warrants&rdquo; and together with the Pre-Funded Warrants and the
Series A Warrants, the &ldquo;Warrants&rdquo;), in each case to be issued to the selling stockholders in a private placement (the
&ldquo;Private Placement&rdquo;) pursuant to that certain Securities Purchase Agreement, dated as of December 26, 2024 (the
&ldquo;Securities Purchase Agreement&rdquo;). The Purchased Shares and the
shares of Class A common stock issuable upon exercise of the Warrants are referred to herein as the &ldquo;Registrable
Securities.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
aggregate offering price for the Purchased Shares and the Warrants sold in the Private Placement was approximately $3,000,000. We will not receive any proceeds from the resale, if any, of the Registrable
Securities by the selling stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Pre-Funded Warrants are exercisable immediately following the date of issuance, may be exercised at any time until all of the Pre-Funded
Warrants are exercised in full, and have an initial exercise price of $0.0001 per share, subject to adjustment. The Series A Warrants
and the Series B Warrants will become exercisable upon receipt of approval of the Company&rsquo;s stockholders relating to the issuance
of the shares of Class A common stock underlying the Series A Warrants and the Series B Warrants as required by the rules and regulations
of The Nasdaq Stock Market LLC (&ldquo;Nasdaq&rdquo;) (the &ldquo;Stockholder Consent). The Series A Warrants have an exercise price
of $0.50 per share, subject to adjustment. In addition, with respect to the Series A Warrants, the Investors may also effect an &ldquo;alternative
cashless exercise&rdquo; after the Stockholder Consent has been obtained but prior to the time of the closing of the merger contemplated
by the Merger Agreement (as defined below). The Series B Warrants have an exercise price of $0.0001 per share, subject to adjustment.
For further information regarding the Private Placement, see the section titled &ldquo;The Private Placement&rdquo; beginning on page
35 of this prospectus.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
selling stockholders may sell these shares through public or private transactions at market prices prevailing at the time of sale or
at negotiated prices. The timing and amount of any sale are within the sole discretion of the selling stockholders. The selling stockholders
are underwriters within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;),
and any broker-dealers or agents that participate in distribution of the securities will also be underwriters within the meaning of Section
2(a)(11) of the Securities Act, and any profit on sale of the securities by them and any discounts, commissions or concessions received
by them will be underwriting discounts and commissions under the Securities Act. There can be no assurances that the selling stockholders
will sell any or all of the securities offered under this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
further information regarding the possible methods by which the shares may be distributed, see the section titled &ldquo;Plan of Distribution&rdquo;
beginning on page 56 of this prospectus. We will pay the expenses incurred in registering the securities covered by this prospectus,
including legal and accounting fees. To the extent the selling stockholders decide to sell their shares of Class A common stock, we will
not control or determine the price at which the shares are sold.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Registrable Securities were offered and sold by us pursuant to the exemption provided by Section&nbsp;4(a)(2)&nbsp;of the Securities
Act and Regulation&nbsp;D promulgated thereunder. We are registering the offer and resale of the Registrable Securities to satisfy the
provisions of that certain registration rights agreement, dated December 26, 2024 (the &ldquo;Registration Rights Agreement&rdquo;),
pursuant to which we agreed to register the resale of the Registrable Securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Class A common stock is listed on Nasdaq under the symbol &ldquo;NXU.&rdquo; On December 26, 2024, the last reported sales price of our
Class A common stock as reported on Nasdaq was $0.262 per share. We urge prospective purchasers of our Class A common stock to obtain
current information about the market prices of our Class A common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are an &ldquo;emerging growth company&rdquo; as that term is defined under the federal securities laws and, as such, we have elected
to comply with certain reduced reporting requirements for this prospectus and may elect to do so in future filings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Company has a dual class structure. Our Class A common stock, which is the stock we are registering by means of this prospectus, has
one vote per share and our Class B common stock, $0.0001 par value per share (the &ldquo;Class B common stock&rdquo; and together with
the Class A common stock, &ldquo;common stock&rdquo;), has no economic rights and has 10 votes per share. For more information on the
common stock, see the section titled &ldquo;Description of Securities.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Class B common stock is owned solely by our Chief Executive Officer, Mark Hanchett, and our President, Annie Pratt, who, as of December
2, 2024, own 200,692 and 78,812 shares of our Class B common stock, respectively. As of December 2, 2024, Mr. Hanchett and Ms. Pratt
hold approximately 10.8% and 4.2% of the total voting power of our outstanding common stock, respectively, for an aggregate of approximately
15.0% of the voting power of our outstanding common stock. Mr. Hanchett is also the holder of the sole share of Nxu Series B preferred
stock issued and outstanding, which is entitled to a number of votes equal to the total number of votes that could be cast by holders
of Class&nbsp;A common stock and Class&nbsp;B common stock.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
principal executive offices are located at 1828 N Higley Rd., Suite 116, Mesa, Arizona 85205, and our telephone number at that address
is (602) 309-5425.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Investing
in our securities involves a high degree of risk. You should carefully read this prospectus and any prospectus supplement or
amendment before you invest. See the section in this prospectus entitled &ldquo;Risk Factors&rdquo; beginning on page 7 and under
similar headings in the other documents that are incorporated by reference into this prospectus for a discussion of information that
should be considered in connection with an investment in our securities.</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Neither
the Securities and Exchange Commission (the &ldquo;SEC&rdquo;) nor any state securities commission has approved or disapproved of these
securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prospectus
dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2024.</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>TABLE
OF CONTENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 92%"><A HREF="#a_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ABOUT THIS PROSPECTUS</FONT></A></TD>
    <TD STYLE="text-align: center; width: 8%">ii</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_002"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MARKET AND INDUSTRY DATA</FONT></A></TD>
    <TD STYLE="text-align: center">iii</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">TRADEMARKS, TRADE NAMES AND SERVICE MARKS</FONT></A></TD>
    <TD STYLE="text-align: center">iii</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SUMMARY OF THE PROSPECTUS</FONT></A></TD>
    <TD STYLE="text-align: center">1</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</FONT></A></TD>
    <TD STYLE="text-align: center">6</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">RISK FACTORS</FONT></A></TD>
    <TD STYLE="text-align: center">7</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">THE PRIVATE PLACEMENT</FONT></A></TD>
    <TD STYLE="text-align: center">35</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">USE OF PROCEEDS</FONT></A></TD>
    <TD STYLE="text-align: center">38</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SECURITIES MARKET INFORMATION</FONT></A></TD>
    <TD STYLE="text-align: center">38</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_010"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS</FONT></A></TD>
    <TD STYLE="text-align: center">39</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_011"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
    STATEMENTS</FONT></A></TD>
    <TD STYLE="text-align: center">43</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_012"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DESCRIPTION OF SECURITIES</FONT></A></TD>
    <TD STYLE="text-align: center">48</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_013"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT</FONT></A></TD>
    <TD STYLE="text-align: center">53</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_014"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SELLING STOCKHOLDERS</FONT></A></TD>
    <TD STYLE="text-align: center">54</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_015"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PLAN OF DISTRIBUTION</FONT></A></TD>
    <TD STYLE="text-align: center">56</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_016"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">LEGAL MATTERS</FONT></A></TD>
    <TD STYLE="text-align: center">58</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_017"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">EXPERTS</FONT></A></TD>
    <TD STYLE="text-align: center">58</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_018"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">WHERE YOU CAN FIND ADDITIONAL INFORMATION</FONT></A></TD>
    <TD STYLE="text-align: center">58</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_019"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</FONT></A></TD>
    <TD STYLE="text-align: center">59</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><A HREF="#a_020"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">INDEX TO FINANCIAL STATEMENTS</FONT></A></TD>
    <TD STYLE="text-align: center">F-1</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>The
registration statement containing this prospectus, including the exhibits to the registration statement, provides additional information
about us and the Class A common stock offered under this prospectus. The registration statement, including the exhibits, can be read
on our website and the website of the Securities and Exchange Commission. See &ldquo;Where You Can Find More Information.&rdquo;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Information
contained in, and that can be accessed through our website,&nbsp;<I>www.nxuenergy.com,</I>&nbsp;shall not be deemed to be part of this
prospectus or incorporated herein by reference and should not be relied upon by any prospective investors for the purposes of determining
whether to purchase the Class A common stock offered hereunder.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Please
read this prospectus carefully. We have prepared this prospectus so that you will have the information necessary to make an informed
investment decision. You should rely only on the information contained in this prospectus or to which we have referred you. We have not
authorized any person to provide you with additional information or different information. We take no responsibility for, and can provide
no assurance as to the reliability of, any information that others may give you. This prospectus may only be used where it is legal to
offer and sell the securities described herein and only during the effectiveness of the registration statement of which this prospectus
forms a part. You should assume the information contained in this prospectus is accurate only as of the date on the front cover of this
prospectus, regardless of the time of delivery of this prospectus or of any sale of our Class A common stock. Neither the delivery of
this prospectus nor any distribution of securities in accordance with this prospectus shall, under any circumstances, imply that there
has been no change in our affairs since the date of this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
prospectus contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our
control. See &ldquo;Risk Factors&rdquo; beginning on page 7 of this prospectus and &ldquo;Cautionary Note Regarding Forward-Looking
Statements&rdquo; beginning on page 6 of this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Unless the
context otherwise requires, the terms &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;the Company,&rdquo; &ldquo;Nxu,&rdquo;
the &ldquo;Registrant&rdquo;, and &ldquo;our business&rdquo; refer Nxu, Inc., and &ldquo;this offering&rdquo; refers to the offering
contemplated in this prospectus of the Registrable Securities.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><A NAME="a_001"></A>ABOUT
THIS PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
prospectus forms a part of a registration statement on Form S-1 that we filed with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;)
using the &ldquo;shelf&rdquo; registration process. Under this process, the selling securityholders may from time to time, in one or
more offerings, sell the securities described in this prospectus. We will not receive any proceeds from the resale of Class A common
stock by the selling stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">You
should rely only on the information contained in this prospectus. We have not authorized any other person to provide you with different
information. If anyone provides you with different or inconsistent information, you should not rely on it. This prospectus is an offer
to sell only the securities offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. You should
assume that the information appearing in this prospectus is accurate only as of the date on the front cover of this prospectus. Our business,
financial condition, results of operations and prospects may have changed since that date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
may also provide a prospectus supplement or post-effective amendment to the registration statement to add information to, or update or
change information contained in, this prospectus. You should read both this prospectus and any applicable prospectus supplement or post-effective
amendment to the registration statement together with the additional information to which we refer you in the sections of this prospectus
titled &ldquo;Where You Can Find More Information.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
prospectus contains summaries of certain provisions contained in some of the documents described herein, but reference is made to the
actual documents for complete information. All of the summaries are qualified in their entirety by the full text of the actual documents.
Copies of some of the documents referred to herein have been filed, will be filed or will be incorporated by reference as exhibits to
the registration statement of which this prospectus is a part, as described in &ldquo;Incorporation of Certain Documents by Reference&rdquo;
in this prospectus, and you may obtain copies of those documents as described below under the section entitled &ldquo;Where You Can Find
More Information.&rdquo; We further note that the representations, warranties and covenants made by us in any agreement that is filed
as an exhibit to any document that is incorporated by reference into this prospectus were made solely for the benefit of the parties
to such agreement, including, in some cases, for the purpose of allocating risk among the parties to such agreements, and should not
be deemed to be a representation, warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate
only as of the date when made. Accordingly, such representations, warranties and covenants should not be relied on as accurately representing
the current state of our affairs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
investors outside the United States: We have not taken any action to permit the possession or distribution of this prospectus in any
jurisdiction other than the United States where action for that purpose is required. Persons outside the United States who come into
possession of this prospectus must inform themselves about and observe any restrictions relating to the Class A common stock and the
distribution of this prospectus outside the United States.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Unless
otherwise indicated or the context otherwise requires, all references in this prospectus to the terms &ldquo;Nxu,&rdquo; the &ldquo;Company,&rdquo;
&ldquo;we,&rdquo; &ldquo;our&rdquo; or &ldquo;us&rdquo; refer to Nxu, Inc., a Delaware corporation, either individually or together with
its consolidated subsidiaries, as the context requires.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><A NAME="a_002"></A>MARKET
AND INDUSTRY DATA</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Market
and industry data and forecasts used in this prospectus have been obtained from independent industry sources as well as from research
reports prepared for other purposes. We are responsible for all of the disclosure in this prospectus, and although we believe these third-party
sources to be reliable, we have not independently verified the data obtained from these sources, and we cannot assure you of the accuracy
or completeness of the data. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications
and uncertainties as the other forward-looking statements in this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><A NAME="a_003"></A>TRADEMARKS,
TRADE NAMES AND SERVICE MARKS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
document contains references to trademarks, trade names and service marks belonging to other entities. Solely for convenience, trademarks,
trade names and service marks referred to in this prospectus may appear without the &reg; or &trade; symbols, but such references are
not intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its rights
to these trademarks and trade names. We do not intend our use or display of other companies&rsquo; trade names, trademarks or service
marks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>SMALLER
REPORTING COMPANY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are a &ldquo;smaller reporting company&rdquo; under applicable SEC rules and, as such, have elected to comply with certain reduced public
company disclosure requirements for this prospectus and future filings. See &ldquo;Summary of the Prospectus &mdash; Smaller Reporting
Company&rdquo; for additional information.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<DIV STYLE="padding: 3pt; border: Black 1.5pt solid; width: 98%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><A NAME="a_004"></A>SUMMARY
OF THE PROSPECTUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>This
summary highlights selected information from this prospectus and does not contain all of the information that is important to you in
making an investment decision. You should read the entire prospectus carefully, including the information under the headings &ldquo;Risk
Factors&rdquo; beginning on page 7 of this prospectus, &ldquo;Cautionary Note Regarding Forward-Looking Statements&rdquo; beginning
on page 6 of this prospectus and the financial statements beginning on page F-1 of this prospectus.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Overview
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are a US-based technology company leveraging its intellectual property and innovations to support energy storage and charging solutions
for the infrastructure needed to power an electrified future. We historically focused on building megawatt (&ldquo;MW&rdquo;) charging
stations and developing innovative battery cells and battery packs for use in advanced energy storage systems and mobility products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Following
a shift in focus in the latter half of 2023, we continued developing and producing its NxuOne&trade; megawatt charging station in our
Mesa, Arizona facility. As of March&nbsp;31, 2024, we successfully launched our first charging station and produced multiple production
units ready for deployment. Production costs, including costs of materials and labor, reduced with each unit produced, as we focused
on scale and efficiency. We started the second quarter of 2024 centered on developing plans for charging station deployment, continued
scaled production of its NxuOne&trade; megawatt charging station, and initial design of future charging products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
May&nbsp;10, 2024, we announced our intention to evaluate strategic alternatives, with the Strategic Planning Committee of our board
of directors (the &ldquo;Strategic Planning Committee&rdquo;) leading such evaluation with outside assistance from advisors. As we conducted
our strategic alternative review process, we focused on reducing costs to maximize the strength of our balance sheet and reduce our use
of cash. On May&nbsp;10, 2024, we significantly reduced its headcount across Product, Engineering, Manufacturing, and General&nbsp;&amp;
Administrative functions as a cost saving measure, as we successfully pursued avenues for a business combination with limited access
to continued capital funding.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
October 23, 2024, the Company, NXU Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (&ldquo;Merger
Sub I&rdquo;), NXU Merger Sub, LLC, a Delaware limited liability company (&ldquo;Merger Sub II&rdquo;) and Verde Bioresins, Inc., a Delaware
corporation (&ldquo;Verde&rdquo;), entered into an Agreement and Plan of Merger (the &ldquo;Merger Agreement&rdquo;), pursuant to which,
among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub I will
merge with and into Verde, with Verde continuing as a wholly owned subsidiary of Nxu and the surviving corporation of the first merger
(the &ldquo;First Merger&rdquo;) and promptly following the First Merger, Verde shall merge with and into Merger Sub II (the &ldquo;Second
Merger&rdquo; and together with the First Merger, the &ldquo;Merger&rdquo;), with Merger Sub II continuing as the surviving entity of
the Second Merger.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Subject
to the terms and conditions of the Merger Agreement, (i) immediately prior to the effective time of the First Merger (the &ldquo;Effective
Time&rdquo;), all outstanding convertible notes of Verde will be converted into shares of Verde common stock and all outstanding and
unexercised Verde warrants will be exercised for shares of Verde common stock, and (ii) at the Effective Time, (a) each then-outstanding
share of Verde common stock, other than any cancelled shares and dissenting shares, will be converted into the right to receive a number
of shares of Nxu common stock, and (b) each then-outstanding and unexercised Verde option to purchase shares of Verde common stock, whether
vested or unvested, will be assumed by Nxu and converted into an option to purchase a number of shares of Nxu common stock. The shares
of Nxu common stock that will be issued to Verde stockholders and the number of shares of Nxu common stock underlying options that will
be issuable to Verde optionholders will be calculated using a formula in the Merger Agreement based on the enterprise value of each of
Verde and Nxu. Verde has been ascribed an aggregate enterprise value of approximately $306.9 million, and Nxu&rsquo;s aggregate enterprise
value will be an amount equal to approximately $16.2 million less an amount equal to the excess of certain lease payments remaining unpaid
at the closing of the Merger over Nxu&rsquo;s cash balance at closing. Upon the closing of the Merger, assuming Nxu&rsquo;s aggregate
enterprise value is approximately $16.2 million, pre-Merger Verde stockholders will own approximately 95% of the combined company and
pre-Merger Nxu stockholders will own approximately 5% of the combined company, in each case, on a fully-diluted and as-converted basis.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
can be no assurance that we will be successful in effecting the Merger or any other transactions or realizing any of the intended benefits,
including obtaining a sufficient level of capital through this or other channels in the time frames needed to sustain or grow the business
or on terms agreeable to us. As we focus on a Merger with Verde, we remain focused on reducing costs to maximize the strength of our
balance sheet, reducing our use of cash, and continuing to evaluate all feasible paths to raising capital to fund operations through
the date of a merger closing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
is an early-stage company and as such, has incurred losses from operations and has had negative cash flows from operating activities
since our inception.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
light of our liquidity position and anticipated future funding requirements, we continue to pursue all available options for funding
including seeking funding in the form of potential equity and/or debt financing arrangements or similar transactions, further reducing
expenses, and selling assets. Even if we are successful in implementing the Merger or other strategic alternative, we will continue to
require additional funding. The Company cannot provide any assurance that access to capital will be readily available when needed or
that it will be successful in implementing the Merger or other strategic alternative, which is subject to the satisfaction of conditions
beyond the Company&rsquo;s control. If we are unable to complete the Merger or other strategic transaction in a timely manner, we could
be required to dissolve and liquidate our assets under the bankruptcy laws or otherwise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Corporate
Information</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
were originally incorporated under the laws of the State of Delaware on November 9, 2016 under the name &ldquo;Atlis Motor Vehicles Inc.&rdquo;
(the &ldquo;Predecessor&rdquo;). In connection with the Reorganization Merger (as defined below), Nxu was incorporated under the laws
of the State of Delaware on March 10, 2023. On May 12, 2023, the Predecessor completed the Reorganization Merger pursuant to an agreement
and plan of merger, dated as of April 16, 2023 (the &ldquo;Reorganization Agreement&rdquo;), by and among the Predecessor, Nxu and Atlis
Merger Sub, Inc., a Delaware corporation and, as of immediately prior to the consummation of such merger, a wholly-owned subsidiary of
Nxu (&ldquo;Merger Sub&rdquo;). The Reorganization Agreement provided for the merger of the Predecessor and Merger Sub, with the Predecessor
surviving the merger as a wholly-owned subsidiary of Nxu (the &ldquo;Reorganization Merger&rdquo;). Following the closing of the Reorganization
Merger, Nxu&rsquo;s Class A common stock commenced trading on Nasdaq under the ticker &ldquo;NXU&rdquo;.&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
principal executive offices are located at 1828 North Higley Road, Mesa, AZ 85205. Our website address is <I>www.nxuenergy.com</I>. The
information provided on or accessible through our website (or any other website referred to in the registration statement, of which this
prospectus forms a part, or the documents incorporated by reference herein) is not part of the registration statement, of which this
prospectus forms a part, and is not incorporated by reference as part of the registration statement, of which this prospectus forms a
part.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Implications
of Being an Emerging Growth Company and Smaller Reporting Company</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
qualify as an &ldquo;emerging growth company&rdquo; under the Jumpstart Our Business Startups Act of 2012, as amended (the &ldquo;JOBS
Act&rdquo;). As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as
we are an emerging growth company, we will not be required to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">have
                                            an auditor report on our internal controls over financial reporting pursuant to Section 404(b)
                                            of the Sarbanes-Oxley Act of 2022, as amended&#894;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">comply
                                            with any requirement that may be adopted by the Public Company Accounting Oversight Board
                                            regarding mandatory audit firm rotation or a supplement to the auditor&rsquo;s report providing
                                            additional information about the audit and the financial statements (i.e., an auditor discussion
                                            and analysis)&#894;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"></P>

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<DIV STYLE="padding: 3pt; border: Black 1.5pt solid; width: 98%"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">submit
                                            certain executive compensation matters to stockholder advisory votes, such as &ldquo;say-on-pay,&rdquo;
                                            &ldquo;say-on-frequency&rdquo; and pay ratio&#894; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">disclose
                                            certain executive compensation related items such as the correlation between executive compensation
                                            and performance and comparisons of the chief executive officer&rsquo;s compensation to median
                                            employee compensation.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period
provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging
growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.
We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable
to those of companies that comply with such new or revised accounting standards.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
will remain an &ldquo;emerging growth company&rdquo; for up to five years, or until the earlier of (i) December 31, 2027, the last day
of the fiscal year (a) following the fifth anniversary of the closing of our initial public offering, (b) in which our total annual gross
revenues are at least $1.235 billion, or (c) in which we are deemed a &ldquo;large accelerated filer&rdquo; as defined in Rule 12b-2
under the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;), which would occur if the market value of our
Class A common stock that are held by non-affiliates exceeds $700 million as of the last business day of our most recently completed
second fiscal quarter, and (ii) the date on which we have issued more than $1 billion in non-convertible debt during the prior three
year period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are also a &ldquo;smaller reporting company&rdquo; as defined by Rule 12b-2 of the Exchange Act. We may continue to be a smaller reporting
company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available
to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as the market value of our
voting and non-voting Class A common stock held by non-affiliates is less than $250.0 million measured on the last business day of our
second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market
value of our voting and non-voting Class A common stock held by non-affiliates is less than $700.0 million measured on the last business
day of our second fiscal quarter.<I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Summary
Risk Factors</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investing
in our securities involves risks. You should carefully consider the risks described in &ldquo;Risk Factors&rdquo; beginning on page 7 before making a decision to invest in our Class A common stock. If any of these risks actually occurs, our business, financial condition
and results of operations would likely be materially adversely affected. In such case, the trading price of our securities would likely
decline, and you may lose all or part of your investment. Set forth below is a summary of some of the principal risks we face:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Risks
Related to this Offering</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investors
                                            who buy shares at different times will likely pay different prices.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            issuance of Class A common stock to the selling stockholders may cause substantial dilution
                                            to our existing stockholders and the sale of such shares acquired by the selling stockholders
                                            could cause the price of our Class A common stock to decline.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<DIV STYLE="padding: 3pt; border: Black 1.5pt solid; width: 98%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Risks
Related to the Merger</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Failure
                                            to complete the Merger could harm our Class A common stock price and future business and
                                            operations of the Company.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            completion of the Merger is subject to conditions, some or all of which may not be satisfied
                                            or completed on a timely basis, if at all. Failure to complete the Merger could have material
                                            adverse effects on the Company.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
                                            the Merger is not completed, the Company&rsquo;s stock price may decline significantly.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">During
                                            the pendency of the Merger, the Company may be limited in its ability to enter into a business
                                            combination with another party on more favorable terms because of restrictions in the Merger
                                            Agreement, which could adversely affect its respective business prospects.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Merger will involve substantial costs and will require substantial management resources.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Another
                                            attractive strategic transaction may not be available if the Merger is not completed.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
                                            the Company does not successfully consummate the Merger or another strategic transaction,
                                            the Company&rsquo;s board of directors may decide to pursue a dissolution and liquidation
                                            of the Company. </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Company is substantially dependent on its remaining employees to facilitate the consummation
                                            of the Merger.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Risks
Related to the Company</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Company is an early-stage company with a limited operating history that has never turned
                                            a profit and there are no assurances that the Company will ever be profitable.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Company has incurred significant losses since its inception, and it expects to continue to
                                            incur losses for the foreseeable future. Accordingly, its financial condition raises substantial
                                            doubt regarding its ability to continue as a going concern.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
                                            limited operating history makes it difficult for us to evaluate its future business prospects.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Company generated revenue for the first time in 2023, but there is no assurance that it will
                                            be able to continue to generate revenue from the operations of the NxuOne&trade; Charging
                                            Network.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Company has losses which it expects to continue into the future. There is no assurance its
                                            future operations will result in a profit. If we cannot generate sufficient revenues to operate
                                            profitably or we are unable to raise enough additional funds for operations, our stockholders
                                            will experience a decrease in value, and we may have to cease operations.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Company needs to raise additional capital to meet its future business requirements and such
                                            capital raising may be costly or difficult to obtain and could dilute current stockholders&rsquo;
                                            ownership interest.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            Class A common stock may be delisted from Nasdaq if the Company does not maintain compliance
                                            with Nasdaq&rsquo;s continued listing requirements. If the Class A common stock is delisted,
                                            it could negatively impact the Company.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
                                            the market price of the Class A common stock continues to remain under $1.00 per share, the
                                            only cure may be to enact a reverse split of the stock. Failure to maintain compliance with
                                            Nasdaq&rsquo;s Continued Listing Rules could be costly and have material adverse effects.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<DIV STYLE="padding: 3pt; border: Black 1.5pt solid; width: 98%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>The
Offering</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Issuer</FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 68%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nxu, Inc.,
    a Delaware corporation.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities Offered by Selling Stockholders</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">114,503,816 shares of Class
    A common stock, comprised of (i) 6,800,000 Purchased Shares, (ii) 5,200,000 shares of Class A common stock issuable upon exercise
    of the Pre-Funded Warrants; (iii) up to 57,251,908 shares of Class A common stock issuable upon exercise of the Series A Warrants;
    and (iv) up to 45,251,908 shares of Class A common stock issuable upon exercise of the Series B Warrants.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Class A Common Stock To Be Outstanding after this Offering,
    Assuming Exercise of the Pre-Funded Warrants, the Series A Warrants and the Series B Warrants</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">131,123,873 shares of Class
    A common stock (assuming full exercise of the Pre-Funded Warrants, the Series A Warrants the Series B Warrants)</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Terms of the Offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The selling stockholders
    and any of its pledgees, assignees and successors-in-interest will determine when and how they sell the shares offered in this prospectus
    and may, from time to time, sell any or all of their shares covered hereby on Nasdaq or any other stock exchange, market or trading
    facility on which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. See &ldquo;Plan
    of Distribution&rdquo; in this prospectus.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of Proceeds</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We will not receive any proceeds from the
resale, if any, of the Registrable Securities by the selling stockholders. See &ldquo;Use of Proceeds.&rdquo;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Risk Factors</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investment in our
    securities involves a high degree of risk and could result in a loss of your entire investment. See &ldquo;Risk Factors&rdquo;
    beginning on page 7 of this prospectus and the similarly entitled sections in the documents incorporated by reference into this
    prospectus.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nasdaq Capital Market Symbol </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our shares of Class A common
    stock are listed on Nasdaq under the symbol &ldquo;NXU.&rdquo; </FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Except as otherwise indicated herein, the number
of shares of our Class A common stock to be outstanding after this offering is based on 16,620,057 shares of Common Stock outstanding
as of December 23, 2024, plus the Purchased Shares, assumes we issue the additional 107,703,816&nbsp;shares of Class A common stock that
are issuable under the Pre-Funded Warrants, the Series A Warrants, and the Series B Warrants, and excludes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">997,698&nbsp;shares
                                            of Class A common stock issuable upon the exercise of outstanding options at a weighted average
                                            exercise price of $317.36&nbsp;per share;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">109,513&nbsp;shares
                                            of Class A common stock issuable upon the exercise of outstanding warrants at a weighted-average
                                            exercise price of $97.93&nbsp;per share;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
                                            maximum of 66,667&nbsp;shares of Class A common stock issuable upon the conversion of outstanding
                                            convertible notes (assuming a minimum conversion price of $0.15 per share);</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">3,495,518&nbsp;shares
                                            of Class A common stock issuable upon vesting of outstanding restricted stock units under
                                            our equity incentive plan;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">48,463,249&nbsp;shares
                                            of Class A common stock reserved for issuance under our equity incentive plan; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">shares
                                            of Nxu common stock to be issued to Verde stockholders and shares of Nxu common stock underlying
                                            options that will be issuable to Verde optionholders in connection with the Merger.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Unless
otherwise indicated, all information in this prospectus assumes no exercise of the outstanding options and warrants, no conversion of
the outstanding convertible notes, no vesting of the outstanding restricted stock units and no issuance of shares of Nxu common stock
in connection with the Merger described in the bullets above. To the extent that options or warrants are exercised, convertible notes
are converted, restricted stock units vest, the Merger closes, new awards are granted under our equity incentive plan, or we issue additional
shares of Class A common stock or warrants in the future, there will be further dilution to investors participating in this offering.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

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<DIV STYLE="padding: 3pt; border: Black 1.5pt solid; width: 98%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><A NAME="a_005"></A>CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
information in this prospectus includes &ldquo;forward-looking statements&rdquo; within the meaning of Section 27A of the Securities
Act, and Section 21E of the Exchange Act. When used in this prospectus, including any oral statements made in connection therewith, the
words &ldquo;could,&rdquo; &ldquo;should,&rdquo; &ldquo;will,&rdquo; &ldquo;may,&rdquo; &ldquo;believe,&rdquo; &ldquo;anticipate,&rdquo;
&ldquo;intend,&rdquo; &ldquo;estimate,&rdquo; &ldquo;expect,&rdquo; &ldquo;project,&rdquo; the negative of such terms and other similar
expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying
words. In particular, statements regarding our ability to continue as a going concern; our ability to complete the Merger in a timely
manner or at all and challenges to achieving strategic objectives, synergies and other anticipated benefits from the Merger; our belief
that additional funding will be required in order to continue operations; our ability to obtain additional funding in the form of potential
equity and/or debt financing arrangements or similar transactions; any plans to seek strategic alternatives for our business; expectations
and opportunities, industry trends, new product expectations and capabilities; and our outlook regarding our performance and growth are forward-looking statements.&nbsp;This
prospectus also contains statements regarding plans, goals and objectives. There is no assurance that we will be able to carry out our
plans or achieve our goals and objectives or that we will be able to do so successfully on a profitable basis.&nbsp;These forward-looking
statements are based on management&rsquo;s current expectations and assumptions about future events and are based on currently available
information as to the outcome and timing of future events. These forward-looking statements are just predictions and involve significant
risks and uncertainties, many of which are beyond our control, and actual results may differ materially from these statements. The principal
risks and uncertainties include those listed under &ldquo;Summary of the Prospectus&mdash;Summary Risk Factors&rdquo; in this prospectus.
Additionally, the section in this prospectus&nbsp;entitled &ldquo;Risk Factors&rdquo; beginning on page 7 of this prospectus and the
sections in our periodic reports, including our most recent Form&nbsp;10-K entitled &ldquo;Business,&rdquo; and in the Form&nbsp;10-K
and the subsequent Forms 10-Q entitled &ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations,&rdquo;
as well as other sections in this prospectus and the documents or reports incorporated by reference into this prospectus, further discuss
some of the important factors that we believe could cause actual results or events to differ materially from the forward-looking statements
that we make.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Moreover,
we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management
to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Given these
risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements
are qualified in their entirety by this cautionary statement. You should read this prospectus and the documents that we have filed as
exhibits to this prospectus and incorporated by reference herein completely and with the understanding that our actual future results
may be materially different from the plans, intentions and expectations disclosed in the forward-looking statements we make. The forward-looking
statements contained in this prospectus are made as of the date of this prospectus and we do not assume any obligation to update any
forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><A NAME="a_006"></A>RISK
FACTORS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Investing
in our securities involves a high degree of risk. You should consider carefully the risks described below, together with all of the other
information included or incorporated by reference in this prospectus, including those discussed under &ldquo;Cautionary Note Regarding
Forward-Looking Statements&rdquo; beginning on page 6 of this prospectus and the risks and uncertainties discussed under &ldquo;Risk
Factors&rdquo; in our annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, which have been filed
with the SEC and are incorporated by reference in this prospectus, as well as any updates thereto contained in subsequent filings with
the SEC or any free writing prospectus, before deciding whether to purchase our securities in this offering. All of these risk factors
are incorporated herein in their entirety. The risks described below and incorporated by reference are material risks currently known,
expected or reasonably foreseeable by us. However, the risks described below and incorporated by reference are not the only ones that
we face. Additional risks not presently known to us or that we currently deem immaterial may also affect our business, operating results,
prospects or financial condition. If any of these risks actually materialize, our business, prospects, financial condition, and results
of operations could be seriously harmed. This could cause the trading price of our Class A common stock to decline, resulting in a loss
of all or part of your investment.</I>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risks
Related to this Offering</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Investors
who buy shares at different times will likely pay different prices.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Investors
who purchase shares in this offering at different times will likely pay different prices, and so may experience different levels of dilution
and different outcomes in their investment results. Similarly, the selling stockholders may sell such shares at different times and at
different prices. Investors may experience a decline in the value of the shares they purchase from the selling stockholders in this offering
as a result of sales made by us in future transactions to the selling stockholders at prices lower than the prices they paid. The selling
stockholders will have discretion to vary the timing, prices, and number of shares sold in this offering. Investors may experience a
decline in the value of their shares of our Class A common stock. The trading price of our Class A common stock has been volatile and
subject to wide fluctuations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
issuance of Class A common stock to the selling stockholders may cause substantial dilution to our existing stockholders and the sale
of such shares acquired by the selling stockholders could cause the price of our Class A common stock to decline.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are registering for resale by the selling stockholders up to 114,503,816 shares of Class A common stock, consisting of (1)&nbsp;6,800,000
Purchased Shares, (2)&nbsp;5,200,000 shares of Class A common stock issuable upon exercise of the Pre-Funded Warrants, (3)&nbsp;up to
57,251,908 shares of Class A common stock issuable upon exercise of the Series A Warrants, and (4)&nbsp;up to 45,251,908 shares of Class
A common stock issuable upon exercise of the Series B Warrants. The number of shares of our Class A common stock ultimately offered for
resale by the selling stockholders under this prospectus is dependent the number of Registrable Securities issued. Depending on a variety
of factors, including market liquidity of our Class A common stock, the issuance of shares to the selling stockholders may cause the
trading price of our Class A common stock to decline.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Future
sales of our Class A common stock could cause the market price for our Class A common stock to decline.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
cannot predict the effect, if any, that market sales of shares of our Class A common stock or the availability of shares of our Class
A common stock for sale will have on the market price of our Class A common stock prevailing from time to time. Sales of substantial
amounts of shares of our Class A common stock in the public market, or the perception that those sales will occur, could cause the market
price of our Class A common stock to decline or be depressed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
shares of Class A common stock issued in connection with this offering will be freely tradeable without restriction or further registration
under the Securities Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risks
Related to the Merger</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Failure
to complete the Merger could harm the Class&nbsp;A common stock price and future business and operations of the Company.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the Merger is not completed, the price of Class&nbsp;A common stock may decline and could fluctuate significantly, and Nxu will still
incur costs related to the Merger, such as financial advisor, legal and accounting fees, a majority of which must be paid even if the
Merger is not completed. If the Merger Agreement is terminated and the Nxu board of directors determines to seek another business combination,
there can be no assurance that Nxu will be able to find another third party to transact a business combination with, yielding comparable
or greater benefits.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
price of Nxu&rsquo;s Class A common stock may also fluctuate significantly based on announcements by Verde, other third parties, or Nxu
regarding the Merger or based on market perceptions of the likelihood of the satisfaction of the conditions to the consummation of the
Merger. Such announcements may lead to perceptions in the market that the Merger may not be completed, which could cause Nxu&rsquo;s
share price to fluctuate or decline.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the parties do not consummate the Merger, the price of Nxu&rsquo;s Class A common stock may decline significantly from the current market
price, which may reflect a market assumption that the Merger will be consummated. Any of these events could have a material adverse effect
on Nxu&rsquo;s business, operating results and financial condition and could cause a decline in the price of Nxu&rsquo;s Class A common
stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the parties do not successfully consummate the Merger or another strategic transaction, the Nxu board of directors may decide to pursue
a dissolution and liquidation of Nxu. In such an event, the amount of cash available for distribution to the Nxu stockholders will depend
heavily on the costs and timing of such liquidation as well as the amount of cash that will need to be reserved for commitments and contingent
liabilities, as to which Nxu can give no assurance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
completion of the Merger is subject to conditions, some or all of which may not be satisfied or completed on a timely basis, if at all.
Failure to complete the Merger could have material adverse effects on Nxu.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Even
if the required proposals in connection with the Merger are approved by the stockholders of Nxu, specified conditions must be satisfied
or, to the extent permitted by applicable law, waived to complete the Merger. We cannot assure you that all of the conditions to the
consummation of the Merger will be satisfied or waived. If the conditions are not satisfied or waived, the Merger may not occur or the
Merger closing may be delayed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
parties cannot predict whether and when the conditions to the Merger will be satisfied, including but not limited to the requirement
that Nxu stockholders approve the issuance of adequate shares to complete the Merger and effect a change of control pursuant to certain
approval requirements of the Nasdaq Capital Market as well as approval of certain other proposals to be submitted to Nxu stockholders.
If one or more of these conditions are not satisfied, and as a result, the parties do not complete the Merger, the parties would remain
liable for significant transaction costs, and the focus of each party&rsquo;s management would have been diverted from seeking other
potential strategic opportunities, in each case without realizing any benefits of the Merger. Certain costs associated with the Merger
have already been incurred or may be payable even if the Merger is not consummated. Finally, any disruptions to each party&rsquo;s business
resulting from the announcement and pendency of the Merger, including any adverse changes in each party&rsquo;s relationships with customers,
clients, suppliers and employees, could continue or accelerate in the event that the parties fail to consummate the Merger.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, the Merger Agreement generally requires Nxu to operate in the ordinary course of business consistent with past practice, pending
consummation of the Merger, and restricts Nxu from taking certain actions with respect to Nxu business and financial affairs without
Verde&rsquo;s consent. Such restrictions will be in place until either the Merger is consummated or the Merger Agreement is terminated.
These restrictions could restrict Nxu&rsquo;s ability to, or prevent Nxu from, pursuing attractive business opportunities (if any) that
arise prior to the consummation of the Merger. For these and other reasons, the pendency of the Merger could adversely affect Nxu&rsquo;s
business, operating results and financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>If
the Merger is not completed, Nxu&rsquo;s stock price may decline significantly.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
market price of Nxu common stock is subject to significant fluctuations. Market prices for securities of technology companies have historically
been particularly volatile. In addition, the market price of Nxu common stock will likely be volatile based on whether stockholders and
other investors believe that Nxu can complete the Merger or otherwise raise additional capital to support Nxu&rsquo;s operations if the
Merger is not consummated and another strategic transaction cannot be identified, negotiated and consummated in a timely manner, or at
all. The volatility of the market price of Nxu common stock has been and may be exacerbated by low trading volume. Additional factors
that may cause the market price of Nxu common stock to fluctuate include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            loss of key employees;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">future
                                            sales of its common stock;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">general
                                            and industry-specific economic conditions that may affect its research and development expenditures;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            failure to meet industry analyst expectations; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">period-to-period
                                            fluctuations in financial results.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Moreover,
the stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of individual
companies. These broad market fluctuations may also adversely affect the trading price of Nxu common stock. In the past, following periods
of volatility in the market price of a company&rsquo;s securities, stockholders have often instituted class action securities litigation
against such companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
stockholders will generally have a reduced ownership and voting interest in, and will exercise less influence over the management of,
the combined company following the completion of the Merger as compared to their current ownership and voting interests in Nxu.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">After
the completion of the Merger, the current stockholders of Nxu will generally own a smaller percentage of the combined company than their
ownership of Nxu prior to the Merger. Immediately after the Merger, Nxu stockholders as of immediately prior to the Merger are expected
to own approximately 5% of the outstanding shares of capital stock of the combined company and former Verde stockholders are expected
to own approximately 95% of the outstanding shares of capital stock of the combined company, in each case, on a fully-diluted and as-converted
basis. Nxu&rsquo;s assumed aggregate enterprise value will be reduced by the excess of certain lease payments remaining unpaid at the
Merger closing over Nxu&rsquo;s cash balance at the Merger closing, and any such reduction will decrease the ownership percentage interest
of pre-Merger Nxu stockholders in the combined company. As a result, some stockholders will hold a smaller pro rata share and, therefore,
a lower percentage of the voting stock of the combined company than such stockholder currently holds in Nxu as a stand-alone company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>During
the pendency of the Merger, Nxu may be limited in its ability to enter into a business combination with another party on more favorable
terms because of restrictions in the Merger Agreement, which could adversely affect its respective business prospects.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Covenants
in the Merger Agreement impede the ability of Nxu to solicit proposals or offers relating to acquisitions or similar transactions during
the pendency of the Merger, subject to specified exceptions. As a result, if the Merger is not completed, Nxu may be at a disadvantage
to its competitors during that period. In addition, while the Merger Agreement is in effect, Nxu is generally prohibited from soliciting,
seeking, initiating or knowingly encouraging, inducing or facilitating the communication, making, submission or announcement of any acquisition
or competing proposal or taking any action that could reasonably be expected to lead to certain transactions involving a third party,
including a merger, sale of assets or other business combination, subject to specified exceptions. Any such transactions could be favorable
to Nxu stockholders, but Nxu may be unable to pursue them.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Certain
provisions of the Merger Agreement may discourage third parties from submitting competing proposals, including proposals that may be
superior to the transactions contemplated by the Merger Agreement.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
terms of the Merger Agreement prohibit Nxu from soliciting competing proposals or cooperating with persons making unsolicited takeover
proposals, except in limited circumstances as set forth in the Merger Agreement. Any such proposals could be favorable to Nxu stockholders.
In addition, if Nxu or Verde terminates the Merger Agreement under specified circumstances, Verde could be required to pay Nxu a termination
fee of $1.0&nbsp;million. This termination fee may discourage third parties from submitting competing proposals to Nxu or its stockholders,
and may cause the Nxu board of directors to be less inclined to recommend a competing proposal.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Stockholder
litigation could prevent or delay the consummation of the Merger or otherwise negatively impact Nxu&rsquo;s or the combined company&rsquo;s
business, operating results and conditions.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Putative
stockholder complaints, including stockholder class action complaints, and other complaints may be filed against Nxu and/or the Nxu board
of directors in connection with the transactions contemplated by the Merger Agreement. The outcome of litigation is uncertain, and Nxu
may not be successful in defending against any such future claims. Nxu could incur significant costs in connection with any such litigation,
including costs associated with the indemnification of Nxu&rsquo;s directors and officers. Additionally, such litigation could delay
or prevent the Merger, divert the attention of the management teams and employees of Nxu from&nbsp;day-to-day business and otherwise
adversely affect the business and financial condition of Nxu or the combined company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Furthermore,
one of the conditions to the consummation of the Merger is the absence of any governmental order or law preventing the consummation of
the Merger or making the consummation of the Merger illegal. Consequently, if a plaintiff were to secure injunctive or other relief prohibiting,
delaying or otherwise adversely affecting Nxu&rsquo;s or Verde&rsquo;s ability to complete the consummation of the Merger, then such
injunctive or other relief may prevent the Merger from becoming effective within the expected time frame or at all.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
issuance of Nxu common stock to Verde stockholders pursuant to the Merger Agreement and the resulting change in control from the Merger
must be approved by Nxu stockholders, and the Merger Agreement and the transactions contemplated thereby must be approved by the Verde
stockholders. Failure to obtain these approvals would prevent the closing of the Merger.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Before
the Merger can be completed, the Nxu stockholders must approve, among other things, the issuance of Nxu common stock to Verde stockholders
pursuant to the Merger Agreement and the resulting change in control from the Merger, and Verde stockholders must adopt the Merger Agreement
and approve the Merger and the related transactions. Concurrently with the execution of the Merger Agreement, Nxu entered into the Support
Agreement (as defined in the Merger Agreement) with the Support Stockholders (as defined in the Merger Agreement) pursuant to which the
Support Stockholders agreed to, among other things, (a)&nbsp;from the date of the Nxu Support Agreement to the Support Expiration Time
(as defined in the Merger Agreement), vote at any meeting or pursuant to any action of written resolution of the stockholders of Nxu
all of their Nxu common stock, held of record or thereafter acquired: (i)&nbsp;in favor of the Merger and the other proposals and (ii)&nbsp;against
any competing acquisition proposal; and (b)&nbsp;be bound by certain other covenants and agreements related to the Merger, in each case,
on the terms and subject to the conditions set forth in the Nxu Support Agreement. However, failure to obtain the required stockholder
approvals may result in a material delay in, or the abandonment of, the Merger. Any delay in completing the Merger may materially adversely
affect the timing and benefits that are expected to be achieved from the Merger.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
Merger will involve substantial costs and will require substantial management resources.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
connection with the consummation of the Merger, management and financial resources of Nxu have been diverted and will continue to be
diverted towards the completion of the Merger. Nxu expects to incur substantial costs and expenses relating to, as well as the direction
of management resources towards, the Merger. Such costs, fees and expenses include fees and expenses payable to financial advisors, other
professional fees and expenses, fees and costs relating to regulatory filings and filings with the SEC and notices and other transaction-related
costs, fees and expenses. If the Merger is not completed, Nxu will have incurred substantial expenses and expended substantial management
resources for which Nxu will have received little to no benefit if the Merger closing does not occur.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Another
attractive strategic transaction may not be available if the Merger is not completed.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the Merger is not completed and is terminated, there can be no assurance that Nxu will be able to find a party willing to pay equivalent
or more attractive consideration than the consideration to be provided under the Merger Agreement or be willing to proceed at all with
a similar transaction or any alternative transaction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
have additional securities available for issuance, which, if issued, including in connection with the Merger, could adversely affect
the rights of the holders of our Class A common stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Certificate of Incorporation, as amended, authorizes the issuance of 4,000,000,000 shares of our Class A common stock, 1,000,000,000
shares of our Class B common stock, and 10,000,000 shares of preferred stock. In certain circumstances, our common stock, as well as
the awards available for issuance under our equity incentive plan, can be issued by our board of directors, without stockholder approval.
Any future issuances of such stock, including pursuant to outstanding equity awards, would further dilute the percentage ownership of
us held by holders of Class A common stock. In addition, the issuance of certain securities, may be used as an &ldquo;anti-takeover&rdquo;
device without further action on the part of our stockholders, and may adversely affect the holders of Class A common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Furthermore,
if the Merger is consummated, assuming Nxu&rsquo;s aggregate enterprise value is approximately $16.2 million, it is expected that pre-Merger
Verde stockholders will own approximately 95% of the combined company and pre-Merger Nxu stockholders will own approximately 5% of the
combined company, in each case, on a fully-diluted and as-converted basis. As a result, pre-Merger Nxu stockholders will experience substantial
dilution of their ownership interests in the event that the Merger is consummated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risks
Related to Nxu&rsquo;s Strategic Alternative Process and Potential Strategic Transaction</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
cannot be sure if or when the Merger will be completed.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
consummation of the Merger is subject to the satisfaction or waiver of various conditions, including the authorization of the Merger
by Nxu&rsquo;s stockholders and Verde&rsquo;s stockholders. Nxu cannot guarantee that the closing conditions set forth in the Merger
Agreement will be satisfied. If Nxu is unable to satisfy certain closing conditions or if other mutual closing conditions are not satisfied,
Verde will not be obligated to complete the Merger. Under certain circumstances, Verde would be required to pay Nxu a termination fee
of $1.0&nbsp;million.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the Merger is not completed, the Nxu board of directors, in discharging its fiduciary obligations to Nxu&rsquo;s stockholders, would
evaluate other strategic alternatives or financing options that may be available, which alternatives may not be as favorable to Nxu&rsquo;s
stockholders as the Merger, including a liquidation and dissolution. Any future sale or merger, financing or other transaction, including
a liquidation or dissolution, may be subject to further stockholder approval. Nxu may also be unable to find, evaluate or complete other
strategic alternatives, which may have a materially adverse effect on Nxu&rsquo;s business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Until
the Merger is completed, the Merger Agreement restricts Nxu from taking specified actions without the consent of Verde and requires Nxu
to operate in the ordinary course of business consistent with past practice. These restrictions may prevent Nxu from making appropriate
changes to its business or pursuing attractive business opportunities that may arise prior to the completion of the Merger. Further,
if certain of Nxu&rsquo;s lease payments remaining unpaid at the Merger closing exceed Nxu&rsquo;s cash balance at the Merger closing,
then the pre-Merger stockholders of Nxu will own less of the combined company pursuant to the exchange ratio adjustment set forth in
the Merger Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
delay in completing the Merger may materially and adversely affect the timing and benefits that are expected to be achieved from the
Merger.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>If
Nxu does not successfully consummate the Merger or another strategic transaction, Nxu&rsquo;s board of directors may decide to pursue
a dissolution and liquidation of Nxu. In such an event, the amount of cash available for distribution to Nxu&rsquo;s stockholders will
depend heavily on the costs and timing of such liquidation as well as the amount of cash that will need to be reserved for commitments
and contingent liabilities, as to which Nxu can give you no assurance.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
can be no assurance that the Merger will be completed. If the Merger is not completed, Nxu&rsquo;s board of directors may decide to pursue
a dissolution and liquidation of Nxu. In such an event, the amount of cash available for distribution to Nxu&rsquo;s stockholders will
depend heavily on the costs related to and timing of such decision and, ultimately, such liquidation, since the amount of cash available
for distribution continues to decrease as Nxu funds its operations while pursuing the Merger. In addition, if Nxu&rsquo;s board of directors
were to approve and recommend, and Nxu&rsquo;s stockholders were to approve, a dissolution and liquidation of Nxu, Nxu would be required
under Delaware corporate law to pay Nxu&rsquo;s outstanding obligations, as well as to make reasonable provision for contingent and unknown
obligations, prior to making any distributions in liquidation to stockholders. Nxu&rsquo;s commitments and contingent liabilities may
include obligations under Nxu&rsquo;s employment and related agreements with certain employees that provide for certain payments following
a termination of employment occurring for various reasons, including a change in control of Nxu, which may include a dissolution of Nxu,
litigation against Nxu, and other various claims and legal actions arising in the ordinary course of business, and other unexpected and/or
contingent liabilities. As a result of this requirement, a portion of Nxu&rsquo;s assets would need to be reserved pending the resolution
of such obligations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, Nxu may be subject to litigation or other claims related to a dissolution and liquidation of Nxu. If a dissolution and liquidation
were to be pursued, Nxu&rsquo;s board of directors, in consultation with Nxu&rsquo;s advisors, would need to evaluate these matters and
make a determination about a reasonable amount to reserve. Accordingly, holders of Nxu&rsquo;s common stock could lose all or a significant
portion of their investment in the event of liquidation, dissolution or winding up of Nxu. A liquidation would be a lengthy and uncertain
process with no assurance of any value ever being returned to Nxu&rsquo;s stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
is substantially dependent on Nxu&rsquo;s remaining employees to facilitate the consummation of the Merger.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
ability to consummate a strategic transaction depends upon its ability to retain its employees required to consummate such a transaction,
the loss of whose services may adversely impact the ability to consummate such transaction. In May&nbsp;2024, Nxu undertook an organizational
restructuring that significantly reduced its workforce in order to conserve its capital resources. As of December 2, 2024, Nxu had only
four full-time employees. Nxu&rsquo;s ability to successfully complete the Merger depends in large part on Nxu&rsquo;s ability to retain
certain remaining personnel. Despite Nxu&rsquo;s efforts to retain these employees, one or more may terminate their employment with Nxu
on short notice. Nxu&rsquo;s cash conservation activities may yield other unintended consequences, such as attrition beyond its planned
reduction in workforce and reduced employee morale, which may cause remaining employees to seek alternative employment. The loss of the
services of certain employees could potentially harm Nxu&rsquo;s ability to consummate the Merger, to run Nxu&rsquo;s&nbsp;day-to-day
business operations, as well as to fulfill Nxu&rsquo;s reporting obligations as a public company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>There
can be no assurance that Nxu&rsquo;s evaluation of strategic alternatives will enhance stockholder value or result in any transaction
being consummated, and speculation and uncertainty regarding the outcome of its evaluation of strategic alternatives may adversely impact
its business, financial condition and results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
May 10, 2024, Nxu announced its intention to evaluate strategic alternatives. There can be no assurance of the terms, timing or structure
of any transaction, or whether any such transaction, including the contemplated Merger, will take place at all, and any such transaction
is subject to risks and uncertainties. The process of reviewing strategic alternatives may involve significant resources and costs. In
addition, the announced evaluation of strategic alternatives may cause or result in:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">disruption
                                            of its business;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">diversion
                                            of the attention of management;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">increased
                                            stock price volatility;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">increased
                                            costs and advisory fees; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">challenges
                                            in retaining key employees</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
Nxu is unable to mitigate these or other potential risks related to the uncertainty caused by its exploration of strategic alternatives,
it may disrupt Nxu&rsquo;s business or could have a material adverse effect on its financial condition and results of operations in future
periods.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
ability to complete a transaction, will depend on numerous factors, some of which are outside of its control. A merger of independent
businesses is complex, costly and time-consuming. To consummate a merger, Nxu may incur asset write-offs and restructuring costs and
other related expenses that could have a material adverse impact on its operating results. Mergers also involve numerous other risks,
including potential exposure to assumed litigation and unknown environmental and other liabilities, as well as undetected internal control,
regulatory or other issues, or additional costs not anticipated at the time of a transaction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Even
if a merger transaction is completed, there can be no assurance that it will be successful or have a positive effect on stockholder value.
Further, it is not certain what impact any potential transaction may have on Nxu&rsquo;s stock price, its current stockholders&rsquo;
percentage ownership, business, financial condition, and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risks
Related to Nxu&rsquo;s Business</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
is an early-stage company with a limited operating history that has never turned a profit and there are no assurances that Nxu will ever
be profitable.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
is a relatively new company that was incorporated on November&nbsp;9, 2016. If you are investing in Nxu, it is because you think Nxu&rsquo;s
business model is a good idea, and Nxu will be able to successfully grow its business and become profitable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Currently,
Nxu&rsquo;s efforts are focused on operating its megawatt charging stations. Nxu has never turned a profit and there is no assurance
that it will ever be profitable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
also has limited brand awareness and operating history in the charging industry. Although Nxu has taken significant steps in developing
brand awareness, Nxu is a new company and currently has no experience developing or selling electric vehicle charging to customers. As
such, it is possible that Nxu&rsquo;s lack of history in the industry may impact its brand, business, financial goals, operation performance,
and products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
should be considered a &ldquo;Development Stage Company,&rdquo; and its operations will be subject to all the risks inherent in the establishment
of a new business enterprise, including, but not limited to, hurdles or barriers to the implementation of its business plans. Further,
because there is no history of operations there is also no operating history from which to evaluate Nxu&rsquo;s executive management&rsquo;s
ability to manage its business and operations and achieve Nxu&rsquo;s goals or the likely performance of Nxu. Prospective investors should
also consider the fact that Nxu&rsquo;s management team has not previously developed or managed similar companies. No assurances can
be given that Nxu will be able to achieve or sustain profitability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
has incurred significant losses since its inception, and Nxu expects to continue to incur losses for the foreseeable future. Accordingly,
its financial condition raises substantial doubt regarding its ability to continue as a going concern.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">During
the nine-month period ended September 30, 2024, Nxu incurred a net loss of $18.1 million and had net cash used in operating activities
of $10.2 million. As of September 30, 2024, Nxu had $2.2 million in cash and an accumulated deficit of $277.7 million. Nxu cannot provide
any assurance that unforeseen circumstances that could occur at any time within the next twelve months or thereafter will not increase
the need for Nxu to raise additional capital on an immediate basis. Additionally, Nxu cannot provide any assurance that access to capital
will be readily available when needed. These matters, among others, raise substantial doubt about Nxu&rsquo;s ability to continue as
a going concern for a period of one year after the date hereof. The report of Nxu&rsquo;s independent registered public accountant on
its financial statements as of and for the years ended December 31, 2023 and 2022 also includes explanatory language describing the existence
of substantial doubt about Nxu&rsquo;s ability to continue as a going concern. See Note 1 &mdash; Organization and Basis of Presentation
of its accompanying unaudited condensed consolidated financial statements included in Quarterly Report on Form 10-Q for the for the fiscal
quarter ended September 30, 2024 for further information.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
Nxu is unable to satisfy its capital requirements, Nxu could be required to adopt one or more of the following alternatives: delaying
the implementation of or revising certain aspects of its business strategy; reducing or delaying the development of its products; reducing
or delaying capital spending, product development spending and marketing and promotional spending; entering into financing agreements
on unattractive terms; significantly curtailing or discontinuing operations, or dissolving and liquidating its assets under the bankruptcy
laws or otherwise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
can be no assurance that Nxu would be able to take any of the actions referred to above because of a variety of commercial or market
factors, including, without limitation, market conditions being unfavorable for an equity or debt issuance or similar transactions. In
addition, such actions, if taken, may not enable Nxu to satisfy its capital requirements if the actions that Nxu is able to consummate
do not generate a sufficient amount of additional capital. If Nxu is ultimately unable to satisfy its capital requirements, Nxu would
likely need to dissolve and liquidate its assets under the bankruptcy laws or otherwise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
may not achieve its projected goals in the time frames it announces and expects due to unforeseen factors, including rising interest
rates and inflation increasing the cost to do business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
prospective valuation of Nxu at this stage is pure speculation. Nxu&rsquo;s business success, timeline, and milestones are estimated.
Nxu&rsquo;s sales volume and cost models are only estimates. Nxu produced these valuations based on existing business models of successful
and unsuccessful efforts of other companies within the technology and automotive industries. All such projections and timeline estimations
may change as Nxu continues in the development of electric vehicle technology.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
has only started limited manufacture and sales. Cost overruns, scheduling delays, and failure to meet product performance goals may be
caused by, but not limited to, unidentified technical hurdles and regulatory hurdles, which could materially damage Nxu&rsquo;s brand,
business, financial goals, operation and results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu&rsquo;s
limited operating history makes it difficult for Nxu to evaluate its future business prospects.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
is a company with an extremely limited operating history and has not generated material revenue from sales of its products and services
to date. It is difficult, if not impossible, for Nxu to forecast its future results, and Nxu has limited insight into trends that may
emerge and affect its business. In addition, Nxu has engaged in limited marketing activities to date, so there can be no assurance that
customers will embrace its services in significant numbers at the prices Nxu establishes. Market and geopolitical conditions, many of
which are outside of its control and subject to change, including general economic conditions, the availability and terms of financing,
the conflict in Ukraine, Middle East, and Taiwan fuel and energy prices, regulatory requirements and incentives, competition, and the
pace and extent of vehicle electrification generally, will impact demand for Nxu&rsquo;s services, and ultimately its success.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
may not be able to successfully manage growth.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
could experience growth over a short period of time, which could put a significant strain on its managerial, operational and financial
resources. Nxu must implement and constantly improve its certification processes and hire, train and manage qualified personnel to manage
such growth. Nxu has limited resources and may be unable to manage its growth. Its business strategy is based on the assumption that
its customer base, geographic coverage and service offerings will increase. If this occurs, it will place a significant strain on Nxu&rsquo;s
managerial, operational, and financial resources. If Nxu is unable to manage its growth effectively, its business will be adversely affected.
As part of this growth, Nxu may have to implement new operational, manufacturing, and financial systems and procedures and controls to
expand, train and manage its employees, especially in the areas of manufacturing and sales. If Nxu fails to develop and maintain its
people and processes, demand for its products and services and its revenues could decrease.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu&rsquo;s
business is currently entirely dependent on the success of the NxuOne&trade; Charging Network. Nxu&rsquo;s lack of business diversification
could cause its stockholders to lose all or some of their investment if Nxu is unable to generate revenues from the NxuOne&trade; Charging
Network.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
business is currently entirely dependent on the success of the NxuOne&trade; Charging Network and related products. Nxu does not have
any other lines of business or other sources of revenue if it is unable to compete effectively in the marketplace. Nxu cannot guarantee
that the NxuOne&trade; Charging Network will be able to achieve profitability alone. Nxu&rsquo;s ability to be profitable will depend
on a number of factors, many of which are beyond Nxu&rsquo;s control. This lack of business diversification could cause you to lose all
or some of your investment if Nxu is unable to generate revenues since Nxu does not expect to have any other lines of business or alternative
revenue sources.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu&rsquo;s
estimates of market opportunity and forecasts of market growth may prove to be inaccurate.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Estimates
of future electric vehicle (&ldquo;EV&rdquo;) adoption in the U.S., the total addressable market, serviceable addressable market for
Nxu&rsquo;s products and services and the EV market in general are included in Nxu&rsquo;s most recent Annual Report on Form 10-K.&nbsp;Market
opportunity estimates and growth forecasts, whether obtained from third-party sources or developed internally, are subject to significant
uncertainty and are based on assumptions and estimates that may prove to be inaccurate. Such uncertainty is enhanced by the prevailing
geopolitical and macroeconomic environment. Nxu&rsquo;s internal estimates relating to the size and expected growth of the target market,
market demand, EV adoption across individual market verticals and use cases, capacity of automotive and battery original equipment manufacturers
(&ldquo;OEMs&rdquo;) and ability of charging infrastructure to address this demand and related pricing may also prove to be inaccurate.
In particular, estimates regarding the current and projected market opportunity for public and commercial fast charging and future fast
charging throughput or Nxu market share capture are difficult to predict. The estimated addressable market may not materialize in the
timeframe of Nxu&rsquo;s internal projections, if ever and even if the markets meet the size estimates and growth estimates presented,
Nxu&rsquo;s business could fail to grow at similar rates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
success of Nxu&rsquo;s business depends on attracting and retaining a large number of customers. If Nxu is unable to do so, Nxu will
not be able to achieve profitability.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
success depends on attracting a large number of potential customers to purchase services Nxu provides to its customers. If Nxu&rsquo;s
customers do not perceive its services to be of sufficiently high value and quality, cost competitive and appealing in performance, Nxu
may not be able to retain or attract new customers, and its business, prospects, financial condition, results of operations, and cash
flows would suffer as a result. In addition, Nxu may incur significantly higher and more sustained advertising and promotional expenditures
than it has previously incurred to attract customers. Nxu may not be successful in attracting and retaining a large number of customers.
If Nxu is not able to attract and maintain customers, its business, prospects, financial condition, results of operations, and cash flows
would be materially harmed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu&rsquo;s
growth and success are highly correlated with and thus dependent upon the continuing rapid adoption of and demand for EVs and OEMs&rsquo;
ability to supply such EVs to the market.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
future growth is highly dependent upon the adoption of EVs by businesses and consumers. The market for EVs is still rapidly evolving,
characterized by rapidly changing technologies, competitive pricing and competitive factors, evolving government regulation and industry
standards and changing consumer demands and behaviors, changing levels of concern related to environmental issues and governmental initiatives
related to energy independence, climate change and the environment generally. Although demand for EVs has grown in recent&nbsp;years,
there is no guarantee of continuing future demand. If the market for EVs develops more slowly than expected, or if demand for EVs decreases,
Nxu&rsquo;s business, prospects, financial condition and operating results would be harmed. The market for EVs could be affected by numerous
factors, such as:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">perceptions
                                            about EV features, quality, safety, performance and cost;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">perceptions
                                            about the limited range over which EVs may be driven on a single battery charge;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">competition,
                                            including from other types of alternative fuel vehicles, plug-in hybrid electric vehicles
                                            and high fuel-economy internal combustion engine vehicles;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">volatility
                                            in the cost of oil and gasoline, including as a result of trade restrictions;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">concerns
                                            regarding the reliability and stability of the electrical grid;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            change in an EV battery&rsquo;s ability to hold a charge over time;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            availability and reliability of a national electric vehicle charging network or infrastructure;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">availability
                                            of maintenance and repair services for EVs;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">consumers&rsquo;
                                            perception about the convenience and cost of charging EVs;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">increases
                                            in fuel efficiency of non-electric vehicles;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">government
                                            regulations and economic incentives, including adverse changes in, or expiration of, favorable
                                            tax incentives related to EVs, EV charging stations or decarbonization generally;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">relaxation
                                            of government mandates or quotas regarding the sale of EVs; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">concerns
                                            about the future viability of EV manufacturers.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, sales of vehicles in the automotive industry can be cyclical, which may affect growth in acceptance of EVs. It is uncertain
how macroeconomic factors will impact demand for EVs, particularly since EVs can be more expensive than traditional gasoline-powered
vehicles, when the automotive industry globally has been experiencing a recent decline in sales. Furthermore, because fleet operators
often make large purchases of EVs, this cyclicality and volatility in the automotive industry may be more pronounced with commercial
purchasers, and any significant decline in demand from these customers could reduce demand for EV charging and Nxu&rsquo;s products and
services in particular.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Demand
for EVs may also be affected by factors directly impacting automobile prices or the cost of purchasing and operating automobiles, such
as sales and financing incentives, prices of raw materials and parts and components, cost of fuel and governmental regulations, including
tariffs, import regulation and other taxes. Further, the automotive industry in general and EV manufacturing have experienced substantial
supply chain interruptions, resulting in reduced EV production schedules and sales. Volatility in demand or delays in EV production due
to global supply chain constraints may lead to lower vehicle unit sales, which may result in reduced demand for EV charging solutions
and therefore adversely affect Nxu&rsquo;s business, financial condition and operating results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
generated revenue for the first time in 2023, but there is no assurance that it will be able to continue to generate revenue from the
sale or deployment of the NxuOne&trade; Charging Network or from the sale of other proprietary products.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
2023, Nxu generated revenue for the first time in its history. The 2023 revenue was largely related to product deliveries from its proprietary
battery cell and pack division. Nxu has since ceased electric vehicle battery development as it focuses its efforts on the NxuOne&trade;
Charging Network. As such, the bulk of its revenue in 2023 was non-recurring. Nxu expects that any source of revenue in 2024 will be
solely from the operation or sale of NxuOne&trade; Charging Stations. If it is unable to find customers to purchase its NxuOne&trade;
Charging Stations, it will not likely be able to meet or exceed its 2024 revenue estimates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
has losses which it expects to continue into the future. There is no assurance its future operations will result in a profit. If Nxu
cannot generate sufficient revenues to operate profitably or Nxu is unable to raise enough additional funds for operations, the stockholders
will experience a decrease in value, and Nxu may have to cease operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
is a development-stage technology company that began operating and commenced research and development activities in 2016. As a recently
formed &ldquo;Development Stage Company&rdquo;, it is subject to all of the risks and uncertainties of a new business, including the
risk that it may never generate product or services related revenues. Accordingly, it has only a limited history upon which an evaluation
of its prospects and future performance can be made. If Nxu is unable to generate revenue, it will not become profitable, and it may
be unable to continue its operations. Furthermore, its proposed operations are subject to all business risks associated with new enterprises.
The likelihood of its success must be considered in light of the problems, expenses, difficulties, complications, and delays frequently
encountered in connection with the expansion of a business, operation in a competitive industry, and the continued development of advertising,
promotions and a corresponding customer base. There can be no assurances that Nxu will operate profitably.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
entered into the Merger Agreement in order to, among other things, potentially increase its liquidity. Assuming the Merger closes, the
combined company may ultimately fail, decreasing the liquidity of Nxu and stockholder value or cause Nxu to cease operations, and investors
would be at risk of losing all or part of their investment in Nxu.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>If
Nxu does not successfully establish and maintain itself as a highly trusted and respected name for electric vehicle-related technology,
Nxu may not be able to retain quality talent or achieve future revenue goals, which could significantly affect its business, financial
condition and results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
order to attract and retain a client base and increase business, Nxu must establish, maintain and strengthen its name and the services
it provides. In order to be successful in establishing its reputation, clients must perceive Nxu as a trusted source for quality services.
If Nxu is unable to attract and retain clients with its current marketing plans, it may not be able to successfully establish its name
and reputation, which could significantly affect its business, financial condition and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu&rsquo;s
ability to utilize loss carry forwards may be limited.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Generally,
a change of more than fifty percent (50%) in the ownership of a company&rsquo;s stock, by value, over a three-year period constitutes
an ownership change for U.S.&nbsp;federal income tax purposes. An ownership change may limit Nxu&rsquo;s ability to use its net operating
loss carryforwards attributable to the period prior to the change. As a result, if Nxu earns net taxable income, its ability to use its
pre-change net operating loss carryforwards to offset U.S.&nbsp;federal taxable income may become subject to limitations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu&rsquo;s
business could be adversely affected by a downturn in the economy and/or manufacturing.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
is dependent upon the continued demand for electric vehicles and electric vehicle charging capacity, making its business susceptible
to a downturn in the economy or in manufacturing. For example, a decrease in the number of individuals investing their money in the equity
markets could result in a decrease in the number of companies deciding to become or remain public. This downturn could have a material
adverse effect on its business, its ability to raise funds, and ultimately its overall financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
preparation of Nxu&rsquo;s financial statements requires estimates, judgments and assumptions that are inherently uncertain.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Financial
statements prepared in accordance with accounting principles generally accepted in the United&nbsp;States (&ldquo;GAAP&rdquo;) typically
require the use of estimates, judgments and assumptions that affect the reported amounts. Often, different estimates, judgments and assumptions
could reasonably be used that would have a material effect on such financial statements, and changes in these estimates, judgments and
assumptions may occur from period to period over time. These estimates, judgments and assumptions are inherently uncertain and, if Nxu&rsquo;s
estimates were to prove to be wrong, Nxu would face the risk that charges to income or other financial statement changes or adjustments
would be required. Any such charges or changes could harm its business, including its financial condition and results of operations and
the price of its securities. For a discussion of the accounting estimates, judgments and assumptions that Nxu believes are the most critical
to an understanding of its consolidated financial statements and its business, see Part II, Item 7 of Nxu&rsquo;s Annual Report on Form
10-K for the year ended December 31, 2023 filed with the SEC on April 1, 2024 under the heading &ldquo;Management&rsquo;s Discussion
and Analysis of Financial Condition and Results of Operations&rdquo;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Failure
to maintain internal controls over financial reporting would have an adverse impact on Nxu.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
is required to establish and maintain appropriate internal controls over financial reporting. The standards required for a public company
under Section&nbsp;404(a)&nbsp;of the Sarbanes-Oxley Act are significantly more stringent than those required by Nxu as a privately held
company. Management may not be able to effectively maintain adequate compliance, and Nxu&rsquo;s internal controls over financial reporting
may not be effective, which may subject Nxu to adverse regulatory consequences and could harm investor confidence. Failure to maintain
controls could also adversely impact its public disclosures regarding Nxu&rsquo;s business, financial condition or results of operations.
In addition, management&rsquo;s assessment of internal controls over financial reporting may identify deficiencies and conditions that
need to be addressed in Nxu&rsquo;s internal controls over financial reporting or other matters that may raise concerns for investors.
Any actual or perceived deficiencies and conditions that need to be addressed in Nxu&rsquo;s internal control over financial reporting,
or disclosure of management&rsquo;s assessment of its internal controls over financial reporting may have an adverse impact on the price
of the Class&nbsp;A common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Continuing
or worsening inflationary issues and associated changes in monetary policy may result in increases to the cost of charging equipment,
other goods, services and personnel, which in turn could cause capital expenditures and operating costs to rise.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
U.S.&nbsp;inflation rate increased during 2021, 2022, and 2023 and has remained elevated in 2024. These inflationary pressures have resulted
in and may continue to result in, increases to the costs of charging equipment and personnel, which could in turn cause capital expenditures
and operating costs to rise. Sustained levels of high inflation have likewise caused the U.S.&nbsp;Federal Reserve and other central
banks to increase interest rates, which could have the effects of raising the cost of capital and depressing economic growth, either
of which&nbsp;&mdash;&nbsp;or the combination thereof&nbsp;&mdash;&nbsp;could hurt the financial and operating results of Nxu&rsquo;s
business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
needs to raise additional capital to meet its future business requirements and such capital raising may be costly or difficult to obtain
and could dilute current stockholders&rsquo; ownership interest.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
has relied upon cash from financing activities and in the future, Nxu expects to rely on the proceeds from future debt and/or equity
financings, and Nxu hopes to rely on revenues generated from operations to fund all of the cash requirements of its activities. However,
there can be no assurance that Nxu will be able to generate any significant cash from its operating activities in the future. Future
financing may not be available on a timely basis, in sufficient amounts or on terms acceptable to Nxu, if at all. Any debt financing
or other financing of securities senior to the Class&nbsp;A common stock will likely include financial and other covenants that will
restrict Nxu&rsquo;s flexibility.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
failure to comply with these covenants would have a material adverse effect on Nxu&rsquo;s business, prospects, financial condition,
and results of operations because Nxu could lose its existing sources of funding and impair its ability to secure new sources of funding.
However, there can be no assurance that Nxu will be able to generate any investor interest in its securities. If Nxu does not obtain
additional financing, you could lose the entirety of your investment in&nbsp;Nxu.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">At
this time, Nxu has not secured or identified any additional financing. Nxu does not have any firm commitments or other identified sources
of additional capital from third parties or from its officers, directors or other stockholders. There can be no assurance that additional
capital will be available to Nxu, or that, if available, it will be on terms satisfactory to Nxu. Any additional financing will involve
dilution to Nxu&rsquo;s existing stockholders. If Nxu does not obtain additional capital on terms satisfactory to Nxu, or at all, it
may cause Nxu to delay, curtail, scale back or forgo some or all of its product development and/or business operations, or dissolve and
liquidate its assets under bankruptcy laws or otherwise. In such a scenario, investors would be at risk of losing all or a part of any
investment in Nxu.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
relies on a limited number of suppliers and manufacturers for its charging stations. A loss of any of these partners could negatively
affect its business or ability to manufacture and deliver NxuOne&trade; Charging Stations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
relies on a limited number of suppliers to manufacture its charging stations, including in some cases only a single supplier for some
products and components. This reliance on a limited number of manufacturers increases Nxu&rsquo;s risks, since it does not currently
have proven reliable alternatives or replacement manufacturers beyond these key parties. In the event of interruption, including or resulting
in a sudden failure by a supplier to meet its obligation, Nxu may not be able to increase capacity from other sources or develop alternate
or secondary sources without incurring material additional costs and substantial delays. Thus, Nxu&rsquo;s business could be adversely
affected if one or more of its suppliers is impacted by any interruption at a particular location.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
the demand for EV charging increases, Nxu&rsquo;s suppliers and manufacturers may not be able to dedicate sufficient supply chain, production
or sales channel capacity to keep up with the required pace of charging infrastructure expansion. By relying on contract manufacturing,
Nxu is dependent upon the manufacturer, whose interests may be different from Nxu&rsquo;s. For example, Nxu&rsquo;s suppliers and contract
manufacturers may have other customers with demand for the same components or manufacturing services and may allocate their resources
based on the supplier&rsquo;s or manufacturer&rsquo;s interests or needs to maximize their revenue or relationships with other customers
rather than Nxu&rsquo;s interest. As a result, Nxu may not be able to assure itself that it will have sufficient control over the supply
of key components, inventory or finished goods in a timely manner or with acceptable cost and expense, which may adversely affect Nxu&rsquo;s
revenue, cost of goods and gross margins. If Nxu experiences a significant increase in demand for its charging stations in future periods,
or if it needs to replace an existing supplier, it may not be possible to supplement or replace them on acceptable terms, which may undermine
its ability to deliver products to customers in a timely manner.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
example, it may take a significant amount of time to identify a manufacturer that has the capability and resources to build charging
stations in sufficient volume. Identifying suitable suppliers and manufacturers could be an extensive process that requires Nxu to become
satisfied with such party&rsquo;s quality control, technical capabilities, responsiveness and service, financial stability, regulatory
compliance, and labor and other ethical practices. Accordingly, a loss of any significant suppliers or manufacturers could have an adverse
effect on Nxu&rsquo;s business, financial condition and operating results. In addition, Nxu&rsquo;s suppliers may face supply chain risks
and constraints of their own, which may impact the availability and pricing of its products. For example, supply chain challenges related
to global chip shortages have impacted companies worldwide both within and outside of Nxu&rsquo;s industry and may continue to have adverse
effects on Nxu&rsquo;s suppliers and, as a result, Nxu.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, in fiscal year 2023, Nxu became subject to requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act&nbsp;of&nbsp;2010
(the &ldquo;Dodd-Frank Act&rdquo;) to diligence, disclose and report whether or not its products contain minerals originating from the
Democratic Republic of the Congo and adjoining countries, or conflict minerals. Nxu may incur additional costs to comply with these disclosure
requirements, including costs related to determining the source of any of the relevant minerals and metals used in Nxu&rsquo;s products.
These requirements could adversely affect the sourcing, availability and pricing of minerals used in the components used in Nxu&rsquo;s
products. It is also possible that Nxu&rsquo;s reputation may be adversely affected if it determines that certain of its products contain
minerals not determined to be conflict-free or if it is unable to alter its products, processes or sources of supply to avoid use of
such materials. Nxu may also encounter end-customers who require that all of the components of the products be certified as conflict
free. If Nxu is not able to meet this requirement, such end-customers may choose to purchase products from a different company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Unknown
costs and risks may exist with the prolonged use of NxuOne&trade; Charging Network equipment and related systems, as the technology is
recently developed and has not been widely deployed.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
the NxuOne&trade; Charging Station field trials commenced in the third quarter of 2023, Nxu does not know how its products will hold
up over prolonged use. Since Nxu&rsquo;s products have only been in use since September 2023, Nxu does not have any way to predict whether
its charging stations will remain functional under heavy, persistent use. If the NxuOne&trade; Charging stations malfunction under heavy
use, Nxu will be forced to bear the costs of repairing or replacing the equipment, and such costs could be substantial.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
is dependent upon the availability of electricity at Nxu&rsquo;s current and future charging stations. Cost increases, delays and/or
other restrictions on the availability of electricity would adversely affect Nxu&rsquo;s business and results of Nxu&rsquo;s operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
operation and development of Nxu&rsquo;s charging stations is dependent upon the availability of electricity, which is beyond Nxu&rsquo;s
control. Nxu&rsquo;s charging stations are affected by problems accessing electricity sources, such as planned or unplanned power outages.
In recent&nbsp;years, shortages of electricity have resulted in increased costs to users and interruptions in service. In particular,
California has experienced rolling blackouts due to excessive demands on the electrical grid or as precautionary measures against the
risk of wildfire. In the event of a power outage, Nxu will be dependent on the utility company to restore power. Any prolonged power
outage could adversely affect customer experience and Nxu&rsquo;s business and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Changes
in utility electricity pricing or new and restrictive constructs from regulations applicable to pricing may adversely impact future operating
results. For example, some jurisdictions have required Nxu to switch from pricing on a per-minute basis to a per-kWh basis and other
jurisdictions may follow suit. Utility rates may change in a way that adversely affects fast charging or in a way that may limit Nxu&rsquo;s
ability to access certain beneficial rate schedules. In addition, utilities or other regulated entities with monopoly power may receive
authority to provide charging services that result in an anti-competitive advantage relative to Nxu and other private sector operators.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu&rsquo;s
business is subject to risks associated with construction, cost overruns and delays and other contingencies that may arise in the course
of completing installations and such risks may increase in the future as Nxu expands the scope of such services with other parties.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Charger
installation and construction is typically performed by third-party contractors managed by Nxu. The installation and construction of
charging stations at a particular site is generally subject to oversight and regulation in accordance with state and local laws and ordinances
relating to building codes, safety, environmental protection and related matters and typically requires local utility cooperation in
design and interconnection request approval and commissioning, as well as various local and other governmental approvals and permits
that vary by jurisdiction. In addition, building codes, accessibility requirements, utility interconnect specifications, review, approval
or study lead time or regulations may hinder EV charger installation and construction because they end up costing the developer or installer
more in order to meet the code requirements. In addition, increased demand for the components necessary to install and construct charging
stations could lead to higher installed costs. Meaningful delays or cost overruns caused by Nxu&rsquo;s vendor supply chains, contractors,
utility upgrades scope and delays, or inability of local utilities and approving agencies to cope with heightened levels of activity,
may impact Nxu&rsquo;s ability to satisfy the requirements under the build schedule and Nxu&rsquo;s other contractual commitments, and
may impact revenue recognition in certain cases and/or impact Nxu&rsquo;s relationships, any of which could impact Nxu&rsquo;s business
and profitability, pace of growth and prospects.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Working
with contractors may require Nxu to obtain licenses or require Nxu or Nxu&rsquo;s customers to comply with additional rules, working
conditions and other union requirements, which can add costs and complexity to an installation and construction project. If these contractors
are unable to provide timely, thorough and quality installation-related services, Nxu could fall behind Nxu&rsquo;s construction schedules
or cause customers to become dissatisfied with the solutions Nxu offers. As the demand for public fast charging increases and qualification
requirements for contractors become more stringent, Nxu may encounter shortages in the number of qualified contractors available to complete
all of Nxu&rsquo;s desired installations. If Nxu fails to timely pay Nxu&rsquo;s contractors, they may file liens against Nxu&rsquo;s
owned or leased properties, putting Nxu&rsquo;s occupancy or operations at risk.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
business model is predicated on the presence of qualified and capable electrical and civil contractors and subcontractors in the new
markets Nxu intends to enter. There is no guarantee that there will be an adequate supply of such partners. A shortage in the number
of qualified contractors may impact the viability of the business plan, increase risks related to the quality of work performed and increase
costs if outside contractors are brought into a new market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, Nxu&rsquo;s business is exposed to risks associated with receiving site control and access necessary for the construction of
the charging station and operation of the charging equipment, electrical interconnection and power supply at identified locations sufficient
to host chargers on a timely basis. Nxu generally does not own the land at the charging sites and relies on site licenses with site hosts
that convey the right to build, own and operate the charging equipment on the site. Nxu may not be able to renew the site licenses or
retain site control. The process of establishing or extending site control and access could take longer or become more competitive. As
the EV market grows, competition for premium sites may intensify, the power distribution grid may require upgrading, and electrical interconnection
with local utilities may become more competitive, all of which may lead to delays in construction and/or commissioning. As a result,
Nxu may be exposed to increased interconnection costs and utility fees, as well as delays, which may slow the pace of Nxu&rsquo;s network
expansion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu&rsquo;s
charging stations may be located in areas that are publicly accessible and may be exposed to vandalism or misuse by customers or other
individuals, which would increase Nxu&rsquo;s replacement and maintenance costs.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
public chargers may be exposed to vandalism or misuse by customers and other individuals, increasing wear and tear of the charging equipment.
Such damage could shorten the usable lifespan of the chargers and require Nxu to increase its spending on replacement, maintenance and
insurance costs and could result in site hosts reconsidering the value of hosting Nxu&rsquo;s charging stations at their sites. In addition,
the cost of any such damage may not be covered by Nxu&rsquo;s insurance in full or at all and, in the event of repeated damage to Nxu&rsquo;s
charging equipment, Nxu&rsquo;s insurance premiums could increase and it could be subject to additional insurance costs or may not be
able to obtain insurance at all, any of which could have an adverse effect on its business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
does not own a transportation fleet, nor any fleet vehicles, and so may not be able to transport NxuOne&trade; Charging Stations once
produced. Cost of third-party transport may be high and the risk of loss surrounding transport may be high or hard to predict.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
charging stations weigh several thousand pounds. There are inherent transportation risks associated with deployment and operation of
its charging network. Nxu does not own a transportation fleet, so Nxu will have to hire a transportation company to transport the NxuOne&trade;
Charging stations to deployment sites. Such transport may be incredibly costly, and Nxu has not been able to accurately predict or project
transportation costs. In addition to the risk of losing control of the method of transportation, Nxu may not be able to adequately insure
against loss during transport. There is a chance the NxuOne&trade; charging stations are irrevocably damaged in transit. If Nxu is unable
to insure the NxuOne&trade; Charging Stations for transit, Nxu may be forced to bear the full risk of loss.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>A
significant interruption of Nxu&rsquo;s information technology systems or the loss of confidential or other sensitive data, including
cybersecurity risks, could have a material adverse impact on its operations and financial results.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Given
Nxu&rsquo;s reliance on information technology (its own and its third-party providers&rsquo;), a significant interruption in the availability
of information technology, regardless of the cause, or the loss of confidential, personal, or proprietary information (whether Nxu&rsquo;s,
its employees&rsquo;, its suppliers&rsquo;, or its customers&rsquo;), regardless of the cause, could negatively impact its operations.
While Nxu has invested in the protection of its data and information technology to reduce these risks and routinely test the security
of its information systems network, Nxu cannot be assured that its efforts will prevent breakdowns or breaches in its systems that could
adversely affect its business. Management is not aware of a cybersecurity incident that has had a material adverse impact on Nxu&rsquo;s
financial condition or results of operations; however, Nxu could suffer material financial or other losses in the future and Nxu is not
able to predict the severity of these attacks. The occurrence of a cyber-attack, breach, unauthorized access, misuse, computer virus
or other malicious code or other cybersecurity event could jeopardize or result in the unauthorized disclosure, gathering, monitoring,
misuse, corruption, loss or destruction of confidential and other information that belongs to Nxu, its customers, its counterparties,
or third-party suppliers and providers that is processed and stored in, and transmitted through, Nxu&rsquo;s computer systems and networks.
The occurrence of such an event could also result in damage to Nxu&rsquo;s software, computers or systems, or otherwise cause interruptions
or malfunctions in Nxu&rsquo;s, its customers&rsquo;, its counterparties&rsquo; or third parties&rsquo; operations. This could result
in loss of customers and business opportunities, reputational damage, litigation, regulatory fines, penalties or intervention, reimbursement
or other compensatory costs, or otherwise adversely affect Nxu&rsquo;s business, financial condition or results of operations. As part
of Nxu&rsquo;s regular review of potential risks, Nxu analyzes emerging cybersecurity threats to Nxu and its third-party suppliers and
providers as well as Nxu&rsquo;s plans and strategies to address them. The Nxu board of directors, which has oversight responsibility
for cybersecurity risks, is regularly briefed by management on such analyses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
is highly reliant on its networked charging solution and information technology systems and data, and those of its service providers
and component suppliers, any of which systems and data may be subject to cyber-attacks, service disruptions or other security incidents,
which could result in data breaches, loss or interruption of services, intellectual property theft, claims, litigation, regulatory investigations,
significant liability, reputational damage and other adverse consequences.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
implementation, maintenance, segregation and improvement of Nxu&rsquo;s information technology systems in the form of its networked charging
solution and internal information technology systems, such as product data management, procurement, inventory management, production
planning and execution, sales, service and logistics, financial, tax and regulatory compliance systems, require significant management
time, support and cost, and there are inherent risks associated with developing, improving and expanding Nxu&rsquo;s core systems as
well as implementing new systems and updating current systems, including disruptions to the related areas of business operations. These
risks may affect Nxu&rsquo;s ability to manage its data and inventory, procure parts or supplies or manufacture, sell, deliver and service
products, adequately protect its intellectual property or achieve and maintain compliance with, or realize available benefits under,
tax laws and other applicable regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">While
Nxu maintains information technology measures designed to protect it against intellectual property theft, data breaches, sabotage and
other external or internal cyber-attacks or misappropriation, its systems and those of its service providers are potentially vulnerable
to malware, ransomware, viruses, denial-of-service attacks, phishing attacks, social engineering, computer hacking, unauthorized access,
exploitation of bugs, defects and vulnerabilities, breakdowns, damage, interruptions, system malfunctions, power outages, terrorism,
acts of vandalism, security breaches, security incidents, inadvertent or intentional actions by employees or other third parties, and
other cyber-attacks. To the extent any security incident results in unauthorized access or damage to or acquisition, use, corruption,
loss, destruction, alteration or dissemination of Nxu data, including intellectual property and personal information, or Nxu products,
or for it to be believed or reported that any of these occurred, it could disrupt Nxu&rsquo;s business, harm its reputation, compel it
to comply with applicable data breach notification laws, subject it to time consuming, distracting and expensive litigation, regulatory
investigation and oversight, mandatory corrective action, require it to verify the correctness of database contents, or otherwise subject
it to liability under laws, regulations and contractual obligations, including those that protect the privacy and security of personal
information. This could result in increased costs to Nxu and result in significant legal and financial exposure and/or reputational harm.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Because
Nxu also relies on third-party service providers, it cannot guarantee that its service providers&rsquo; and component suppliers&rsquo;
systems have not been breached or that they do not contain exploitable defects, bugs, or vulnerabilities that could result in a security
incident, or other disruption to, Nxu&rsquo;s or Nxu&rsquo;s service providers&rsquo; or component suppliers&rsquo; systems. Nxu&rsquo;s
ability to monitor its service providers&rsquo; and component suppliers&rsquo; security measures is limited, and, in any event, malicious
third parties may be able to circumvent those security measures.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
Nxu does not successfully implement, maintain or expand its information technology systems as planned, its operations may be disrupted,
its ability to accurately and/or timely report its financial results could be impaired and deficiencies may arise in its internal control
over financial reporting, which may impact its ability to certify its financial results. If Nxu identifies material weaknesses in the
future or otherwise fails to maintain an effective system of internal control over financial reporting, this may result in material misstatements
contained within Nxu&rsquo;s consolidated financial statements or cause Nxu to fail to meet its periodic reporting obligations. Moreover,
Nxu&rsquo;s proprietary information, including intellectual property and personal information, could be compromised or misappropriated,
its reputation may be adversely affected if these systems or their functionality do not operate as expected and Nxu may be required to
expend significant resources to make corrections or find alternative sources for performing these functions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
may have difficulty protecting its intellectual property.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
pending patents and other intellectual property could be unenforceable or ineffective once patent reviews are completed. Nxu anticipates
patent review completion and patents issued in calendar&nbsp;years 2021, 2022, 2023, and 2024 based on the typical two-year process between
filing and issuing. Nxu has continued to file patent applications throughout 2024 and plans to continue filing new patents over time.
Nxu has filed these patents privately and the scope of what they cover remains confidential until they are issued. For any company creating
brand new products, it is imperative to protect the proprietary intellectual property to maintain a competitive advantage. There is no
doubt that a significant portion of Nxu&rsquo;s current value depends on the strength and imperviousness of these pending patents. Nxu
intends to continue to file additional patent applications and build its intellectual property portfolio as it discovers new technologies
related to the development of plug-in electric vehicles.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
believes that intellectual property will be critical to its success, and that Nxu will rely on trademark, copyright and patent law, trade
secret protection and confidentiality and/or license agreements to protect its proprietary rights. If Nxu is not successful in protecting
its intellectual property, it could have a material adverse effect on its business, results of operations and financial condition. While
Nxu believes that it will be issued trademarks, patents and pending patent applications help to protect its business, there can be no
assurance that its operations do not, or will not, infringe valid, enforceable third-party patents of third parties or that competitors
will not devise new methods of competing with Nxu that are not covered by its anticipated patent applications. There can also be no assurance
that Nxu&rsquo;s patent applications will be approved, that any patents issued will adequately protect its intellectual property, or
that such patents will not be challenged by third parties or found to be invalid or unenforceable or that Nxu&rsquo;s patents will be
effective in preventing third parties from utilizing a copycat business model to offer the same service in one or more categories. Moreover,
it is intended that Nxu will rely on intellectual property and technology developed or licensed by third parties, and Nxu may not be
able to obtain or continue to obtain licenses and technologies from these third parties at all or on reasonable terms. Effective trademark,
service mark, copyright and trade secret protection may not be available in every country in which Nxu&rsquo;s intended services will
be provided. The laws of certain countries do not protect proprietary rights to the same extent as the laws of the U.S.&nbsp;and, therefore,
in certain jurisdictions, Nxu may be unable to protect its proprietary technology adequately against unauthorized third party copying
or use, which could adversely affect its competitive position. Nxu expects to license in the future, certain proprietary rights, such
as trademarks or copyrighted material, to third parties. These licensees may take actions that might diminish the value of its proprietary
rights or harm its reputation, even if Nxu has agreements prohibiting such activity. Also, to the extent third parties are obligated
to indemnify Nxu for breaches of its intellectual property rights, these third parties may be unable to meet these obligations. Any of
these events could have a material adverse effect on Nxu&rsquo;s business, results of operations or financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
U.S.&nbsp;Patent and Trademark Office and various foreign governmental patent agencies require compliance with a number of procedural,
documentary, fee payment and other provisions during the patent process. There are situations in which noncompliance can result in abandonment
or lapse of a patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. In such
an event, competitors might be able to enter the market earlier than would otherwise have been the case, which could have a material
adverse effect on its business, results of operations and financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Intellectual
property protection is costly.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Filing,
prosecuting and defending patents related to Nxu&rsquo;s products and software throughout the world is prohibitively expensive. Competitors
may use Nxu&rsquo;s technologies in jurisdictions where Nxu has not obtained patent protection to develop their own products and, further,
may export otherwise infringing products to territories where Nxu has patent protection, but where enforcement is not as strong as that
in the U.S.&nbsp;These products may compete with Nxu&rsquo;s products in jurisdictions where Nxu does not have any issued or licensed
patents and Nxu&rsquo;s patent claims or other intellectual property rights may not be effective or sufficient to prevent them from so
competing. Many companies have encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions.
The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents and other
intellectual property protection, particularly those relating to technology, which could make it difficult for Nxu to stop the infringement
of Nxu&rsquo;s patents or marketing of competing products in violation of Nxu&rsquo;s proprietary rights generally. Proceedings to enforce
Nxu&rsquo;s patent rights in foreign jurisdictions could result in substantial cost and divert Nxu&rsquo;s efforts and attention from
other aspects of Nxu&rsquo;s business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
may face state and federal regulatory challenges, including environmental and safety regulations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
is subject to numerous federal, state and local environmental laws and regulations governing, among other things, solid and hazardous
waste storage, treatment and disposal, and remediation of releases of hazardous materials. There are significant capital, operating and
other costs associated with compliance with these environmental laws and regulations. Environmental laws and regulations may become more
stringent in the future, which could increase costs of compliance or require Nxu to manufacture with alternative technologies and materials.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Federal,
state and local authorities also regulate a variety of matters, including, but not limited to, health, safety and permitting in addition
to the environmental matters discussed above. New legislation and regulations may require Nxu to make material changes to Nxu&rsquo;s
operations, resulting in significant increases in the cost of production.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
manufacturing process will have hazards such as but not limited to hazardous materials, machines with moving parts, and high voltage
and/or high current electrical systems typical of large manufacturing equipment and related safety incidents. There may be safety incidents
that damage machinery or products, slow or stop production, or harm employees. Consequences may include litigation, regulation, fines,
increased insurance premiums, mandates to temporarily halt production, workers&rsquo; compensation claims, or other actions that impact
Nxu&rsquo;s company brand, finances, or ability to operate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
is susceptible to risks associated with an increased focus by stakeholders and regulators on climate change, which may adversely affect
its business and results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Climate-related
events, including the increasing frequency of extreme weather events and their impact on critical infrastructure in the United&nbsp;States
and elsewhere, have the potential to disrupt Nxu&rsquo;s business and those of its third-party suppliers, and customers, and may cause
Nxu to experience higher attrition, losses and additional costs to maintain or resume operations. In addition, Nxu&rsquo;s customers
may begin to establish sourcing requirements related to sustainability. As a result, Nxu may receive requests for sustainability related
information about its products, business operations, use of sustainable materials and packaging. Nxu&rsquo;s inability to comply with
these and other sustainability requirements in the future could adversely affect sales of and demand for its products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Further,
there is an increased focus, including by governmental and nongovernmental organizations, investors, customers, and other stakeholders,
on climate change matters, including increased pressure to expand disclosures related to material physical and transition risks related
to climate change or to establish sustainability goals, such as the reduction of greenhouse gas emissions, which could expose Nxu to
market, operational and execution costs or risks. Nxu&rsquo;s failure to establish such sustainability targets or targets that are perceived
to be appropriate, as well as to achieve progress on those targets on a timely basis, or at all, could adversely affect the reputation
of its brand and sales of and demand for its products. To the extent legislation is passed, such as the final rules recently adopted
by the SEC with respect to enhanced and standardized climate-related disclosures, Nxu would incur significant additional costs of compliance
due to the need for expanded data collection, analysis, and certification with respect to greenhouse gas emissions and other climate
change related risks. Nxu may also incur additional costs or require additional resources to monitor, report and comply with such stakeholder
expectations and standards and legislation, and to meet climate change targets and commitments if established.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risks
Related to the Electric Vehicle Industry</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
automotive market, specifically with respect to electric vehicles, is highly competitive, and Nxu may not be successful in competing
in this industry.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Both
the automobile industry generally, and the electric vehicle segment in particular, are highly competitive, and Nxu will be competing
for sales with both electric vehicle manufacturers and traditional automotive companies. Many of Nxu&rsquo;s current and potential competitors
may have significantly greater financial, technical, manufacturing, marketing, or other resources than Nxu does and may be able to devote
greater resources to the design, development, manufacturing, distribution, promotion, sale, and support of their products than Nxu may
devote to its products. Nxu expects competition for electric vehicles to intensify due to increased demand and a regulatory push for
alternative fuel vehicles, continuing globalization, and consolidation in the worldwide automotive industry, as well as the recent significant
increase in oil and gasoline prices. In addition, as fleet operators begin transitioning to electric vehicles on a mass scale, Nxu expects
that more competitors will enter the commercial fleet electric vehicle market. Further, as a result of new entrants in the commercial
fleet electric vehicle market, Nxu may experience increased competition for components and other parts of our vehicles, which may have
limited or single-source supply.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Factors
affecting competition include product performance and quality, technological innovation, customer experience, brand differentiation,
product design, pricing and total cost of ownership, and manufacturing scale and efficiency. Increased competition may lead to lower
vehicle unit sales and increased inventory, which may result in downward price pressure and adversely affect Nxu&rsquo;s business, prospects,
financial condition, results of operations, and cash flows.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
EV charging market is characterized by rapid technological change, which requires Nxu to continue to develop new products and product
innovations. Any delays in such development could adversely affect market adoption of Nxu&rsquo;s products and financial results.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Continuing
technological changes in battery and other EV technologies could adversely affect adoption of current EV charging technology, continuing
and increasing reliance on EV charging infrastructure and/or the use of Nxu&rsquo;s products and services. Nxu&rsquo;s future success
will depend in part upon Nxu&rsquo;s ability to address the changing needs of the EV charging market. If Nxu is unable keep pace with
changes in technology, Nxu&rsquo;s gross margins will be adversely affected and Nxu&rsquo;s prior products could become obsolete more
quickly than expected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
Nxu is unable to meet customer requirements on a timely basis or remain competitive with technological alternatives, Nxu&rsquo;s products
and services could lose market share, Nxu&rsquo;s revenue will decline, Nxu may experience higher operating losses and Nxu&rsquo;s business
and prospects will be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Changes
to fuel economy standards or the success of alternative fuels may negatively impact the EV market and thus the demand for Nxu&rsquo;s
products and services.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Regulatory
initiatives that required an increase in the mileage capabilities of cars and consumption of renewable transportation fuels, such as
ethanol and biodiesel, have helped increase consumer acceptance of EVs and other alternative vehicles. However, the EV fueling model
is different from gasoline and other fuel models, requiring behavior changes and education of businesses, consumers, regulatory bodies,
local utilities and other stakeholders. Further developments in and improvements in the affordability of, alternative technologies, such
as renewable diesel, biodiesel, ethanol, hydrogen fuel cells or compressed natural gas, proliferation of hybrid powertrains involving
such alternative fuels, or improvements in the fuel economy of internal combustion engine (&ldquo;ICE&rdquo;) vehicles, whether as the
result of regulation or otherwise, may materially and adversely affect demand for EVs and EV charging stations in some market verticals.
Regulatory bodies may also adopt rules that substantially favor certain alternatives to petroleum-based propulsion over others, which
may not necessarily be EVs. Local jurisdictions may also impose restrictions on urban driving due to congestion, which may prioritize
and accelerate micromobility trends and slow EV adoption growth. If any of the above cause or contribute to automakers reducing the availability
of EV models or cause or contribute to consumers or businesses no longer purchasing EVs or purchasing fewer of them, it would materially
and adversely affect Nxu&rsquo;s business, operating results, financial condition and prospects.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
has relied on complex machinery for its operations, and production involves a significant degree of risk and uncertainty in terms of
operational performance, safety, security, and costs.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
has relied heavily on complex machinery for its operations and its production involved a significant degree of uncertainty and risk in
terms of operational performance, safety, security, and costs. Nxu&rsquo;s manufacturing plant consists of large-scale machinery combining
many components, including complex software to operate such machinery and to coordinate operating activities across the manufacturing
plant. The manufacturing plant components are likely to suffer unexpected malfunctions from time to time, and will depend on repairs,
spare parts, and IT solutions to resume operations, which may not be available when needed. Unexpected malfunctions of the manufacturing
plant components may significantly affect operational efficiency. Operational performance and costs can be difficult to predict and are
often influenced by factors outside of Nxu&rsquo;s control, such as, but not limited to, scarcity of natural resources, environmental
hazards and remediation, costs associated with decommissioning of machines, labor disputes and strikes, difficulty or delays in obtaining
governmental permits, damages or defects in electronic systems including the software used to control or operate them, industrial accidents,
pandemics, fire, seismic activity, and natural disasters.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Should
operational risks materialize, it may result in the personal injury to or death of workers, the loss of production equipment, damage
to manufacturing facilities, products, supplies, tools and materials, monetary losses, delays and unanticipated fluctuations in production,
environmental damage, administrative fines, increased insurance costs, and potential legal liabilities, all which could have a material
adverse effect on Nxu&rsquo;s business, prospects, financial condition, results of operations, and cash flows. Although Nxu generally
carries insurance to cover such operational risks, Nxu cannot be certain that its insurance coverage will be sufficient to cover potential
costs and liabilities arising therefrom. A loss that is uninsured or exceeds policy limits may require Nxu to pay substantial amounts,
which could adversely affect its business, prospects, financial condition, results of operations, and cash flows.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
electric vehicle technology industry is rapidly evolving and may be subject to unforeseen changes which could adversely affect the demand
for Nxu&rsquo;s chargers or other products and may increase its operating costs.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
may be unable to keep up with changes in electric vehicle technology or alternatives to electricity as a fuel source and, as a result,
its competitiveness may suffer. Developments in alternative technologies, such as advanced diesel, hydrogen, ethanol, fuel cells, or
compressed natural gas, or improvements in the fuel economy of the ICE or the cost of gasoline, may materially and adversely affect Nxu&rsquo;s
business and prospects in ways Nxu does not currently anticipate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
EV market currently benefits from the availability of rebates, tax credits and other financial incentives from governments, utilities
and others to offset the purchase or operating cost of EVs and EV charging stations. The reduction, modification or elimination of such
benefits could adversely affect Nxu&rsquo;s financial results and ability to continue to grow.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
U.S.&nbsp;federal government and some state and local governments provide incentives to end users and purchasers of EVs and EV charging
stations in the form of rebates, tax credits and other financial incentives, such as payments for regulatory credits. The EV market relies
on these governmental rebates, tax credits and other financial incentives to significantly lower the effective price of EVs and EV charging
stations. However, these incentives may expire on a particular date, end when the allocated funding is exhausted, or may be reduced or
terminated as a matter of regulatory or legislative policy. In particular, Nxu has historically benefitted from the availability of federal
tax credits under Section&nbsp;30C of the Code, which effectively subsidized the cost of placing in service Nxu&rsquo;s charging stations.
The Inflation Reduction Act revised the credits under Section&nbsp;30C of the Code to (i)&nbsp;retroactively extend the expiration of
the credit as of December&nbsp;31, 2021 (with such credit continuing to be capped at $30,000 per location for EV charging stations placed
in service before January&nbsp;1, 2023) until December&nbsp;31, 2032, (ii)&nbsp;revised the credit structure, availability and requirements
for EV charging stations placed in service after December&nbsp;31, 2022 and (iii)&nbsp;introduced the concept of transferability of tax
credits, providing an additional option to monetize such credits. As part of the revised credit structure and requirements for EV charging
stations placed in service after December&nbsp;31, 2022, the available Section&nbsp;30C credit was expanded such that it is capped at
$100,000 per item; however, in order to be eligible for such tax credit, EV charging stations must be installed in rural or low-income
census tracts. Additionally, in order to receive the full tax credit, labor for EV charging station construction and maintenance must
meet prevailing wage and apprenticeship requirements unless an exception applies. There can be no assurance that the EV charging stations
placed in service by Nxu will meet the revised requirements for the Section&nbsp;30C credits and compliance with such requirements could
increase Nxu&rsquo;s labor and other costs. Any reduction in rebates, tax credits or other financial incentives available to EVs or EV
charging stations, could negatively affect the EV market and adversely impact Nxu&rsquo;s business operations and expansion potential.
In addition, there is no assurance Nxu will have the necessary tax attributes to utilize any such credits that are available and may
not be able to monetize such credits on favorable terms.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Federal
guidance on Buy America requirements (effective as of March&nbsp;23, 2023) applicable to the National Electric Vehicle Infrastructure
(&ldquo;NEVI&rdquo;) Program, which was established by the Bipartisan Infrastructure Law, requires immediate domestic assembly and U.S.&nbsp;steel
requirements for chargers to qualify for funding under the NEVI program, with higher domestic content percentages required in 2024. Nxu&rsquo;s
suppliers may experience delays in bringing their U.S.&nbsp;facilities online, and Nxu may be unable to source Buy America-compliant
chargers in time to take advantage of early NEVI funding opportunities or only at increased costs. Nxu may be at a disadvantage to competitors
that have already implemented domestic assembly and content standards into their supply chain. Nxu&rsquo;s customers may request delays
or adjustments to their build-out plans in order to accommodate these added Buy America requirements, which could result in delays in
receipt of revenue from customers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">New
tariffs and policies that could incentivize overbuilding of infrastructure may also have a negative impact on the economics of Nxu&rsquo;s
stations. Furthermore, new tariffs and policy incentives could be put in place that favor equipment manufactured by or assembled at American
factories, which may put Nxu&rsquo;s fast charging equipment vendors at a competitive disadvantage, including by increasing the cost
or delaying the availability of charging equipment, by challenging or delaying Nxu&rsquo;s ability to apply or qualify for grants and
other government incentives, or for certain charging infrastructure build-out solicitations and programs, including those initiated by
federal government agencies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Moreover,
a variety of incentives and rebates offered by the U.S.&nbsp;federal government as well as state and local governments in order to encourage
the use of EVs may be limited or reduced. In particular, the U.S.&nbsp;federal government offers a tax credit, the maximum amount of
which is $7,500, for qualified new plug-in EVs. The Inflation Reduction Act modified the tax credit for new plug-in EVs and added new
tax credits for used and commercial EVs. The Inflation Reduction Act removed the phase-out of tax credits for new plug-in EVs with respect
to vehicle manufacturers that reached certain production levels beginning in 2023. However, the tax credit is subject to additional requirements
and limitations, such as certain adjusted gross income limits for consumers claiming the credit, domestic content requirements for critical
minerals and batteries and a requirement for final assembly to occur in North America. Such additional requirements and limitations for
such tax credits may reduce incentives available to encourage the adoption of EVs; favor competitors whose production chains enable them
to more readily take advantage of such incentives; delay purchases and installations of charging equipment by Nxu as manufacturing of
charging equipment is moved to the U.S.&nbsp;in order to expand eligibility for such incentives (which, in turn, could delay Nxu&rsquo;s
recognition of revenue in connection with such stalls); increase the cost of procurement of some inputs in the construction of charging
infrastructure; and negatively affect the EV market and adversely impact Nxu&rsquo;s business operations and expansion potential. Any
such developments could have an adverse effect on Nxu&rsquo;s business, financial condition and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
has minimal experience servicing and repairing its charging stations. If Nxu or its partners are unable to adequately service its charging
stations, Nxu&rsquo;s business, prospects, financial condition, results of operations, and cash flows could be materially and adversely
affected.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
has minimal experience servicing and repairing its charging stations. Servicing its products requires specialized skills, including high
voltage training and servicing techniques. Although Nxu is planning to internalize most aspects of vehicle service over time, initially
Nxu plans to partner with third parties to enable nationwide coverage for its network. There can be no assurance that Nxu will be able
to enter into an acceptable arrangement with any such third-party providers. There can be no assurance that Nxu&rsquo;s service arrangements
will adequately address the service requirements of its customers to their satisfaction, or that Nxu and its servicing partners will
have sufficient resources, experience, or inventory to meet these service requirements in a timely manner as the volume of charging stations
it deploys increases.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
Nxu continues to grow, additional pressure may be placed on its customer support team or partners, and Nxu may be unable to respond quickly
enough to accommodate short-term increases in customer demand for technical support. Customer behavior and usage may result in higher
than expected maintenance and repair costs, which may negatively affect its business, prospects, financial condition, results of operations,
and cash flows. Nxu also could be unable to modify the future scope and delivery of its technical support to compete with changes in
the technical support provided by its competitors. Increased customer demand for support, without corresponding revenue, could increase
costs and negatively affect Nxu&rsquo;s results of operations. If Nxu is unable to successfully address the service requirements of its
customers or establish a market perception that it does not maintain high-quality support, Nxu may be subject to claims from its customers,
including loss of revenue or damages, and its business, prospects, financial condition, results of operations, and cash flows could be
materially and adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Product
recall could hinder growth and product liability or other claims could have a material adverse effect on Nxu&rsquo;s business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
the NxuOne&trade; Charging Station is unable to meet performance and quality criteria, Nxu may be required to perform product recalls
to address said concerns. A product recall can have a substantial cost related to performing such corrective actions. Although Nxu will
perform significant internal testing and qualifications, as well as external qualifications through approved third-party vendors against
industry standards and regulatory requirements, there will be unperceived conditions which may negatively impact the customer or Nxu
expected performance. As such, Nxu may perform a corrective action such as a recall of products, mandatory repairs of defective components,
or litigation settlements which can materially affect its financial goals, operation results, brand, business, and products. If Nxu is
unable to provide significant charging stations, its business success may be substantially affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
significant portion of Nxu&rsquo;s success is its ability to deploy the appropriate number of charging stations, in strategic locations
relative to its customers and customer behaviors. If Nxu is unable to deploy charging stations to specified locations, this may negatively
affect Nxu&rsquo;s brand, business, financial goals, operational results, and product success in the market. As such, to meet said availability
requirements, Nxu will require significant capital investments to rapidly deploy said NxuOne&trade; Charging Stations, as well as development
of relationships with third party members who can assist in deployment of said charging stations. If Nxu is unable to address service
requirements, Nxu may negatively affect its customer experience. Nxu&rsquo;s ability to engage with third party operating service stations,
as well as its ability to establish company operated locations, will be critical to the success of developing a positive customer experience.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">While
Nxu will work diligently to meet all company and regulatory safety requirements, there is a chance that a component catastrophically
fails. It is possible that through unknown circumstances or conditions out of Nxu&rsquo;s control, some person is injured by its product.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
successful product liability claim against Nxu could require Nxu to pay a substantial monetary award. Moreover, a product recall could
generate substantial negative publicity about its products and business. Nxu cannot provide assurance that such claims and/or recalls
will not be made in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
is subject to substantial regulations and unfavorable changes to, or failure by Nxu to comply with, these regulations could substantially
harm its business and operating results.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
charging stations are subject to regulation under international, federal, state, and local laws. Nxu expects to incur significant costs
in complying with these regulations. Regulations related to the battery and electric vehicle industry are currently evolving and Nxu
faces risks associated with these changing regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
the extent that a law changes, Nxu&rsquo;s products may not comply with applicable international, federal, state, and local laws, which
would have an adverse effect on its business. Compliance with changing regulations could be time consuming, burdensome, and expensive.
To the extent compliance with new and existing regulations is cost prohibitive, its business prospects, financial condition, and operating
results would be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Internationally,
there may be laws and jurisdictions Nxu has not yet entered or laws Nxu is unaware of in jurisdictions Nxu has entered that may restrict
its sales or other business practices. These laws may be complex, difficult to interpret and may change over time. Continued regulatory
limitations and obstacles that may interfere with Nxu&rsquo;s ability to commercialize its products could have a negative and material
impact on its business, prospects, financial condition, and results of its operation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
is subject to requirements relating to environmental and safety regulations and environmental remediation matters which could adversely
affect its business, results of operation and reputation.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
is subject to numerous federal, state and local environmental laws and regulations governing, among other things, solid and hazardous
waste storage, treatment and disposal, and remediation of releases of hazardous materials. There are significant capital, operating and
other costs associated with compliance with these environmental laws and regulations. Environmental laws and regulations may become more
stringent in the future, which could increase costs of compliance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Federal,
state and local authorities also regulate a variety of matters, including, but not limited to, health, safety and permitting in addition
to the environmental matters discussed above. New legislation and regulations may require Nxu to make material changes to its operations,
resulting in significant increases in the cost of production.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
manufacturing process will have hazards such as but not limited to hazardous materials, machines with moving parts, and high voltage
and/or high current electrical systems typical of large manufacturing equipment and related safety incidents. There may be safety incidents
that damage machinery or products, slow or stop production, or harm employees. Consequences may include litigation, regulation, fines,
increased insurance premiums, mandates to temporarily halt production, workers&rsquo; compensation claims, or other actions that impact
its company brand, finances, or ability to operate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Future
administrations at the federal and state level may create regulatory uncertainty for the alternative energy sector and may have an adverse
effect on Nxu&rsquo;s business, prospects, financial condition and operating results.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
United States automotive industry is subject to certain federal and state regulations, and new regulations continue to be proposed to
address concerns regarding the environment, vehicle safety, and energy independence. Consequently, the regulatory landscape can change
on short notice.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Available
government funding and economic incentives are subject to change for a variety of reasons that are beyond Nxu&rsquo;s control, including
budget and policy initiatives and priorities of current and future administrations at the federal and state level. Considering the waning
government support for adoption of electric vehicle and clean energy initiatives during the first Trump Administration, the incoming
second Trump Administration could adversely affect the growth of the commercial electric vehicle market and alternative energy sector,
which could adversely impact Nxu&rsquo;s business, prospects, financial condition and operating results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risks
Related to Nxu&rsquo;s Management</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
is dependent upon its executives for their services and the loss of personnel may have a material adverse effect on Nxu&rsquo;s business
and operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
loss of the services of Nxu&rsquo;s CEO, CFO, or President, Mr.&nbsp;Mark Hanchett, Ms. Sarah Wyant, or Mrs.&nbsp;Annie Pratt, respectively,
could have a material adverse effect on Nxu. Nxu does not maintain any key man life insurance on its executives. The loss of any of its
executives&rsquo; services could cause investors to lose all or a part of their investment. Its future success will also depend on Nxu&rsquo;s
ability to retain and motivate other highly skilled employees. Competition for personnel in Nxu&rsquo;s industry is intense. Nxu may
not be able to retain its key employees or attract, assimilate or retain other highly qualified employees in the future. If Nxu does
not succeed in attracting new personnel or retaining and motivating its current personnel, its business will be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu&rsquo;s
management team does not have experience running a public company.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">While
Nxu&rsquo;s management team has a wide breadth of business experience, none of its executive officers have held an executive position
at a publicly traded company. Given the onerous compliance requirements to which public companies are subject, there is a chance its
executive officers will fail to perform at a level expected of public company officers. In such an event, Nxu&rsquo;s share price could
be adversely affected. The management team&rsquo;s limited experience in dealing with the increasingly complex laws pertaining to public
companies could be a significant disadvantage in that it is likely that an increasing amount of their time may be devoted to these activities
which will result in less time being devoted to the management and growth of Nxu. Nxu may not have adequate personnel with the appropriate
level of knowledge, experience and training in the accounting policies, practices or internal control over financial reporting required
of public companies in the United&nbsp;States. Nxu may upgrade its systems to an enterprise resource management system, and a delay could
impact its ability or prevent it from timely reporting its operating results, timely filing required reports with the SEC and complying
with Section&nbsp;404 of the Sarbanes-Oxley Act. The development of the standards and controls necessary for Nxu to achieve the level
of accounting standards required of a public company in the United&nbsp;States may require costs greater than expected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Management&rsquo;s
judgment, estimates and assumptions have a significant impact on business decisions and accounting policies.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
management team is not infallible. Nxu relies heavily on its management team&rsquo;s judgment in formulating the estimates and assumptions
that govern its business decisions and accounting policies. Despite their best intentions, errors in Nxu&rsquo;s management team&rsquo;s
judgment may result in significant negative impacts to Nxu&rsquo;s financial performance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
relies on human resources, the loss of services of any of such personnel may have a material adverse effect on its business and operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
relies on its management team, its advisors, third-party consultants, third-party developers, service providers, technology partners,
outside attorneys, advisors, accountants, auditors, and other administrators. The loss of services of any of such personnel may have
a material adverse effect on its business and operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Limitations
of director liability and director and officer indemnification.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
Charter limits the liability of directors to the maximum extent permitted by Delaware law. Delaware law provides that directors of a
corporation will not be personally liable for monetary damages for breach of their fiduciary duties as directors, except for liability
for any:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">breach
                                            of their duty of loyalty to Nxu or its stockholders;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">act
                                            or omission not in good faith or that involves intentional misconduct or a knowing violation
                                            of law;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">unlawful
                                            payments of dividends or unlawful stock repurchases or redemptions as provided in Section&nbsp;174
                                            of the Delaware General Corporation Law; or</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">transactions
                                            for which the directors derived an improper personal benefit.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">These
limitations of liability do not apply to liabilities arising under the federal or state securities laws and do not affect the availability
of equitable remedies such as injunctive relief or rescission. The Nxu Bylaws provide that Nxu will indemnify its directors, officers
and employees to the fullest extent permitted by law. The Nxu Bylaws also provide that Nxu is obligated to advance expenses incurred
by a director or officer in advance of the final disposition of any action or proceeding. Nxu believes that the Nxu Bylaw provisions
are necessary to attract and retain qualified persons as directors and officers. The limitation of liability in the Nxu Bylaws may discourage
stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. They may also reduce the likelihood of derivative
litigation against directors and officers, even though an action, if successful, might provide a benefit to Nxu and its stockholders.
Nxu&rsquo;s results of operations and financial condition may be harmed to the extent Nxu pays the costs of settlement and damage awards
against directors and officers pursuant to these indemnification provisions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Limitations
on remedies; indemnification.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
Charter, as amended from time to time, provides that officers, directors, employees and other agents and their affiliates shall only
be liable to Nxu and its stockholders for losses, judgments, liabilities and expenses that result from fraud or other breach of fiduciary
obligations. Additionally, Nxu assumed certain indemnification agreements with each of its officers and directors consistent with industry
practice. Thus, certain alleged errors or omissions might not be actionable by Nxu. Nxu&rsquo;s governing instruments also provide that,
under the broadest circumstances allowed under law, Nxu must indemnify its officers, directors, employees and other agents and their
affiliates for losses, judgments, liabilities, expenses and amounts paid in settlement of any claims sustained by them in connection
with Nxu, including liabilities under applicable securities laws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risks
Related to Nxu&rsquo;s Capital Structure and Ownership of Class&nbsp;A Common Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
cannot predict the impact its dual class structure may have on its stock price.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
cannot predict whether its dual class structure will result in a lower or more volatile market price of the Class&nbsp;A common stock
or in adverse publicity or other adverse consequences. For example, because of its dual class structure, Nxu will likely be excluded
from certain indexes, and Nxu cannot assure you that other stock indexes will not take similar actions. Given the sustained flow of investment
funds into passive strategies that seek to track certain indexes, exclusion from stock indexes would likely preclude investment by many
of these funds and could make the Class&nbsp;A common stock less attractive to other investors. As a result, the market price of the
Class&nbsp;A common stock could be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
market price of the Class&nbsp;A common stock has fluctuated, and may continue to fluctuate, significantly.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
market price of the Class&nbsp;A common stock has fluctuated, and may continue to fluctuate, significantly and Nxu&rsquo;s stockholders
may lose all or part of their investment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
market prices for securities of startup companies have historically been highly volatile, and the market has from time-to-time experienced
significant price and volume fluctuations that are unrelated to the operating performance of particular companies. The market price of
the Class&nbsp;A common stock has fluctuated, and may continue to fluctuate, significantly in response to numerous factors, some of which
are beyond its control, such as:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">actual
                                            or anticipated adverse results or delays in its research and development efforts;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">its
                                            failure to commercialize its Nxu Platform and Nxu Truck;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">unanticipated
                                            serious safety concerns related to the use of its products;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">adverse
                                            regulatory decisions;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">legal
                                            disputes or other developments relating to proprietary rights, including patents, litigation
                                            matters and its ability to obtain patent protection for its intellectual property, government
                                            investigations and the results of any proceedings or lawsuits, including patent or stockholder
                                            litigation;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">changes
                                            in laws or regulations applicable to the electric vehicle industry;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu&rsquo;s
                                            dependence on third party suppliers;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">announcements
                                            of the introduction of new products by its competitors;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">market
                                            conditions in the electric vehicle industry;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">announcements
                                            concerning product development results or intellectual property rights of others;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">future
                                            issuances of Nxu&rsquo;s common stock or other securities;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            addition or departure of key personnel;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">actual
                                            or anticipated variations in quarterly operating results;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">announcements
                                            of significant acquisitions, strategic partnerships, joint ventures or capital commitments
                                            by Nxu or Nxu&rsquo;s competitors;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">its
                                            failure to meet or exceed the estimates and projections of the investment community;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">issuances
                                            of debt or equity securities;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">trading
                                            volume of Nxu common stock;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">sales
                                            of the Class&nbsp;A common stock by Nxu or its stockholders in the future;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">overall
                                            performance of the equity markets and other factors that may be unrelated to its operating
                                            performance or the operating performance of its competitors, including changes in market
                                            valuations of similar companies;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">failure
                                            to meet or exceed any financial guidance or expectations regarding development milestones
                                            that Nxu may provide to the public;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">ineffectiveness
                                            of Nxu&rsquo;s internal controls;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">general
                                            political and economic conditions;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">effects
                                            of natural or man-made catastrophic events;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">scarcity
                                            of raw materials necessary for battery production; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">other
                                            events or factors, many of which are beyond Nxu&rsquo;s control.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Further,
price and volume fluctuations may result in volatility in the price of the Class&nbsp;A common stock, which could cause a decline in
the value of Nxu&rsquo;s common stock. Price volatility of the Class&nbsp;A common stock might worsen if the trading volume of its shares
is low. The realization of any of the above risks or any of a broad range of other risks, including those described in this &ldquo;Risk
Factors&rdquo; section could have a dramatic and material adverse impact on the market price of the Class&nbsp;A common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
Class&nbsp;A common stock may be delisted from Nasdaq if Nxu does not maintain compliance with Nasdaq&rsquo;s continued listing requirements.
If the Class A common stock is delisted, it could negatively impact Nxu.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Continued
listing of a security on Nasdaq is conditioned upon compliance with various continued listing standards. On April 2, 2024, Nxu received
a notice from Nasdaq stating that Nxu is not in compliance with the $1.00 minimum bid price requirement set forth in Nasdaq Listing Rule
5550(a)(2) for continued listing on Nasdaq (the &ldquo;Minimum Bid Requirement&rdquo;). On October 1, 2024, Nxu received a second notice
from Nasdaq confirming that Nxu is still not in compliance with the Minimum Bid Requirement as of September 30, 2024 and granting Nxu
an additional 180&nbsp;days, or until March 31, 2025, to regain compliance. Nasdaq&rsquo;s determination is based on Nxu meeting the
continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the
Nasdaq Capital Market with the exception of the bid price requirement, and Nxu&rsquo;s written notice of its intention to cure the deficiency
during the second compliance period by effecting a reverse stock split, if necessary.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
September 4, 2024, Nxu received a notice from Nasdaq notifying Nxu that, due to Ms. Nightengale not standing for re-election as a director
of Nxu at Nxu&rsquo;s 2024 annual meeting of stockholders held on August 14, 2024, Nxu was no longer in compliance with Nasdaq&rsquo;s
audit committee requirements as set forth in Nasdaq Listing Rule 5605. Nxu intends to appoint an additional independent director to the
Nxu board of directors and the audit committee of its board of directors as soon as practicable and prior to the earlier of Nxu&rsquo;s
next annual meeting of stockholders or August 14, 2025, or, if Nxu&rsquo;s next annual meeting of stockholders is held before February
10, 2025, by February 10, 2025.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">No
assurances can be provided that we will regain compliance with the minimum bid price requirement or the audit committee requirement within
the required compliance periods.&nbsp;If the Company&rsquo;s Class A common stock ultimately were to be delisted for any reason, it could
negatively impact the Company by (i) reducing the liquidity and market price of the Company&rsquo;s Class A common stock; (ii) reducing
the number of investors willing to hold or acquire the Company&rsquo;s Class A common stock, which could negatively impact the Company&rsquo;s
ability to raise equity financing; (iii) limiting the Company&rsquo;s ability to use a registration statement to offer and sell freely
tradable securities, thereby preventing the Company from accessing the public capital markets; and (iv) impairing the Company&rsquo;s
ability to provide equity incentives to its employees.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>If
the market price of the Class&nbsp;A common stock continues to remain under $1.00 per share, the only cure may be to enact a reverse
split of the stock. Failure to maintain compliance with Nasdaq&rsquo;s Continued Listing Rules could be costly and have material adverse
effects.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
will continue to monitor the closing bid price of the Class&nbsp;A Common Stock and seek to maintain compliance with all applicable Nasdaq
requirements within the allotted compliance periods and may, if appropriate, consider available options, including implementation of
an additional reverse stock split to regain compliance with the Minimum Bid Requirement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
December&nbsp;27, 2023, Nxu completed a reverse stock split at a ratio of 1-for-150. If Nxu does not maintain compliance with the Minimum
Bid Requirement, Nxu may be forced to complete another reverse stock split, which could negatively affect the price of the Class A common
stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Further,
while Nasdaq rules do not impose a specific limit on the number of times a listed company may effect a reverse stock split to maintain
or regain compliance with the Minimum Bid Requirement, Nasdaq has stated that a series of reverse stock splits may undermine investor
confidence in securities listed on Nasdaq. Accordingly, Nasdaq may determine that it is not in the public interest to maintain Nxu&rsquo;s
listing, even if Nxu regains compliance with the Minimum Bid Requirement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, Nasdaq Listing Rule&nbsp;5810(c)(3)(A)(iv)&nbsp;states that if a listed company that fails to meet the Minimum Bid Requirement
after effecting one or more reverse stock splits over the prior two-year period with a cumulative ratio of 250 shares or more to one,
then the company is not eligible for a compliance period. Nxu has effected a reverse stock split with a cumulative ratio of 150 shares
to one. A subsequent reverse stock split could cause Nxu to exceed the 1-for-250 ratio. If such ratio is exceeded, Nxu would no longer
be eligible for a compliance period and may be subject to an immediate delisting notification in the event it cannot comply with the
Minimum Bid Requirement in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
future non-compliance may be costly, divert management&rsquo;s time and attention, and could have a material adverse effect on Nxu&rsquo;s
business, reputation, financing, and results of operation. A delisting could substantially decrease trading in the Class&nbsp;A Common
Stock, adversely affect the market liquidity of the Class A common stock as a result of the loss of market efficiencies associated with
Nasdaq and the loss of federal preemption of state securities laws, materially adversely affect its ability to obtain financing on acceptable
terms, if at all, and may result in the potential loss of confidence by investors, suppliers, customers and employees and fewer business
development opportunities. Additionally, the market price of the Class&nbsp;A common stock may decline further and stockholders may lose
some or all of their investment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
does not anticipate dividends to be paid on the Class&nbsp;A common stock and investors may lose the entire amount of their investment.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
dividend has never been declared or paid in cash on the Class&nbsp;A common stock and Nxu does not anticipate such a declaration or payment
for the foreseeable future. Nxu expects to use future earnings, if any, to fund business growth. Therefore, stockholders will not receive
any funds absent a sale of the Class&nbsp;A common stock. Nxu cannot assure stockholders of a positive return on their investment when
they sell the Class&nbsp;A common stock, nor can Nxu assure that stockholders will not lose the entire amount of their investment. Any
payment of dividends on its capital stock will depend on Nxu&rsquo;s earnings, financial condition and other business and economic factors
affecting Nxu at such a time as the Nxu board of directors may consider it relevant. If Nxu does not pay dividends, the Class&nbsp;A
common stock may be less valuable because a return on its stockholders&rsquo; investment will only occur if the Class A common stock
price appreciates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
is an emerging growth company and a smaller reporting company within the meaning of the Securities Act, and if Nxu takes advantage of
certain exemptions from disclosure requirements available to emerging growth companies and smaller reporting companies, this could make
its securities less attractive to investors and may make it more difficult to compare its performance with other public companies.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
is an &ldquo;emerging growth company&rdquo; within the meaning of the Securities Act, as modified by the JOBS Act, and Nxu may take advantage
of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth
companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section&nbsp;404 of
the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements,
and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any
golden parachute payments not previously approved. As a result, Nxu&rsquo;s stockholders may not have access to certain information they
may deem important. Nxu could be an emerging growth company for up to five&nbsp;years, although circumstances could cause Nxu to lose
that status earlier, including if the market value of the Class&nbsp;A common stock held by non-affiliates exceeds $700&nbsp;million
as of any June&nbsp;30 before that time, in which case Nxu would no longer be an emerging growth company as of the following December&nbsp;31.
Nxu cannot predict whether investors will find its securities less attractive because Nxu will rely on these exemptions. If some investors
find Nxu&rsquo;s securities less attractive as a result of its reliance on these exemptions, the trading prices of its securities may
be lower than they otherwise would be, there may be a less active trading market for its securities and the trading prices of its securities
may be more volatile.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Further,
Section&nbsp;102(b)(1)&nbsp;of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial
accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective
or do not have a class of securities registered under the Exchange&nbsp;Act) are required to comply with the new or revised financial
accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the
requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. Nxu has elected not to opt
out of such extended transition period, which means that when a standard is issued or revised and it has different application dates
for public or private companies, Nxu, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of Nxu&rsquo;s financial statements with another public company which is
neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult
or impossible because of the potential differences in accountant standards used.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Additionally,
Nxu is a &ldquo;smaller reporting company&rdquo; as defined in Rule&nbsp;10(f)(1)&nbsp;of Regulation&nbsp;S-K.&nbsp;Smaller reporting
companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two&nbsp;years
of audited financial statements. Nxu will remain a smaller reporting company until the last&nbsp;day of the fiscal year in which (1)&nbsp;the
market value of Nxu&rsquo;s common stock held by non-affiliates exceeds $250&nbsp;million as of the end of the prior June&nbsp;30<SUP>th</SUP>,
or (2)&nbsp;Nxu&rsquo;s annual revenues exceeded $100&nbsp;million during such completed fiscal year and the market value of Nxu&rsquo;s
common stock held by non-affiliates exceeds $700&nbsp;million as of the prior June&nbsp;30. To the extent Nxu takes advantage of such
reduced disclosure obligations, it may also make the comparison of Nxu&rsquo;s financial statements with other public companies difficult
or impossible.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Nxu
will incur significant additional costs as a result of being a public company, and its management will be required to devote substantial
time to compliance with its public company responsibilities and corporate governance practices.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nxu
expects to incur increased costs associated with corporate governance requirements that are applicable to it as a public company, including
rules and regulations of the SEC, under the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Customer Protection Act&nbsp;of&nbsp;2010,
and the Exchange&nbsp;Act, as well as the rules of Nasdaq. These rules and regulations are expected to significantly increase its accounting,
legal and financial compliance costs and make some activities more time consuming, including due to increased training of its current
employees and increased assistance from consultants. Nxu expects such expenses to further increase after it is no longer an &ldquo;emerging
growth company.&rdquo; Nxu also expects these rules and regulations to make it more expensive for it to maintain directors&rsquo; and
officers&rsquo; liability insurance. As a result, it may be more difficult for Nxu to attract and retain qualified persons to serve on
the Nxu board of directors or as executive officers. Furthermore, these rules and regulations will increase its legal and financial compliance
costs and will make some activities more time-consuming and costly. Nxu cannot predict or estimate the amount of additional costs it
will incur as a public company or the timing of such costs. In addition, its management team will need to devote substantial attention
to transitioning to interacting with public company analysts and investors and complying with the increasingly complex laws pertaining
to public companies, which may divert attention away from the&nbsp;day-to-day management of Nxu&rsquo;s business, including operational
and sales and marketing activities. Increases in costs incurred or diversion of management&rsquo;s attention as a result of becoming
a publicly traded company may adversely affect its business, prospects, financial condition, results of operations, and cash flows.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Small
public companies are inherently risky and Nxu may be exposed to market factors beyond Nxu&rsquo;s control. If such events were to occur
it may impact its operating results.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Managing
a small public company involves a high degree of risk. Few small public companies ever reach market stability and Nxu will be subject
to oversight from governing bodies and regulations that will be costly to meet. Nxu&rsquo;s present officers have limited experience
in managing a fully reporting public company, so Nxu may be forced to obtain outside consultants to assist it with meeting these requirements.
These outside consultants are expensive and can have a direct impact on Nxu&rsquo;s ability to be profitable. This will make an investment
in Nxu a highly speculative and risky investment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
Nxu Bylaws include forum selection provisions, which could limit its stockholders&rsquo; ability to obtain a favorable judicial forum
for disputes with Nxu.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Nxu Bylaws require that, unless Nxu consents in writing to the selection of an alternative forum, the Court of Chancery of the State
of Delaware (or, if that court lacks subject matter jurisdiction, another federal or state court situated in the State of Delaware) will
be the sole and exclusive forum for (i)&nbsp;any derivative action or proceeding brought on behalf of its business, (ii)&nbsp;any action
asserting a claim of breach of a duty owed by any director, officer, employee, agent or stockholder of Nxu to Nxu or its stockholders,
(iii)&nbsp;any action asserting a claim arising pursuant to any provision of the DGCL or (iv)&nbsp;any action asserting a claim governed
by the internal affairs doctrine. In addition, the Nxu Bylaws require that, unless Nxu consent in writing to the selection of an alternative
forum, the federal district courts of the United&nbsp;States will be the exclusive forum for the resolution of any complaint asserting
a cause of action under the Securities Act and the Exchange&nbsp;Act. Any person or entity purchasing or otherwise acquiring any interest
in shares of Nxu&rsquo;s capital stock is deemed to have notice of and consented to the foregoing provisions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">These
forum selection provisions in the Nxu Bylaws may limit its stockholders&rsquo; ability to obtain a favorable judicial forum for disputes
with Nxu, which may discourage such lawsuits against Nxu. Nxu cannot be certain as to whether a court would enforce these provisions,
and if a court were to find the forum selection provisions contained in the Nxu Bylaws to be inapplicable or unenforceable in an action,
Nxu may incur additional costs associated with resolving such action in other jurisdictions, which could harm its business, operating
results and financial condition. Furthermore, investors cannot waive compliance with the federal securities laws and the rules and regulations
thereunder.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Nxu may use equity incentives for employees,
advisors, directors, key consultants and select affiliates. Any issuance of stock upon the conversion of options and/or incentive rights
will result in the dilution of the ownership interests of its existing stockholders.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nxu may use equity incentives for employees, advisors,
directors, key consultants and select affiliates. Any issuance of stock upon the conversion of options and/or incentive rights, including
settlement or exercise of incentive awards prior to or concurrently with the Merger, will result in the dilution of the ownership interests
of its existing stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Nxu is subject to general securities investment
risks.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All investments in securities involve the risk
of loss of capital. No guarantee or representation is made that an investor will receive a return of its capital. The value of the Class&nbsp;A
common stock can be adversely affected by a variety of factors, including development problems, regulatory issues, technical issues, commercial
challenges, competition, legislation, government intervention, industry developments and trends, and general business and economic conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>A sale, or the perception of future sales,
of a substantial number of shares of Class&nbsp;A common stock may cause the share prices to decline.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If Nxu&rsquo;s stockholders sell, or the market
perceives that Nxu&rsquo;s stockholders intend to sell for various reasons, substantial amounts of the Class&nbsp;A common stock in the
public market, including shares issued in connection with the exercise of outstanding options, the market price of its shares could fall.
Sales of a substantial number of shares of the Class&nbsp;A common stock may make it more difficult for Nxu to sell equity or equity-related
securities in the future at a time and price that Nxu deems reasonable or appropriate. Nxu may become involved in securities class action
litigation that could divert management&rsquo;s attention and harm its business. The stock markets have from time-to-time experienced
significant price and volume fluctuations that have affected the market prices for the common stock of automotive companies. These broad
market fluctuations may cause the market price of the Class A common stock to decline. In the past, securities class action litigation
has often been brought against a company following a decline in the market price of a company&rsquo;s securities. Nxu may become involved
in this type of litigation in the future. Litigation often is expensive and diverts management&rsquo;s attention and resources, which
could adversely affect its business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Nxu&rsquo;s quarterly operating results
may fluctuate.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nxu expects its operating results to be subject
to quarterly fluctuations. Nxu&rsquo;s net loss and other operating results will be affected by numerous factors, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">any intellectual property infringement lawsuit in which Nxu
may become involved;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">regulatory developments affecting its products and related
services; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Nxu&rsquo;s execution of any collaborative, licensing or
similar arrangements, and the timing of payments Nxu may make or receive under these arrangements.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If Nxu&rsquo;s quarterly operating results fall
below the expectations of investors or securities analysts, the price of the Class&nbsp;A common stock could decline substantially. Furthermore,
any quarterly fluctuations in its operating results may, in turn, cause the price of the Class&nbsp;A common stock to fluctuate substantially.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Unfavorable securities industry reports
could have a negative effect on Nxu&rsquo;s share price.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any trading market for the Class&nbsp;A common
stock will be influenced in part by any research reports that securities industry analysts publish about Nxu. Should one or more of such
analysts downgrade Nxu&rsquo;s securities, or otherwise reports on Nxu unfavorably, or discontinues coverage, the market price and market
trading volume of the Class&nbsp;A common stock could be negatively affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_007"></A>THE PRIVATE PLACEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PIPE Securities Purchase Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 26, 2024,
the Company entered into, and consummated the transactions contemplated by, the Securities Purchase Agreement with the purchasers named
therein (the &ldquo;Investors&rdquo;). Pursuant to the Securities Purchase Agreement, the Company will sell to the Investors an aggregate
of (i) 6,800,000 shares (the &ldquo;Purchased Shares&rdquo;) of Class A common stock, (ii) pre-funded warrants to purchase 5,200,000 shares
of Class A common stock (the &ldquo;Pre-Funded Warrants&rdquo;), (iii) Series A warrants to purchase up to 6,000,000 shares of Class A
common stock (the &ldquo;Series A Warrants&rdquo;), and (iv) Series B warrants to purchase a number of shares of Class A common stock
(the &ldquo;Series B Warrants&rdquo; and together with the Pre-Funded Warrants and the Series A Warrants, the &ldquo;Warrants&rdquo;).
The Purchased Shares, the Warrants and the shares of Class A common stock issuable upon exercise of the Warrants are collectively referred
to herein as the &ldquo;Securities.&rdquo; The aggregate offering price for the Purchased Shares and the Warrants sold in the Private
Placement was approximately $3,000,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The Pre-Funded Warrants
are exercisable immediately following the date of issuance, may be exercised at any time until all of the Pre-Funded Warrants are exercised
in full, and have an initial exercise price of $0.0001 per share, subject to adjustment. The Series A Warrants and the Series B Warrants
are exercisable upon receipt of approval of the Company&rsquo;s stockholders relating to the issuance of the shares of Class A common
stock underlying the Series A Warrants and the Series B Warrants as required by the rules and regulations of The Nasdaq Stock Market LLC
(the &ldquo;Stockholder Consent&rdquo;). The Series A Warrants have an exercise price of $0.50, subject to adjustment. In addition, with
respect to the Series A Warrants, the Investors may also effect an &ldquo;alternative cashless exercise&rdquo; after the Stockholder Consent
has been obtained but prior to the time of the closing of the merger (the &ldquo;Automatic Exercise Time&rdquo;) contemplated by the Merger
Agreement. In such event, the aggregate number of shares of Common Stock issuable in such alternative cashless exercise of the Series
A Warrants will equal the product of (i)&#8239;the aggregate number of shares of Common Stock that would be issuable upon exercise of
such Series A Warrant in accordance with the terms of such Series A Warrant if such exercise were by means of a cash exercise rather than
a cashless exercise, multiplied by (ii)&#8239;1.0. The Series A Warrants contain a reset adjustment that is expected to occur on the date
(the &ldquo;Reset Date&rdquo;) that is the eighth trading day after the effectiveness of the Registration Statement (as defined below)
or, if later, the eighth trading day after the Stockholder Consent is obtained. The reset price means the greater of (i) 80% of the lowest
daily weighted average price (as defined) and (ii) a floor price of $0.0524 (subject to adjustment). If the exercise price of the Series
A Warrants is reduced pursuant to the reset provisions, the number of shares of Common Stock for which the Series A Warrants can be exercised
will be correspondingly increased. The number of shares of Common Stock for which the Series B Warrants can initially be exercised will
be determined on the Reset Date and will equal that number obtained by subtracting (i) the number of Purchased Shares purchased by the
Investors on the closing date of the Private Placement pursuant to the Securities Purchase Agreement from (ii) the quotient obtained by
dividing (x) the aggregate purchase price paid the Investors on the closing date for the Private Placement by (y) the applicable reset
price determined on the Reset Date. The Series B Warrants have an exercise price of $0.0001 per share, subject to adjustment. As a result
of the reset provisions in the Series A Warrants and the provisions for determining the number of shares of Common Stock into which the
Series B Warrants may be exercised, the number of shares into which the Warrants will be exercisable following the Reset Date may be significantly
greater than the number of shares into which the Warrants are exercisable on the closing date of the Private Placement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">A holder may not exercise
any Pre-Funded Warrants or Series A Warrants that would cause the aggregate number of shares of Class A common stock beneficially owned
by the holder to exceed 4.99% (or 9.99% at the election of the holder) of the Company&rsquo;s outstanding Class A common stock immediately
after exercise. A holder may not exercise any Series B Warrant that would cause the aggregate number of shares of Class A common stock
beneficially owned by the holder to exceed 4.99% of the Company&rsquo;s outstanding Class A common stock immediately after exercise (the
&ldquo;Beneficial Ownership Limitation&rdquo;). The Warrants are subject to adjustment in the event of certain stock dividends and distributions,
stock splits, stock combinations, reclassifications or similar events affecting the Class A common stock and also upon any distributions
for no consideration of assets to the Company&rsquo;s stockholders. The Warrants do not entitle the holders thereof to any voting rights
or any of the other rights or privileges to which holders of Class A common stock are entitled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">In the event of a &ldquo;Fundamental
Transaction,&rdquo; which term is defined in the respective Warrants and generally includes (i) the Company, directly or indirectly, in
one or more related transactions effecting any merger or consolidation of the Company with or into another Subject Entity (as defined
in the respective Warrants) whether or not the Company is the surviving entity, (ii) the Company, directly or indirectly, effecting any
sale, assignment, transfer, conveyance or other disposition of all or substantially all of the Company&rsquo;s (or any of its &ldquo;significant
subsidiaries&rdquo;) assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or
exchange offer (whether by the Company or another Subject Entity) completed pursuant to which holders of Class A common stock are permitted
to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of at least 50% of
the outstanding shares of Class A common stock, (iv) the Company, directly or indirectly, in one or more related transactions consummating
a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off,
merger or scheme of arrangement) with one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate,
acquires at least 50% of the outstanding shares of Class A common stock, or (v) the Company, directly or indirectly, in one or more related
transactions with one or more Subject Entities effecting any reclassification, reorganization or recapitalization of the Class A common
stock or any compulsory share exchange pursuant to which all such Subject Entities, individually or in the aggregate, acquire at least
50% of the outstanding shares of Class A common stock, the holders of the Warrants will be entitled to receive upon exercise of such Warrants
the kind and amount of securities, cash or other property that the holders would have received had they exercised such Warrants immediately
prior to such Fundamental Transaction. Notwithstanding, the term &ldquo;Fundamental Transaction&rdquo; does not include the Company&rsquo;s
pending Merger with Verde pursuant to the Merger Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Any portion of the Series
A Warrants and Series B Warrants that is not exercised as of the Automatic Exercise Time will be automatically exercised as of such Automatic
Exercise Time (concurrently with the closing of the merger contemplated by the Merger Agreement) pursuant to a cashless exercise, subject
to (i) Stockholder Consent is received and effective through such exercise time and (ii) the Beneficial Ownership Limitation. Any portion
of the Pre-Funded Warrants that is not exercised as of the Automatic Exercise Time will be automatically exercised as of such Automatic
Exercise Time pursuant to a cashless exercise, subject to t the Beneficial Ownership Limitation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to an engagement letter between the Company
and Maxim Group LLC (the &ldquo;Placement Agent&rdquo;), the Company will pay the Placement Agent a cash fee at closing equal to 7.0%
of the gross proceeds received by the Company in the offering, and will reimburse the Placement Agent for up to $50,000 for accountable
out-of-pocket expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing descriptions of the Securities
Purchase Agreement and the Warrants do not purport to be complete and are qualified in their entirety by references to the full text
of (i) the form of the Securities Purchase Agreement, which is filed as Exhibit 10.39 to our registration statement of which this
prospectus forms a part and is incorporated herein; (ii) the form of Pre-Funded Warrant, which is filed as Exhibit 10.36 to our
registration statement of which this prospectus forms a part and is incorporated by reference herein; (iii) the form of Series A
Warrant, which is filed as Exhibit 10.37 to our registration statement of which this prospectus forms a part and is incorporated by
reference herein; and (iv) the form of Series B Warrant, which is filed as Exhibit 10.38 to our registration statement of which this
prospectus forms a part and is incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Registration Rights Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Private Placement,
the Company also entered into a Registration Rights Agreement, dated December 26, 2024 (the &ldquo;Registration Rights
Agreement&rdquo;), with the Investors requiring the Company to register the resale of the Purchased Shares and the shares of Class A
common stock issuable upon exercise of the Warrants under a registration statement on Form S-3 (or a Form S-1 if the Company is not
then eligible to register for resale such securities on Form S-3) (the &ldquo;Resale Registration Statement&rdquo;). The Company is
required to prepare and file the Resale Registration Statement with the SEC as soon as reasonably practicable, but in no event later
than 30 days following the closing date of the Private Placement (the &ldquo;Filing Deadline&rdquo;), and to use reasonable best
efforts to cause the Resale Registration Statement to be declared effective as promptly as practicable thereafter, and in any event
no later than 50 days following the closing date of the Private Placement if the Resale Registration Statement is not subject to a
&ldquo;full review&rdquo; by the SEC and 70 days following the closing date of the Private Placement in the event of a full review
of the Resale Registration Statement by the SEC (the &ldquo;Effectiveness Deadline&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the Company fails to meet the Filing Deadline
or the Effectiveness Deadline, subject to certain terms provided for in the Registration Rights Agreement, the Company will be required
to pay liquidated damages to the Investors. The Registration Rights Agreement provides for customary indemnification and contribution
provisions. In the event the Investors no longer hold &ldquo;Registrable Securities,&rdquo; as defined in the Registration Rights Agreement
or when the Registrable Securities may be resold by the Investors pursuant to Rule 144 promulgated under the Securities Act (&ldquo;Rule
144&rdquo;), the Company may not be obligated to cause the declaration of effectiveness of the Resale Registration Statement by the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing description of the
Registration Rights Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the
form of the Registration Rights Agreement, which is filed as Exhibit 10.40 to our registration statement of which this prospectus
forms a part and is incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Lock-Up Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, pursuant to certain &ldquo;lock-up&rdquo;
agreements (each, a &ldquo;Lock-Up Agreement&rdquo;) that were required to be entered into as a condition to the closing of the Private
Placement, the Company&rsquo;s executive officers and directors have agreed, for a period of 30 days from the earlier of (x) such time
as one or more Resale Registration Statement(s) covering the resale of all Registrable Securities has been effective and available for
the re-sale of all such Registrable Securities, and (y) such time as all of the Registrable Securities may be sold without restriction
or limitation pursuant to Rule 144, not to engage in any of the following, whether directly or indirectly, without the consent of the
Investors under the Purchase Agreement: offer, sell, contract to sell, hypothecate, pledge or otherwise dispose of any shares of Common
Stock or securities convertible, exchangeable or exercisable into, shares of Common Stock beneficially owned, held or acquired by the
Investors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing description of the Lock-Up Agreements
does not purport to be complete and is qualified in its entirety by reference to the full text of the form of Lock-Up Agreement, which
is filed as Exhibit 10.41 to our registration statement of which this prospectus forms a part and is incorporated by reference herein.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Voting Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, each of Mark Hanchett, Annie Pratt,
Britt Ide, Jessica Billingsley and Sarah Wyant agreed to enter into voting agreements (each a &ldquo;Voting Agreement&rdquo;) to vote
all shares of the Company voting stock over which each such individual has voting control in favor of any resolution presented to the
shareholders of the Company to approve the terms and exercise of the Series A warrant and Series B warrant to comply with the applicable
rules and regulations of the Nasdaq Stock Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing description of the Voting Agreements
does not purport to be complete and is qualified in its entirety by reference to the full text of the form of Voting Agreement, which
is filed as Exhibit 10.42 to this Report and is incorporated by reference herein.</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><B><A NAME="a_008"></A>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will not receive any proceeds from the resale,
if any, of the Registrable Securities by the selling stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will pay the expenses of registration of the
Registrable Securities covered by this prospectus, including legal and accounting fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The prices at which the Registrable Securities
may actually be sold will be determined by the prevailing public market price for shares of our Class A common stock, by negotiations
between the selling stockholders and buyers of our Class A common stock in private transactions or as otherwise described in &ldquo;Plan
of Distribution.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><B><A NAME="a_009"></A>SECURITIES MARKET
INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Market Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nxu&rsquo;s Class A common stock is listed for
trading on Nasdaq under the symbol &ldquo;NXU.&rdquo; As of December 26, 2024, the closing price of our Class A common stock as reported
on Nasdaq was $0.262.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Holders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of December 23, 2024, there were 16,937 holders
of record of our Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><B><A NAME="a_010"></A>UNAUDITED PRO
FORMA CONDENSED COMBINED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following unaudited pro forma condensed combined
financial information and the accompanying notes (the &ldquo;pro forma financial information&rdquo;) are presented to illustrate the estimated
effects of the anticipated merger between Nxu, Inc. (&ldquo;Nxu&rdquo;) and Verde Bioresins, Inc. (&ldquo;Verde&rdquo;) pursuant to an
Agreement and Plan of Merger (the &ldquo;Merger Agreement&rdquo;) entered into by both parties on October 23, 2024. The merger between
Nxu and Verde is accounted for as a reverse acquisition, where Verde, the legal acquiree, is determined to be the accounting acquirer
of Nxu. Refer to Note 1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following transactions are expected to occur in accordance with
the Merger Agreement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Nxu Merger Sub, Inc., a Delaware corporation and wholly owned
subsidiary of Nxu (&ldquo;Merger Sub I&rdquo;) will merge with and into Verde (the &ldquo;First Merger&rdquo;), with Verde continuing
as the surviving entity as a wholly-owned subsidiary of Nxu. and (ii) immediately following the First Merger (the &ldquo;Effective Time&rdquo;),
Verde will merge within and into Nxu Merger Sub, LLC, a Delaware limited liability company (the &ldquo;Second Merger&rdquo;, and together
with the First Merger, the &ldquo;Merger&rdquo;), with Merger Sub II surviving the Second Merger as a wholly-owned subsidiary of Nxu.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Immediately prior to the Effective Time, all outstanding
convertible notes of Verde will be converted into shares of Verde common stock and all outstanding and unexercised Verde warrants will
be exercised for shares of Verde common stock, and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">At the Effective Time, (a) each then-outstanding share of
Verde common stock, other than any cancelled shares and dissenting shares, will be converted into the right to receive a number of shares
of Nxu common stock, and (b) each then-outstanding and unexercised Verde option to purchase shares of Verde common stock, whether vested
or unvested, will be assumed by Nxu and converted into an option to purchase a number of shares of Nxu common stock. The shares of Nxu
common stock that will be issued to Verde stockholders and the number of shares of Nxu common stock underlying options that will be issuable
to Verde optionholders will be calculated using a formula in the Merger Agreement based on the estimated enterprise value of each of
Verde and Nxu.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Upon consummation of the transactions contemplated by the
Merger Agreement, it is expected that the current stockholders of Verde will own approximately 95% of the post-Merger combined entity
(the &ldquo;Combined Company&rdquo;), and the current stockholders of Nxu will own approximately 5% of the Combined Company on a fully-diluted
and as-converted basis. Following the Merger, the name of Nxu will be changed to &ldquo;Verde Bioresins, Corp.&rdquo; and its common
stock will remain listed on the Nasdaq Stock Exchange.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The pro forma financial information has been prepared under the following
assumptions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The unaudited pro forma condensed combined balance sheet
of the Combined Company as of September 30, 2024 assumes that the Merger had occurred on September 30, 2024.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The unaudited pro forma condensed combined statement of operations
of the Combined Company for the year ended December 31, 2023 and unaudited pro forma condensed combined statement of operations for the
nine months ended September 30, 2024 assumes that the Merger had occurred on January 1, 2023, the beginning of the earliest period presented.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The pro forma financial information has been compiled using, and should
be read in conjunction with the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The audited consolidated financial statements and notes of
Nxu as of and for the year ended December 31, 2023 included in the Form 10-K filed by Nxu with the Securities and Exchange Commission
(the &ldquo;SEC&rdquo;) on April 1, 2024 and the unaudited condensed consolidated financial statements for the three and nine months
ended September 30, 2024 included in the From 10-Q filed by Nxu with the SEC on November 13, 2024, both of which are incorporated by
reference into this information statement/prospectus; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The audited consolidated financial statements and notes of
Verde BioResins as of and for the year ended December 31, 2023 and unaudited condensed consolidated financial statements for the nine
months ended September 30, 2024 included elsewhere in this proxy statement/prospectus.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The accompanying notes to the unaudited pro forma condensed
combined financial information;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The pro forma financial information is for informational
purposes only and is not necessarily indicative of what the actual consolidated results of operations and financial position of the Combined
Company would have been had the Merger taken place on the dates indicated, nor are they indicative of future consolidated results of
operations or financial position of the Combined Company. The pro forma financial information is based on the information available to
management at the time of preparation and assumptions that management believes are reasonable and supportable. The pro forma adjustments,
which are described in the accompanying notes, may be revised as additional information becomes available and is evaluated. It is likely
that the actual adjustments upon the completion of the Merger will differ from the pro forma adjustments, and it is possible the differences
may be material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE
SHEET</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As of September 30, 2024</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>(in thousands)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Nxu, Inc.<BR> (Historical)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Verde BioResins<BR> (Historical)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Transaction Accounting Adjustments <BR> (Note 3)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Accounting Adjustments <BR> (Note 3)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Notes</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Pro Forma Combined</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">ASSETS</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left">Current assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%; text-indent: -0.125in; padding-left: 0.25in">Cash</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,208</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">227</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 11%; font-weight: bold; text-align: center">H</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,435</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">Inventory</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">216</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">216</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">841</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">60</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">901</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,049</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">519</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,568</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,922</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,538</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,460</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Assets held for sale</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">717</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">717</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Right-of-use assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">433</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,175</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,608</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Investment in Lynx</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,025</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,025</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(45</TD><TD STYLE="text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">A</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Other assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">249</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">470</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">719</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Total assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">8,440</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,702</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(45</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">16,097</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -0.125in; padding-left: 0.125in">LIABILITIES AND STOCKHOLDERS&rsquo; EQUITY (DEFICIT)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Current liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,670</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,614</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,584</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">E</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">8,394</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,817</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">C</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">343</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">H</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Variable share settled restricted stock units</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,483</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,483</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">B</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Convertible notes, net of debt discount of $0</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,625</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,625</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">C</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Current portion of operating lease liability</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">869</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">363</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,232</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.375in">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,602</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,998</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,626</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.375in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Lease liability, net of current portion</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">891</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">943</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.25in">Convertible debt and warrant liability, at fair value</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">16</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(10</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">D</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Total liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,090</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,493</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10.008</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,575</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Stockholders&rsquo; equity (deficit):</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.25in">Common Stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">F</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">H</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">281,061</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,752</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,483</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">B</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,359</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,442</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">C</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">D</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">E</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(279,075</TD><TD STYLE="text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">F</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,239</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">G</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,656</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">H</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Accumulated deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(277,712</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(34,575</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,629</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">E</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42,135</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">279,020</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center">F</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,239</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1.5pt">G</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Total stockholders&rsquo; (deficit) equity</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,350</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(10,791</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">13,008</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(45</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,522</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt; text-indent: -0.125in; padding-left: 0.125in">Total liabilities, convertible preferred stock and stockholders&rsquo; equity (deficit)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">8,440</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,702</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,000</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(45</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">16,097</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>See accompanying notes to the unaudited pro
forma condensed combined financial statements.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>UNAUDITED
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>For
the Year Ended December 31, 2023</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>(in
thousands, except share and per share data)</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 6pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nxu,
    Inc.<BR> (Historical)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Verde
    BioResins<BR> (Historical)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transaction
    Accounting Adjustments (Note 3)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notes</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pro
    Forma Combined</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 42%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue
    - Battery systems and components</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">494</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%; font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; width: 9%; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">494</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue
    - Retail charging services</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Revenue
    - Sales of PolyEarthylene Product</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">108</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-bottom: 1.5pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">108</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    revenue</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">496</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">108</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">604</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cost
    of sales - Battery systems and components</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,013</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,013</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cost
    of sales - Retail charging services</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cost
    of sales - PolyEarthylene Product</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">60</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">60</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Depreciation</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-bottom: 1.5pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    cost of revenue</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,029</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">60</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-bottom: 1.5pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,089</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gross
    profit (loss)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(533</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">48</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(485</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
    expenses:</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research
    and development</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,173</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,182</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">14,355</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">General
    and administrative</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">33,376</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,783</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,629</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">AA</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">47,027</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,239</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DD</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Selling
    expenses</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">419</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">419</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Advertising</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">319</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-bottom: 1.5pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">319</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    operating expenses</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">46,868</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6,384</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,868</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">62,120</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Operating
    loss</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(47,401</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6,336</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8,868</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(62,605</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
    income (expenses)</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Interest
    income (expense)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(73</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,776</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">788</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BB</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,061</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gain
    (loss) on sale or disposal of property and equipment</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Warrant
    expense</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,020</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1,020</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gain
    (loss) on convertible debt and warrant liability</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,265</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8,265</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gain
    on bargain purchase</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,308</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CC</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,308</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
    income</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">33</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-bottom: 1.5pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">33</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Total
    other (loss) income, net</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7,223</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5,776</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,096</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-bottom: 1.5pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,543</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Net
    loss</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(40,178</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(12,112</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6,772</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font-size: 12pt; padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-bottom: 4pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(59,062</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 12pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 0.75pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 0.75pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 0.75pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 0.75pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 0.75pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 0.75pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 0.75pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 0.75pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 0.75pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 0.75pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 0.75pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 0.75pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-bottom: 1.5pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 0.75pt; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 0.75pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 0.75pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 0.75pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Loss
    per share, basic and diluted</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(72.16</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.00</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(0.14</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">)</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Weighted
    average number of common shares outstanding used in computing loss per share:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">556,826</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,243,321,874</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; font-size: 12pt; padding-left: 3.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">427,337,016</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>See
accompanying notes to the unaudited pro forma condensed combined financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>UNAUDITED
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>For
the Nine Months Ended September 30, 2024</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>(in
thousands, except share and per share data)</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nxu, Inc.<BR> (Historical)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Verde BioResins<BR> (Historical)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Transaction Accounting Adjustments (Note 3)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Notes</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Pro Forma Combined</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 42%; text-align: left">Revenue - Retail charging services</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">17</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right"> &nbsp;&nbsp;&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 9%; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">17</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Revenue - Sales of PolyEarthylene Product</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">50</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">50</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total revenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">67</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Cost of revenue- Retail charging services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Cost of sales - PolyEarthylene Product</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1.5pt">Depreciation</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">59</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">59</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total cost of revenue</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">72</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">27</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">99</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Gross profit (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(55</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(32</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Operating expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Research and development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">957</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,016</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,973</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,204</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,759</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,963</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Selling expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">462</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">462</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1.5pt">Advertising</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">56</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">56</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,217</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,237</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,454</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Operating loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,272</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,214</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18,486</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Other income (expenses)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Interest income (expense)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">72</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,011</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">845</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-left: 3.5pt">EE</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,094</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Impairment of long-lived assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,128</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,128</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Impairment of held for sale assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(794</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(794</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Impairment of investment in Lynx</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(975</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(975</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Loss on operating lease cancellation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(266</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(266</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Gain (loss) on sale or disposal of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(847</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(847</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.125in; text-align: left">Gain (loss) on convertible debt and warrant liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Other income</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">88</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">88</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total other (loss) income, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,801</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,011</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">845</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,967</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net income (loss)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(18,073</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(8,225</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">845</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 4pt; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(25,453</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; padding-left: 3.5pt">&nbsp;</TD><TD STYLE="font-size: 12pt; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Loss per share, basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1.75</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.00</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.06</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Weighted average number of common shares outstanding used in computing loss per share:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,349,618</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,243,321,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 3.5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">437,129,808</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>See
accompanying notes to the unaudited pro forma condensed combined financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I></I></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I></I><B><A NAME="a_011"></A>NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL STATEMENTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Note
1&mdash;Basis of Presentation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
pro forma financial information has been prepared in accordance with Article 11 of Regulation&nbsp;S-X,&nbsp;as amended by the final
rule, Release&nbsp;33-10786&nbsp;&ldquo;Amendments to Financial disclosures about Acquired and Disposed Businesses&rdquo; (&ldquo;Article
11 of Regulation&nbsp;S-X&rdquo;),&nbsp;and the assumptions set forth herein. The pro forma adjustments include transaction accounting
adjustments, which reflect the application of required accounting for the Merger and other transactions contemplated by the Merger Agreement.
Article 11 of Regulation&nbsp;S-X&nbsp;permits presentation of reasonably estimable synergies and other transaction effects that have
occurred or are reasonably expected to occur (&ldquo;Management&rsquo;s Adjustments&rdquo;). Nxu has elected not to present Management&rsquo;s
Adjustments as the specificity of the timing and nature of such items is still under evaluation as of the date of this proxy statement/prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Accounting
for the Merger</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Merger is accounted for as a business combination and a reverse acquisition pursuant to Accounting Standards Codification Topic 805,&nbsp;<I>Business
Combinations</I>&nbsp;<I>(&ldquo;ASC 805&rdquo;)</I>, where Verde, the legal acquiree, is determined to be the accounting acquirer of
Nxu. based upon an evaluation of the following primary factors:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Immediately
                                            following the Merger, former Nxu shareholders are expected to hold approximately 5% of the
                                            voting rights on a fully diluted basis. Former Verde shareholders are expected to hold approximately
                                            95% of the voting rights on a fully diluted basis.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Verde
                                            surpasses Nxu in size as measured by enterprise value.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following
                                            the Merger, it is expected that the board of directors will consist of seven total directors.
                                            Six directors are to be appointed by former Verde shareholders and one director is to be
                                            appointed by former Nxu shareholders.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Verde&rsquo;s
                                            existing senior management team will comprise the majority of the senior management of the
                                            Combined Company.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            Combined Company&rsquo;s headquarters will be located at Verde&rsquo;s headquarters, the
                                            Combined Company&rsquo;s name will be Verde Bioresins, Corp., and the ticker symbol of the
                                            Combined Company will be &ldquo;VRDE.&rdquo;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the reverse acquisition method of accounting, the assets and liabilities of Nxu as of the closing date will be consolidated by Verde
at their respective fair values, and the excess or shortfall of the purchase price consideration over the fair value of Verde&rsquo;s
net assets will be recognized as goodwill or gain on bargain purchase, respectively. Fair value is defined in Accounting Standards Codification
Topic 820,&nbsp;<I>Fair Value Measurements and Disclosures</I>&nbsp;<I>(&ldquo;ASC 820&rdquo;</I>) as &ldquo;the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.&rdquo;
Fair value measurements can be highly subjective, and it is possible the application of reasonable judgment could develop different assumptions
resulting in a range of alternative estimates using the same facts and circumstances.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Preliminary
purchase price consideration</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accounting acquiree Nxu&rsquo;s stock price is used to measure the consideration transferred in this reverse acquisition, as Nxu&rsquo;s
stock price is more reliably measurable than the value of the equity interest of the accounting acquirer Verde, which is a privately
held entity.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preliminary expected consideration transferred is $4.5 million which is calculated as (i) the product of Nxu&rsquo;s closing stock price
as of December 16, 2024 and (ii) the sum of (a) Nxu shares issued and outstanding as of December 16, 2024 and (b) Nxu shares expected
to be issued related to the variable share settled restricted units on Nxu&rsquo;s consolidated condensed balance sheet as of September
30, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
purchase price consideration applied in the pro forma financial information is preliminary and subject to modification based on the final
purchase price, which includes any changes to the value of Nxu, Inc.&rsquo;s stock. This will likely result in a difference from the
preliminary purchase consideration calculated above, and that difference may be material. For example, with other assumptions held constant,
an increase or decrease of 20% in the price per Nxu, Inc. common stock will produce the following purchase price consideration and the
corresponding gain on bargain purchase (in thousands, except stock price):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">NXU share<BR>
 price</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Purchase<BR>
 price</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">As presented</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.23</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,490</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>20% Increase</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.28</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,389</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>20% Decrease</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.18</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,592</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Preliminary
purchase price allocation</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
allocation of the purchase price consideration, including any related tax effects, is preliminary and pending finalization of various
estimates, inputs and analyses used in the valuation assessment of the specifically identifiable tangible and intangible assets acquired.
This preliminary determination is subject to further assessment and adjustments pending additional information sharing between the parties,
more detailed third-party appraisals, and other potential adjustments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
unaudited pro forma condensed combined financial information reflects a gain on bargain purchase because the estimated fair value of
the identifiable net assets acquired exceeds the estimated preliminary purchase price consideration. Since the pro forma financial information
has been prepared based on preliminary estimates of consideration and fair values attributable to the business combination, the actual
amounts eventually recorded may differ materially from the information presented, which may increase, reduce or eliminate the gain on
bargain purchase.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preliminary allocation of the purchase price consideration is as follows (in thousands):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font-weight: bold; text-align: justify">Fair value of consideration transferred</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 9%; font-weight: bold; text-align: right">4,490</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,208</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">841</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,922</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Assets held for sale</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">717</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Right-of-use assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">433</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Investment in Lynx</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,025</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Intangible assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#1456;0</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">249</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: justify">Estimated fair value of total assets acquired (net of goodwill)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">$</TD><TD STYLE="font-weight: bold; text-align: right">8,395</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,670</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Lease liability</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">921</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 12pt; text-align: right"></TD><TD STYLE="font-size: 12pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Warrant liability, at fair value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: justify">Estimated fair value of total liabilities assumed</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">$</TD><TD STYLE="font-weight: bold; text-align: right">2,597</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: justify">Estimated fair value of net assets acquired</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">$</TD><TD STYLE="font-weight: bold; text-align: right">5,798</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: justify">Gain on bargain purchase</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">$</TD><TD STYLE="font-weight: bold; text-align: right">(1,308</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  </TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Note
2&mdash;Accounting Policies</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Upon
consummation of the Merger, management will perform a comprehensive review of the two entities&rsquo; accounting policies. As a result
of the review, management may identify differences between the accounting policies of the two entities which, when confirmed, could have
a material impact on the combined financial statements of the Combined Company. Based on its initial analysis, management did not identify
any differences that would have a material impact on the unaudited pro forma condensed combined financial information.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Note
3&mdash;Pro Forma Adjustments</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Explanations
of the adjustments to the unaudited condensed combined pro financial statements are as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Unaudited
Pro Forma Condensed Combined Balance Sheet as of September&nbsp;30, 2024</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nxu
    is in the process of evaluating the intangible assets expected to be acquired through the Merger and the associated fair value of
    any identified intangible assets. For pro forma purposes, the Company has allocated the carrying value of the intangible assets as
    a reduction to the gain on bargain purchase. Refer to Note 1 for preliminary purchase price allocation of assets.</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; white-space: nowrap; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>B</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects
    the settlement of liability classified restricted stock units that will be settled into shares held by Nxu shareholders. Such shares
    are included within the calculation of preliminary purchase price consideration further discussed in Note 1.</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; white-space: nowrap; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>C</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects
    the reclassification to additional paid-in capital of the outstanding Verde convertible note principal and accrued interest which
    is expected to convert to common shares at the Effective Time. </FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>D</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects
    the reclassification to additional paid-in capital of the outstanding Nxu convertible note principal which is expected to convert
    to common shares at the Effective Time.</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; white-space: nowrap; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>E</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
    the accrual of transaction costs directly attributable to the Merger that have been incurred or are expected to be incurred by Verde
    and Nxu, including amounts payable in Verde common shares.</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>F</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Aside
    from the accumulated deficit effect from the transaction costs described in Note (D) the transaction accounting adjustments in the
    stockholders&rsquo; equity represent the following (in thousands):</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 12pt; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Removal of<BR>
 NXU<BR>
 Historical<BR>
 Equity</B></FONT></P> <P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(1)</B></FONT></P></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 12pt; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Fair Value of<BR>
 purchase<BR>
 price<BR>
 consideration</B></FONT></P> <P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(2)</B></FONT></P></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 12pt; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nxu<BR>
 liabilities<BR>
 converted to <BR>
equity upon<BR>
 merger</B></FONT></P> <P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(3)</B></FONT></P></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 12pt; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nxu<BR>
 convertible<BR>
 note<BR>
 converted<BR>
 upon merger</B></FONT></P> <P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(4)</B></FONT></P></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 12pt; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Par Value<BR>
 Adjustment</B></FONT></P> <P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(5)</B></FONT></P></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 12pt; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Gain on<BR>
 bargain<BR>
 purchase</B></FONT></P> <P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(6)</B></FONT></P></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-size: 12pt; text-align: center"><P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Net<BR>
Adjustment</B></FONT></P></TD><TD STYLE="padding-bottom: 1.5pt; font-size: 12pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 16%; text-align: left">Common stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right"> &mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">9</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">10</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Additional paid in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(281,061</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,488</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,483</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(279,075</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 1.5pt; text-align: left">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">277,712</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,308</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">279,020</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 4pt; font-weight: bold; text-align: left">Total stockholders&rsquo; equity</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(3,350</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,490</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(2,483</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(10</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,308</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(45</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  </TABLE>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
remove the historical equity of Nxu, the accounting acquiree, as a result of the Merger.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                            recognize the fair value of the purchase price consideration paid by Verde in the reverse
                                            acquisition of Nxu. Refer to Note 1 for the components of the purchase price consideration.
                                            </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amounts
                                            reclassified to additional paid in capital as described in adjustment B above.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amounts
                                            reclassified to additional paid in capital as described in adjustment D above.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Adjustment
                                            to adjust the par value of Verde shares to reflect the par value of the Combined Company.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 12pt Times New Roman, Times, Serif; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
                                            record the gain on bargain purchase as described in adjustment CC below, inclusive of the
                                            impacts described in adjustment A above.</FONT></TD></TR></TABLE>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"></P>

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<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>G</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects
    the impact related to the stock-based compensation expense recognized in connection with adjustment DD below.</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>H</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects
    the impact of the subscription agreement entered into with certain investors (the &ldquo;PIPE Investors&rdquo;) in which the PIPE Investors
    agreed to subscribe for and purchase 12,000,000 shares of Nxu Class A Common Stock and 30,000,000 warrants to purchase Nxu Class
    A Common Stock that were determined to be classified within equity. This adjustment also reflects the impact of $0.3 million of transaction
    costs related to the PIPE transaction.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Unaudited
Pro Forma Condensed Combined Statement of Operations for the year ended December 31, 2023</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>AA</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects
    the allocation of direct and incremental transaction costs related to the Merger</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: left; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>BB</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects
    the elimination of interest expense related to Verde&rsquo;s outstanding convertible note which is converted to equity at the Effective
    Time</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>CC</B></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Represents
    the gain realized from a bargain purchase in accordance with ASC 805 when the estimated fair value of the identifiable net assets
    acquired exceeds the estimated preliminary purchase price consideration. The preliminary purchase price consideration is derived
    from Nxu&rsquo;s stock price, which will continue to fluctuate from the date of this proxy statement/prospectus through the Effective
    Time, and the final fair value purchase price allocation may differ materially from the preliminary estimates. As a result, gain
    on bargain purchase may be increased, reduced or fully eliminated upon the consummation of the Merger. Nxu&rsquo;s stock price used
    in determining the preliminary purchase price allocation was from a date prior to the filing of this proxy statement/prospectus.
    It is possible that such stock price has not fully reflected the information that was not previously publicly available, such as
    Verde&rsquo;s historical financial information or other information included in this proxy statement/prospectus.</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>DD</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects
    the recognition of stock-based compensation expense related to the cancellation of equity awards with no consideration paid to the
    holders.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Unaudited
Pro Forma Condensed Combined Statement of Operations for the nine months ended September 30, 2024</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; white-space: nowrap; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>EE</B></FONT></TD>
    <TD STYLE="text-align: justify; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Reflects
    the elimination of interest expense related to Verde&rsquo;s outstanding convertible note which is converted to equity at the Effective
    Time</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Note
4&mdash;Loss per Share</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
the unaudited pro forma condensed combined statement of operations assumes that the Merger had occurred at January&nbsp;1, 2023, the
beginning of the earliest period presented, the calculation of weighted average shares outstanding for basic and diluted earnings per
share assumes that the shares issuable relating to the Merger have been outstanding for the entirety of the period presented. As the
Combined Company is in a pro forma net loss position, and all potentially dilutive securities were determined to be anti-dilutive, the
Company&rsquo;s pro forma diluted net loss per share is the same as its pro forma basic net loss per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
table below presents the components of the pro forma earnings per share calculation (in thousands, except share and per share data):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the year<BR>
 ended<BR>
 December 31, <BR>
2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the nine<BR>
 months ended<BR>
 September 30,<BR> 2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font-weight: bold; text-align: left">Pro Forma net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(59,062</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(25,453</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">Basic Shares:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>NXU historical weighted average shares outstanding</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">556,826</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,349,618</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">NXU variable share settled restricted stock units, settled at the Effective Time</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,689,104</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,689,104</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>NXU PIPE Shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">NXU PIPE Warrants</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Shares converted from Verde Shares</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,738,672</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,738,672</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Transaction costs payable in Verde Shares (See Adjustment AA in Note 3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">195,239</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">195,239</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Verde warrants converted to NXU common stock at the Effective Time</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,262,143</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,262,143</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Verde convertible note converted to NXU common shares at the Effective Time</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">278,895,032</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">278,895,032</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Basic weighted average shares outstanding</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">427,337,016</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">437,129,808</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Pro forma net loss per share, basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.14</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.06</TD><TD STYLE="text-align: left">)</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following
the merger, the following outstanding shares of common stock equivalents were excluded from the computation of pro forma diluted net
loss per share for all the periods presented above because including them would have an anti-dilutive effect (on a pro forma as-converted
basis):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the year ended<BR>
 December 31, <BR>
2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">For the nine<BR>
 months ended<BR>
 September 30,<BR> 2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Nxu warrants to purchase NXU Class A common stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">109,509</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">109,509</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Options to purchase Verde common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">506,123</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">506,123</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Basic weighted average shares outstanding</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">615,632</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">615,632</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: center; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_012"></A>DESCRIPTION
OF SECURITIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following summary of the material terms of Nxu&rsquo;s common stock is not intended to be a complete summary of the rights and preferences
of such securities. Nxu&rsquo;s common stock is governed by Nxu&rsquo;s Certificate of Incorporation (as amended, the &ldquo;Certificate
of Incorporation&rdquo;), Bylaws (as amended, the &ldquo;Bylaws&rdquo;), and the Delaware General Corporation Law (the &ldquo;DGCL&rdquo;).
We urge you to read the Certificate of Incorporation and the Bylaws in their entirety for a complete description of the rights and preferences
of Nxu&rsquo;s common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>General</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Certificate of Incorporation authorizes the issuance of 5,010,000,000 shares, consisting of (x) 5,000,000,000 authorized shares of common
stock, including (1) 4,000,000,000 authorized shares of Class A common stock, (2) 1,000,000,000 authorized shares of Class B common stock
and (y) 10,000,000 authorized shares of preferred stock, par value $0.0001 per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of December 23, 2024, there were 16,620,057 shares of Class A common stock outstanding, 279,504 shares of Class B common stock outstanding
and one share of Series B preferred stock outstanding.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Common
Stock</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Voting
Rights</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
holder of Class A common stock, as such, shall have the right to one (1) vote per share of Class A common stock held of record by such
holder and each holder of Class B common stock, as such, shall have the right to ten (10) votes per share of Class B common stock held
of record by such holder. There are no cumulative voting rights.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Dividend
Rights</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
holders of shares of Class A common stock and the holders of shares of Class B common stock shall be entitled to receive, ratably in
proportion to the number of shares of Class A common stock or Class B common stock, respectively, with respect to any dividends or distributions
as may be declared and paid from time to time by Nxu; <I>provided, however</I>, that in the event a dividend is paid in the form of shares
of Class A common stock or Class B Common Stock, then holders of Class A common stock shall be entitled to receive shares of Class A
common stock, and holders of Class B common stock shall be entitled to receive shares of Class B common stock, with holders of shares
of Class A common stock and Class B common stock receiving, on a per share basis, an identical number of shares of Class A common stock
or Class B common stock, as applicable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Liquidation
Rights</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Subject
to the rights of any then outstanding preferred stock which ranks senior to common stock, in the event of a liquidation, dissolution
or winding up of Nxu, the holders of Class A common stock will be entitled to receive, after payment or provision for payment of all
of its debts and liabilities, all of the assets of Nxu legally available for distribution to stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
holders of shares of Class B common stock, as such, shall not be entitled to receive any assets of Nxu in the event of any voluntary
or involuntary liquidation, dissolution or winding up of the affairs of Nxu.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Other
Rights</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are no conversion rights or redemption, purchase, retirement or sinking fund provisions with respect to the common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Anti-Takeover
Effects of Delaware Law and Certificate of Incorporation and Bylaws</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Delaware
law, the Certificate of Incorporation and Bylaws contain provisions that could have the effect of delaying, deferring or discouraging
another party from acquiring control of Nxu. These provisions are expected to discourage coercive takeover practices and inadequate takeover
bids. These provisions are also designed to encourage persons seeking to acquire control of Nxu to first negotiate with the Board.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Board
of Directors&#894; Removal of Directors</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Certificate of Incorporation and Bylaws provide that a director may be removed with or without cause and only by the affirmative vote
of the holders of at least two-thirds of the votes that all the stockholders would be entitled to cast in an election of directors. Any
vacancy on the Board, including a vacancy resulting from an enlargement of the Board, may be filled only by the affirmative vote of a
majority of the votes cast in favor or against the election of a nominee at a meeting of stockholders. At each annual meeting, the entire
board will stand for election for a one-year term. The limitations on the removal of directors and filling of vacancies could make it
more difficult for a third party to acquire, or discourage a third party from seeking to acquire, control of Nxu.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Stockholder
Action by Written Consent&#894; Special Meetings</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Certificate of Incorporation provides that any action required or permitted to be taken by stockholders must be effected at a duly called
annual or special meeting of such holders and may not be effected by any consent in writing by such holders. The Certificate of Incorporation
and Bylaws also provide that, except as otherwise required by law, special meetings of stockholders can only be called by the chairman
of the board, chief executive officer or board of directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Advance
Notice Requirements for Stockholder Proposals</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of stockholders, including
proposed nominations of persons for election to the Board. Stockholders at an annual meeting may only consider proposals or nominations
specified in the notice of meeting or brought before the meeting by or at the direction of the Board or by a stockholder of record on
the record date for the meeting, who is entitled to vote at the meeting and who has delivered timely written notice in proper form to
the secretary of the stockholder&rsquo;s intention to bring such business before the meeting. This written notice must contain certain
information specified in the Bylaws. These provisions could have the effect of delaying until the next stockholder meeting stockholder
actions that are favored by the holders of a majority of outstanding voting securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Delaware
Business Combination Statute</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nxu
has opted out of Section 203 of the DGCL.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Amendment
of Certificate of Incorporation and Bylaws</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
DGCL provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation&rsquo;s
certificate of incorporation or bylaws, unless a corporation&rsquo;s certificate of incorporation or bylaws, as the case may be, requires
a greater percentage. The Bylaws may be amended or repealed by a majority vote of the Board or by the affirmative vote of the holders
of at least two-thirds of the votes which all stockholders would be entitled to cast in any election of directors. The Certificate of
Incorporation may be amended by the affirmative vote of a majority of the directors present at any regular or special meeting of the
Board at which a quorum is present in any manner not inconsistent with the laws of the State of Delaware.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description
of the Warrants</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Duration
and Exercise Price</I>. The Pre-Funded Warrants have an initial exercise price of $0.0001 per share, subject to adjustment. The
Series A Warrants and the Series B Warrants will become exercisable on the Stockholder Approval Date and any unexercised portion of
such Warrants as of the closing of the Merger will be automatically exercised pursuant to a cashless exercise. The Series A Warrants
have an exercise price of $0.50, subject to adjustment. The Series B Warrants have an exercise price of $0.0001 per share, subject
to adjustment. The exercise price and number of shares of Class A common stock issuable upon exercise of any warrant is subject to
appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our Class A common
stock and exercise price.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Exercisability. </I>The
Warrants are exercisable, at the option of each holder, in whole or in part by delivering to us a duly executed exercise notice and,
at any time a registration statement registering the issuance of shares of Class A common stock underlying the Warrants under the Securities
Act is effective and available for the issuance of such shares (or an exemption from registration under the Securities Act is available
for the issuance of such shares), by payment in full in immediately available funds for the number of shares of Class A common stock
purchased upon such exercise.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
a registration statement or current prospectus is not effective or available for the registration under the Securities Act&nbsp;of&nbsp;the
Warrants, or the resale of the shares of Class A common stock underlying the Warrants, at any time 60&nbsp;days after the issue date,
the holder may, in its sole discretion, elect to exercise Warrants through a cashless exercise, in which case the holder would receive
upon such exercise the net number of shares of Class A common stock determined according to the formula set forth in the applicable Warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Exercise
Limitation. </I> A holder will not have the right to exercise any portion of the Warrants if the holder (together
with its affiliates) would beneficially own in excess of 4.99% (or, upon election of the holder, 9.99%) of the number of our shares of
Class A common stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance
with the terms of the applicable Warrants. Any holder of the Warrants may increase or decrease such percentage, but in no event may such
percentage be increased to more than 9.99%, provided that any increase will not be effective until the 61<SUP>st</SUP>&nbsp;day after
such election.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Exchange
Listing. </I>There is no established trading market for the Warrants, and we do not expect a market to develop.
In addition, we do not intend to apply for the listing of the Warrants on any national securities exchange or other trading market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Participation
Rights. </I>If at any time we grant, issue or sell any shares of Class A common stock or Common Stock Equivalents
(as defined in the Securities Purchase Agreement) or rights to purchase stock, warrants, securities or other property pro rata to the
record holders of any shares of Class A common stock (the &ldquo;Purchase Rights&rdquo;), the holder of any Warrant will be entitled
to acquire, upon the terms applicable to such Purchase Rights, subject to the beneficial ownership limitations, the aggregate Purchase
Rights which the holder of such Warrants could have acquired if the holder had held the number of Class A common stock acquirable upon
complete exercise of such Warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Fundamental
Transactions. </I>If, except as contemplated under the Merger Agreement, (i)&nbsp;we, directly or indirectly, in one or more related
transactions effect any merger or consolidation of the Company with or into another Subject Entity (as defined in the respect Warrants),
(ii)&nbsp;we, directly or indirectly, effect any sale, lease, license, assignment, transfer, conveyance or other disposition of all or
substantially all of our (or any of our &ldquo;significant subsidiaries&rdquo;) assets in one or a series of related transactions, (iii)&nbsp;any,
direct or indirect, purchase offer, tender offer or exchange offer (whether by us or another Subject Entity) is completed pursuant to
which holders of our Class A common stock are permitted to sell, tender or exchange their shares for other securities, cash or property
and has been accepted by the holders of at least 50% of the outstanding shares of Class A common stock, (iv)&nbsp;we, directly or indirectly,
in one or more related transactions effect any reclassification, reorganization or recapitalization of the shares of Class A common stock
or any compulsory share exchange pursuant to which the shares of Class A common stock are effectively converted into or exchanged for
other securities, cash or property, or (v)&nbsp;we, directly or indirectly, in one or more related transactions consummates a stock or
share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off,
merger or scheme of arrangement) with one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate,
acquires at least 50% of the outstanding shares of Class A common stock (not including any shares of Class A common stock held by the
other person or other persons making or party to, or associated or affiliated with the other persons making or party to, such stock or
share purchase agreement or other business combination), each a &ldquo;Fundamental Transaction,&rdquo; then the successor entity will
succeed to, and be substituted for us, and may exercise every right and power that we may exercise and will assume all of our obligations
under the Warrants with the same effect as if such successor entity had been named in the Warrant itself. If holders of our shares of
Class A common stock are given a choice as to the securities, cash or property to be received in a fundamental transaction, then the
holder of any Warrant shall be given the same choice as to the consideration it receives upon any exercise of such Warrant following
such fundamental transaction. In addition, the successor entity, at the request of the holder of any Warrant, will be obligated to purchase
any unexercised portion of such Warrant, in accordance with the terms of such Warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notwithstanding
anything to the contrary, in the event of a Fundamental Transaction, we or any Successor Entity (as defined in the Warrants) shall, at
the holder&rsquo;s option, exercisable at any time concurrently with, or within 30&nbsp;days after, the consummation of the Fundamental
Transaction (or, if later, the first Trading Day (as defined in the Warrants) following the date we first become aware of the occurrence
or potential occurrence of a Fundamental Transaction), purchase a Warrant, from the holder by paying to the holder an amount of cash
equal to the Black Scholes Value (as defined in the Series A Warrant) of the remaining unexercised portion of such Warrant on the date
of the consummation of such Fundamental Transaction; provided, however, if the Fundamental Transaction is not within our control, including
if not approved by our Board of Directors, the holder will only be entitled to receive from us or any Successor Entity, as of the date
of consummation of such Fundamental Transaction, the same type or form of consideration (and in the same proportion), at the Black Scholes
Value of the unexercised portion of such Warrant that is being offered and paid to the holders of Class A common stock in connection
with the Fundamental Transaction, whether that consideration be in the form of cash, stock or any combination thereof, or whether the
holders of Class A common stock are given the choice to receive from among alternative forms of consideration in connection with the
Fundamental Transaction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Rights
as a Stockholder. </I>Except as otherwise provided in the applicable Warrant or by virtue of such holder&rsquo;s
ownership of our Class A common stock, the holder of a Warrant will not have the rights or privileges of a holder of our Class A common
stock, including any voting rights, until the holder exercises such Warrant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 8pt 0 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Resale/Registration
Rights. </I>We have filed this registration statement with the SEC that includes this prospectus to register for
resale under the Securities Act, the Registrable Securities, consisting of the Purchased Shares and the shares of Class A common stock
issuable upon exercise of the Warrants, to satisfy our obligations in connection with the Private Placement. We are required to use commercially
reasonable efforts to cause such registration to become effective within 30&nbsp;days of the closing of the Private Placement (or 60&nbsp;days
in the event of a full review by the SEC) for the Registrable Securities, and to keep such registration statement effective at all times
until the selling stockholders do not own any Registrable Securities, Pre-Funded Warrants, Series A Warrants, or Series B Warrants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B></B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Exclusive
Forum Provisions</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Certificate of Incorporation requires that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery
of the State of Delaware (or, if that court lacks subject matter jurisdiction, another federal or state court situated in the State of
Delaware) will be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of our business, (ii) any
action asserting a claim of breach of a duty owed by any director, officer, employee, agent or stockholder of ours to us or our stockholders,
(iii) any action asserting a claim arising pursuant to any provision of the DGCL or (iv) any action asserting a claim governed by the
internal affairs doctrine. In addition, our Certificate of Incorporation requires that, unless we consent in writing to the selection
of an alternative forum, the federal district courts of the United States will be the exclusive forum for the resolution of any action,
suit or proceeding asserting a cause of action arising under the Securities Act. These forum selection provisions will not apply to claims
arising under the Exchange Act or other federal securities laws for which there is exclusive federal jurisdiction. Any person or entity
purchasing or otherwise acquiring or holding any interest in shares of our capital stock is deemed to have notice of and consented to
the foregoing provisions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Rule
144</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to Rule 144, a person who has beneficially owned restricted shares of Nxu&rsquo;s voting common stock for at least six months would be
entitled to sell their securities provided that (i) such person is not deemed to have been one of Nxu&rsquo;s affiliates at the time
of, or at any time during the three months preceding, a sale and (ii) Nxu is subject to the Exchange Act periodic reporting requirements
for at least three months before the sale and has filed all required reports under Section 13 or 15(d) of the Exchange Act during the
twelve months (or such shorter period as Nxu was required to file reports) preceding the sale.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Persons
who have beneficially owned restricted shares of Nxu&rsquo;s voting common stock for at least six months but who are Nxu&rsquo;s affiliates
at the time of, or at any time during the three months preceding, a sale, would be subject to additional restrictions, by which such
person would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1% of the total number
    of shares of such securities then-outstanding; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the average weekly reported
    trading volume of such securities during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the
    sale.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales
by Nxu&rsquo;s affiliates under Rule 144 are also limited by manner of sale provisions and notice requirements and to the availability
of current public information about us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Listing
of Securities</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Nxu&rsquo;s
Class A common stock is listed for trading on Nasdaq under the symbol &ldquo;NXU.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Transfer
Agent</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
transfer agent for our Class A common stock is Equiniti Trust Company, LLC. We have agreed to indemnify Equiniti Trust Company, LLC in
its role as transfer agent, its agents and each of its stockholders, directors, officers and employees against all liabilities, including
judgments, costs and reasonable counsel fees that may arise out of acts performed or omitted for its activities in that capacity, except
for any liability due to any gross negligence, willful misconduct or bad faith of the indemnified person or entity.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_013"></A>SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table sets forth information known to the Company regarding the beneficial ownership of shares of our common stock as of December
2, 2024 by:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each person who is known
    by the Company to own beneficially more than 5% of the outstanding shares of any class of the Company&rsquo;s common stock;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">each of the Company&rsquo;s
    current named executive officers and directors; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">all current executive officers
    and directors of the Company, as a group.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
SEC has defined &ldquo;beneficial ownership&rdquo; of a security to mean the possession, directly or indirectly, of voting power and/or
investment power over such security. A stockholder is also deemed to be, as of any date, the beneficial owner of all securities that
such stockholder has the right to acquire within 60 days after that date, including but not limited to the right to acquire through (i)
the exercise of any option, warrant or right, (ii) the conversion of a security, (iii) the power to revoke a trust, discretionary account
or similar arrangement, or (iv) the automatic termination of a trust, discretionary account or similar arrangement. In computing the
number of shares beneficially owned by a person and the percentage ownership of that person, shares that may be acquired by that person
within 60 days thereafter are deemed outstanding, while such shares are not deemed outstanding for purposes of computing percentage ownership
of any other person. Each person named in the table has sole voting and investment power with respect to all of the common stock shown
as beneficially owned by such person, except as otherwise indicated in the table or footnotes below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
beneficial ownership of voting securities of the Company is based on 15,834,755 and 279,504 shares of Class A common stock and Class
B common stock, respectively, issued and outstanding as of December 2, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Name of Beneficial Owner</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Class&nbsp;A<BR> Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">% of<BR> Class</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Class&nbsp;B<BR> Shares</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">% of<BR> Class</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><B>Combined<BR> Voting<BR> Power of Common Shares<SUP>(1)</SUP></B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 40%; text-align: left">Mark Hanchett</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2,019,451</TD><TD STYLE="width: 1%; text-align: left"><SUP>(2)</SUP></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">12.8</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">200,692</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">71.8</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">21.6</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Annie Pratt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,658,891</TD><TD STYLE="text-align: left"><SUP>(3)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.5</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">78,812</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28.2</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.1</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Sarah Wyant</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">143,577</TD><TD STYLE="text-align: left"><SUP>(4)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.9</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Britt Ide</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">157,445</TD><TD STYLE="text-align: left"><SUP>(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">*</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Jessica Billingsley</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">501,800</TD><TD STYLE="text-align: left"><SUP>(5)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.2</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.7</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Current executive officers and directors as a group (5&nbsp;individuals)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,481,164</TD><TD STYLE="text-align: left"><SUP>(6)</SUP></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28.4</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">279,504</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39.0</TD><TD STYLE="text-align: left">%</TD></TR>
  </TABLE>



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<P STYLE="font: 9pt Times New Roman PS Std,serif; margin: 0pt; text-align: justify; text-indent: 0pt"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
  <TD STYLE="width: 0.25in">*</TD>
  <TD>Represents beneficial ownership of less than 1%.</TD></TR>
</TABLE>

<P STYLE="font: 9pt Times New Roman PS Std,serif; margin: 0pt; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </FONT></P>

<P STYLE="font: 9pt Times New Roman PS Std,serif; margin: 0pt; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman PS Std,serif; margin: 0pt; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in">(1)</TD>
    <TD STYLE="text-align: justify">Represents the percentage of voting power with respect to all shares of Nxu&rsquo;s outstanding capital stock voting together as a single class. The holders of our Class B common stock are entitled to 10 votes per share and the holders of our Class A common stock are entitled to one vote per share. Mr. Hanchett is also the holder of the sole share of Nxu Series B preferred stock issued and outstanding, which is entitled to a number of votes equal to the total number of votes that could be cast by holders of Class A common stock and Class B common stock. Concurrently with the execution of the Merger Agreement, we entered into a Voting Agreement and Irrevocable Proxy (the &ldquo;Voting Agreement&rdquo;) with Mr. Hanchett, pursuant to which Mr. Hanchett has agreed to, subject to specified exceptions, (i) cast all of the votes to which he is entitled by reason of holding the Series B preferred stock &ldquo;for&rdquo; or &ldquo;against&rdquo; (as applicable) a special action subject to the votes cast by the holders of Class A common stock and Class B common stock; and (ii) irrevocably grant each director of Nxu as his proxy and attorney-in-fact to vote the Series B preferred stock on his behalf if he fails at any time to vote as required in the Voting Agreement.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>(2)</TD>
    <TD STYLE="text-align: justify">Includes 200,692 shares of Class A common stock underlying options that are currently exercisable or are exercisable within 60 days of December 2, 2024. Includes 1,806,386 shares of Class A common stock underlying RSUs that are settleable within 60 days of December 2, 2024.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>(3)</TD>
    <TD STYLE="text-align: justify">Includes 78,812 shares of Class A common stock underlying options that are currently exercisable or are exercisable within 60 days of December 2, 2024. Includes 1,580,079 shares of Class A common stock underlying RSUs that are settleable within 60 days of December 2, 2024.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>(4)</TD>
    <TD STYLE="text-align: justify">Includes 126,977 shares of Class A common stock underlying options that are currently exercisable or are exercisable within 60 days of December 2, 2024.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>(5)</TD>
    <TD STYLE="text-align: justify">Includes 147,929 each of shares of Class A common stock underlying RSUs that are settleable within 60 days of December 2, 2024.</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>(6)</TD>
    <TD STYLE="text-align: justify">Includes 406,841 shares of Class A common stock underlying options that are currently exercisable or are exercisable within 60 days of December 2, 2024.</TD></TR>
  </TABLE>
<P STYLE="font: 9pt Times New Roman PS Std,serif; margin: 0pt; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt Times New Roman PS Std,serif; margin: 0pt; text-align: justify; text-indent: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><B><A NAME="a_014"></A>SELLING
STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This prospectus relates to the offer and sale
from time to time of up to 114,503,816 shares of Class A common stock of the Company by the selling stockholders. The number of shares
the selling stockholders may sell is comprised of (i) 6,800,000 shares of Class A common stock; (ii) 5,200,000 shares of Class A common
stock issuable upon exercise of the Pre-Funded Warrants; (iii) up to 57,251,908 shares of Class A common stock issuable upon exercise
of the Series A Warrants; and (iv) up to 45,251,908 shares of Class A common stock issuable upon exercise of the Series B Warrants. For
additional information regarding the issuance of the Registrable Securities, see &ldquo;The Private Placement.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth certain information
with respect to the selling stockholders, including (i)&nbsp;the number of shares of our Class A common stock beneficially owned by the
selling stockholders prior to this offering without regard to any beneficial ownership limitations contained in the Pre-Funded Warrants,
the Series A Warrants, or the Series B Warrants, (ii)&nbsp;the number of shares being offered by the selling stockholders pursuant to
this prospectus, and (iii)&nbsp;the selling stockholders&rsquo; beneficial ownership after completion of this offering assuming the sale
of all of the shares of Class A common stock covered by this prospectus. The registration of the Registrable Securities does not necessarily
mean that the selling stockholders will sell all or any of the Registrable Securities, but the number of shares and percentages set forth
in the final two columns below assume that all Registrable Securities are sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The table is based on information supplied to
us by the selling stockholders, with beneficial ownership and percentage ownership determined in accordance with Rule 13d-3 under the
Exchange Act, and such information is not necessarily indicative of beneficial ownership for any other purpose. Under Rule 13d-3, beneficial
ownership includes any shares as to which a selling stockholder has sole or shared voting power or investment power and also any shares
which that selling stockholder has the right to acquire within 60 days of December 23, 2024 through the exercise of any stock options,
warrants or rights or through the conversion of any convertible security. Unless otherwise indicated in the footnotes to the table below
and subject to community property laws where applicable, we believe, based on information furnished to us that the each selling stockholder
named in this table has sole voting and investment power with respect to the shares indicated as beneficially owned. The percentage of
beneficial ownership after this offering is based on 16,620,057 shares of Class A common stock outstanding as of December 23, 2024 together
with the Purchased Shares and the 107,703,816 shares of shares of Class A common stock issuable upon the exercise of the Pre-Funded Warrants,
the Series A Warrants and the Series B Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have assumed that all shares of Class A common
stock reflected in the table as being offered in the offering covered by this prospectus will be sold from time to time in this offering.
We cannot provide an estimate as to the number of shares of Class A common stock that will be held by the selling stockholders upon termination
of the offering covered by this prospectus because the selling stockholders may offer some, all or none of the shares of Class A common
stock being offered in the offering. Information about the selling stockholders may change over time. Any changed information will be
set forth in an amendment to the registration statement or supplement to this prospectus, to the extent required by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">Number of<BR> Shares of<BR> Class A Common Stock<BR> Beneficially<BR> Owned<BR> Prior to<BR> this</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Maximum<BR> Number of<BR> Shares of<BR> Class A Common Stock<BR> to be Offered<BR> for Resale<BR> in this<BR> Offering</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Shares of<BR> Class A Common Stock<BR> Beneficially<BR> Owned<BR> Immediately<BR> Following this<BR> Offering<SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Offering</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Bigger Capital Fund, LP<SUP>(2)</SUP>&nbsp;</FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,100</TD><TD STYLE="width: 1%; text-align: left">(2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">28,618,953</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1,100</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">S.H.N. Financial Investments Ltd.<SUP>(3)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,618,953</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">L1 Capital Global Opportunities Master Fund<SUP>(4)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">72,371</TD><TD STYLE="text-align: left">(4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,618,953</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">72,371</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FirstFire Global Opportunities Fund LLC<SUP>(5)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,618,953</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="text-align: left">*</TD>
    <TD STYLE="text-align: justify">Less than 1%.</TD></TR>
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.25in; text-align: left">(1)</TD>
    <TD STYLE="text-align: justify">Number and Percentage are based on 16,620,057 shares of Class A common stock outstanding as of December 23, 2024, assuming the resale of all shares of Class A common stock covered by this prospectus. The shares issuable upon the exercise of the exercise of the Pre-Funded Warrants and the Series A Warrants are subject to a beneficial ownership limitation of 4.99% (or 9.99% at the election of the holder) and the shares issuable upon the exercise of the Series B Warrants are subject to a beneficial ownership limitation of 4.99% (collectively, the &ldquo;Beneficial Ownership Cap&rdquo;), which in each case restricts the selling stockholders from exercising that portion of the warrants that would result in the selling stockholders and their affiliates owning, after conversion or exercise, as applicable, a number of shares of Class A common stock in excess of the Beneficial Ownership Cap. The number of shares set forth in the above table does not reflect the application of this Beneficial Ownership Cap limitation.</TD></TR>
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="text-align: left">(2)</TD>
    <TD STYLE="text-align: justify">Michael Bigger is the control person of Bigger Capital Fund, LP. The address of Bigger Capital Fund, LP is 11700 W Charleston Blvd 170-659, Las Vegas, NV 89135. Includes 1,100 shares of Class A common stock underlying warrants that are currently exercisable or are exercisable within 60 days of December 23, 2024.</TD></TR>
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="text-align: left">(3)</TD>
    <TD STYLE="text-align: justify">Mr. Hadar Shamir and Mr. Nir Shamir are deemed to beneficially own such securities and are the control persons for S.H.N. Financial Investments Ltd. The address for SHN Financial Investments Ltd is 3 Arik Einstein Street, Herziliya 4610301, Israel.</TD></TR>
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="text-align: left">(4)</TD>
    <TD STYLE="text-align: justify">David Feldman and Joel Arber hold voting and dispositive power over the reported securities held by L1 Capital Global Opportunities Master Fund. The business address of L1 Capital Global Opportunities Master Fund is 161A Shedden Road, 1 Artillery Court, PO Box 10085 Grand Cayman KY1-1001, Cayman Islands. Includes 5,704 shares of Class A common stock underlying warrants that are currently exercisable or are exercisable within 60 days of December 23, 2024 and up to a maximum of 66,667 shares of Class A common stock underlying convertible notes (assuming a minimum conversion price of $0.15 per share) that are convertible within 60 days of December 23, 2024.</TD></TR>
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="text-align: left">(5)</TD>
    <TD STYLE="text-align: justify">Eli Fireman is the control person of FirstFire Global Opportunities Fund, LLC. The address of FirstFire Global Opportunities Fund, LLC is 1040 1st Ave, New York, NY 10022.</TD></TR>
  </TABLE>


<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Relationship with Selling Stockholders</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To our knowledge, none of the selling stockholders
have any position, office, or other material relationship with us or any of our affiliates within the past three&nbsp;years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10pt; text-align: center"><FONT STYLE="text-transform: uppercase"><B><A NAME="a_015"></A>PLAN
OF DISTRIBUTION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10pt 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders, or their pledgees,
donees (including charitable organizations), transferees or other successors-in-interest, may from time to time, sell any or all of the
shares of Class A common stock offered by this prospectus either directly by such individual, or through broker-dealers or agents or
on any exchange on which the shares of Class A common stock may from time to time be traded, in the over-the-counter market, or in independently
negotiated transactions or otherwise. The selling stockholders may use any one or more of the following methods when selling shares of
our common stock:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">ordinary brokerage transactions
and transactions in which the broker-dealer solicits purchasers;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">block trades in which the broker-dealer
will attempt to sell the shares of common stock as agent but may position and resell a portion of the block as principal to facilitate
the transaction;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">purchases by a broker-dealer
as principal and resale by the broker-dealer for its account;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">any exchange distribution in
accordance with the rules of the applicable exchange;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">privately negotiated transactions;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">distributions to their members,
partners or stockholders;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">broker-dealers may agree with
the selling stockholders to sell a specified number of such shares of common stock at a stipulated price per share;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">through the writing or settlement
of options or other hedging transactions, whether through an options exchange or otherwise;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">a combination of any such methods
of sale; or</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">any other method permitted
pursuant to applicable law.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Broker-dealers engaged by the selling stockholders
may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders
(or, if any broker-dealer acts as agent for the purchaser of the shares of common stock under this prospectus, from the purchaser) in
amounts to be negotiated, but, except as set forth in a supplement to the prospectus, in the case of any agency transaction not in excess
of a customary brokerage commission in compliance with Financial Industry Regulatory Authority Rule 2121 (&ldquo;Rule 2121&rdquo;), and,
in the case of a principal transaction a markup or markdown in compliance with Rule 2121.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with sales of the Class A common
stock under this prospectus or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or
other financial institutions, which may in turn engage in short sales of the Class A common stock in the course of hedging the positions
they assume. The selling stockholders may also loan or pledge the Class A common stock to broker-dealers that in turn may sell them.
The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the
creation of one or more derivative securities that require the delivery to such broker-dealer or other financial institution of Class
A common stock offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders may from time to time
pledge or grant a security interest in some or all of the Class A common stock owned by them, and the pledgees or secured parties will,
upon foreclosure in the event of default, be deemed to be selling stockholders. As and when a selling stockholder takes such actions,
the number of securities under this prospectus on behalf of such selling stockholder will decrease. The selling stockholders may also
transfer and donate the Class A common stock in other circumstances in which case the transferees, donees, pledgees or other successors
in interest will be the selling beneficial owners for purposes of this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders are underwriters within
the meaning of Section 2(a)(11) of the Securities Act and any broker-dealers or agents that participate in distribution of the securities
will also be underwriters within the meaning of Section 2(a)(11) of the Securities Act, and any profit on sale of the securities by them
and any discounts, commissions or concessions received by them will be underwriting discounts and commissions under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A selling stockholder that is an entity may elect
to make an in-kind distribution of Class A common stock to its members, partners or stockholders pursuant to the registration statement
of which this prospectus is a part by delivering a prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the securities laws of some states, the
Class A common stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the
common shares may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration
or qualification is available and is complied with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10.1pt 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders and any other person
participating in such distribution will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder,
including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing of purchases and
sales of any of the Class A common stock by the selling stockholders and any other participating person. To the extent applicable, Regulation
M may also restrict the ability of any person engaged in the distribution of the Class A common stock to engage in market-making activities
with respect to the Class A common stock. All of the foregoing may affect the marketability of the Class A common stock and the ability
of any person or entity to engage in market-making activities with respect to the common shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 10.1pt 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We will not receive any of the proceeds from
this offering. There can be no assurances that the selling stockholders will sell any or all of the securities offered under this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The selling stockholders will pay all selling
commissions, underwriting discounts, other broker-dealer fees, finder&rsquo;s fees and stock transfer taxes applicable to the Class A
common stock offered hereby. We will bear all other costs, fees and expenses incurred in effecting the registration of the shares covered
by this prospectus, including, without limitation, all registration and filing fees, fees and expenses of compliance with securities
or blue sky laws, word processing, printing and copying expenses, messenger and delivery expenses, fees and disbursements of counsel
for the Company and all independent public accountants and other persons retained by the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Once sold under the registration statement, of
which this prospectus forms a part, the Class A common stock offered hereby will be freely tradable in the hands of persons other than
our affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><B><A NAME="a_016"></A>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Certain legal matters relating to the validity
of Nxu&rsquo;s common stock covered by this registration statement will be passed upon for Nxu by Snell &amp; Wilmer L.L.P., Phoenix,
Arizona.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_017"></A>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Prager Metis CPAs, LLC, our independent registered
public accounting firm, has audited our financial statements as of December&nbsp;31, 2023 and December&nbsp;31, 2022, and for the&nbsp;years
then ended, as set forth in its report (which report contains an explanatory paragraph describing conditions that raise substantial doubt
about the Company&rsquo;s ability to continue as a going concern as described in Note&nbsp;1 to the financial statements), which is incorporated
by reference in this prospectus and elsewhere in this registration statement. Such financial statements are incorporated by reference
in this prospectus and the registration statement in reliance on the report of Prager Metis CPAs, LLC, given on the authority of such
firm as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The balance sheets of Verde Bioresins, Inc. as
of December 31, 2023 and 2022, and the related statements of operations, stockholders&rsquo; (deficit) equity and cash flows for each
of the years then ended, have been audited by EisnerAmper LLP, independent registered public accounting firm, as stated in their report
which is included herein, which report includes an explanatory paragraph about the existence of substantial doubt concerning Verde&rsquo;s
ability to continue as a going concern. Such financial statements have been incorporated herein in reliance on the report of such firm
given upon their authority as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: center; text-indent: -0.5in"><B><A NAME="a_018"></A>WHERE YOU CAN
FIND ADDITIONAL INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have filed with the SEC a registration statement
on Form S-1 under the Securities Act with respect to the securities offered by this prospectus. This prospectus, which constitutes a
part of the registration statement, does not contain all of the information set forth in the registration statement, as permitted by
the rules and regulations of the SEC. For further information with respect to us and our securities, we refer you to the registration
statement, including the exhibits filed as a part of the registration statement. Statements contained in this prospectus concerning the
contents of any contract or any other document are not necessarily complete. If a contract or document has been filed as an exhibit to
the registration statement, please see the copy of the contract or document that has been filed. Each statement in this prospectus relating
to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The SEC also maintains an Internet website
that contains the registration statement of which this prospectus forms a part, as well as the exhibits thereto. These documents, along
with future reports, proxy statements and other information about us, are available at the SEC&rsquo;s website, <I>www.sec.gov</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We are subject to the information and reporting
requirements of the Exchange Act, and, in accordance with this law, file periodic reports and other information with the SEC. These periodic
reports and other information are available at the SEC&rsquo;s website, <I>www.sec.gov</I>. We also maintain a website at <I>https://investors.nxuenergy.com</I>.
You may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished
to, the SEC. Information contained on our website is not a part of this prospectus, and the inclusion of our website address in this
prospectus is an inactive textual reference only.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_019"></A>INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The SEC allows us to &ldquo;incorporate by reference&rdquo;
the information we file with it which means that we can disclose important information to you by referring you to those documents instead
of having to repeat the information in this prospectus. The information incorporated by reference is considered to be part of this prospectus,
and later information that we file with the SEC will automatically update and supersede this information. We incorporate by reference
the documents listed below and any future filings made with the SEC (other than any portions of any such documents that are not deemed
&ldquo;filed&rdquo; under the Exchange&nbsp;Act in accordance with the Exchange&nbsp;Act and applicable SEC rules) under Sections 13(a),
13(c), 14 or 15(d)&nbsp;of the Exchange&nbsp;Act including those made after (i)&nbsp;the date of the registration statement of which
this prospectus is a part and prior to effectiveness of the registration statement and (ii)&nbsp;the date of this prospectus and before
the completion of the offering of the shares of our Class A common stock included in this prospectus:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Our Annual Report on <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924005647/d31424110k.htm">Form 10-K</A> for the fiscal year ended
December 31, 2023, filed with the SEC on April 1, 2024, as amended by Amendment No. 1 on <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924007927/s43024010ka1.htm">Form 10-K/A</A> filed with the SEC on May 1, 2024;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Our Quarterly Reports on Form 10-Q for the fiscal quarters
ended March 31, 2024, June 30, 2024 and September 30, 2024, filed with the SEC on <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924008802/r42624010q.htm">May 10, 2024</A>, <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924013896/p72524510q.htm">August 6, 2024</A> and <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924018792/nxu103024310q.htm">November 13, 2024</A>,
respectively;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Our Current Reports on Form 8-K filed with the SEC on <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924000715/z1102438k.htm">January 12, 2024</A>, <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924002919/p2142428k.htm">February 14, 2024</A>, <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924006244/x442408k.htm">April 5, 2024</A>, <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924007221/g4192408k.htm">April 19, 2024</A>, <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924008842/g5102438k.htm">May 10, 2024</A> (Item 2.05 only), <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000114036124034031/ny20032870x2_8k.htm">July 24, 2024</A>, <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924014872/x8152408k.htm">August 16, 2024</A>, <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924016137/v942408k.htm">September 6, 2024</A>, <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465924017876/u10212428k.htm">October 24, 2024</A> (Items 1.01, 5.02 and 8.01 and corresponding exhibits under Item 9.01 only) and <A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121390024112875/ea0226145-8k_nxuinc.htm">December 27, 2024</A>; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">The description of the Class A common stock, which is contained
in our registration statement on <A HREF="https://www.sec.gov/Archives/edgar/data/1971382/000121465923006975/j5122318a12b.htm">Form 8-A12B</A> (File No. 001-41702) filed with the SEC on May 12, 2023, which incorporates the description
of the Class A common stock contained in the prospectus that is part of our registration statement on <A HREF="https://www.sec.gov/Archives/edgar/data/1722969/000121465923005439/g412233s4.htm">Form S-4</A> originally filed with
the SEC on April 17, 2023, as amended and supplemented, and any amendment or report filed for the purpose of updating such description.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any statement contained in this prospectus or
any prospectus supplement, or in a document incorporated or deemed to be incorporated by reference herein or therein, shall be deemed
to be modified or superseded to the extent that a statement contained herein, or in any subsequent prospectus supplement or in any subsequently
filed document that also is incorporated or deemed to be incorporated by reference herein or therein, modifies or supersedes such statement.
Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus
or any prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You may obtain, free of charge, a copy of any
of these documents (other than exhibits to these documents unless the exhibits are specifically incorporated by reference into these
documents or referred to in this prospectus) from our website (<I>https://investors.nxuenergy.com</I>) or by writing or calling us at
the following address and telephone number:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>Nxu, Inc.<BR>
1828 N. Higley Rd. Ste 116<BR>
Mesa, AZ 85205<BR>
(602)&nbsp;309-5425</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">You should rely only on information contained
in, or incorporated by reference into, this prospectus and any prospectus supplement. We have not authorized anyone to provide you with
information different from that contained in this prospectus or incorporated by reference into this prospectus. The securities are not
being offered in any jurisdiction in which such an offer or solicitation is not authorized or in which the person making such offer or
solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_020"></A>INDEX TO FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>VERDE BIORESINS, INC.&nbsp;INDEX TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 1.5pt; width: 90%; text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; width: 1%"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 9%"><B>Page</B></TD>
</TR><TR STYLE="vertical-align: top; text-align: justify; background-color: rgb(204,238,255)">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><A HREF="#f_001"> Report of Independent Registered Public Accounting Firm</A></TD><TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">F-2</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify; background-color: White">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><A HREF="#f_002">Consolidated Balance Sheets as of December&nbsp;31, 2023 and 2022</A></TD><TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">F-3</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify; background-color: rgb(204,238,255)">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><A HREF="#f_003">Consolidated Statements of Operations for the&nbsp;Years Ended December&nbsp;31, 2023 and 2022</A></TD><TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">F-4</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify; background-color: White">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><A HREF="#f_004">Consolidated Statements of Cash Flows for the&nbsp;Years Ended December&nbsp;31, 2023 and 2022</A></TD><TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">F-6</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify; background-color: rgb(204,238,255)">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><A HREF="#f_005">Notes to Consolidated Financial Statements</A></TD><TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">F-7</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0"><B>VERDE BIORESINS, INC. INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</B></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
     <TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 1.5pt; text-align: center; width: 90%"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; width: 1%"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 9%"><B>Page</B></TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify; background-color: rgb(204,238,255)">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><A HREF="#f_006">Condensed Balance Sheets as of September&nbsp;30,
2024 (unaudited) and December&nbsp;31, 2023</A></TD><TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">F-22</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify; background-color: White">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><A HREF="#f_007">Condensed Statements of Operations for the Nine&nbsp;Months Ended September&nbsp;30,
2024 and 2023 (Unaudited)</A></TD><TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">F-23</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify; background-color: rgb(204,238,255)">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><A HREF="#f_008">Condensed Statements of Stockholders&rsquo; (Deficit) Equity for the Nine&nbsp;Months Ended September&nbsp;30,
2024 and 2023 (Unaudited)</A></TD><TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">F-24</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify; background-color: White">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><A HREF="#f_009">Condensed Statements of Cash Flows for the Nine&nbsp;Months Ended September&nbsp;30, 2024 and
2023 (Unaudited)</A></TD><TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">F-25</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify; background-color: rgb(204,238,255)">
<TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><A HREF="#f_010">Notes to Condensed Consolidated Financial Statements</A></TD><TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center">F-26</TD></TR>
     </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="f_001"></A>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the Board of Directors and Stockholders of<BR>
Verde Bioresins Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Opinion on the Financial Statements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have audited the accompanying balance sheets of Verde Bioresisns
Inc. (the &ldquo;Company&rdquo;) as of December&nbsp;31, 2023 and 2022, and the related statements of operations, stockholders&rsquo;
(deficit) equity, and cash flows for each of the&nbsp;years then ended, and the related notes (collectively referred to as the &ldquo;financial
statements&rdquo;). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company
as of December&nbsp;31, 2023 and 2022, and the results of its operations and its cash flows for each of the&nbsp;years then ended, in
conformity with accounting principles generally accepted in the United&nbsp;States of America.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Going Concern</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern. As discussed in Note&nbsp;1 to the financial statements, the Company has incurred operating
losses since inception, resulting in an accumulated deficit and these conditions raise substantial doubt about its ability to continue
as a going concern. Management&rsquo;s plans in regard to these matters are also described in Note&nbsp;1. The financial statements do
not include any adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Basis for Opinion</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These financial statements are the responsibility of the Company&rsquo;s
management. Our responsibility is to express an opinion on the Company&rsquo;s financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United&nbsp;States) (&ldquo;PCAOB&rdquo;) and are required
to be independent with respect to the Company in accordance with the U.S.&nbsp;federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We conducted our audits in accordance with the standards of the PCAOB
and in accordance with auditing standards generally accepted in the United&nbsp;States of America. 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. Our audits included performing procedures to assess the risks of material misstatement of the 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 financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as the Company&rsquo;s auditor since 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/ EISNERAMPER LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Iselin, New Jersey</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">July&nbsp;15, 2024</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="f_002"></A>Verde Bioresins, Inc.<BR>
Balance Sheets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Current assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">962,725</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,194,537</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Accounts receivables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,971</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Inventory</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,038</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">30,580</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">74,658</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,156,314</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,269,195</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Operating lease right-of-use assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,410,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,778,332</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,139,610</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,787,718</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Other assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">470,111</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">466,153</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 4pt">Total assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">5,176,368</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">5,301,398</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Liabilities and Stockholders&rsquo; (Deficit) Equity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Current liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">997,587</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">9,239</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,305,614</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">380,917</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Convertible notes, net of debt discount of $1,957,928 and $1,395,349 of December&nbsp;31, 2023 and 2022, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,542,072</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,604,651</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Current portion of operating lease liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">323,206</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">364,146</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,168,479</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,358,953</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Non-current portion of operating lease liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,167,964</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,491,170</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,336,443</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,850,123</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Commitments and Contingencies (Note&nbsp;8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Stockholders&rsquo; (deficit) equity:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Common stock, $0.00001&nbsp;par value;&nbsp;33,723,608,890&nbsp;shares authorized:&nbsp;3,243,321,874 shares issued and outstanding at December&nbsp;31, 2023 and 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,434</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,434</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Additional paid-in-capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,157,328</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,657,328</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(26,349,837</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(14,238,487</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Total stockholders&rsquo; (deficit) equity</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,160,075</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">451,275</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 4pt">Total liabilities and stockholders&rsquo; (deficit) equity</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">5,176,368</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">5,301,398</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><I>See accompanying notes to financial statements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="f_003"></A>Verde Bioresins, Inc.<BR>
Statements of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2023</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2022</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Sales</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">107,884</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Cost of Sales</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">60,067</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross Profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,817</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Costs and expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Selling expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">419,167</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">287,542</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,782,685</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,272,536</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Research and development</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,181,534</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">980,741</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,383,386</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,540,819</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,335,569</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,540,819</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,775,781</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,820,223</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Other expenses, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(28,234</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,111,350</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,389,276</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Income taxes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(12,111,350</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(6,389,276</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Net loss per share:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Basic and diluted net loss per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.00</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.00</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Weighted average shares outstanding:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,243,321,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,243,321,874</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><I>See accompanying notes to financial statements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<!-- Field: Page; Sequence: 68; Value: 1 -->
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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins, Inc.<BR>
Statements of Stockholders&rsquo; (Deficit) Equity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Number of<BR> Shares</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Common<BR> Stock</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Additional<BR> Paid-in<BR> Capital</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Accumulated<BR> Deficit</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 40%">Balance&nbsp;&ndash;&nbsp;January&nbsp;1, 2023</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3,243,321,874</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">32,434</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">14,657,328</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(14,238,487</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">451,275</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Issuance of warrants in connection with issuance of
    convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,129,270</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,129,270</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Beneficial conversion feature of convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">370,730</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">370,730</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(12,111,350</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(12,111,350</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt">Balance&nbsp;&ndash;&nbsp;December&nbsp;31,
    2023</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,243,321,874</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">32,434</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">20,157,328</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(26,349,837</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,160,075</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Balance&nbsp;&ndash;&nbsp;January&nbsp;1, 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,243,321,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">32,434</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">10,657,328</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(7,849,211</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,840,551</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Issuance of warrants in connection with issuance of
    convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,863,190</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,863,190</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Beneficial conversion feature of convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,136,810</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,136,810</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,389,276</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,389,276</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt">Balance&nbsp;&ndash;&nbsp;December&nbsp;31,
    2022</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,243,321,874</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">32,434</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">14,657,328</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(14,238,487</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">451,275</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><I>See accompanying notes to financial statements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="f_004"></A>Verde Bioresins, Inc.<BR>
Statements of Cash Flows</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2023</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2022</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>Cash flow from operating activities:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(12,111,350</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(6,389,276</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">249,984</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">198,834</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Credit losses on notes receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">310,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Operating lease costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">367,999</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">365,988</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Amortization of debt issuance costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,337</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,558</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss on disposal of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,234</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Amortization of debt discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,937,421</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,604,651</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Changes in assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">39,432</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">84,788</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Inventory</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(160,038</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Accounts receivables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,971</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,958</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">988,348</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(72,727</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Operating lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(364,146</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(313,203</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Accrued liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">924,697</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">210,946</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,782,245</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,249,207</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cash flow from investing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Purchases of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(601,876</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(256,306</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Assignment of promissory notes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(310,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(911,876</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(256,306</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Cash flow from financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Proceeds from debt financing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,000,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Issuance costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(37,691</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(50,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,462,309</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,950,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net change in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(231,812</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">444,487</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Cash and cash equivalents&nbsp;&ndash;&nbsp;beginning of period</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,194,537</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">750,050</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 4pt">Cash and cash equivalents&nbsp;&ndash;&nbsp;end of period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">962,725</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,194,537</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Supplemental disclosure of non-cash financing and investing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Purchase of property and equipment with prior deposits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">18,264</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Beneficial conversion feature</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">370,730</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,136,810</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Issuance of warrants in connection with issuance of convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,129,270</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,863,190</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><I>See accompanying notes to financial statements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B><A NAME="f_005"></A>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>1.</B></TD><TD STYLE="text-align: justify"><B>Nature of Operations and Liquidity</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Nature of activities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Verde Bioresins, Inc. (the &ldquo;Company&rdquo; or &ldquo;Verde&rdquo;)
(originally incorporated under the name Ezonyx Bio Technologies, Inc.) was incorporated in the State of Delaware on March&nbsp;4, 2020.
Verde is a full-service&nbsp;privately held company that specializes in the development and manufacturing of PolyEarthylene, proprietary,
biodegradable, and compostable polymers derived from sustainable resources as an alternative to conventional plastics. This material is
capable of being recycled with conventional polyethylene, is eco-friendly, and represents a sustainable bioresin for injection molding,
film extrusion, blow molding and thermoform applications. With performance properties like petro-polymers, PolyEarthylene products can
be produced in any form and color desired for use on existing plastics manufacturing equipment.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Liquidity and Going Concern</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying financial statements have been prepared on the basis
that the Company is a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities
in the normal course of business. The Company had not generated revenues from operations until April&nbsp;2023. During the year ended
December&nbsp;31, 2023 the Company incurred net losses of $12,111,350, used $4,782,245 of cash and cash equivalents for its operating
activities, had negative working capital of $9,012,165 as of December&nbsp;31, 2023 and accumulated deficit of $26,349,837 as of December&nbsp;31,
2023.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company&rsquo;s existence is dependent upon management&rsquo;s
ability to obtain additional funding sources, enter into strategic alliances or generate significant revenues, to cover its ongoing operating
expenses, and also to continue to develop and be able to profitably market its products. Adequate additional financing may not be available
to the Company on acceptable terms, or at all. If the Company is unable to raise additional capital and/or enter into strategic alliances
when needed or on attractive terms, it would be forced to delay or reduce any commercialization efforts. The Company anticipates incurring
additional losses until such time, if ever, that it can generate significant sales. These circumstances raise substantial doubt about
the Company&rsquo;s ability to continue as a going concern within one year after the date that the financial statements are issued. Additional
working capital will be required to continue operations and scale its products.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects
on the recoverability and classifications of assets or the amounts and classifications of liabilities that may result should the Company
be unable to continue as a going concern.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0in"></TD><TD STYLE="width: 0.25in; text-align: justify"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Basis of Presentation and Summary of Significant Accounting
Policies</B></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company&rsquo;s financial statements included herein have been
prepared in conformity with accounting principles generally accepted in the United&nbsp;States of America, or U.S.&nbsp;GAAP, and pursuant
to the rules and regulations of the Securities and Exchange Commission, or SEC. Any reference in these notes to applicable guidance is
meant to refer to the authoritative U.S.&nbsp;GAAP as found in the Accounting Standards Codifications (&ldquo;ASC&rdquo;) of the Financial
Accounting Standards Borad (&ldquo;FASB&rdquo;). The Company considers events or transactions that occur after the balance sheet date
but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that
require additional disclosure.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Use of Estimates</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The preparation of financial statements in conformity with U.S.&nbsp;GAAP
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates. Significant estimates and assumptions reflected in these financial statements
include but are not limited to the allowance for expected credit losses, allowance for sales returns, accrual of operating expenses, and
valuation of equity instruments and beneficial conversion feature.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Basis of Presentation and Summary of Significant Accounting
Policies</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Segment Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Operating segments are defined as components of an enterprise about
which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making&nbsp;group,
in deciding how to allocate resources and in assessing performance. The Company manages its operations as a single operating segment for
the purposes of assessing performance and making decisions.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Cash and Cash Equivalents</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cash and cash equivalents include cash and certain highly liquid investments
with original maturities of 90&nbsp;days or less from the date of purchase. Cash equivalents are primarily recorded at cost, which approximates
fair value due to their generally short maturities.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Concentration of Credit Risk</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Financial instruments that subject the Company to credit risk primarily
consist of cash and cash equivalents and accounts receivables. The Company maintains its cash and cash equivalent balances with high-quality&nbsp;financial
institutions and, consequently, the Company believes that such funds are subject to minimal credit risk. As of December&nbsp;31, 2023,
the Company had cash of $715,574 in excess of the Federal Deposit Insurance Corporation insured limit. The Company provides credit to
its customers in the normal course of its operations. It carries out, on a continuing basis, credit checks on its customers.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Allowance for expected credit losses</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company estimates the balance of its allowance for expected credit
losses. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due
status and makes judgments about the creditworthiness of customers and other third-parties&nbsp;based on ongoing credit evaluations. The
Company also considers customer-specific&nbsp;information, current market conditions, and reasonable and supportable forecasts of future
economic conditions. Account balances are written off against the allowance when it is determined that the receivable will not be recovered.
The allowance for expected credit losses on accounts receivable was $0 each at December&nbsp;31, 2023 and 2022. The allowance for expected
credit losses on notes receivable was $310,000 at December&nbsp;31, 2023.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Fair Value of Financial Instruments</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Fair value is defined as the price the Company would receive to sell
an investment in a timely transaction or pay to transfer a liability in a timely transaction with an independent buyer in the principal
market, or in the absence of a principal market, the most advantageous market for the investment or liability. A framework is used for
measuring fair value utilizing a three-tier&nbsp;hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and
the lowest priority to unobservable inputs (Level 3).</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The three levels of the fair value hierarchy are as follows:</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.25in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.75in">Level&nbsp;1&nbsp;&mdash;</TD>
    <TD STYLE="text-align: justify">Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Level&nbsp;2&nbsp;&mdash;</TD>
    <TD STYLE="text-align: justify">Observable inputs other than quoted prices in active markets, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Level&nbsp;3&nbsp;&mdash;</TD>
    <TD STYLE="text-align: justify">Unobservable inputs reflecting management&rsquo;s assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Basis of Presentation and Summary of Significant Accounting
Policies</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The carrying amounts of the Company&rsquo;s cash and cash equivalents
were measured using quoted market prices in active markets and represent Level 1 investments. The Company&rsquo;s other financial instruments
such as notes receivable, accounts receivables, accounts payable, accrued expenses and convertible notes, approximate their fair values
due to their short maturities.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Inventory</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Inventories are principally comprised of raw materials and finished
goods and are valued at the lower of cost or net realizable value with cost being determined using first-in&nbsp;first-out&nbsp;method.
The Company reviews inventories for obsolete items to determine adjustments that it estimates will be needed to record inventory at lower
of cost or net realizable value. Inventory costs include labor, overhead, manufacturing costs and inbound freight costs.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Revenue Recognition</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Verde recognizes revenue from product sales in accordance with the
Financial Accounting Standards Board&rsquo;s ASC Topic&nbsp;606, Revenue from Contracts with Customers (&ldquo;ASC&nbsp;606&rdquo;). This
standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance,
collaboration arrangements and financial instruments. Under ASC&nbsp;606, Verde recognizes revenue when its customer obtains control of
promised goods or services, in an amount that reflects the consideration that Verde expects to receive in exchange for those goods or
services. To determine revenue recognition for arrangements that are determined to be within the scope of ASC&nbsp;606, Verde performs
the following five steps: (i)&nbsp;identify the contract(s)&nbsp;with a customer; (ii)&nbsp;identify the performance obligations in the
contract; (iii)&nbsp;determine the transaction price; (iv)&nbsp;allocate the transaction price to the performance obligations in the contract;
and (v)&nbsp;recognize revenue when (or as) the entity satisfies a performance obligation. Verde only applies the five-step&nbsp;model
to contracts when it is probable that Verde will collect the consideration it is entitled to in exchange for the goods it transfers to
the customer. At contract inception, once the contract is determined to be within the scope of ASC&nbsp;606, Verde assesses the goods
or services promised within each contract and determines those that are performance obligations and assesses whether each promised goods
is distinct. Verde then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation
when (or as) the performance obligation is satisfied.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Verde derives its revenues primarily from product sales of PolyEarthylene.
Verde primarily produces and sells formulated resin pellets and Verde typically recognizes revenue for these sales upon shipment. Verde
sells to distributors who may request a return or credit for unforeseen reasons or who may have agreed discounts or allowances to be netted
from amounts invoiced. Due to the highly specialized nature of Verde&rsquo;s products, returns and allowances are projected to be infrequent
and immaterial. Verde offers a standard quality assurance warranty related to the fitness of its finished goods.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company records accounts receivables due from distributors and
other customers.&nbsp;Payment terms to customers are generally&nbsp;30-60&nbsp;days.&nbsp;Accounts receivable was $2,971, $0 and $0 as
of&nbsp;December&nbsp;31, 2023, December&nbsp;31, 2022 and January&nbsp;1, 2022, respectively.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Research and Development</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Research and development costs are expensed as incurred. Research and
development expenses include personnel costs associated with research and development activities, including third-party&nbsp;contractors
to perform research, conduct testing and manufacture new product samples. The Company accrues for costs incurred by external service providers
based on its estimates of services performed and costs incurred. These estimates include the level of services performed by third parties.
Based on the timing of amounts invoiced by service providers, the Company may also record payments made to those providers as prepaid
expenses that will be recognized as expense in future periods as the related services are rendered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Basis of Presentation and Summary of Significant Accounting
Policies</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Selling Expenses</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Selling expenses consist of salary, marketing, and advertising costs
not directly attributable to direct costs of production or associated with the Company&rsquo;s administration, research and development
activities.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Net Loss per Share</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Basic loss per share is computed by dividing net loss by the weighted-average&nbsp;number
of common shares outstanding for the year. Diluted loss per share is computed by dividing net loss by the weighted-average&nbsp;number
of common shares outstanding plus common stock equivalents (if dilutive) related to stock options, restricted stock units, and warrants
for each year and the conversion feature of convertible notes.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Recent Accounting Pronouncements</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company considers the applicability and impact of all Accounting
Standards Updates (&ldquo;ASUs&rdquo;). ASUs not discussed below were assessed and determined to be either not applicable or are expected
to have minimal impact on the financial statements.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Recently Adopted Accounting Pronouncement</U></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In 2016, the Financial Accounting Standards Board issued ASU&nbsp;2016-13,
Financial Instruments&nbsp;&mdash;&nbsp;Credit Losses (Topic&nbsp;326): Measurement of Credit Losses on Financial Instruments (&ldquo;ASU
2016- 13&rdquo;). The guidance changes the impairment model used to measure credit losses for most financial assets. A new forward-looking&nbsp;expected
credit loss model will replace the existing incurred credit loss model and will impact the Company&rsquo;s accounts receivables. This
is expected to generally result in earlier recognition of allowances for credit losses. The Company adopted ASU&nbsp;2016-13&nbsp;on January&nbsp;1,
2023 and it did not have a material impact on the Company&rsquo;s financial statements.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Accounting Pronouncement Issued but Not Adopted</U></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In 2023, the FASB issued ASU&nbsp;2023-09&nbsp;&mdash;&nbsp;Income
Taxes (Topic&nbsp;740): Improvements to Income Tax Disclosures (&ldquo;ASU&nbsp;2023-09&rdquo;). This update standardizes categories for
the effective tax rate reconciliation, requires disaggregation of income taxes and additional income tax-related&nbsp;disclosures. This
update is required to be effective for the Company for fiscal periods beginning after December&nbsp;15, 2024. The Company is evaluating
the effect that ASU&nbsp;2023-09&nbsp;will have on its financial statements and disclosures.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In 2023, the FASB issued ASU&nbsp;2023-07&nbsp;&mdash;&nbsp;Segment
Reporting (Topic&nbsp;280): Improvements to Reportable Segment Disclosures (&ldquo;ASU&nbsp;2023-07&rdquo;). This update requires expanded
annual and interim disclosures for the significant segment expenses that are regularly provided to the chief operating decision maker
and included within each reported measure of segment profit or loss. This update will be effective for fiscal&nbsp;years beginning after
December&nbsp;15, 2023, and is to be applied retrospectively to all periods presented in the financial statements. Early adoption is permitted.
The Company is evaluating the effect that ASU&nbsp;2023-07&nbsp;will have on its financial statements and disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Leases</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the inception of an arrangement, the Company determines whether
the arrangement is or contains a lease based on the unique facts and circumstances present. Most leases with a term greater than one year
are recognized on the balance sheet as right-of-use&nbsp;assets and lease liabilities. The Company has elected not to recognize on the
balance sheet leases with terms of one year or less. Certain of the Company&rsquo;s lease agreements contain renewal options; however,
the Company does not recognize right-of-use&nbsp;assets or lease liabilities for renewal periods unless it is determined that the Company
is reasonably certain of renewing the lease at inception or when a triggering event occurs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Basis of Presentation and Summary of Significant Accounting
Policies</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company leases warehouse space and office facilities. Verde&rsquo;s
operating leases with terms longer than 12&nbsp;months are recorded at the sum of the present value of the lease&rsquo;s fixed minimum
payments as operating lease liabilities and right of use assets (&ldquo;ROU assets&rdquo;) in the Company&rsquo;s balance sheets. For
leases that contain termination options, where the rights to terminate are held by either Verde, the lessor, or both parties and it is
reasonably certain that Verde or the lessor will exercise that option, Verde factors these extended or shortened lease terms into the
minimum lease payments. The ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement
date and are reduced by lease incentives.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company uses an incremental borrowing rate to determine the present
value of the lease payments for leases, as Verde&rsquo;s leases do not have readily determinable implicit interest rates. The Company&rsquo;s
incremental borrowing rates represent the rates incurred to borrow on a collateralized basis over a similar term at an amount equal to
the lease payments in a similar economic environment.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The depreciable life of ROU assets is limited by the expected lease
term unless there is a transfer of title or purchase option reasonably certain of exercise. The Company&rsquo;s lease agreements do not
contain any significant residual value guarantees or material restrictive covenants.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Property and Equipment</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Property and equipment are stated at cost, net of accumulated depreciation
and amortization. Property and equipment are depreciated using the straight-line&nbsp;method over the estimated useful lives of the assets,
which range from three to 10&nbsp;years. Leasehold improvements are amortized over the shorter of useful lives of the asset or maximum
related lease term.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Convertible Notes</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The convertible notes are considered a hybrid financial instrument
consisting of put options, conversion option and various embedded features that required evaluation as potential embedded derivatives
under FASB ASC&nbsp;815, Derivatives and Hedging (&ldquo;ASC&nbsp;815&rdquo;). Based on the nature of the host instrument and the embedded
features, management concluded that none of the conversion and redemption features required bifurcation and separate accounting from the
host instrument. The Company determined that the put options in the event of default and change in control was an embedded derivative.
As a result, the put options required bifurcation and separate accounting under ASC&nbsp;815. The value of such options was immaterial
as of the issuance date, December&nbsp;31, 2022 and December&nbsp;31, 2023.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">When the Company has determined that the embedded conversion option
should not be bifurcated from its host instrument, the Company accounts for convertible notes in accordance with ASC&nbsp;470-20, Debt
with Conversion and Other Options. The Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion
options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment
date of the transaction and the effective conversion price embedded in the notes. The Company amortizes any debt discount over the term
of the notes, using the effective interest method.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Warrants</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company accounts for stock warrants as either equity instruments,
liabilities or derivative liabilities in accordance with ASC Topic&nbsp;480, Distinguishing Liabilities from Equity&nbsp;and/or ASC&nbsp;815,
depending on the specific terms of the warrant agreement. Liability-classified&nbsp;warrants are recorded at their estimated fair values
at each reporting period until they are exercised, terminated, reclassified or otherwise settled. Changes in the estimated fair value
of liability-classified&nbsp;warrants are recorded in the statements of operations. Equity-classified&nbsp;warrants are recorded within
additional paid-in&nbsp;capital at the time of issuance and not subject to remeasurement.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">When equity-classified&nbsp;warrants are issued in connection with
issuance of convertible notes, net proceeds received are allocated to the financial instruments issued which results in a debt discount
that is amortized over the term of the convertible notes, using the effective interest method.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December</B>&nbsp;<B>31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>2.</B></TD><TD STYLE="text-align: justify"><B>Basis of Presentation and Summary of Significant Accounting
Policies</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Income Taxes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company provides for income taxes using the asset and liability
approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets
and liabilities and the tax rates in effect when these differences are expected to reverse. Deferred tax assets are reduced by a valuation
allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not
be realized. As of December&nbsp;31, 2023, and 2022, the Company had a full valuation allowance against deferred tax assets.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company is subject to the provisions of ASC&nbsp;740-10-25, Income
Taxes (&ldquo;ASC&nbsp;740&rdquo;). ASC&nbsp;740 prescribes a more likely-than-not&nbsp;threshold for the financial statement recognition
of uncertain tax positions. ASC&nbsp;740 clarifies the accounting for income taxes by prescribing a minimum recognition threshold and
measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax
return. On a quarterly basis, the Company undergoes a process to evaluate whether income tax accruals are in accordance with ASC&nbsp;740
guidance on uncertain tax positions. The Company has not recorded any liability for uncertain tax positions as of December&nbsp;31, 2023,
and 2022.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the&nbsp;years ended December&nbsp;31, 2023 and 2022, the Company
recorded zero income tax expense. No tax benefit has been recorded in relation to the pre-tax&nbsp;loss for the&nbsp;years ended December&nbsp;31,
2023, and 2022, due to a full valuation allowance to offset any deferred tax asset related to net operating loss carry forwards attributable
to the losses.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Stock-Based Compensation</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company accounts for all stock-based&nbsp;payment awards granted
to employees and non-employees, if any, as stock-based&nbsp;compensation expense at their grant date fair value. The Company&rsquo;s stock-based&nbsp;payments
include stock options, restricted stock units, and stock appreciation rights. The measurement date for employee awards is the date of
grant, and stock-based&nbsp;compensation costs are recognized as expense over the employees&rsquo; requisite service period, on a straight-line&nbsp;basis.
The measurement date for non-employee&nbsp;awards is the date of grant and stock-based&nbsp;compensation costs for non-employees&nbsp;are
recognized as expense over the vesting period on a straight-line&nbsp;basis. Forfeitures are accounted for as they occur.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Subsequent Events</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company evaluated subsequent events that occurred after the balance
sheet date through July&nbsp;15, 2024, which is the date the financial statements were available to be issued and no events were noted
other than those already disclosed elsewhere in the financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>3.</B></TD><TD STYLE="text-align: justify"><B>Property and Equipment</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Property and equipment, net, consists of the following on December&nbsp;31,
2023 and 2022:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid; font-weight: bold">Estimated<BR> Useful&nbsp;Life<BR> (Years)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 65%; text-align: left">Leasehold improvements</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: center">12</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">578,666</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">575,570</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Machinery and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">7 &ndash; 10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,945,744</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,355,748</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Office equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">3 &ndash; 5</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,346</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">60,249</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Furniture and fixtures</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">3 &ndash; 10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,277</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,590</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Injection molds</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">3</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">44,582</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">44,582</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,669,615</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,067,739</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation and amortization</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(530,005</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(280,021</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Property and equipment, net</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,139,610</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,787,718</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>3.</B></TD><TD STYLE="text-align: justify"><B>Property and Equipment</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Depreciation expense amounted to $249,984 and $198,834 for the&nbsp;years
ended December&nbsp;31, 2023 and 2022, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Other Assets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Other assets are comprised of security deposit and deposits for the
purchases of equipment, machinery or raw material which will be used in manufacturing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The components of other assets as of December&nbsp;31, 2023 and 2022
are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Deposit to vendors</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">27,371</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">12,400</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Rent deposit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,013</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">Letter of credit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">442,740</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">442,740</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Total other assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">470,111</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">466,153</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company established an irrevocable standby letter of credit with
a bank for $442,740 which expired on March&nbsp;16, 2024, and is renewed for a one-year&nbsp;period from March&nbsp;16, 2024 to March&nbsp;16,
2025. The 12-month&nbsp;renewal charge was $9,202 from March&nbsp;16, 2023 to March&nbsp;16, 2024, and is recorded as part of prepaid
expenses. The renewal charge is being amortized to interest expenses over a 12-month&nbsp;period from March&nbsp;2023 to February&nbsp;2024
using straight line method. During the year ended December&nbsp;31, 2023, the Company recognized interest expense of $7,669 on the statements
of operations. The letter of credit serves as the Company&rsquo;s security deposit in the amount of one-year&nbsp;lease on a warehouse
leased by the Company (see Note&nbsp;7) in which the landlord is the beneficiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>4.</B></TD><TD STYLE="text-align: justify"><B>Accrued Liabilities</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The components of accrued liabilities as of December&nbsp;31, 2023
and 2022 are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Accrued professional fees</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">209,409</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">121,575</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued interest on convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">971,370</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">183,014</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accrued employees&rsquo; wages&nbsp;&amp; benefits</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">109,607</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">64,252</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accrued other</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">15,228</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">12,076</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Total accrued liabilities</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">1,305,614</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">380,917</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>5.</B></TD><TD STYLE="text-align: justify"><B>Convertible Notes</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On February&nbsp;17, 2023, Verde issued to Acuitas Group Holdings LLC
(&ldquo;Acuitas&rdquo;) a senior secured convertible promissory note (the &ldquo;February&nbsp;2023 Note&rdquo;) with an aggregate principal
amount of $4,000,000, documenting Acuitas&rsquo;s prior two equal cash transfers to Verde, which aggregated to $4,000,000 and which were
made on March&nbsp;31, 2022 and November&nbsp;2, 2022. The February&nbsp;2023 Note accrues interest on (i)&nbsp;$2,000,000 of the principal
amount outstanding commencing on and including March&nbsp;31, 2022 (the &ldquo;First Interest Accrual Date&rdquo;), and (ii)&nbsp;$2,000,000
of the principal amount outstanding commencing on and including November&nbsp;2, 2022, each at an interest rate of 10% per annum. During
the year ended December&nbsp;31, 2023 and 2022, the Company recognized interest expense of $400,000 and $183,014, respectively, on the
statements of operations.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless earlier converted or repaid, on or after (i)&nbsp;the 12-month&nbsp;anniversary
of the First Interest Accrual Date, provided that such date shall be automatically extended by a period of six (6)&nbsp;months if Verde
enters into a definitive business combination agreement with TLGY Acquisition Corporation (&ldquo;TLGY&rdquo;) on or before March&nbsp;18,
2023 (the &ldquo;Maturity Date&rdquo;), or (ii)&nbsp;any time on or after the occurrence of an event of default (as defined in the February&nbsp;2023
Note), the entire outstanding principal and accrued interest under the February&nbsp;2023 Note shall, at the option of Acuitas, be either</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>5.</B></TD><TD STYLE="text-align: justify"><B>Convertible Notes</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">due and payable or converted into shares of Verde common stock. The
number of shares of Verde common stock into which the outstanding principal and accrued interest will convert shall be equal to the quotient
of (i)&nbsp;such outstanding principal amount and accrued interest divided by (ii)&nbsp;$5,000,000 divided by the fully diluted capitalization
of Verde as of the applicable date of determination (which capitalization shall exclude any equity securities issuable upon conversion
of the February&nbsp;2023 Note and the February&nbsp;2023 Warrant (as defined below)) (the &ldquo;February&nbsp;2023 Capped Price&rdquo;),
in accordance with the terms of the February&nbsp;2023 Note. In the event of a qualified conversion event (as defined in the February&nbsp;2023
Note), the outstanding principal amount and accrued interest will automatically convert into Verde common stock or other equity securities
at a price per share equal to the February&nbsp;2023 Capped Price as determined immediately prior to the consummation of such event. In
June&nbsp;2023, Verde and Acuitas entered into an amendment No. 1 to the February&nbsp;2023 Note, pursuant to which the Maturity Date
was extended from March&nbsp;31, 2023 to April&nbsp;19, 2024. The February&nbsp;2023 Capped Price is $0.0015 as of December&nbsp;31, 2023.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of date these financial statements are available to be issued, the
February&nbsp;2023 Note is due and unpaid and not converted into shares.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March&nbsp;12, 2024, Verde served the notice of termination of the
Merger Agreement with TLGY.&nbsp;On March&nbsp;18, 2024, TLGY consented to the termination of the Merger Agreement (see Note&nbsp;14).</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, in connection with the issuance of the February&nbsp;2023
Note, Verde issued and sold to Acuitas a warrant (the &ldquo;February&nbsp;2023 Warrant&rdquo;) to purchase that number of shares of Verde
common stock equal to (i)&nbsp;$4,000,000, divided by (ii)&nbsp;$5,000,000 divided by the fully diluted capitalization of Verde immediately
prior to the exercise of the February&nbsp;2023 Warrant and the conversion of the February&nbsp;2023 Note (which capitalization shall
exclude any equity securities issuable upon conversion of the February&nbsp;2023 Note and exercise of the February&nbsp;2023 Warrant),
as set forth in the February&nbsp;2023 Warrant, which number of shares is to be determined at the close of business on the&nbsp;day prior
to Verde&rsquo;s receipt of Acuitas&rsquo;s notice of exercise of the February&nbsp;2023 Warrant, for an aggregate exercise price of $4,000,000.
The exercise price for the February&nbsp;2023 Warrant will be equal to (i)&nbsp;$4,000,000 divided by (ii)&nbsp;the number of shares of
Verde common stock issuable upon exercise of the February&nbsp;2023 Warrant, as determined in accordance with the foregoing sentence.
In March&nbsp;2023, Verde and Acuitas amended and restated the February&nbsp;2023 Warrant to reflect that the February&nbsp;2023 Warrant
is exercisable for up to 3,571,130,758&nbsp;shares of Verde common stock, at an initial purchase price of $0.0011 per share, for an aggregate
exercise price of $4,000,000. The February&nbsp;2023 Warrant is exercisable at any time or from time to time on or after the date of issuance
and prior to March&nbsp;30, 2027.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June&nbsp;15, 2023, Verde issued and sold to Acuitas a senior secured
convertible promissory note (the &ldquo;June&nbsp;2023 Note&rdquo;) with an aggregate principal amount of $5,500,000, documenting Acuitas&rsquo;
cash transfer to Verde of $5,500,000 and which was made on April&nbsp;19, 2023. The June&nbsp;2023 Note accrues interest on $5,500,000
of the principal amount outstanding commencing on and including April&nbsp;19, 2023, at an interest rate of 10% per annum. During the&nbsp;years
ended December&nbsp;31, 2023 and 2022, the Company recognized interest expense of $387,260 and $0, respectively, on the statements of
operations.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless earlier converted or repaid, the entire outstanding principal
and accrued interest under the June&nbsp;2023 Note shall, at the option of Acuitas, be either due and payable or converted into shares
of Verde common stock, on or after (i)&nbsp;the 12-month&nbsp;anniversary of April&nbsp;19, 2023 or (ii)&nbsp;any time on or after the
occurrence of an event of default (as defined in the June&nbsp;2023 Note). The number of shares of Verde common stock into which the outstanding
principal and accrued interest will convert shall be equal to the quotient of (i)&nbsp;such outstanding principal amount and accrued interest
divided by (ii)&nbsp;$5,000,000 divided by the fully diluted capitalization of Verde as of the applicable date of determination (which
capitalization shall exclude any equity securities issuable upon conversion of the June&nbsp;2023 Note and the June&nbsp;2023 Warrant
(as defined below)) (the &ldquo;June&nbsp;2023 Capped Price&rdquo;), in accordance with the terms of the June&nbsp;2023 Note. In the event
of a qualified conversion event (as defined in the June&nbsp;2023 Note), the outstanding principal amount and accrued interest will automatically
convert into Verde Common Stock or other equity securities at a price per share equal to the June&nbsp;2023 Capped Price as determined
immediately prior to the consummation of such event. The June&nbsp;2023 Capped Price is $0.0005 as of December&nbsp;31, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>5.</B></TD><TD STYLE="text-align: justify"><B>Convertible Notes</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, in connection with the issuance of the June&nbsp;2023
Note, Verde issued and sold to Acuitas a warrant (the &ldquo;June&nbsp;2023 Warrant&rdquo;) exercisable for up to 8,838,548,625&nbsp;shares
of Verde Common Stock, at an initial purchase price of $0.0006 per share, for an aggregate exercise price of $5,500,000. The warrant is
exercisable at any time or from time to time on or after the date of issuance and prior to June&nbsp;15, 2028.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June&nbsp;19, 2023, Acuitas transferred and assigned all of the
issued and outstanding shares of Verde common stock and warrants, including the February&nbsp;2023 Warrant and the June&nbsp;2023 Warrant,
as well as all outstanding secured convertible promissory notes issued by Verde to Acuitas (including security agreements relating thereto),
including the February&nbsp;2023 Notes and the June&nbsp;2023 Note, to Humanitario Capital LLC.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The provisions in the warrants as disclosed herein require the Company
to account for the warrants as equity. The Company recognized a discount to debt at issuance of February&nbsp;2023 Note of $2,863,190
and at issuance of June&nbsp;2023 Note of $5,129,270 related to the initial fair values of the February&nbsp;2023 Warrant and June&nbsp;2023
Warrant, respectively (see Note&nbsp;9).</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As a result of the convertible notes having a lower effective conversion
price considering the value allocated to the warrants, the Company has recognized a beneficial conversion feature of $1,136,810 on February&nbsp;2023
Note in 2022 and $370,730 on June&nbsp;2023 Note in 2023. The beneficial conversion features and the fair value of the warrants are collectively
considered the debt discount. The Company recorded a debt discount in the amount of $4,000,000 at issuance of February&nbsp;2023 and $5,500,000
at issuance of June&nbsp;2023 Note which are being amortized over the life of the respective convertible notes using the effective interest
method. During the&nbsp;years ended December&nbsp;31, 2023 and 2022, the Company recognized $4,937,421 and $2,604,651, respectively, of
amortization of debt discount recorded as part of interest expense on the statements of operations. As of December&nbsp;31, 2023, $4,000,000
debt discount on February&nbsp;2023 Note has been amortized to interest expense and the $3,542,072 debt discount on June&nbsp;2023 Note
has been amortized to interest expense.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All debt issuance costs are accounted for as a deferred asset and will
be amortized over the life of the convertible notes. During the&nbsp;years ended December&nbsp;31, 2023 and 2022, the Company recognized
$42,337 and $32,558 respectively, of amortization of debt issuance costs recorded as part of interest expense on the statements of operations.
The Company had incurred approximately $50,000 in debt issuance costs related to the February&nbsp;2023 Note and had fully amortized those
costs as of December&nbsp;31, 2023, and $37,691 in debt issuance costs related to the June&nbsp;2023 Note and had amortized approximately
$24,895 as of December&nbsp;31, 2023.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0in"></TD><TD STYLE="width: 0.25in; text-align: justify"><B>6.</B></TD><TD STYLE="text-align: justify"><B>Operating Leases</B></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On October&nbsp;1, 2020, the Company commenced a 35-month&nbsp;operating
lease for approximately 4,405 square foot of office space located in Santa Monica, California. The monthly base rent is $11,013&nbsp;per
month with no increase each year thereafter. At the end of August&nbsp;2023, the Company completed the operating lease and did not renew
it. In June&nbsp;2021, the Company commenced a 73-month&nbsp;operating lease for approximately 37,268 square foot of industrial warehouse
space located in Fullerton, California. The monthly base rent is $36,895&nbsp;per month for the first 12&nbsp;months with a&nbsp;3% increase
each year thereafter.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of December&nbsp;31, 2023 and December&nbsp;31, 2022, the Company&rsquo;s
operating leases have a remaining weighted average lease term of 3.7&nbsp;years and 4.3&nbsp;years, respectively, and Verde evaluated
the present value of the payments at inception of the lease using Verde&rsquo;s estimated incremental borrowing rate of 11.58%. The Company&rsquo;s
operating lease expenses were $553,676 and $595,209 for the&nbsp;years ended December&nbsp;31, 2023 and 2022, respectively.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company paid cash of $549,824 and $542,423 for operating leases
for the&nbsp;years ended December&nbsp;31, 2023 and 2022, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>6.</B></TD><TD STYLE="text-align: justify"><B>Operating Leases</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Maturities of operating lease liabilities as of December&nbsp;31, 2023
were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid"><B>Year ending</B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Total</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">2024</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">470,610</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2025</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">470,610</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2026</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">470,610</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">2027</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">274,523</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total paid</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,686,353</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Imputed interest</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(195,183</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Total</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">1,491,170</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less current portion</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">323,206</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Lease liabilities&nbsp;&ndash;&nbsp;noncurrent</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,167,964</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>7.</B></TD><TD STYLE="text-align: justify"><B>Commitments and Contingencies</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Royalties</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">During 2020, in connection with issuance of common shares to certain
investors, the Company agreed to enter into royalty agreements with these investors whereby the Company is obligated to make royalty payments,
on a quarterly basis at rate of 0.2% or, in some cases, 0.1% of adjusted gross revenue received by Verde in the immediately preceding
fiscal quarter until such time as the investors receive in aggregate $14.2&nbsp;million in royalties. Royalties incurred amounted to approximately
$2,484 and $0, respectively, for the&nbsp;years ended December&nbsp;31, 2023, and 2022. Royalties&rsquo; payables as of December&nbsp;31,
2023 and 2022&nbsp;amounted to approximately $2,484 and $0, respectively, recorded as part of accounts payable on the balance sheet.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Litigation</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company investigates claims as they arise and accrues estimates
for resolution of legal and other contingencies when losses are probable and estimable. As of December&nbsp;31, 2023, Verde is not a party
to litigation or subject to claims incident to the ordinary course of business, including intellectual property claims, putative and certified
class actions, commercial and consumer protection claims, labor and employment claims, breach of contract claims and other asserted and
unasserted claims.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>8.</B></TD><TD STYLE="text-align: justify"><B>Warrants</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A summary of the Company&rsquo;s warrants outstanding at December&nbsp;31,
2023 is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Exercise Price</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Outstanding</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Issuance Date</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Expiration Date</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; text-align: center">0.0043</TD><TD STYLE="text-align: center; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center">1,053,864,168</TD><TD STYLE="text-align: center; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 24%">February 8, 2021</TD><TD STYLE="text-align: center; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 24%">February 7, 2025</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center">0.0011</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">3,571,130,758</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">March 31, 2022</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">February 7, 2027</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center">0.0006</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">8,838,548,625</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">June 15, 2023</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">June 15, 2028</TD></TR>
  </TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<!-- Field: Page; Sequence: 80; Value: 1 -->
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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>8.</B></TD><TD STYLE="text-align: justify"><B>Warrants</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following is the summary of changes in warrants to purchase common
stock for the&nbsp;years ended December&nbsp;31, 2023 and 2022:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Number of<BR> Warrants<U><BR> </U>Shares<BR> Outstanding&nbsp;and<BR> Exercisable</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Weighted<BR> Average<U><BR> </U>Exercise<BR> Price&nbsp;per<BR> Share</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; padding-bottom: 1.5pt">Balance as of December&nbsp;31, 2021</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">1,053,864,168</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">0.0043</TD><TD STYLE="width: 1%; padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Issued March&nbsp;2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,571,130,758</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0011</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1.5pt">Exercised</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">Balance as of December&nbsp;31, 2022</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,624,994,926</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">0.0018</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Issued June&nbsp;2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,838,548,625</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0006</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1.5pt">Exercised</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Balance as of December&nbsp;31, 2023</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">13,463,543,551</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">0.0010</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The fair value of the warrants on issuance was determined by using
option pricing models assuming the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">December&nbsp;31,<BR> 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Risk-free interest rate</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3.91</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2.42</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected term (in&nbsp;years)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Expected volatility</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected dividend yield</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercise price</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0006</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0011</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Fair value of common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0091</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0037</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>9.</B></TD><TD STYLE="text-align: justify"><B>Stockholders&rsquo; (Deficit) Equity</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company&rsquo;s Certificate of Incorporation, originally filed
in Delaware on March&nbsp;4, 2020, was first amended on November&nbsp;18, 2020 by the Certificate of Amendment of the Second Amended and
Restated Certificate of Incorporation. This amendment authorized the issuance of common stock. On March&nbsp;21, 2023, the Company&rsquo;s
Certificate of Incorporation was further amended, as authorized by the Company&rsquo;s Board of Directors, to increase the Company&rsquo;s
authorized common stock to 11,211,920,795&nbsp;shares. On June&nbsp;15, 2023, the Company&rsquo;s Certificate of Incorporation was further
amended, as authorized by the Company&rsquo;s Board of Directors, to increase the Company&rsquo;s authorized common stock to 33,723,608,890&nbsp;shares.
As of December&nbsp;31, 2023 and December&nbsp;31, 2022, the Company&rsquo;s capital structure consists of common stock with par value
of $0.00001 per share.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company has not paid any dividends on common stock to date. It
is the Company&rsquo;s present intention to retain any earnings for use in its business operations and, accordingly, the Company does
not anticipate that the Board of Directors will declare any dividends in the foreseeable future on its common stock.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In 2020, the Company adopted the 2020 Incentive Stock Option Plan (the
&ldquo;2020 Plan&rdquo;), which provides for the award of incentive stock options to purchase up to 166,727,405&nbsp;shares of common
stock. Employees, advisors and directors are eligible to be granted awards under the 2020 Plan. The exercise price of any option granted
under the 2020 Plan may not be less than 100% of the fair market value of the common stock as determined by the Board of Directors on
the date of grant. During the&nbsp;years ended December&nbsp;31, 2023 and 2022, there were no stock-based&nbsp;awards granted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 81; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1.5pt solid"><P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">F-<!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></FONT></P></DIV>
    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>10.</B></TD><TD STYLE="text-align: justify"><B>Net Loss per Share</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the&nbsp;years ended&nbsp;December&nbsp;31, 2023&nbsp;and 2022<I>,</I>&nbsp;the
Company recorded a net loss available to common stockholders. As such, because the dilution from potential common stock was antidilutive,
the Company used basic weighted-average&nbsp;common stock outstanding, rather than diluted weighted-average&nbsp;common stock outstanding
when calculating diluted loss per share for the&nbsp;years ended&nbsp;December&nbsp;31, 2023&nbsp;and 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2023</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2022</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>Numerator:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-bottom: 4pt">Net loss available to common stockholders</TD><TD STYLE="width: 1%; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 4pt double; text-align: right">(12,111,350</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="width: 1%; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 4pt double; text-align: right">(6,389,276</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Denominator:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Weighted-average number of shares used in computing net loss per share, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,243,321,874</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,243,321,874</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per share&nbsp;&ndash;&nbsp;basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following potential dilutive securities have been excluded from
the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted-average&nbsp;number of common
stock outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2023</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2022</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Warrants exercisable for common stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">13,463,543,551</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">4,624,994,926</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Share issuable upon conversion of convertible notes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">15,163,835,616</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,121,095,890</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">28,627,379,167</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">7,746,090,816</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>11.</B></TD><TD STYLE="text-align: justify"><B>Income Taxes</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Deferred income taxes reflect the net effects of temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
The Company&rsquo;s deferred tax assets relate primarily to its net operating loss carryforwards and other balance sheet basis differences.
In accordance with ASC&nbsp;740, the Company recorded a valuation allowance to fully offset the gross deferred tax asset, because it is
not more likely than not that the Company will realize future benefits associated with these deferred tax assets as of December&nbsp;31,
2023 and 2022.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of December&nbsp;31, 2023, and 2022, the Company had net deferred
tax assets of $7,258,796 and $3,934,223, respectively, against which a full valuation allowance had been recorded. The change in the valuation
allowance for the year ended December&nbsp;31, 2023, was an increase of $3,324,573. The increase in the valuation allowance for the year
ended December&nbsp;31, 2023, was mainly attributable to an increase in the net operating loss carryforward, which resulted in an increase
in the deferred tax assets and a corresponding valuation allowance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>11.</B></TD><TD STYLE="text-align: justify"><B>Income Taxes</B>&nbsp;(cont.)</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Significant components of the Company&rsquo;s deferred tax assets as
of December&nbsp;31, 2023, and 2022 were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2023</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2022</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>Deferred tax assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net operating loss forward</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,576,237</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,787,952</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">417,283</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">519,184</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Capitalized research and development expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">377,553</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">205,286</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Start-up costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,884</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,753</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accrued liabilities and reserves</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">104,115</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">27,059</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total deferred tax assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,496,072</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,562,234</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred tax liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Operating right-of-use asset</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(394,662</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(497,642</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Fixed assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(208,820</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(128,039</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Prepaid expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11,835</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,330</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Debt accretion</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(36,932</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total deferred tax liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(652,249</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(628,011</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net deferred tax assets before valuation allowance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,843,823</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,934,223</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Valuation allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,843,823</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,934,223</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net deferred tax assets after valuation allowance</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A reconciliation of the federal statutory tax rate and the effective
tax rates for the&nbsp;years ended December&nbsp;31, 2023 and 2022 is as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2023</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid"><B>Year ended<U><BR> </U>December&nbsp;31,<BR> 2022</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">U.S.&nbsp;federal statutory tax rate</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">21.0</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">21.0</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">State income taxes, net of federal benefit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.5</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.9</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Nondeductible expenses and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2.5</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.2</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Change in valuation allowance</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(24.0</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(28.7</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Effective tax rate</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company had approximately $24,215,174 and $13,687,041 of gross
net operating loss (&ldquo;NOL&rdquo;) carryforwards (federal and state) as of December&nbsp;31, 2023 and 2022, respectively, which may
be carried forward indefinitely. Sections 382 and 383 of the Internal Revenue Code, similar state regulations, contain provisions that
may limit the NOL carryforwards available to be used to offset income in any given year upon the occurrence of certain events, including
changes in the ownership interests of significant stakeholders. In the event of a cumulative change in ownership in excess of 50% over
a three-year&nbsp;period, the amount of the NOL carryforwards that the Company may utilize in any one year may be limited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Company follows guidance on accounting for uncertainty in income
taxes which prescribes a minimum threshold a tax provision is required to meet before being recognized in the financial statements. The
Company does not have any liabilities as of December&nbsp;31, 2023 and 2022 to account for potential income tax exposure. The Company
is obliged to file income tax returns in the U.S.&nbsp;federal jurisdiction and the State of California. The tax&nbsp;years ended December&nbsp;31,
2023, 2022, 2021 and 2020 are open and subject to audit examination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>12.</B></TD><TD STYLE="text-align: justify"><B>Distribution Agreement</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In February&nbsp;2023, Verde entered into a distribution agreement
with Vinmar International Ltd. (&ldquo;Vinmar&rdquo;) for the distribution of its PolyEarthylene resins throughout the United&nbsp;States,
Canada and Mexico. In April&nbsp;2023, Vinmar started selling PolyEarthylene to its customers. Sales to Vinmar amounted to $26,818 and
$0 for the&nbsp;years ended December&nbsp;31, 2023 and 2022, respectively. Outstanding receivables from Vinmar as of December&nbsp;31,
2023 and 2022&nbsp;amounted to $2,946 and $0, respectively.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0in"></TD><TD STYLE="width: 0.25in; text-align: justify"><B>13.</B></TD><TD STYLE="text-align: justify"><B>Merger Agreement</B></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On June&nbsp;21, 2023, Verde entered into a merger agreement with TLGY
Acquisition Corporation (&ldquo;TLGY&rdquo;) (the &ldquo;TLGY Merger Agreement&rdquo;).</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On August&nbsp;14, 2023, TLGY filed a registration statement on Form&nbsp;S-4&nbsp;with
the U.S.&nbsp;Securities and Exchange Commission, which included a preliminary proxy statement and prospectus in connection with the proposed
business combination with&nbsp;Verde.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On November&nbsp;14, 2023, TLGY filed the amendment number 1 to the
registration statement on Form&nbsp;S-4&nbsp;with the U.S.&nbsp;Securities and Exchange Commission.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the terms of the Merger Agreement, Verde has agreed, if
any extension of the deadline by which TLGY must complete its initial business combination (an &ldquo;Extension&rdquo;) is required (i)&nbsp;from
September&nbsp;2, 2023 through December&nbsp;2, 2023 (the &ldquo;First Extension Period&rdquo;) and (ii)&nbsp;from December&nbsp;2, 2023
through March&nbsp;31, 2024 (the &ldquo;Second Extension Period&rdquo;), to cause one or more loans (&ldquo;Company Extension Loans&rdquo;)
to be made to TLGY on a monthly basis on an interest-free&nbsp;basis in an amount equal to (x)&nbsp;with respect to the First Extension
Period, fifty percent (50%) of the amount necessary for funding the applicable month of the Extension(s); provided that Verde shall not
be required to make a Company Extension Loan in excess of $100,000 per month, and (y)&nbsp;with respect to the Second Extension Period,
the lesser of fifty percent (50%) of the amount necessary for enabling the applicable month of Extension(s), and $150,000. The proceeds
of the Company Extension Loans shall be deposited into TLGY&rsquo;s trust account and held for the benefit of TLGY and its public shareholders.
Verde has made Company Extension Loans on each of August&nbsp;22, 2023, September&nbsp;22, 2023, November&nbsp;11, 2023 and December&nbsp;7,
2023 in the amount of $100,000, $100,000, $55,000 and $55,000, respectively.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The August&nbsp;22, 2023, September&nbsp;22, 2023, November&nbsp;11,
2023 and December&nbsp;7, 2023 Company Extension Loans or a total of $310,000 are recorded as Notes receivable on the balance sheet. As
a result of the termination of the Merger Agreement (as discussed below), Verde provided for the full valuation allowance of $310,000
for these Notes receivable on the statements of operation during the year ended December&nbsp;31, 2023.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On each of January&nbsp;12, 2024, February&nbsp;10, 2024 and March&nbsp;8,
2024, TLGY issued to Verde additional unsecured promissory notes with aggregate principal amounts of $55,000 each, in connection with
Verde&rsquo;s January&nbsp;9, 2024, February&nbsp;8, 2024 and March&nbsp;8, 2024 Company Extension Loans.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March&nbsp;12, 2024, Verde terminated the Merger Agreement with
TLGY due to TLGY&rsquo;s willful breach of the Merger Agreement. On March&nbsp;18, 2024, TLGY consented to the termination of the Merger
Agreement. On May&nbsp;4, 2024, Verde and TLGY signed a Mutual Release Agreement and discharged each other of all liabilities and obligations
under the Merger Agreement and other ancillary agreements. In the event of consummation by TLGY of its initial business combination, on
or within 5&nbsp;business days after the date of the closing of such business combination, TLGY shall pay Verde a sum of $83,125. If TLGY
does not consummate its initial business combination and subsequently liquidates, Verde shall not be entitled to any payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>Verde Bioresins,&nbsp;Inc.<BR>
Notes to Financial Statements<BR>
Years Ended December&nbsp;31, 2023 and 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><B>14.</B></TD><TD STYLE="text-align: justify"><B>Subsequent Events</B></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On March&nbsp;5, 2024, Verde issued and sold to Humanitario Capital
LLC (&ldquo;Humanitario&rdquo;) a senior secured convertible promissory note (the &ldquo;March&nbsp;2024 Note&rdquo;) with an aggregate
principal amount of $5,000,000 and received cash transfers of $1,250,000, $500,000 and $750,000 on March&nbsp;6, 2024, April&nbsp;17,
2024 and June&nbsp;5, 2024, respectively, from Humanitario and remaining $2,500,000 is expected to be received from Humanitario in 2024.
The March&nbsp;2024 Note accrues interest on the principal amount outstanding commencing on March&nbsp;6, 2024 (the &ldquo;First Interest
Accrual Date&rdquo;), at a fixed rate equal to 10% per annum, compounded monthly.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Unless earlier converted or repaid, on or after (i)&nbsp;September&nbsp;5,
2025 or (ii)&nbsp;any time on or after the occurrence of an event of default (as defined in the March&nbsp;2024 Note), the entire outstanding
principal and accrued interest under the March&nbsp;2024 Note shall, at the option of Humanitario, be either due and payable or converted
into shares of Verde common stock, par value $0.00001 per share; provided that, if there is then-outstanding&nbsp;a class or series of
capital stock that is senior in rights, preferences or privileges to the Common Stock, then the outstanding amount shall convert into
shares of a newly-issued&nbsp;series of such capital stock having rights, preferences and privileges (except with respect to the per share
liquidation preference, which shall be equal to the Capped Price (as defined below)) substantially equivalent to such senior class or
series of capital stock of the Company. The number of shares of Common Stock into which the outstanding amount shall convert shall be
equal to the quotient of (i)&nbsp;the Outstanding Amount divided by (ii)&nbsp;the Capped Price (as defined below) as determined as of
the time Humanitario exercises its option to convert.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The &ldquo;Capped Price&rdquo; shall be equal to $5,000,000 divided
by the fully diluted capitalization of the Verde as of the applicable date of determination, which capitalization shall include the unallocated
equity incentive pool and any increase to the equity incentive pool made prior to or at the time of conversion of the March&nbsp;2024
Note, and all other rights to acquire capital stock of the Verde outstanding at the time of the conversion of the March&nbsp;2024 Note,
but shall exclude: the Common Stock issuable upon conversion of the March&nbsp;2024 Note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="f_006"></A>Verde
Bioresins, Inc.<BR>
Condensed Balance Sheets<BR>
&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>September&nbsp;30,<BR>
    2024 (unaudited)</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>December&nbsp;31, <BR>
    2023</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Current assets:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 76%; text-align: left">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">226,965</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">962,725</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Accounts receivables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,449</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,971</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Inventory</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">217,573</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">160,038</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Prepaid expenses and other current assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">59,639</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">30,580</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">520,626</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,156,314</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Operating lease right-of-use assets, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,174,527</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,410,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Property and equipment, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,537,659</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,139,610</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Other assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">470,111</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">470,111</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 4pt">Total assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,702,923</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">5,176,368</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Liabilities and Stockholders&rsquo; Deficit :</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Current liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,392,624</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">997,587</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,221,165</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,305,614</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Convertible notes, net of debt discount of $2,374,681 and $1,957,928 as of September 30, 2024 and December 31, 2023, respectively</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,625,319</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,542,072</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Current portion of operating lease liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">362,578</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">323,206</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,601,686</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,168,479</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Non-current portion of operating lease liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">891,477</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,167,964</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,493,163</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,336,443</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Commitments and Contingencies (Note 8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Stockholders&rsquo; deficit :</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Common stock, $0.00001&nbsp;par value;&nbsp; 58,687,483,705&nbsp;shares authorized:&nbsp;3,243,321,874 shares issued and outstanding at September 30, 2024 and December 31, 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,434</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,434</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Additional paid-in-capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,752,454</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,157,328</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(34,575,128</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(26,349,837</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt">Total stockholders&rsquo; deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(10,790,240</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,160,075</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left; padding-bottom: 4pt">Total liabilities and stockholders&rsquo; deficit</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">4,702,923</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">5,176,368</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>See
accompanying notes to unaudited condensed financial statements</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>


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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="f_007"></A>Verde
Bioresins, Inc.<BR>
Condensed Statements of Operations <BR>
(unaudited)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>For the<BR>
    Nine Months<BR>
    Ended<BR>
    September&nbsp;30,<BR>
    2024</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>For the <BR>
    Nine Months<BR>
    Ended<BR>
    September&nbsp;30<BR>
    2023</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Sales</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">50,137</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">107,884</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Cost of sales</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">27,124</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">60,067</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,013</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">47,817</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Costs and expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Selling expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">462,165</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">293,809</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,758,588</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,573,136</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Research and development</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,016,387</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">808,869</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,237,140</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,675,814</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,214,127</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,627,997</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Interest expense</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4,011,164</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,885,786</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,225,291</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,513,783</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Income taxes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(8,225,291</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(8,513,783</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Net loss per share:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Basic and diluted net loss per share</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.00</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.00</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Weighted average shares outstanding:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Basic and diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,243,321,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,243,321,874</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>See
accompanying notes to unaudited condensed financial statements</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="f_008"></A>Verde
Bioresins, Inc.<BR>
Condensed Statements of Stockholders&rsquo; (Deficit) Equity </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(unaudited)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Number of</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Common</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Additional<BR> Paid-in</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>Accumulated</B></TD><TD><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD>
    <TD COLSPAN="2"><B>&nbsp;</B></TD><TD><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B> Shares</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Stock</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Capital</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Deficit</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Total</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-indent: -0.125in; padding-left: 0.125in">Balance&nbsp;&ndash;&nbsp;January 1, 2023</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3,243,321,874</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">32,434</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">14,657,328</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(14,238,487</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">451,275</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Issuance of warrants in connection with issuance of convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,129,270</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,129,270</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Beneficial conversion feature of convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">370,730</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">370,730</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(8,513,783</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(8,513,783</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Balance&nbsp;&ndash;&nbsp;September 30, 2023</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,243,321,874</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">32,434</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">20,157,328</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(22,752,270</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,562,508</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">Balance&nbsp;&ndash;&nbsp;January 1, 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,243,321,874</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">32,434</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">20,157,328</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(26,349,837</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(6,160,075</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Beneficial conversion feature of convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,126</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,126</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Net loss</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(8,225,291</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(8,225,291</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">Balance&nbsp;&ndash;&nbsp;September 30, 2024</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,243,321,874</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">32,434</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">23,752,454</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(34,575,128</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(10,790,240</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  </TABLE>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>See
accompanying notes to unaudited condensed financial statements</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>


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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="f_009"></A>Verde
Bioresins, Inc.<BR>
Condensed Statements of Cash Flows<BR>
(unaudited)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Nine&nbsp;Months<BR> ended<BR> September&nbsp;30,
    <BR> 2024</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Nine Months<BR> ended<BR> September&nbsp;30, <BR>
    2023</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>Cash flow from operating activities:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(8,225,291</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(8,513,783</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adjustments to reconcile net loss to net cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">232,742</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">182,727</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Credit losses on notes receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">165,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Operating lease costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">235,806</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">293,814</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,126</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Amortization of debt issuance costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,797</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,634</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Loss on disposal of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,259</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Amortization of debt discount</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,083,247</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,299,880</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Stock-based compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Changes in assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,657</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,573</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Inventory</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(57,535</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(83,130</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Accounts receivables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13,478</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(42,187</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,958</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">395,037</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">795,820</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Operating lease liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(237,115</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(290,189</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Accrued liabilities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">915,551</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">969,494</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash used in operating activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,307,511</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,315,305</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cash flow from investing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Purchases of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(784,550</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(495,441</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Sale of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">110,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Assignment of promissory notes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(165,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(200,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(839,050</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(695,441</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cash flow from financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Proceeds from debt financing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Issuance costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(89,199</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(37,691</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash provided by financing activities</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">3,410,801</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,462,309</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net change in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(735,760</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,451,563</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Cash and cash equivalents - beginning of period</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">962,725</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,194,537</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt; padding-left: 0.125in">Cash and cash equivalents - end of period</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">226,965</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,646,100</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Supplemental disclosure of non-cash financing and investing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0.125in">Beneficial conversion feature</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,500,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">370,730</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0.125in">Issuance of warrants in connection with issuance of convertible notes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,129,270</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>





<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>See
accompanying notes to unaudited condensed financial statements</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="f_010"></A>Verde
Bioresins,&nbsp;Inc.<BR>
Notes to Condensed Financial Statements (Unaudited)<BR>
For the Nine&nbsp;Months Ended September 30, 2024 and 2023</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nature
of Operations and Liquidity</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nature
of activities </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Verde
Bioresins, Inc. (the &ldquo;Company&rdquo; or &ldquo;Verde&rdquo;) (originally incorporated under the name Ezonyx Bio Technologies, Inc.)
was incorporated in the State of Delaware on March 4, 2020. Verde is a full-service privately held company that specializes in the development
and manufacturing of PolyEarthylene, proprietary, biodegradable, and compostable polymers derived from sustainable resources as an alternative
to conventional plastics. This material is capable of being recycled with conventional polyethylene, is eco-friendly, and represents
a sustainable bioresin for injection molding, film extrusion, blow molding and thermoform applications. With performance properties like
petro-polymers, PolyEarthylene products can be produced in any form and color desired for use on existing plastics manufacturing equipment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Liquidity
and Going Concern </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying financial statements have been prepared on the basis that the Company is a going concern, which contemplates, among other
things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company had not generated revenues
from operations until April 2023. During the nine months ended September 30, 2024, the Company incurred net losses of $8,225,291, used
$3,307,511 of cash and cash equivalents for its operating activities, had negative working capital of $14,081,060 as of September 30,
2024 and accumulated deficit of $34,575,128 as of September 30, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s existence is dependent upon management&rsquo;s ability to obtain additional funding sources, enter into strategic alliances
or generate significant revenues, to cover its ongoing operating expenses, and also to continue to develop and be able to profitably
market its products. Adequate additional financing may not be available to the Company on acceptable terms, or at all. If the Company
is unable to raise additional capital and/or enter into strategic alliances when needed or on attractive terms, it would be forced to
delay or reduce any commercialization efforts. The Company anticipates incurring additional losses until such time, if ever, that it
can generate significant sales. These circumstances raise substantial doubt about the Company&rsquo;s ability to continue as a going
concern within one year after the date that the financial statements are issued. Additional working capital will be required to continue
operations and scale its products.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The financial statements
do not include any adjustments to reflect the possible future effects on the recoverability and classifications of assets or the amounts
and classifications of liabilities that may result should the Company be unable to continue as a going concern.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Basis
of Presentation and Summary of Significant Accounting Policies</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Unaudited
Financial Information</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s unaudited condensed financial statements included herein have been prepared in conformity with accounting principles
generally accepted in the United&nbsp;States of America, or U.S. GAAP, and pursuant to the rules and regulations of the Securities and
Exchange Commission, or SEC.&nbsp;In the Company&rsquo;s opinion, the information furnished reflects all adjustments, all of which are
of a normal and recurring nature, necessary for a fair presentation of the financial position and results of operations for the reported
interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements
are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The
results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim
period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
unaudited condensed financial statements should be read in conjunction with the audited financial statements as of and for the year ended
December 31, 2023 and the notes thereto. The balance sheet data as of December 31, 2023 was derived from the audited financial statements
as of that date but does not include all disclosures required by U.S. GAAP.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Use
of Estimates</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant
estimates and assumptions reflected in these financial statements include but are not limited to the allowance for expected credit losses,
allowance for sales returns, accrual of operating expenses, and valuation of equity instruments and beneficial conversion feature.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Segment
Information</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Operating
segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief
operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company manages
its operations as a single operating segment for the purposes of assessing performance and making decisions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash
and Cash Equivalents</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Cash
and cash equivalents include cash and certain highly liquid investments with original maturities of 90 days or less from the date of
purchase. Cash equivalents are primarily recorded at cost, which approximates fair value due to their generally short maturities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Concentration
of Credit Risk </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial
instruments that subject the Company to credit risk primarily consist of cash and cash equivalents and accounts receivables. The Company
maintains its cash and cash equivalent balances with high-quality financial institutions and, consequently, the Company believes that
such funds are subject to minimal credit risk. As of September 30, 2024, the Company had no cash and cash equivalents in excess of the
Federal Deposit Insurance Corporation insured limit. The Company provides credit to its customers in the normal course of its operations.
It carries out, on a continuing basis, credit checks on its customers.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Allowance
for expected credit losses </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company estimates the balance of its allowance for expected credit losses. In determining the amount of the allowance for expected credit
losses, the Company considers historical collectability based on past due status and makes judgments about the creditworthiness of customers
and other third-parties based on ongoing credit evaluations. The Company also considers customer-specific information, current market
conditions, and reasonable and supportable forecasts of future economic conditions. Account <FONT STYLE="background-color: white">balances
are written off against the allowance when it is determined that the receivable will not be recovered. </FONT>The allowance for expected
credit losses on accounts receivable was $0 each at September 30, 2024 and December 31, 2023. The allowance for expected credit losses
on notes receivable was $475,000 and $310,000 at September 30, 2024 and December 31, 2023 respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Fair
Value of Financial Instruments</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fair
value is defined as the price the Company would receive to sell an investment in a timely transaction or pay to transfer a liability
in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous
market for the investment or liability. A framework is used for measuring fair value utilizing a three-tier&nbsp;hierarchy that prioritizes
the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in
active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
three levels of the fair value hierarchy are as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
1 &ndash; Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
2 &ndash; Observable inputs other than quoted prices in active markets, such as quoted prices for similar assets and liabilities in active
markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable
or can be corroborated by observable market data;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 40.5pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
3 &ndash; Unobservable inputs reflecting management&rsquo;s assumptions, consistent with reasonably available assumptions made by other
market participants. These valuations require significant judgment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
carrying amounts of the Company&rsquo;s cash and cash equivalents were measured using quoted market prices in active markets and represent
Level 1 investments. The Company&rsquo;s other financial instruments such as notes receivable, accounts receivables, accounts payable,
accrued liabilities and convertible notes, approximate their fair values due to their short maturities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Inventory
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Inventories
are principally comprised of raw materials and finished goods and are valued at the lower of cost or net realizable value with cost being
determined using first-in first-out method. The Company reviews inventories for obsolete items to determine adjustments that it estimates
will be needed to record inventory at lower of cost or net realizable value. Inventory costs include labor, overhead, manufacturing costs
and inbound freight costs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Revenue
Recognition</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Verde
recognizes revenue from product sales in accordance with the Financial Accounting Standards Board&rsquo;s Accounting Standard Codification
(&ldquo;ASC&rdquo;) Topic 606, Revenue from Contracts with Customers (&ldquo;ASC 606&rdquo;). This standard applies to all contracts
with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements
and financial instruments. Under ASC 606, Verde recognizes revenue when its customer obtains control of promised goods or services, in
an amount that reflects the consideration that Verde expects to receive in exchange for those goods or services. To determine revenue
recognition for arrangements that are determined to be within the scope of ASC 606, Verde performs the following five steps: (i) identify
the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv)
allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies
a performance obligation. Verde only applies the five-step model to contracts when it is probable that Verde will collect the consideration
it is entitled to in exchange for the goods it transfers to the customer. At contract inception, once the contract is determined to be
within the scope of ASC 606, Verde assesses the goods or services promised within each contract and determines those that are performance
obligations and assesses whether each promised goods is distinct. Verde then recognizes as revenue the amount of the transaction price
that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Verde
derives its revenues primarily from product sales of PolyEarthylene. Verde primarily produces and sells formulated resin pellets and
Verde typically recognizes revenue for these sales upon shipment. Verde sells to distributors who may request a return or credit for
unforeseen reasons or who may have agreed discounts or allowances to be netted from amounts invoiced. Due to the highly specialized nature
of Verde&rsquo;s products, returns and allowances are projected to be infrequent and immaterial. Verde offers a standard quality assurance
warranty related to the fitness of its finished goods.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company records accounts receivables due from distributors and other customers.&nbsp;Payment terms to customers are generally&nbsp;30-60
days.&nbsp;Accounts receivable was $16,449, $2,971 and $0 as of&nbsp;September 30, 2024, December 31, 2023 and January 1, 2023, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Research
and Development </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Research
and development costs are expensed as incurred. Research and development expenses include personnel costs associated with research and
development activities, including third-party contractors to perform research, conduct testing and manufacture new product samples. The
Company accrues for costs incurred by external service providers based on its estimates of services performed and costs incurred. These
estimates include the level of services performed by third parties. Based on the timing of amounts invoiced by service providers, the
Company may also record payments made to those providers as prepaid expenses that will be recognized as expense in future periods as
the related services are rendered.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Selling
Expenses </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Selling
expenses consist of salary, marketing, and advertising costs not directly attributable to direct costs of production or associated with
the Company&rsquo;s administration, research and development activities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Net
Loss per Share </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Basic
loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the year. Diluted loss
per share is computed by dividing net loss by the weighted-average number of common shares outstanding plus common stock equivalents
(if dilutive) related to stock options, restricted stock units, and warrants for each year and the conversion feature of convertible
notes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Recent
Accounting Pronouncements </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company considers the applicability and impact of all Accounting Standards Updates (&ldquo;ASUs&rdquo;). ASUs not discussed below were
assessed and determined to be either not applicable or are expected to have minimal impact on the financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Accounting
Pronouncement Issued but Not Adopted</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2023, the Financial Accounting Standards Board issued ASU 2023-09 &ndash; Income Taxes (Topic 740): Improvements to Income Tax Disclosures
(&ldquo;ASU 2023-09&rdquo;). This update standardizes categories for the effective tax rate reconciliation, requires disaggregation of
income taxes and additional income tax-related disclosures. This update is required to be effective for the Company for fiscal periods
beginning after December 15, 2024. The Company is evaluating the effect that ASU 2023-09 will have on its financial statements and disclosures.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2023, the FASB issued ASU 2023-07 &ndash; Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (&ldquo;ASU 2023-07&rdquo;).
This update requires expanded annual and interim disclosures for the significant segment expenses that are regularly provided to the
chief operating decision maker and included within each reported measure of segment profit or loss. This update is effective for fiscal
years beginning after December 15, 2023, and interim periods in fiscal years after December 15, 2024. ASU 2023-07 is to be applied retrospectively
to all periods presented in the financial statements. The Company is evaluating the effect that ASU 2023-07 will have on the Company&rsquo;s
condensed financial statements and disclosures.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2024, the&nbsp;FASB&nbsp;issued ASU 2024-03 - Income Statement&mdash;Reporting Comprehensive Income&mdash;Expense Disaggregation Disclosures
(Subtopic 220-40) (&ldquo;ASU 2024-03&rdquo;). This update improves financial reporting by requiring that public business entities disclose
additional information about specific expense categories in the notes to the financial statements at interim and annual periods. This&nbsp;update&nbsp;is&nbsp;effective
for fiscal&nbsp;years&nbsp;beginning&nbsp;after December 15, 2026, and&nbsp;interim periods in fiscal years&nbsp;after December 15, 2027.
Early adoption is permitted. ASU 2024-03 is to be applied either (1) prospectively to financial statements issued for reporting periods
after the effective date or (2) retrospectively to any or all periods presented in the financial statements.&nbsp;The Company&nbsp;is
evaluating the effect&nbsp;that&nbsp;ASU 2024-03&nbsp;will&nbsp;have&nbsp;on&nbsp;the Company&rsquo;s condensed financial statements&nbsp;and
disclosures.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Leases
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and
circumstances present. Most leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and lease
liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Certain of the Company&rsquo;s
lease agreements contain renewal options; however, the Company does not recognize right-of-use assets or lease liabilities for renewal
periods unless it is determined that the Company is reasonably certain of renewing the lease at inception or when a triggering event
occurs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company leases warehouse space and office facilities. Verde&rsquo;s operating leases with terms longer than 12 months are recorded at
the sum of the present value of the lease&rsquo;s fixed minimum payments as operating lease liabilities and right of use assets (&ldquo;ROU
assets&rdquo;) in the Company&rsquo;s balance sheets. For leases that contain termination options, where the rights to terminate are held
by either Verde, the lessor, or both parties and it is reasonably certain that Verde or the lessor will exercise that option, Verde factors
these extended or shortened lease terms into the minimum lease payments. The ROU assets also include any initial direct costs incurred
and lease payments made at or before the commencement date and are reduced by lease incentives.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company uses an incremental borrowing rate to determine the present value of the lease payments for leases, as Verde&rsquo;s leases do
not have readily determinable implicit interest rates. The Company&rsquo;s incremental borrowing rates represent the rates incurred to
borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
depreciable life of ROU assets is limited by the expected lease term unless there is a transfer of title or purchase option reasonably
certain of exercise. The Company&rsquo;s lease agreements do not contain any significant residual value guarantees or material restrictive
covenants.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Property
and Equipment </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
and equipment are stated at cost, net of accumulated depreciation and amortization. Property and equipment are depreciated using the
straight-line method over the estimated useful lives of the assets, which range from three to 10 years. Leasehold improvements are amortized
over the shorter of useful lives of the asset or maximum related lease term.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Convertible
Notes</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
convertible notes are considered a hybrid financial instrument consisting of put options, conversion option and various embedded features
that required evaluation as potential embedded derivatives under FASB ASC 815, Derivatives and Hedging (&ldquo;ASC 815&rdquo;). Based
on the nature of the host instrument and the embedded features, management concluded that none of the conversion and redemption features
required bifurcation and separate accounting from the host instrument. The Company determined that the put options in the event of default
and change in control was an embedded derivative. As a result, the put options required bifurcation and separate accounting under ASC
815. The value of such options was immaterial at each issuance date as of September 30, 2024 and December 31, 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">When
the Company has determined that the embedded conversion option should not be bifurcated from its host instrument, the Company accounts
for convertible notes in accordance with ASC 470-20, Debt with Conversion and Other Options. The Company records, when necessary, discounts
to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the
fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the
notes. The Company amortizes any debt discount over the term of the notes, using the effective interest method.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Warrants</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for stock warrants as either equity instruments, liabilities or derivative liabilities in accordance with ASC Topic
480, Distinguishing Liabilities from Equity&nbsp;and/or ASC 815, depending on the specific terms of the warrant agreement. Liability-classified
warrants are recorded at their estimated fair values at each reporting period until they are exercised, terminated, reclassified or otherwise
settled. Changes in the estimated fair value of liability-classified warrants are recorded in the statements of operations. Equity-classified
warrants are recorded within additional paid-in capital at the time of issuance and not subject to remeasurement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">When
equity-classified warrants are issued in connection with issuance of convertible notes, net proceeds received are allocated to the financial
instruments issued which results in a debt discount that is amortized over the term of the convertible notes, using the effective interest
method.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Income
Taxes </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company provides for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recorded based on the
differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences
are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is
more likely than not that some or all of the deferred tax assets will not be realized. As of September 30, 2024 and December 31, 2023,
the Company had a full valuation allowance against deferred tax assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is subject to the provisions of ASC 740-10-25, Income Taxes (&ldquo;ASC 740&rdquo;). ASC 740 prescribes a more likely-than-not
threshold for the financial statement recognition of uncertain tax positions. ASC 740 clarifies the accounting for income taxes by prescribing
a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken
or expected to be taken in a tax return. On a quarterly basis, the Company undergoes a process to evaluate whether income tax accruals
are in accordance with ASC 740 guidance on uncertain tax positions. The Company has not recorded any liability for uncertain tax positions
as of September 30, 2024 and December 31, 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stock-Based
Compensation </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for all stock-based payment awards granted to employees and non-employees, if any, as stock-based compensation expense
at their grant date fair value. The Company&rsquo;s stock-based payments include stock options, restricted stock units, and stock appreciation
rights. The measurement date for employee awards is the date of grant, and stock-based compensation costs are recognized as expense over
the employees&rsquo; requisite service period, on a straight-line basis. The measurement date for non-employee awards is the date of
grant and stock-based compensation costs for non-employees are recognized as expense over the vesting period on a straight-line basis.
Forfeitures are accounted for as they occur.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Subsequent
Events </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company evaluated subsequent events that occurred after the balance sheet date through December 23, 2024, which is the date the financial
statements were available to be issued and no events were noted other than those already disclosed elsewhere in the financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>3.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Property
and Equipment</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
and equipment, net, consists of the following on September 30, 2024 and December 31, 2023:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Estimated<BR>
 Useful <BR>
Life<BR>
 (Years)</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">September&nbsp;30, <BR>
2024<BR>
 (unaudited)</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">December&nbsp;31, <BR>
2023</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; width: 65%; text-align: left">Leasehold improvements</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: center">12</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">578,666</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">578,666</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Machinery and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">7 &ndash; 10</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,525,865</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,945,744</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Office equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">3 &ndash; 5</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">67,579</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65,346</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Furniture and fixtures</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">3 &ndash; 10</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,524</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,277</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 1.5pt">Injection molds</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">3</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">44,582</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">44,582</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,252,216</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,669,615</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation and amortization</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(714,557</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(530,005</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Property and equipment, net</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,537,659</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,139,610</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Depreciation
expense amounted to $232,742 and $182,727 for the nine months ended September 30, 2024 and 2023, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>4.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Other
Assets</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Other
assets are comprised of security deposit and deposits for the purchases of equipment, machinery or raw material which will be used in
manufacturing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
components of other assets as of September 30, 2024 and December 31, 2023 are as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September&nbsp;30, <BR>
2024<BR> (unaudited)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">December&nbsp;31, <BR>
2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -10pt; padding-left: 10pt">Deposit to vendors</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">27,371</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">27,371</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">Letter of credit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">442,740</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">442,740</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Total other assets</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">470,111</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">470,111</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company established an irrevocable standby letter of credit with a bank for $442,740 which expired on March 16, 2024, and is renewed
for a one-year period from March 16, 2024 to March 16, 2025. The 12-month renewal charge was $9,202 from March 16, 2024 to March 16,
2025, and is recorded as part of prepaid expenses on the condensed balance sheet. The renewal charge is being amortized to interest expenses
over a 12-month period from March 2024 to February 2025 using straight line method. During the nine months ended September 30, 2024 and
2023, the Company recognized interest expense of $6,888 and $5,369, respectively, on the condensed statements of operations. The letter
of credit serves as the Company&rsquo;s security deposit in the amount of one-year lease on a warehouse leased by the Company (see Note
7) in which the landlord is the beneficiary.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>5.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Accrued
Liabilities</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
components of accrued liabilities as of September 30, 2024 and December 31, 2023 are as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>September&nbsp;30, <BR>
2024<BR>
 (unaudited)</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>December&nbsp;31, <BR>
2023</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; text-indent: -10pt; padding-left: 10pt">Accrued professional fees</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">203,579</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">209,409</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -10pt; padding-left: 10pt">Accrued interest on convertible notes</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,816,602</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">971,370</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accrued employees&rsquo; wages &amp; benefits</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">167,285</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">109,607</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accrued other</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">33,699</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">15,228</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Total accrued liabilities</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">2,221,165</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">1,305,614</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.8pt; text-align: justify; text-indent: -19.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>6.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Convertible
Notes</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2022
Issuances</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 17, 2023, Verde issued to Acuitas Group Holdings LLC (&ldquo;Acuitas&rdquo;) a senior secured convertible promissory note (the
&ldquo;February 2023 Note&rdquo;) with an aggregate principal amount of $4,000,000, documenting Acuitas&rsquo;s prior two equal cash
transfers to Verde, which aggregated to $4,000,000 and which were made on March 31, 2022 and November 2, 2022. The February 2023 Note
accrues interest on (i) $2,000,000 of the principal amount outstanding commencing on and including March 31, 2022 (the &ldquo;First Interest
Accrual Date&rdquo;), and (ii) $2,000,000 of the principal amount outstanding commencing on and including November 2, 2022, each at an
interest rate of 10% per annum. During the nine months ended September 30, 2024 and 2023, the Company recognized interest expense of
$299,454 and $299,178, respectively, on the condensed statements of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
earlier converted or repaid, on or after (i) the 12-month anniversary of the First Interest Accrual Date, provided that such date shall
be automatically extended by a period of six (6) months if Verde enters into a definitive business combination agreement with TLGY Acquisition
Corporation (&ldquo;TLGY&rdquo;) on or before March 18, 2023 (the &ldquo;Maturity Date&rdquo;), or (ii) any time on or after the occurrence
of an event of default (as defined in the February 2023 Note), the entire outstanding principal and accrued interest under the February
2023 Note shall, at the option of Acuitas, be either due and payable or converted into shares of Verde common stock. The number of shares
of Verde common stock into which the outstanding principal and accrued interest will convert shall be equal to the quotient of (i) such
outstanding principal amount and accrued interest divided by (ii) $5,000,000 divided by the fully diluted capitalization of Verde as
of the applicable date of determination (which capitalization shall exclude any equity securities issuable upon conversion of the February
2023 Note and the February 2023 Warrant (as defined below)) (the &ldquo;February 2023 Capped Price&rdquo;), in accordance with the terms
of the February 2023 Note. In the event of a qualified conversion event (as defined in the February 2023 Note), the outstanding principal
amount and accrued interest will automatically convert into Verde common stock or other equity securities at a price per share equal
to the February 2023 Capped Price as determined immediately prior to the consummation of such event. In June 2023, Verde and Acuitas
entered into an amendment No. 1 to the February 2023 Note, pursuant to which the Maturity Date was extended from March 31, 2023 to April
19, 2024. The February 2023 Capped Price is $0.0015 as of September 30, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 12, 2024, Verde served the notice of termination of the Merger Agreement with TLGY. On March 18, 2024, TLGY consented to the termination
of the Merger Agreement (see Note 15).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of date these financial statements are available to be issued, the February 2023 Note is due and unpaid and not converted into shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, in connection with the issuance of the February 2023 Note, Verde issued and sold to Acuitas a warrant (the &ldquo;February
2023 Warrant&rdquo;) to purchase that number of shares of Verde common stock equal to (i) $4,000,000, divided by (ii) $5,000,000 divided
by the fully diluted capitalization of Verde immediately prior to the exercise of the February 2023 Warrant and the conversion of the
February 2023 Note (which capitalization shall exclude any equity securities issuable upon conversion of the February 2023 Note and exercise
of the February 2023 Warrant), as set forth in the February 2023 Warrant, which number of shares is to be determined at the close of
business on the day prior to Verde&rsquo;s receipt of Acuitas&rsquo;s notice of exercise of the February 2023 Warrant, for an aggregate
exercise price of $4,000,000. The exercise price for the February 2023 Warrant will be equal to (i) $4,000,000 divided by (ii) the number
of shares of Verde common stock issuable upon exercise of the February 2023 Warrant, as determined in accordance with the foregoing sentence.
In March 2023, Verde and Acuitas amended and restated the February 2023 Warrant to reflect that the February 2023 Warrant is exercisable
for up to 3,571,130,758 shares of Verde common stock, at an initial purchase price of $0.0011 per share, for an aggregate exercise price
of $4,000,000. The February 2023 Warrant is exercisable at any time or from time to time on or after the date of issuance and prior to
March 30, 2027.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2023
Issuances</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 15, 2023, Verde issued and sold to Acuitas a senior secured convertible promissory note (the &ldquo;June 2023 Note&rdquo;) with
an aggregate principal amount of $5,500,000, documenting Acuitas&rsquo; cash transfer to Verde of $5,500,000 and which was made on April
19, 2023. The June 2023 Note accrues interest on $5,500,000 of the principal amount outstanding commencing on and including April 19,
2023, at an interest rate of 10% per annum. During the nine months ended September 30, 2024 and 2023, the Company recognized interest
expense of $411,749 and $248,630, respectively, on the condensed statements of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
earlier converted or repaid, the entire outstanding principal and accrued interest under the June 2023 Note shall, at the option of Acuitas,
be either due and payable or converted into shares of Verde common stock, on or after (i) the 12-month anniversary of April 19, 2023
or (ii) any time on or after the occurrence of an event of default (as defined in the June 2023 Note). The number of shares of Verde
common stock into which the outstanding principal and accrued interest will convert shall be equal to the quotient of (i) such outstanding
principal amount and accrued interest divided by (ii) $5,000,000 divided by the fully diluted capitalization of Verde as of the applicable
date of determination (which capitalization shall exclude any equity securities issuable upon conversion of the June 2023 Note and the
June 2023 Warrant (as defined below)) (the &ldquo;June 2023 Capped Price&rdquo;), in accordance with the terms of the June 2023 Note.
In the event of a qualified conversion event (as defined in the June 2023 Note), the outstanding principal amount and accrued interest
will automatically convert into Verde Common Stock or other equity securities at a price per share equal to the June 2023 Capped Price
as determined immediately prior to the consummation of such event. The June 2023 Capped Price is $0.0005 as of September 30, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, in connection with the issuance of the June 2023 Note, Verde issued and sold to Acuitas a warrant (the &ldquo;June 2023 Warrant&rdquo;)
exercisable for up to 8,838,548,625 shares of Verde Common Stock, at an initial purchase price of $0.0006 per share, for an aggregate
exercise price of $5,500,000. The warrant is exercisable at any time or from time to time on or after the date of issuance and prior
to June 15, 2028.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 19, 2023, Acuitas transferred and assigned all of the issued and outstanding shares of Verde common stock and warrants, including
the February 2023 Warrant and the June 2023 Warrant, as well as all outstanding secured convertible promissory notes issued by Verde
to Acuitas (including security agreements relating thereto), including the February 2023 Notes and the June 2023 Note, to Humanitario
Capital LLC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
provisions in the warrants as disclosed herein require the Company to account for the warrants as equity. The Company recognized a discount
to debt at issuance of February 2023 Note of $2,863,190 and at issuance of June 2023 Note of $5,129,270 related to the initial fair values
of the February 2023 Warrant and June 2023 Warrant, respectively (see Note 10).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2024
Issuances</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 18pt">On March 5, 2024, Verde issued
and sold to Humanitario Capital LLC (&ldquo;Humanitario&rdquo;) a senior secured convertible promissory note (the &ldquo;March 2024 Note&rdquo;)
with an aggregate principal amount of $5,000,000 and received cash transfers of $1,250,000, $500,000, $750,000, $500,000, $500,000, $500,000,
$500,000 and $500,000 on March 6, 2024, April 17, 2024, June 5, 2024, July 26, 2024 August 30, 2024, October 11, 2024, November 13, 2024,
and December 19, 2024 respectively, from Humanitario. The March 2024 Note accrues interest on the principal amount outstanding commencing
on March 6, 2024 at a fixed rate equal to 10% per annum, compounded monthly. During the nine months ended September 30, 2024 and 2023,
the Company recognized interest expense of $134,027 and $0, respectively, on the condensed statements of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unless
earlier converted or repaid, on or after (i) September 5, 2025 or (ii) any time on or after the occurrence of an event of default (as
defined in the March 2024 Note), the entire outstanding principal and accrued interest under the March 2024 Note shall, at the option
of Humanitario, be either due and payable or converted into shares of Verde common stock, par value $0.00001 per share; provided that,
if there is then-outstanding a class or series of capital stock that is senior in rights, preferences or privileges to the Common Stock,
then the outstanding amount shall convert into shares of a newly-issued series of such capital stock having rights, preferences and privileges
(except with respect to the per share liquidation preference, which shall be equal to the March 2024 Capped Price (as defined below))
substantially equivalent to such senior class or series of capital stock of the Company. The number of shares of Common Stock into which
the outstanding amount shall convert shall be equal to the quotient of (i) the Outstanding Amount divided by (ii) the March 2024 Capped
Price (as defined below) as determined as of the time Humanitario exercises its option to convert.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
&ldquo;March 2024 Capped Price&rdquo; shall be equal to $5,000,000 divided by the fully diluted capitalization of the Verde as of the
applicable date of determination, which capitalization shall include the unallocated equity incentive pool and any increase to the equity
incentive pool made prior to or at the time of conversion of the March 2024 Note, and all other rights to acquire capital stock of the
Verde outstanding at the time of the conversion of the March 2024 Note, but shall exclude: the Common Stock issuable upon conversion
of the March 2024 Note. The March 2024 Capped Price is $0.0002 as of September 30, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result of the convertible notes having a lower effective conversion price considering the value allocated to the warrants or the fair
value of the common stock at commitment date, the Company has recognized a beneficial conversion feature of $1,136,810 on February 2023
Note in 2022, $370,730 on June 2023 Note in 2023 and a total of $3,500,000 on March 2024 Note in 2024. The beneficial conversion feature
on the March 2024 Note and the beneficial conversion features and the fair value of the warrants on the February 2023 Note and June 2023
Note are collectively considered the debt discount. The Company recorded a debt discount in the amount of $4,000,000 at issuance of February
2023 Note, $5,500,000 at issuance of June 2023 Note and a total of $3,500,000 at issuance of March 2024 Note which are being amortized
over the life of the respective convertible notes using the effective interest method. During the nine months ended September 30, 2024
and 2023, the Company recognized $3,083,247 and $3,299,880, respectively, of amortization of debt discount recorded as part of interest
expense on the condensed statements of operations. As of September 30, 2024, the entire $4,000,000 debt discount on February 2023 Note,
the entire $5,500,000 debt discount on June 2023 Note and $1,125,319 debt discount on March 2024 Note have been amortized to interest
expense.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">All
debt issuance costs are accounted for as a deferred asset and will be amortized over the life of the convertible notes. During the nine
months ended September 30, 2024 and 2023, the Company recognized $75,797 and $31,634 respectively, of amortization of debt issuance costs
recorded as part of interest expense on the statements of operations. The Company had incurred approximately $50,000 in debt issuance
costs related to the February 2023 Note and had fully amortized those costs as of September 30, 2024 and December 31, 2023. The Company
had incurred approximately $37,691 in debt issuance costs related to the June 2023 Note and had fully amortized as of September 30, 2024
and had amortized $24,895 as of December 31, 2023. The Company had incurred approximately $89,199 in debt issuance costs related to the
March 2024 Note and had amortized $63,000 as of September 30, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>7.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Operating
Leases</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.8pt; text-align: justify; text-indent: -19.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 1, 2020, the Company commenced a 35-month operating lease for approximately 4,405 square foot of office space located in Santa
Monica, California. <FONT STYLE="background-color: white">The monthly base rent is $11,013&nbsp;per month with no increase each year
thereafter.</FONT> At the end of August 2023, the Company completed the operating lease and did not renew it. In June 2021, the Company
commenced a 73-month operating lease for approximately 37,268 square foot of industrial warehouse space located in Fullerton, California.
<FONT STYLE="background-color: white">The monthly base rent is $36,895&nbsp;per month for the first 12 months with a&nbsp;3% increase
each year thereafter. </FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of September 30, 2024 and December 31, 2023, the Company&rsquo;s operating leases have a remaining weighted average lease term of 2.9
years and 3.7 years, respectively, and Verde <FONT STYLE="background-color: white">evaluated the present value of the payments at inception
of the lease using Verde&rsquo;s estimated incremental borrowing rate of 11.58%. The Company&rsquo;s operating lease expenses were $352,958
and $436,023 for the nine months ended September 30, 2024 and 2023</FONT>, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company paid cash of $354,266 and $432,398 for operating leases for the nine months ended September 30, 2024 and 2023, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Maturities
of operating lease liabilities as of September 30, 2024 were as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid"><B>Year ending</B></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%">2024 (three months)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">117,653</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2025</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">470,610</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">2026</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">470,610</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">2027</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">274,523</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total paid</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,333,396</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Imputed interest</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(79,341</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Total</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,254,055</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less current portion</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">362,578</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Lease liabilities &ndash; noncurrent</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">891,477</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.8pt; text-align: justify; text-indent: -19.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>8.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Commitments
and Contingencies</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Royalties</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2020, in connection with issuance of common shares to certain investors, the Company agreed to enter into royalty agreements with these
investors whereby the Company is obligated to make royalty payments, on a quarterly basis at rate of 0.2% or, in some cases, 0.1% of
adjusted gross revenue received by Verde in the immediately preceding fiscal quarter until such time as the investors receive in aggregate
$14.2 million in royalties. Royalties incurred amounted to approximately $1,150 and $2,500 for the nine months ended September 30, 2024
and 2023, respectively. Royalties&rsquo; accrual as of September 30, 2024 and December 31, 2023 amounted to approximately $1,150 and
zero, respectively, recorded as part of accrued liabilities on the condensed balance sheets. Royalties&rsquo; payable as of September
30, 2024 and December 31, 2023 amounted to approximately $0 and $2,484, respectively, recorded as part of accounts payable on the condensed
balance sheets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.25in; text-indent: 0in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Litigation</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company investigates claims as they arise and accrues estimates for resolution of legal and other contingencies when losses are probable
and estimable. As of September 30, 2024, Verde is not a party to litigation or subject to claims incident to the ordinary course of business,
including intellectual property claims, putative and certified class actions, commercial and consumer protection claims, labor and employment
claims, breach of contract claims and other asserted and unasserted claims.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>9.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stock-Based
Compensation</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2020, the Company adopted the 2020 Incentive Stock Option Plan (the &ldquo;2020 Plan&rdquo;), which provides for the award of incentive
stock options to purchase up to 166,727,405 shares of common stock. Employees, advisors and directors are eligible to be granted awards
under the 2020 Plan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
weighted average assumptions that the Company used in a Black-Scholes pricing model to determine the fair value of stock options granted
to employees were as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Nine Months<BR>
    Ended<BR>
    September&nbsp;30, <BR>
    2024</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">Risk-free interest rate</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3.80</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected term (in years)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Expected volatility</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected dividend yield</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercise price</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0100</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Fair value of common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0058</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.25in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No
options were granted during 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.25in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following table summarizes stock option activity for the nine months ended September 30, 2024:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Number of<BR>
    Shares</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Weighted<BR>
    Average<BR>
    Exercise<BR>
    Price</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Weighted<BR>
    Average<BR>
    Contractual<BR>
    Term (Years)</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Aggregate<BR>
    Intrinsic<BR>
    Value</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Outstanding as of December 31, 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 52%">Granted</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">71,531,089</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">0.01</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3.73</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercised</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Cancelled or forfeited</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Outstanding as of September 30, 2024</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">71,531,089</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">0.01</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3.73</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Options vested as of September 30, 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">68,016,089</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Options exercisable as of September 30, 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Options unvested as of September 30, 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,515,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
weighted average grant-date fair value per share of stock options granted during the nine months ended September 30, 2024 was $.00058.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.25in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
total fair value of options vested during nine months ended September 30, 2024 was $127,926.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.25in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stock-Based
Compensation Expense</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.25in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Stock-based
compensation expense recognized by expense type was as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Nine Months Ended<BR>
 September 30</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>2024</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>2023</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Selling expenses</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">94,786</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Research and development</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">307</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">95,126</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">-</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of September 30, 2024, the Company had a total of $39,411 of unrecognized stock-based compensation expense related to stock options,
which is expected to be recognized over a weighted average period of 8.5 months.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>10.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Warrants</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.25in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
summary of the Company&rsquo;s warrants outstanding at September 30, 2024 is as follows:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Exercise Price</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Outstanding</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Issuance Date</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Expiration Date</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; text-align: center; padding-left: 5.4pt">0.0043</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center; padding-left: 5.4pt">1,053,864,168</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center; padding-left: 5.4pt">February 8, 2021</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 24%; text-align: center; padding-left: 5.4pt">February 7, 2025</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: center; padding-left: 5.4pt">0.0011</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">3,571,130,758</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">March 31, 2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">February 7, 2027</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: center; padding-left: 5.4pt">0.0006</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">8,838,548,625</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">June 15, 2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">June 15, 2028</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
were no changes in warrants to purchase common stock for the period ended September 30, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fair value of the warrants on issuance was determined by using option pricing models assuming the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>December&nbsp;31, <BR>
    2023</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">Risk-free interest rate</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">3.91</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected term (in years)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Expected volatility</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">50</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Expected dividend yield</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Exercise price</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0006</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Fair value of common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">0.0091</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>11.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stockholders&rsquo;
Deficit</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s Certificate of Incorporation, originally filed in Delaware on March 4, 2020, was first amended on November 18, 2020 by the
Certificate of Amendment of the Second Amended and Restated Certificate of Incorporation. This amendment authorized the issuance of common
stock. On March 21, 2023, the Company&rsquo;s Certificate of Incorporation was further amended, as authorized by the Company&rsquo;s
Board of Directors, to increase the Company&rsquo;s authorized common stock to 11,211,920,795 shares. On June 15, 2023, the Company&rsquo;s
Certificate of Incorporation was further amended, as authorized by the Company&rsquo;s Board of Directors, to increase the Company&rsquo;s
authorized common stock to 33,723,608,890 shares. On September 13, 2024, the Company&rsquo;s Certificate of Incorporation was further
amended, as authorized by the Company&rsquo;s Board of Directors, to increase the Company&rsquo;s authorized common stock to 58,687,483,705
shares. As of September 30, 2024 and December 31, 2023, the Company&rsquo;s capital structure consists of common stock with par value of $0.00001
per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company has not paid any dividends on common stock to date. It is the Company&rsquo;s present intention to retain any earnings for use in its
business operations and, accordingly, the Company does not anticipate that the Board of Directors will declare any dividends in the foreseeable
future on its common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B></B></FONT></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>12.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Net
Loss per Share</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the nine months ended&nbsp;September 30, 2024&nbsp;and 2023<I>,</I>&nbsp;the Company recorded a net loss available to common stockholders.
As such, because the dilution from potential common stock was antidilutive, the Company used basic weighted-average common stock outstanding,
rather than diluted weighted-average common stock outstanding when calculating diluted loss per share for the nine months ended&nbsp;September
30, 2024&nbsp;and 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Nine Months<BR> ended<BR> September 30,<BR> 2024</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Nine Months<BR> ended<BR> September&nbsp;30,
    <BR>
2023</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>Numerator:</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left; padding-bottom: 4pt">Net loss available to common shareholders</TD><TD STYLE="width: 1%; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 4pt double; text-align: right">(8,225,291</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="width: 1%; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="width: 1%; border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="width: 9%; border-bottom: Black 4pt double; text-align: right">(8,513,783</TD><TD STYLE="width: 1%; padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Denominator:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Weighted-average number of shares used in computing net loss per share, basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,243,321,874</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">3,243,321,874</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Net loss per share - basic and diluted</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(0.00</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be
anti-dilutive. Therefore, the weighted-average number of common stock outstanding used to calculate both basic and diluted net loss per
share attributable to common stockholders is the same.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Nine Months<BR>
    ended<BR>
    September 30,<BR>
    2024</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>Nine Months<BR>
    ended<BR>
    September 30,<BR>
    2023</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Warrants exercisable for common stock</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">13,463,543,551</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">13,463,543,551</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Shares issuable upon exercise of stock-options </TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">71,531,089</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt">Share issuable upon conversion of convertible notes</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">33,819,450,066</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">15,163,835,616</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">47,354,524,706</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">28,627,379,167</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.8pt; text-align: justify; text-indent: -19.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>13.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Income
Taxes</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
Company provides for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recorded based on the
differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences
are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is
more likely than not that some or all of the deferred tax assets will not be realized. As of September 30, 2024 and December 31, 2023,
the Company had a full valuation allowance against its deferred tax assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">For
the nine months ended September 30, 2024 and 2023, the Company recorded zero income tax expense. No tax benefit has been recorded in
relation to the pre-tax loss for the nine months ended September 30, 2024 and 2023, due to a full valuation allowance to offset any deferred
tax asset related to net operating loss carry forwards attributable to the losses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.8pt; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.8pt; text-align: justify; text-indent: -19.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.8pt; text-align: justify; text-indent: -19.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>14.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Distribution
Agreement</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
February 2023, Verde entered into a distribution agreement for initial term of one year with Vinmar International Ltd. (&ldquo;Vinmar&rdquo;)
for the distribution of its PolyEarthylene resins throughout the United States, Canada and Mexico. The agreementt is automatically renewed
for consecutive periods of one year unless terminated by either party. In April 2023, Vinmar started selling PolyEarthylene to its customers.
Sales to Vinmar amounted to $7,515 and $26,818 for the nine months ended September 30, 2024 and 2023, respectively. Outstanding receivables
from Vinmar as of September 30, 2024 and <FONT STYLE="background-color: white">December 31, 2023</FONT> amounted to $3,014 and $2,946,
respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>15.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Merger
Agreement with TLGY</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 37.8pt; text-align: justify; text-indent: -19.8pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 21, 2023, Verde entered into a merger agreement with TLGY Acquisition Corporation (&ldquo;TLGY&rdquo;) (the &ldquo;Merger Agreement&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 14, 2023, TLGY filed a registration statement on Form S-4 with the U.S. Securities and Exchange Commission, which included a preliminary
proxy statement and prospectus in connection with the proposed business combination with&nbsp;Verde.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 14, 2023, TLGY filed the amendment number 1 to the registration statement on Form S-4 with the U.S. Securities and Exchange
Commission.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the terms of the Merger Agreement, Verde agreed to provide extension loans to be made to TLGY monthly on an interest-free basis, if
any extension of the deadline by which TLGY must complete its initial business combination is required (&ldquo;Extension Loans&rdquo;).
The proceeds of the Company Extension Loans shall be deposited into TLGY&rsquo;s trust account and held for the benefit of TLGY and its
public shareholders. Verde has made Company Extension Loans on each of August 22, 2023, September 22, 2023, November 11, 2023, December
7, 2023, January 12, 2024, February 10, 2024 and March 8, 2024 in the amount of $100,000, $100,000, $55,000, $55,000, $55,000, $55,000
and $55,000 respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company Extension Loans of a total of $475,000 and $310,000 as of September 30, 2024 and December 31, 2023, respectively, are recorded
as Notes receivable on the condensed balance sheets. As a result of the termination of the Merger Agreement (as discussed below), Verde
provided for the full valuation allowance of $475,000 and $310,000 for these Notes receivable as of September 30, 2024 and December 31,
2023 respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 12 2024, Verde terminated the Merger Agreement with TLGY due to TLGY&rsquo;s willful breach of the Merger Agreement. On March 18,
2024, TLGY consented to the termination of the Merger Agreement. On May 4, 2024, Verde and TLGY signed a Mutual Release Agreement and
discharged each other of all liabilities and obligations under the Merger Agreement and other ancillary agreements. In the event of consummation
by TLGY of its initial business combination, on or within 5 business days after the date of the closing of such business combination,
TLGY shall pay Verde a sum of $83,125. If TLGY does not consummate its initial business combination and subsequently liquidates, Verde
shall not be entitled to any payment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>16.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Merger
Agreement with Nxu, Inc.</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 23, 2024, Verde entered into the Merger Agreement with Nxu, Inc. (Nxu), Merger Sub I and Merger Sub II, pursuant to which, among
other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub I will merge
with and into Verde, with Verde continuing as a wholly owned subsidiary of Nxu and the surviving corporation of the First Merger, and
promptly following the First Merger, Verde will merge with and into Merger Sub II, with Merger Sub II continuing as the surviving entity
of the Second Merger. The Merger is anticipated to be accounted for as a reverse recapitalization. Under this method of accounting, Nxu
will be treated as the acquired company for financial statement reporting purposes. Each of the board of directors of Verde and Nxu has
unanimously approved the transactions contemplated by the Merger Agreement, including the Merger. The transaction requires the approval
of the stockholders of Nxu and Verde prior to the closing of the Merger.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
transaction is subject to other customary closing conditions and is expected to close in the first quarter of 2025. Transaction consideration
to Verde stockholders will consist of newly issued shares of Nxu as Verde stockholders will exchange their interest in Verde for interests
in Nxu. Total non-recurring transactions are estimated at approximately $5.0 million, of which Verde expects the substantial majority
to be capitalized as an offset to equity.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 8, 2024, Nxu filed a registration statement on Form S-4 with the U.S. Securities and Exchange Commission, which included a preliminary
proxy statement and prospectus in connection with the proposed business combination with&nbsp;Verde.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Up to 114,503,816 Shares of Class A Common
Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Nxu, Inc.</B></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><IMG SRC="image_001.jpg" ALT="" STYLE="width: 161px; height: 62px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;&nbsp;&nbsp;&nbsp;, 2024</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PART II. INFORMATION NOT REQUIRED IN PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 13. Other Expenses of Issuance and Distribution.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The following table sets forth costs and expenses
payable by us in connection with the registration of the securities of Nxu being registered hereby. With the exception of the SEC registration
fee, the amounts set forth below are estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">SEC registration fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,017</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Printing expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Transfer agent fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Miscellaneous expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">15,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">149,017</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 14. Indemnification of Directors and
Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Section&nbsp;145 of the DGCL authorizes a corporation
to indemnify its directors and officers against liabilities arising out of actions, suits and proceedings to which they are made or threatened
to be made a party by reason of the fact that they have served or are currently serving as a director or officer to a corporation. The
indemnity may cover expenses (including attorneys&rsquo; fees) judgments, fines and amounts paid in settlement actually and reasonably
incurred by the director or officer in connection with any such action, suit or proceeding. Section&nbsp;145 permits corporations to
pay expenses (including attorneys&rsquo; fees) incurred by directors and officers in advance of the final disposition of such action,
suit or proceeding. In addition, Section&nbsp;145 provides that a corporation has the power to purchase and maintain insurance on behalf
of its directors and officers against any liability asserted against them and incurred by them in their capacity as a director or officer,
or arising out of their status as such, whether or not the corporation would have the power to indemnify the director or officer against
such liability under Section&nbsp;145.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nxu has adopted provisions in the Certificate
of Incorporation that limit or eliminate the personal liability of Nxu&rsquo;s directors to the fullest extent permitted by the DGCL,
as it now exists or may in the future be amended. Consequently, a director will not be personally liable to Nxu or its stockholders for
monetary damages or breach of fiduciary duty as a director, except for liability for (i)&nbsp;any breach of the director&rsquo;s duty
of loyalty to Nxu or its stockholders, (ii)&nbsp;any act or omission not in good faith or that involves intentional misconduct or a knowing
violation of law, (iii)&nbsp;any unlawful payments related to dividends or unlawful stock purchases, redemptions or other distributions,
or (iv)&nbsp;any transaction from which the director derived an improper benefit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These limitations of liability do not alter director
liability under the federal securities laws and do not affect the availability of equitable remedies such as an injunction or rescission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Certificate of Incorporation provides that
Nxu may indemnify, and advance expenses to, to the fullest extent permitted by law, any person wo was or is a part to or is threatened
to be made a party to any threatened, pending or completed actin, suit or proceeding, whether civil, criminal, administrative or investigative
by reason of the fact that the person is or was a director, officer, employee or agent of Nxu, or is or was serving at the request of
Nxu as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, the Bylaws provide that Nxu shall
indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Company) by reason
of the fact that such person is or was a director or officer of Nxu, or, while a director or officer of Nxu, is or was serving at the
request of Nxu as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise, against expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually
and reasonably incurred by such person in connection with such action, suit or proceeding if such person acted in good faith and in a
manner such person reasonably believed to be in or not opposed to the best interests of Nxu, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe such person&rsquo;s conduct was unlawful.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Bylaws further provide that Nxu shall indemnify
any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in
the right of Nxu to procure a judgment in its favor by reason of the fact that such person is or was a director or officer of Nxu, or,
while a director or officer of Nxu, is or was serving at the request of Nxu as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise against expenses (including attorneys&rsquo; fees) actually
and reasonably incurred by such person in connection with the defense or settlement of such action or suit if such person acted in good
faith and in a manner such person reasonably believed to be in or not opposed to the best interests of Nxu; except that no indemnification
shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to Nxu unless and
only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled
to indemnity by Nxu for such expenses which the Court of Chancery or such other court shall deem proper.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Any of the foregoing indemnification provisions
(unless ordered by a court) shall be made by Nxu only as authorized in the specific case upon a determination that indemnification of
the director or officer is proper in the circumstances because such person has met the applicable standard of conduct described above,
which determination shall be made, with respect to a person who is a director or officer at the time of such determination, (i)&nbsp;by
a majority vote of the directors who are not parties to such action, suit or proceeding, even though less than a quorum, or (ii)&nbsp;by
a committee of such directors designated by a majority vote of such directors, even though less than a quorum, or (iii)&nbsp;if there
are no such directors, or if such directors so direct, by independent legal counsel in a written opinion or (iv)&nbsp;by the stockholders.
Such determination shall be made, with respect to former directors and officers, by any person or persons having the authority to act
on the matter on behalf of Nxu. To the extent, however, that a present or former director or officer of Nxu has been successful on the
merits or otherwise in defense of any action, suit or proceeding or in defense of any claim, issue or matter therein, such person shall
be indemnified against expenses (including attorneys&rsquo; fees) actually and reasonably incurred by such person in connection therewith,
without the necessity of authorization in the specific case.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Expenses, including without limitation attorneys&rsquo;
fees, incurred by a current or former director or officer in defending any civil, criminal, administrative or investigative action, suit
or proceeding to which such person is a party or is threatened to be made a party or otherwise involved as a witness or otherwise by
reason of the fact that such person is or was a director or officer of Nxu, or, while a director or officer of Nxu, is or was serving
at the request of Nxu as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise, shall be paid by Nxu in advance of the final disposition of such action, suit or proceeding upon receipt of
an undertaking by or on behalf of such current or former director or officer to repay such amount if it shall ultimately be determined
that such person is not entitled to be indemnified by Nxu.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In addition, Nxu assumed certain customary indemnification
agreements that Nxu&rsquo;s predecessor, Atlis Motor Vehicles Inc., entered into with each of its directors and officers. The assumption
of these agreements requires Nxu to indemnify these individuals to the fullest extent permitted under Delaware law and to advance expenses
incurred as a result of any proceeding against them as to which they could be indemnified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Nxu purchased and maintains directors&rsquo;
and officers&rsquo; liability insurance that insures Nxu&rsquo;s directors and officers against the cost of defense, settlement or payment
of a judgement in some circumstances and insures Nxu against its obligations to indemnify the directors and officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The foregoing is only a general summary of certain
aspects of Delaware law and the Certificate of Incorporation and the Bylaws dealing with indemnification of directors and officers and
does not purport to be complete. It is qualified in its entirety by reference to the detailed provisions of those sections of the DGCL
referenced above and the Certificate of Incorporation and the Bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 15. Recent Sales of Unregistered Securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Regulation D Offering</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the past three years, the Predecessor
issued an aggregate of 280,195 shares of Class A common stock to various investors at a weighted average share price of $9.04 per share
for aggregate proceeds of $2,532,761, under the Company&rsquo;s Regulation D funding campaign.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Regulation A Offering</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the past three years, the Predecessor
issued an aggregate of 1,665,996 shares of Class A common stock to various investors at a weighted average share price of $7.63, 871,938
shares of Class A common stock at a weighted average share price of $16.64 and 143,864 bonus shares of Class A common stock issued at
a weighted average share price of $0, for aggregate gross proceeds of $14,506,595, under the terms of the Regulation A offering which
became qualified on September 23, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<!-- Field: Split-Segment; Name: 1 -->
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Private Placement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 3, 2022, the Predecessor entered
into the Securities Purchase Agreement (the &ldquo;2022 Purchase Agreement&rdquo;) with certain investors (collectively, the &ldquo;Investors&rdquo;),
pursuant to which it agreed to issue to the Investors, for gross proceeds of up to $27,000,000, Senior Secured Original Issue 10% Discount
Convertible Promissory Notes (the &ldquo;notes&rdquo;) in the aggregate principal amount of up to $30,000,000 and warrants to purchase
a number of shares of the Predecessor&rsquo;s Class A common stock equal to 30% of the face value of the notes divided by the volume
weighted average price, in three tranches.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the first tranche of funding, which closed
upon signing of the 2022 Purchase Agreement, for gross proceeds of $9,000,000, the Predecessor issued notes to the Investors in the aggregate
principal amount of $10,000,000 (the &ldquo;First Tranche Notes&rdquo;) and warrants to purchase up to an aggregate of 1,543 shares of
the Predecessor&rsquo;s Class A common stock (the &ldquo;First Tranche Warrants&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 5, 2023, the Predecessor entered into
an amendment (the &ldquo;Amendment&rdquo;) to the 2022 Purchase Agreement with each Investor, pursuant to which the Predecessor and each
Investor agreed, among other things, to amend the terms and conditions of the second tranche of funding and terminate the third tranche
of funding contemplated under the Purchase Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Amendment provides that, with respect to
the second tranche of funding, at any time prior to the earlier to occur of (x) April 30, 2024 and (y) the twentieth (20th) trading day
following the effectiveness of the resale registration statement covering the resale of all of the shares of the Predecessor&rsquo;s
Class A common stock issuable under the first tranche of funding, each Investor shall have the right, severally and not jointly, to purchase
a base allocation of $5.0 million in notes and warrants to purchase a number of shares of the Predecessor&rsquo;s Class A common stock
equal to 30% of the face value of the notes divided by the volume weighted average price at one or more closings (with a total base allocation
of $10.0 million, in the aggregate, for all Investors) and, solely with respect to the initial closing, up to an additional $5.0 million
in additional notes and related warrants pursuant to oversubscription rights, to the extent then available. In connection with the Amendment,
the Predecessor also issued top-up warrants to the Investors to purchase up to an aggregate of 3,587 shares of the Predecessor&rsquo;s
Class A common stock (the &ldquo;Top-Up Warrants&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 27, 2023, the Investors elected to
purchase notes and warrants pursuant to the second tranche of funding. Under the second tranche of funding, which closed on January 31,
2023, for gross proceeds of $9,000,000, we issued notes to the Investors in the aggregate principal amount of $10,000,000 (the &ldquo;Second
Tranche Notes&rdquo;) and warrants to purchase up to an aggregate of 6,281 shares of our Class A common stock (the &ldquo;Second Tranche
Warrants&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A registration statement registering the resale
of the shares of Class A common stock issuable upon the conversion of the First Tranche Notes and exercise of the First Tranche Warrants
went effective on January 20, 2023. A registration statement registering the resale of the shares of Class A common stock issuable upon
the conversion of the Second Tranche Notes and exercise of the Second Tranche Warrants and the Top-Up Warrants went effective on February
9, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The notes mature 24 months after issuance, do
not initially bear any interest and are convertible into shares of the Predecessor&rsquo;s Class A common stock at an initial conversion
price equal to the lesser of $2,250.00 per share of Class A common stock or 92.5% of the average of the three lowest daily volume weighted
average prices of the Class A common stock during the ten trading days immediately preceding the notice of voluntary conversion of the
notes, subject to adjustment as further specified in the notes. The notes will be fully repayable in cash upon maturity. In addition,
the Investors have the option of prepaying up to 20% of the issuance amount of a subsequent financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The warrants are exercisable at an initial exercise
price equal to the lesser of $2,250.00 per share or 92.5% of the average of the three lowest daily volume weighted average prices of
the Class A common stock during the ten trading days immediately preceding the notice of exercise, subject to adjustment. The warrants
carry a 5-year term and, if not exercised, will terminate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The securities were issued and sold in reliance
upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) promulgated
thereunder since, among other things, the issuance was made without any public solicitation to a limited number of accredited investors
and/or qualified institutional buyers and were acquired for investment purposes only.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three months ended March 31, 2023,
the Company issued 85,934 shares of Class A common stock to a third-party vendor with a per share price of $0.84 for a total of $72,185
in exchange for services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the terms of a Share Purchase Agreement,
dated as of June 25, 2021, as amended by a letter agreement, dated as of September 19, 2023, by and among the Company, GEM Global Yield
LLC SCS (&ldquo;GEM Global&rdquo;) and GEM Yield Bahamas Limited (as amended, the &ldquo;GEM Share Purchase Agreement&rdquo;), the Company
issued 34.0 million shares of Class A common stock to GEM Global on October 2, 2023 in full satisfaction of the Company&rsquo;s obligation
to pay a commitment fee pursuant to the GEM Share Purchase Agreement and fees due under a registration rights agreement. As such, the
Company did not receive any proceeds from the sale of such shares. The shares were issued to GEM Global in a private placement in reliance
on exemptions from registration provided by Section 4(a)(2) of the Securities Act and Rule 506(b) promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On December 27, 2023,&nbsp;&nbsp;the
Company entered into a share exchange agreement (the &ldquo;Share Exchange Agreement&rdquo;)&nbsp;with Lynks Motor Corporation (d/b/a
Lynx Motor Corporation), a Delaware corporation (&ldquo;Lynx&rdquo;), pursuant to which Lynx sold to the Company, and the Company purchased
from Lynx, a number of newly issued shares of Lynx representing 15% of the issued and outstanding equity interests in Lynx in exchange
for&nbsp;1,000&nbsp;newly issued shares of series A convertible preferred stock, par value $0.0001&nbsp;per share, of the Company (the
&ldquo;Series A Convertible Preferred Stock&rdquo; or &ldquo;Series A Convertible Preferred Shares&rdquo;). Each Series A Convertible
Preferred Share is convertible into 1,000 shares of Class A common stock for a conversion price of $3.00 per share. The Share Exchange
Agreement contains customary representations and warranties by the Company. As a part of the transaction, the Company designated one
person to serve on the board of directors of Lynx. </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">On January&nbsp;29,
2024, the Company registered&nbsp;1.0&nbsp;million&nbsp;shares of Class A common stock pursuant to the terms of its Share Exchange Agreement
with Lynx, under which Nxu sold to Lynx&nbsp;1,000&nbsp;shares of Series A Convertible Preferred Stock, which are convertible into shares
of Class A common stock. The Company did not sell any shares of its Class A common stock and received no proceeds from the offering.
On February 8, 2024, Lynx converted all the Series A Convertible Preferred Stock into 1.0 million shares of Class A common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Concurrently with the
Share Exchange Agreement, Lynx issued a non-interest bearing promissory note (&ldquo;Lynx Note&rdquo;) in the principal amount of $0.3
million to Lynx in exchange for $0.3 million in immediately available funds from the Company. The Lynx Note was originally due and payable
by June 2024. Effective June 28, 2024, the Company and Lynx agreed to amend the terms of the Lynx Note, which was extended to be repaid
over nine months at an annual interest rate of 8% (the &ldquo;Amended Lynx Note&rdquo;). Scheduled payments on the Amended Lynx Note
included an upfront principal payment of $20,000, which was due and paid upon execution of the amendment, eight payments of $20,000 in
principal and interest from July 2024 to February 2025, and a lump sum payment of the remaining principal and interest of approximately
$0.08 million due no later than March 27, 2025. Pursuant to the Notice of Promissory Note Default; Demand dated September 9, 2024, Lynx
is in default on repayment of the Amended Lynx Note. As of the date of this registration statement, the Company is engaged in further
discussion with Lynx about the terms of the Amended Lynx Note, which is due immediately. Ongoing discussions contemplate Lynx&rsquo;s
offer to make payment on the note in shares of Lynx, rather than in cash funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 16. Exhibits and Financial Statement
Schedules.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A list of exhibits included as part of this registration
statement is set forth in the Exhibit Index which is hereby incorporated by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item 17. Undertakings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">To file, during any period in
which offers or sales are being made, a post-effective amendment to this registration statement:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">To include any prospectus required
by Section 10(a)(3) of the Securities Act of 1933, as amended;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(ii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">To reflect in the prospectus
any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed
that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the
form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation of Filing Fee
Tables&rdquo; table in the effective registration statement; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(iii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">To include any material information
with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information
in the registration statement; provided, however, that paragraphs (1)(i), (1)(ii) and (1)(iii) above do not apply if the information
required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Securities
and Exchange Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated
by reference in the registration statement.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">That, for the purpose of determining
any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">To remove from registration by
means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">That, for the purpose of determining
liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration
statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance
on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.
Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made
in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration
statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was
made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately
prior to such date of first use.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">That, for the purpose of determining
liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned
registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement,
regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser
by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered
to offer or sell such securities to such purchaser:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Any preliminary prospectus
or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(ii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Any free writing prospectus
relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(iii)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">The portion of any other free
writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided
by or on behalf of the undersigned registrant; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(iv)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Any other communication that
is an offer in the offering made by the undersigned registrant to the purchaser.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(6)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Insofar as indemnification for
liabilities arising under the Securities Act of 1933 may be permitted to directors, officers, and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange
Commission, such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer, or controlling person of the registrant in the successful defense of any action, suit, or proceeding)
is asserted by such director, officer, or controlling person in connection with the securities being registered, the registrant will,
unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed
by the final adjudication of such issue.</FONT></TD>
</TR></TABLE>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(7)</TD><TD STYLE="text-align: justify">The undersigned registrant hereby undertakes that, for purposes
of determining any liability under the Securities Act of 1933, each filing of the registrant&rsquo;s annual report pursuant to Section 13(a)
or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan&rsquo;s annual report pursuant
to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT INDEX</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: justify; width: 9%"><FONT STYLE="font-size: 10pt"><B>Exhibit&nbsp;No.</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: justify; white-space: nowrap; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 90%; text-align: center"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">2.1&dagger;</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924017876/ex2_1.htm"><FONT STYLE="font-size: 10pt">Agreement and Plan of Merger, dated as of October&nbsp;23, 2024, among
    Nxu, Inc., Nxu Merger Sub, Inc., Nxu Merger Sub, LLC and Verde Bioresins, Inc. (incorporated by reference to Exhibit 2.1 to the Company&rsquo;s
    Current Report on Form&nbsp;8-K filed with the SEC on October&nbsp;24, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923016914/ex3_1.htm"><FONT STYLE="font-size: 10pt">Certificate of Incorporation of Nxu, Inc. (incorporated by reference
    to Exhibit 3.1 of the Company&rsquo;s Form&nbsp;10-K filed with the SEC on April&nbsp;1, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">3.2</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923016914/ex3_2.htm"><FONT STYLE="font-size: 10pt">Certificate of Amendment to the Certificate of Incorporation of Nxu,
    Inc., dated December&nbsp;26, 2023 (incorporated by reference to Exhibit 3.2 of the Company&rsquo;s Form&nbsp;8-K filed with the
    SEC on December&nbsp;27, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">3.3</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924014872/ex3_1.htm"><FONT STYLE="font-size: 10pt">Certificate of Amendment of Certificate of Incorporation of Nxu, Inc.,
    dated August&nbsp;16, 2024 (incorporated by reference to Exhibit 3.1 of the Company&rsquo;s Form&nbsp;8-K filed with the SEC on August&nbsp;16,
    2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">3.4</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923016914/ex3_1.htm"><FONT STYLE="font-size: 10pt">Certificate of Designations of Series&nbsp;A Convertible Preferred
    Stock of Nxu, Inc., dated December&nbsp;22, 2023 (incorporated by reference to Exhibit 3.1 to the Company&rsquo;s Form&nbsp;8-K filed
    with the SEC on December&nbsp;27, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">3.5</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121390024096067/ea022008701ex3-5_nxuinc.htm"><FONT STYLE="font-size: 10pt">Certificate of Designations of Series&nbsp;B Preferred Stock of Nxu,
    Inc., dated August&nbsp;16, 2024 <U STYLE="text-decoration: none">(incorporated by reference to Exhibit 3.5 to the Company&rsquo;s Registration Statement on Form
    S-4 filed with the SEC on November 12, 2024)</U></FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">3.6</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924005647/ex3_4.htm"><FONT STYLE="font-size: 10pt">Bylaws of Nxu, Inc. (incorporated by reference to Exhibit 3.4 of the
    Company&rsquo;s Form&nbsp;10-K filed with the SEC on April&nbsp;1, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">3.7</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000114036124034031/ny20032870x2_ex3-1.htm"><FONT STYLE="font-size: 10pt">Amendment No. 1 to the Bylaws of Nxu, Inc. (incorporated by reference
    to Exhibit 3.1 of the Company&rsquo;s Form&nbsp;8-K filed with the SEC on July&nbsp;24, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">4.1</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465922013155/ex4_1.htm"><FONT STYLE="font-size: 10pt">Form of Senior Secured Original Issue 10% Discount Convertible Promissory
    Note (incorporated by reference to Exhibit 4.1 to the Company&rsquo;s Current Report on Form&nbsp;8-K filed with the SEC on November&nbsp;4,
    2022)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">4.2</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465922013155/ex4_2.htm"><FONT STYLE="font-size: 10pt">Form of Common Stock Purchase Warrant (incorporated by reference to
    Exhibit 4.2 to the Company&rsquo;s Current Report on Form&nbsp;8-K filed with the SEC on November&nbsp;4, 2022)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">4.3</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923001969/ex4_3.htm"><FONT STYLE="font-size: 10pt">Form of Warrant Agency Agreement (incorporated by reference to Exhibit
    4.3 of the Registration Statement on Form&nbsp;S-1 filed with the SEC on February&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">4.4</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923001969/ex4_4.htm"><FONT STYLE="font-size: 10pt">Form of Series&nbsp;A and Series&nbsp;B Class&nbsp;A Common Stock Purchase
    Warrant (incorporated by reference to Exhibit 4.4 of the Registration Statement on Form&nbsp;S-1 filed with the SEC on February&nbsp;10,
    2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">4.5</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923012503/ex4_3.htm"><FONT STYLE="font-size: 10pt">Common Stock Purchase Warrant (incorporated by reference to Exhibit
    4.3 to the Company&rsquo;s Registration Statement on Form&nbsp;S-1 filed with the SEC on September&nbsp;20, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">4.6</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923013253/ex4_5.htm"><FONT STYLE="font-size: 10pt">Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.5
    to the Company&rsquo;s Registration Statement on Form&nbsp;S-1 filed with the SEC on October&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">4.7</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923010785/ex4_4.htm"><FONT STYLE="font-size: 10pt">Form of Common Stock Purchase Warrant (incorporated by reference to
    Exhibit 4.4 to the Company&rsquo;s Registration Statement on Form&nbsp;S-1 filed with the SEC on August&nbsp;4, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">4.8</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923009383/ex4_4.htm"><FONT STYLE="font-size: 10pt">Form of Common Stock Purchase Warrant (incorporated by reference to
    Exhibit 4.4 to the Company&rsquo;s Registration Statement on Form&nbsp;S-1 filed with the SEC on July&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">4.9</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923009383/ex4_5.htm"><FONT STYLE="font-size: 10pt">Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.5
    to the Company&rsquo;s Registration Statement on Form&nbsp;S-1 filed with the SEC on July&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">4.10</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923016914/ex10_2.htm"><FONT STYLE="font-size: 10pt">Registration Rights Agreement, by and between the Company and the selling
    stockholder (incorporated by reference to Exhibit 10.2 of the Company&rsquo;s Form&nbsp;8-K filed with the SEC on December&nbsp;27,
    2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">5.1*</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea022614801ex5-1_nxuinc.htm">Legal Opinion of Snell&nbsp;&amp; Wilmer L.L.P.</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.1&dagger;</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923000218/ex10_6.htm"><FONT STYLE="font-size: 10pt">Amended Collaboration Agreement, dated July&nbsp;28, 2022, between
    the Company and Australian Manufactured Vehicles (incorporated by reference to Exhibit 10.6 to the Company&rsquo;s Registration Statement
    on Form&nbsp;S-1 filed with the SEC on January&nbsp;4, 2023)</FONT></A></TD></TR>
</TABLE>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify; width: 9%"><FONT STYLE="font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 90%"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923000218/ex10_7.htm"><FONT STYLE="font-size: 10pt">Form of Indemnification Agreement (incorporated by reference to Exhibit
    10.7 to the Company&rsquo;s Registration Statement on Form&nbsp;S-1 filed with the SEC on January&nbsp;4, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.3</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465922013155/ex10_1.htm"><FONT STYLE="font-size: 10pt">Form of Securities Purchase Agreement (incorporated by reference to
    Exhibit 10.1 to the Company&rsquo;s Current Report on Form&nbsp;8-K filed with the SEC on November&nbsp;4, 2022)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923000312/ex10_1.htm"><FONT STYLE="font-size: 10pt">Form of Amendment No. 1 to Securities Purchase Agreement (incorporated
    by reference to Exhibit 10.1 to the Company&rsquo;s Current Report on Form&nbsp;8-K filed with the SEC on January&nbsp;6, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465922013155/ex10_2.htm"><FONT STYLE="font-size: 10pt">Form of Securities Agreement (incorporated by reference to Exhibit
    10.2 to the Company&rsquo;s Current Report on Form&nbsp;8-K filed with the SEC on November&nbsp;4, 2022)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.6</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465922013155/ex10_3.htm"><FONT STYLE="font-size: 10pt">Form of Registration Rights Agreement (incorporated by reference to
    Exhibit 10.3 to the Company&rsquo;s Current Report on Form&nbsp;8-K filed with the SEC on November&nbsp;4, 2022)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.7</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923000312/ex10_2.htm"><FONT STYLE="font-size: 10pt">Form of Amendment No. 1 to Registration Rights Agreement (incorporated
    by reference to Exhibit 10.2 to the Company&rsquo;s Current Report on Form&nbsp;8-K filed with the SEC on January&nbsp;6, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.8</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923001969/ex10_13.htm"><FONT STYLE="font-size: 10pt">Form of Securities Purchase Agreement (incorporated by reference to
    Exhibit 10.13 of the Registration Statement on Form&nbsp;S-1 filed with the SEC on February&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.9</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923016914/ex10_1.htm"><FONT STYLE="font-size: 10pt">Share Exchange Agreement, dated as of December&nbsp;27, 2023, by and
    between Nxu, Inc. and Lynks Motor Corporation (incorporated by reference to Exhibit 10.1 to the Company&rsquo;s Form&nbsp;8-K filed
    with the SEC on December&nbsp;27, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.10+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923005439/g412233s4.htm#annexd">Nxu, Inc. 2023 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company&rsquo;s Registration Statement on Form&nbsp;S-4 filed with the SEC on April&nbsp;17, 2023)</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.11</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923012503/ex10_14.htm"><FONT STYLE="font-size: 10pt">Share Purchase Agreement, dated as of June&nbsp;25, 2021, among the
    Company, GEM Global Yield LLC SCS and GEM Yield Bahamas Limited (incorporated by reference to Exhibit 10.14 to the Company&rsquo;s
    Registration Statement on Form&nbsp;S-1 filed with the SEC on September&nbsp;20, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.12</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923012503/ex10_15.htm"><FONT STYLE="font-size: 10pt">Registration Rights Agreement, dated as of June&nbsp;25, 2021, among
    the Company, GEM Global Yield LLC SCS and GEM Yield Bahamas Limited (incorporated by reference to Exhibit 10.15 to the Company&rsquo;s
    Registration Statement on Form&nbsp;S-1 filed with the SEC on September&nbsp;20, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.13</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923012503/ex10_16.htm"><FONT STYLE="font-size: 10pt">Letter Agreement Relating to Share Subscription Facility, dated as
    of September&nbsp;19, 2023, among the Company, GEM Global Yield LLC SCS and GEM Yield Bahamas Limited (incorporated by reference
    to Exhibit 10.16 to the Company&rsquo;s Registration Statement on Form&nbsp;S-1 filed with the SEC on September&nbsp;20, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.14+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923008680/ex10_1.htm"><FONT STYLE="font-size: 10pt">Board of Directors Agreement, dated May&nbsp;11, 2023, between the
    Company and Britt Ide (incorporated by reference to Exhibit 10.1 to the Company&rsquo; Amendment No. 1 to the Registration Statement
    on Form&nbsp;S-1, filed with the SEC on July&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.15+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923008680/ex10_2.htm"><FONT STYLE="font-size: 10pt">Board of Directors Agreement, dated May&nbsp;11, 2023, between the
    Company and Caryn Nightengale (incorporated by reference to Exhibit 10.2 to the Company&rsquo; Amendment No. 1 to the Registration
    Statement on Form&nbsp;S-1, filed with the SEC on July&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.16+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923009383/ex10_3.htm"><FONT STYLE="font-size: 10pt">Board of Directors Agreement, dated June&nbsp;15, 2023, between the
    Company and Jessica Billingsley (incorporated by reference to Exhibit 10.3 to the Company&rsquo; Amendment No. 1 to the Registration
    Statement on Form&nbsp;S-1, filed with the SEC on July&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.17+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923008680/ex10_3.htm"><FONT STYLE="font-size: 10pt">Employment Agreement, dated as of May&nbsp;12, 2023, between the Company
    and Mark Hanchett (incorporated by reference to Exhibit 10.4 to the Company&rsquo; Amendment No. 1 to the Registration Statement
    on Form&nbsp;S-1, filed with the SEC on July&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.18+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923008680/ex10_4.htm"><FONT STYLE="font-size: 10pt">Employment Agreement, dated as of May&nbsp;12, 2023, between the Company
    and Annie Pratt (incorporated by reference to Exhibit 10.5 to the Company&rsquo; Amendment No. 1 to the Registration Statement on
    Form&nbsp;S-1, filed with the SEC on July&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.19+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923008680/ex10_5.htm"><FONT STYLE="font-size: 10pt">Employment Agreement, dated as of May&nbsp;12, 2023, between the Company
    and Apoorv Dwivedi (incorporated by reference to Exhibit 10.6 to the Company&rsquo; Amendment No. 1 to the Registration Statement
    on Form&nbsp;S-1, filed with the SEC on July&nbsp;10, 2023)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: #CCEEFF">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.20+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924005647/ex3_4.htm"><FONT STYLE="font-size: 10pt">Employment Agreement, dated as of April&nbsp;28, 2023, between the
    Company and Sarah Wyant (incorporated by reference to Exhibit 3.4 of the Company&rsquo;s Form&nbsp;10-K filed with the SEC on April&nbsp;1,
    2024)</FONT></A></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.21+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924006244/ex10_1.htm">Letter Agreement dated April&nbsp;5, 2024 by and between the Company and Britt Ide (incorporated by reference to Exhibit 10.1 of the Company&rsquo;s Form&nbsp;8-K filed with the SEC on April&nbsp;5, 2024)</A></FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin: 0"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; width: 9%"><FONT STYLE="font-size: 10pt">10.22+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 90%"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924006244/ex10_2.htm">Letter Agreement dated April&nbsp;5, 2024 by and between the Company and Caryn Nightengale (incorporated by reference to Exhibit 10.2 of the Company&rsquo;s Form&nbsp;8-K filed with the SEC on April&nbsp;5, 2024)</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.23+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924006244/ex10_3.htm">Letter Agreement dated April&nbsp;5, 2024 by and between the Company and Jessica Billingsley (incorporated by reference to Exhibit 10.3 of the Company&rsquo;s Form&nbsp;8-K filed with the SEC on April&nbsp;5, 2024)</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.24+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924014872/ex10_1.htm"><FONT STYLE="font-size: 10pt">Nxu, Inc. Amended and Restated 2023 Omnibus Incentive Plan (incorporated
    by reference to Exhibit&nbsp;10.1 of the Company&rsquo;s Form&nbsp;8-K filed with the SEC on August&nbsp;16, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.25</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924017876/ex10_1.htm"><FONT STYLE="font-size: 10pt">Form of Nxu Support Agreement (incorporated by reference to Exhibit
    10.1 of the Company&rsquo;s Form&nbsp;8-K filed with the SEC on October&nbsp;24, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.26</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924017876/ex10_2.htm"><FONT STYLE="font-size: 10pt">Form of Verde Support Agreement (incorporated by reference to Exhibit
    10.2 of the Company&rsquo;s Form&nbsp;8-K filed with the SEC on October&nbsp;24, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.27</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924017876/ex10_3.htm"><FONT STYLE="font-size: 10pt">Form of Lock-Up Agreement (incorporated by reference to Exhibit 10.3
    of the Company&rsquo;s Form&nbsp;8-K filed with the SEC on October&nbsp;24, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.28</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924017876/ex10_4.htm"><FONT STYLE="font-size: 10pt">Voting Agreement and Irrevocable Proxy, dated as of October&nbsp;23,
    2024, by and between Nxu, Inc. and Mark Hanchett (incorporated by reference to Exhibit 10.4 of the Company&rsquo;s Form&nbsp;8-K
    filed with the SEC on October&nbsp;24, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.29+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924017876/ex10_5.htm"><FONT STYLE="font-size: 10pt">Form of Amendment to Employment Agreement, by and between Nxu, Inc.
    and each of Mark Hanchett and Annie Pratt (incorporated by reference to Exhibit 10.5 of the Company&rsquo;s Form&nbsp;8-K filed with
    the SEC on October&nbsp;24, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.30+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924017876/ex10_6.htm"><FONT STYLE="font-size: 10pt">Executive Employment Agreement, dated as of October&nbsp;23, 2024,
    by and between Nxu, Inc. and Sarah Wyant (incorporated by reference to Exhibit 10.6 of the Company&rsquo;s Form&nbsp;8-K filed with
    the SEC on October&nbsp;24, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.31+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924017876/ex10_7.htm"><FONT STYLE="font-size: 10pt">Form of Board of Directors Agreement, by and between Nxu, Inc. and
    each of Jessica Billingsley and Britt Ide (incorporated by reference to Exhibit 10.7 of the Company&rsquo;s Form&nbsp;8-K filed with
    the SEC on October&nbsp;24, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.32+</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465924017876/ex10_8.htm"><FONT STYLE="font-size: 10pt">Amendment to Restricted Stock Award Agreement, dated as of October&nbsp;23,
    2024, by and between Nxu, Inc. and Caryn Nightengale (incorporated by reference to Exhibit 10.8 of the Company&rsquo;s Form&nbsp;8-K
    filed with the SEC on October&nbsp;24, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.33+*</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022614801ex10-33_nxuinc.htm"><FONT STYLE="font-size: 10pt">Atlis Motor Vehicles, Inc. Employee Stock Option Plan, effective as of April 27, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.34+*</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022614801ex10-34_nxuinc.htm"><FONT STYLE="font-size: 10pt">Atlis Motor Vehicles, Inc. Non-Employee Stock Option Plan, effective as of April 27, 2022</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.35</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121390024112875/ea022614501ex4-1_nxuinc.htm"><FONT STYLE="font-size: 10pt">Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.1
    of the Company&rsquo;s Form 8-K filed with the SEC on December 27, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.36</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121390024112875/ea022614501ex4-2_nxuinc.htm"><FONT STYLE="font-size: 10pt">Form of Series A Warrant (incorporated by reference to Exhibit 4.2
    of the Company&rsquo;s Form 8-K filed with the SEC on December 27, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.37</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121390024112875/ea022614501ex4-3_nxuinc.htm"><FONT STYLE="font-size: 10pt">Form of Series B Warrant (incorporated by reference to Exhibit 4.3
    of the Company&rsquo;s Form 8-K filed with the SEC on December 27, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.38</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121390024112875/ea022614501ex10-1_nxuinc.htm"><FONT STYLE="font-size: 10pt">Form
    of Securities Purchase Agreement, dated as of December 26, 2024, by and among Nxu, Inc. and the Investors named therein
    (incorporated by reference to Exhibit 10.1 of the Company&rsquo;s Form 8-K filed with the SEC on December 27, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.39</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121390024112875/ea022614501ex10-2_nxuinc.htm"><FONT STYLE="font-size: 10pt">Form
    of Registration Rights Agreement, dated as of December 26, 2024, by and among Nxu, Inc. and the Investors named therein
    (incorporated by reference to Exhibit 10.2 of the Company&rsquo;s Form 8-K filed with the SEC on December 27, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.40</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121390024112875/ea022614501ex10-3_nxuinc.htm"><FONT STYLE="font-size: 10pt">Form of Lock-Up Agreement (incorporated by
    reference to Exhibit 10.3 of the Company&rsquo;s Form 8-K filed with the SEC on December 27, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">10.41</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121390024112875/ea022614501ex10-4_nxuinc.htm"><FONT STYLE="font-size: 10pt">Form of Voting Agreement (incorporated by reference
    to Exhibit 10.4 of the Company&rsquo;s Form 8-K filed with the SEC on December 27, 2024)</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">21.1</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1722969/000121465923000218/ex21_1.htm">List of Subsidiaries of Nxu, Inc (incorporated by reference to Exhibit 21.1 to the Company&rsquo;s Registration Statement on Form&nbsp;S-1 filed with the SEC on January&nbsp;4, 2023)</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">23.1*</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022614801ex23-1_nxuinc.htm"><FONT STYLE="font-size: 10pt">Consent of Prager Metis CPAs LLC, independent registered public accounting
    firm for Nxu, Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">23.2*</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022614801ex23-2_nxuinc.htm"><FONT STYLE="font-size: 10pt">Consent of EisnerAmper LLP, independent registered public accounting
    firm for Verde Bioresins, Inc.</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">23.3*</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea022614801ex5-1_nxuinc.htm">Consent of Snell&nbsp;&amp; Wilmer L.L.P. (included in Exhibit 5.1)</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">24.1*</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="#power_001">Power of Attorney (included on the signature page of this Registration Statement)</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">107*</FONT></TD>
    <TD STYLE="text-align: justify; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea022614801ex-fee_nxuinc.htm"><FONT STYLE="font-size: 10pt">Filing Fee Table</FONT></A></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">Filed herewith.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">+</TD><TD STYLE="text-align: justify">Management contract or compensatory plan or arrangement.</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">&dagger;</TD><TD STYLE="text-align: justify">The annexes, schedules, and certain exhibits to the Merger Agreement
have been omitted pursuant to Item&nbsp;601(b)(2)&nbsp;of Regulation&nbsp;S-K.&nbsp;Nxu, Inc. hereby agrees to furnish supplementally
a copy of any omitted annex, schedule or exhibit to the SEC on a confidential basis upon request.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt">&nbsp;</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Mesa, State of Arizona, on December 30, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>NXU, INC.</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 5%">&nbsp;</TD>
    <TD STYLE="width: 35%; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 1pt; text-align: justify"><FONT STYLE="font-size: 10pt">/s/ Mark Hanchett</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Mark Hanchett</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Chairman and Chief Executive Officer</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="power_001"></A>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints Mark Hanchett and Annie Pratt and each of them, his or her true and lawful
attorneys-in-fact and agents with full power of substitution, for him or her and in his or her name, place and stead, in any and all
capacities, to sign any and all amendments (including post-effective amendments) to this registration statement, and to sign any registration
statement for the same offering covered by the registration statement that is to be effective upon filing pursuant to Rule 462(b) promulgated
under the Securities Act, and all post-effective amendments thereto, and to file the same, with all exhibits thereto and all documents
in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them,
full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises,
as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact
and agents or any of them, his, hers or their substitute or substitutes, may lawfully do or cause to be done or by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the requirements of the Securities
Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on December 30, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Capacity in Which Signed</B></FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Date</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt">/s/ Mark Hanchett</FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">Chief Executive Officer and Chair of the Board</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt"><FONT STYLE="font-size: 10pt">December 30, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Mark Hanchett</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">(Principal Executive Officer)</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt">/s/ Sarah Wyant</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">Chief Financial Officer</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">December 30, 2024</TD></TR>
  <TR>
    <TD STYLE="text-align: center">Sarah Wyant</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">(Principal Financial Officer and Principal Accounting Officer)</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">/s/ Annie Pratt </FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">President and Director</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">December 30, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Annie Pratt</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">/s/ Britt Ide </FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Director</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">December 30, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Britt Ide</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">/s/ Jessica Billingsley </FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Director</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">December 30, 2024</TD></TR>
  <TR>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">Jessica Billingsley</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">II-10</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>


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{"company-data": {"conformed-name": "Nxu, Inc.", "cik": "0001722969", "assigned-sic": "3713", "organization-name": "04 Manufacturing", "irs-number": "814380534", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-284086", "film-number": "241589919"}, "business-address": {"street1": "7259 EAST POSADA AVE", "city": "MESA", "state": "AZ", "zip": "85212", "phone": "602-309-5425"}, "mail-address": {"street1": "1828 N HIGLEY RD", "street2": "SUITE 116", "city": "MESA", "state": "AZ", "zip": "85205"}, "former-company": {"former-conformed-name": "Atlis Motor Vehicles Inc", "date-changed": "20171116"}}
As
filed with the U.S. Securities and Exchange Commission on December 30, 2024.
Registration
No. 333-
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
S-1
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
Nxu,
Inc.
(Exact
name of registrant as specified in its charter)
Delaware
3711
92-2819012
(State or other jurisdiction
    of incorporation or organization)
(Primary Standard
    Industrial
Classification Code Number)
(I.R.S. Employer
Identification
    No.)
1828
        N Higley Rd., Suite 116
Mesa, Arizona 85205
(602)
    309-5425
(Address, including
    zip code, and telephone number, including area code, of registrant's principal executive offices)
Mark
        Hanchett
Chief
    Executive Officer
1828
    N Higley Rd., Suite 116
Mesa,
    Arizona 85205
(602)
309-5425
(Name, address,
    including zip code, and telephone number, including area code, of agent for service)
Copies to:
Michael
                                            M. Donahey
Eileen
    K. Vernon
Snell & Wilmer L.L.P.
One
    East Washington Street, Suite 2700
Phoenix, Arizona 85004
(602) 382-6000
Approximate
date of commencement of proposed sale to the public:
As soon as practicable after this Registration Statement becomes effective.
If
any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, as amended (the "Securities Act") check the following box: ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or 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 Securities Exchange Act of 1934, as amended
(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 7(a)(2)(B) of the Securities Act. ☐
The
registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the
registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act or until the registration statement shall become effective on such date as the
Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
The
information in this prospectus is not complete and may be changed. The securities may not be sold until the registration statement filed
with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell the securities and is not
soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
SUBJECT
TO COMPLETION DATED DECEMBER 30, 2024
PRELIMINARY PROSPECTUS
Nxu,
Inc.
Up
to 114,503,816 Shares of Class A Common Stock
This
prospectus relates to the resale, from time to time, by the selling stockholders identified in this prospectus under the caption
"Selling Stockholders" of up to an aggregate of (i) 6,800,000 shares (the "Purchased Shares") of the
Company's Class A common stock, $0.0001 par value per share ("Class A common stock"), of Nxu, Inc.
("we," "us," "our," the "Company," or "Nxu"), (ii) pre-funded warrants
to purchase 5,200,000 shares of Class A common stock (the "Pre-Funded Warrants"), (iii) Series A warrants to purchase up
to 57,251,908 shares of Class A common stock (the "Series A Warrants"), and (iv) Series B warrants to purchase up to
45,251,908 shares of Class A common stock (the "Series B Warrants" and together with the Pre-Funded Warrants and the
Series A Warrants, the "Warrants"), in each case to be issued to the selling stockholders in a private placement (the
"Private Placement") pursuant to that certain Securities Purchase Agreement, dated as of December 26, 2024 (the
"Securities Purchase Agreement"). The Purchased Shares and the
shares of Class A common stock issuable upon exercise of the Warrants are referred to herein as the "Registrable
Securities."
The
aggregate offering price for the Purchased Shares and the Warrants sold in the Private Placement was approximately $3,000,000. We will not receive any proceeds from the resale, if any, of the Registrable
Securities by the selling stockholders.
The
Pre-Funded Warrants are exercisable immediately following the date of issuance, may be exercised at any time until all of the Pre-Funded
Warrants are exercised in full, and have an initial exercise price of $0.0001 per share, subject to adjustment. The Series A Warrants
and the Series B Warrants will become exercisable upon receipt of approval of the Company's stockholders relating to the issuance
of the shares of Class A common stock underlying the Series A Warrants and the Series B Warrants as required by the rules and regulations
of The Nasdaq Stock Market LLC ("Nasdaq") (the "Stockholder Consent). The Series A Warrants have an exercise price
of $0.50 per share, subject to adjustment. In addition, with respect to the Series A Warrants, the Investors may also effect an "alternative
cashless exercise" after the Stockholder Consent has been obtained but prior to the time of the closing of the merger contemplated
by the Merger Agreement (as defined below). The Series B Warrants have an exercise price of $0.0001 per share, subject to adjustment.
For further information regarding the Private Placement, see the section titled "The Private Placement" beginning on page
35 of this prospectus.
The
selling stockholders may sell these shares through public or private transactions at market prices prevailing at the time of sale or
at negotiated prices. The timing and amount of any sale are within the sole discretion of the selling stockholders. The selling stockholders
are underwriters within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended (the "Securities Act"),
and any broker-dealers or agents that participate in distribution of the securities will also be underwriters within the meaning of Section
2(a)(11) of the Securities Act, and any profit on sale of the securities by them and any discounts, commissions or concessions received
by them will be underwriting discounts and commissions under the Securities Act. There can be no assurances that the selling stockholders
will sell any or all of the securities offered under this prospectus.
For
further information regarding the possible methods by which the shares may be distributed, see the section titled "Plan of Distribution"
beginning on page 56 of this prospectus. We will pay the expenses incurred in registering the securities covered by this prospectus,
including legal and accounting fees. To the extent the selling stockholders decide to sell their shares of Class A common stock, we will
not control or determine the price at which the shares are sold.
The
Registrable Securities were offered and sold by us pursuant to the exemption provided by Section 4(a)(2) of the Securities
Act and Regulation D promulgated thereunder. We are registering the offer and resale of the Registrable Securities to satisfy the
provisions of that certain registration rights agreement, dated December 26, 2024 (the "Registration Rights Agreement"),
pursuant to which we agreed to register the resale of the Registrable Securities.
Our
Class A common stock is listed on Nasdaq under the symbol "NXU." On December 26, 2024, the last reported sales price of our
Class A common stock as reported on Nasdaq was $0.262 per share. We urge prospective purchasers of our Class A common stock to obtain
current information about the market prices of our Class A common stock.
We
are an "emerging growth company" as that term is defined under the federal securities laws and, as such, we have elected
to comply with certain reduced reporting requirements for this prospectus and may elect to do so in future filings.
The
Company has a dual class structure. Our Class A common stock, which is the stock we are registering by means of this prospectus, has
one vote per share and our Class B common stock, $0.0001 par value per share (the "Class B common stock" and together with
the Class A common stock, "common stock"), has no economic rights and has 10 votes per share. For more information on the
common stock, see the section titled "Description of Securities."
Our
Class B common stock is owned solely by our Chief Executive Officer, Mark Hanchett, and our President, Annie Pratt, who, as of December
2, 2024, own 200,692 and 78,812 shares of our Class B common stock, respectively. As of December 2, 2024, Mr. Hanchett and Ms. Pratt
hold approximately 10.8% and 4.2% of the total voting power of our outstanding common stock, respectively, for an aggregate of approximately
15.0% of the voting power of our outstanding common stock. Mr. Hanchett is also the holder of the sole share of Nxu Series B preferred
stock issued and outstanding, which is entitled to a number of votes equal to the total number of votes that could be cast by holders
of Class A common stock and Class B common stock.
Our
principal executive offices are located at 1828 N Higley Rd., Suite 116, Mesa, Arizona 85205, and our telephone number at that address
is (602) 309-5425.
Investing
in our securities involves a high degree of risk. You should carefully read this prospectus and any prospectus supplement or
amendment before you invest. See the section in this prospectus entitled "Risk Factors" beginning on page 7 and under
similar headings in the other documents that are incorporated by reference into this prospectus for a discussion of information that
should be considered in connection with an investment in our securities.
Neither
the Securities and Exchange Commission (the "SEC") nor any state securities commission has approved or disapproved of these
securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
Prospectus
dated                         ,
2024.
TABLE
OF CONTENTS
ABOUT THIS PROSPECTUS
ii
MARKET AND INDUSTRY DATA
iii
TRADEMARKS, TRADE NAMES AND SERVICE MARKS
iii
SUMMARY OF THE PROSPECTUS
1
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
6
RISK FACTORS
7
THE PRIVATE PLACEMENT
35
USE OF PROCEEDS
38
SECURITIES MARKET INFORMATION
38
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
39
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
    STATEMENTS
43
DESCRIPTION OF SECURITIES
48
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT
53
SELLING STOCKHOLDERS
54
PLAN OF DISTRIBUTION
56
LEGAL MATTERS
58
EXPERTS
58
WHERE YOU CAN FIND ADDITIONAL INFORMATION
58
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
59
INDEX TO FINANCIAL STATEMENTS
F-1
The
registration statement containing this prospectus, including the exhibits to the registration statement, provides additional information
about us and the Class A common stock offered under this prospectus. The registration statement, including the exhibits, can be read
on our website and the website of the Securities and Exchange Commission. See "Where You Can Find More Information."
Information
contained in, and that can be accessed through our website,
www.nxuenergy.com,
shall not be deemed to be part of this
prospectus or incorporated herein by reference and should not be relied upon by any prospective investors for the purposes of determining
whether to purchase the Class A common stock offered hereunder.
Please
read this prospectus carefully. We have prepared this prospectus so that you will have the information necessary to make an informed
investment decision. You should rely only on the information contained in this prospectus or to which we have referred you. We have not
authorized any person to provide you with additional information or different information. We take no responsibility for, and can provide
no assurance as to the reliability of, any information that others may give you. This prospectus may only be used where it is legal to
offer and sell the securities described herein and only during the effectiveness of the registration statement of which this prospectus
forms a part. You should assume the information contained in this prospectus is accurate only as of the date on the front cover of this
prospectus, regardless of the time of delivery of this prospectus or of any sale of our Class A common stock. Neither the delivery of
this prospectus nor any distribution of securities in accordance with this prospectus shall, under any circumstances, imply that there
has been no change in our affairs since the date of this prospectus.
This
prospectus contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our
control. See "Risk Factors" beginning on page 7 of this prospectus and "Cautionary Note Regarding Forward-Looking
Statements" beginning on page 6 of this prospectus.
Unless the
context otherwise requires, the terms "we," "us," "our," "the Company," "Nxu,"
the "Registrant", and "our business" refer Nxu, Inc., and "this offering" refers to the offering
contemplated in this prospectus of the Registrable Securities.
i
ABOUT
THIS PROSPECTUS
This
prospectus forms a part of a registration statement on Form S-1 that we filed with the Securities and Exchange Commission (the "SEC")
using the "shelf" registration process. Under this process, the selling securityholders may from time to time, in one or
more offerings, sell the securities described in this prospectus. We will not receive any proceeds from the resale of Class A common
stock by the selling stockholders.
You
should rely only on the information contained in this prospectus. We have not authorized any other person to provide you with different
information. If anyone provides you with different or inconsistent information, you should not rely on it. This prospectus is an offer
to sell only the securities offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. You should
assume that the information appearing in this prospectus is accurate only as of the date on the front cover of this prospectus. Our business,
financial condition, results of operations and prospects may have changed since that date.
We
may also provide a prospectus supplement or post-effective amendment to the registration statement to add information to, or update or
change information contained in, this prospectus. You should read both this prospectus and any applicable prospectus supplement or post-effective
amendment to the registration statement together with the additional information to which we refer you in the sections of this prospectus
titled "Where You Can Find More Information."
This
prospectus contains summaries of certain provisions contained in some of the documents described herein, but reference is made to the
actual documents for complete information. All of the summaries are qualified in their entirety by the full text of the actual documents.
Copies of some of the documents referred to herein have been filed, will be filed or will be incorporated by reference as exhibits to
the registration statement of which this prospectus is a part, as described in "Incorporation of Certain Documents by Reference"
in this prospectus, and you may obtain copies of those documents as described below under the section entitled "Where You Can Find
More Information." We further note that the representations, warranties and covenants made by us in any agreement that is filed
as an exhibit to any document that is incorporated by reference into this prospectus were made solely for the benefit of the parties
to such agreement, including, in some cases, for the purpose of allocating risk among the parties to such agreements, and should not
be deemed to be a representation, warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate
only as of the date when made. Accordingly, such representations, warranties and covenants should not be relied on as accurately representing
the current state of our affairs.
For
investors outside the United States: We have not taken any action to permit the possession or distribution of this prospectus in any
jurisdiction other than the United States where action for that purpose is required. Persons outside the United States who come into
possession of this prospectus must inform themselves about and observe any restrictions relating to the Class A common stock and the
distribution of this prospectus outside the United States.
Unless
otherwise indicated or the context otherwise requires, all references in this prospectus to the terms "Nxu," the "Company,"
"we," "our" or "us" refer to Nxu, Inc., a Delaware corporation, either individually or together with
its consolidated subsidiaries, as the context requires.
ii
MARKET
AND INDUSTRY DATA
Market
and industry data and forecasts used in this prospectus have been obtained from independent industry sources as well as from research
reports prepared for other purposes. We are responsible for all of the disclosure in this prospectus, and although we believe these third-party
sources to be reliable, we have not independently verified the data obtained from these sources, and we cannot assure you of the accuracy
or completeness of the data. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications
and uncertainties as the other forward-looking statements in this prospectus.
TRADEMARKS,
TRADE NAMES AND SERVICE MARKS
This
document contains references to trademarks, trade names and service marks belonging to other entities. Solely for convenience, trademarks,
trade names and service marks referred to in this prospectus may appear without the ® or ™ symbols, but such references are
not intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its rights
to these trademarks and trade names. We do not intend our use or display of other companies' trade names, trademarks or service
marks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.
SMALLER
REPORTING COMPANY
We
are a "smaller reporting company" under applicable SEC rules and, as such, have elected to comply with certain reduced public
company disclosure requirements for this prospectus and future filings. See "Summary of the Prospectus — Smaller Reporting
Company" for additional information.
iii
SUMMARY
OF THE PROSPECTUS
This
summary highlights selected information from this prospectus and does not contain all of the information that is important to you in
making an investment decision. You should read the entire prospectus carefully, including the information under the headings "Risk
Factors" beginning on page 7 of this prospectus, "Cautionary Note Regarding Forward-Looking Statements" beginning
on page 6 of this prospectus and the financial statements beginning on page F-1 of this prospectus.
Overview
We
are a US-based technology company leveraging its intellectual property and innovations to support energy storage and charging solutions
for the infrastructure needed to power an electrified future. We historically focused on building megawatt ("MW") charging
stations and developing innovative battery cells and battery packs for use in advanced energy storage systems and mobility products.
Following
a shift in focus in the latter half of 2023, we continued developing and producing its NxuOne™ megawatt charging station in our
Mesa, Arizona facility. As of March 31, 2024, we successfully launched our first charging station and produced multiple production
units ready for deployment. Production costs, including costs of materials and labor, reduced with each unit produced, as we focused
on scale and efficiency. We started the second quarter of 2024 centered on developing plans for charging station deployment, continued
scaled production of its NxuOne™ megawatt charging station, and initial design of future charging products.
On
May 10, 2024, we announced our intention to evaluate strategic alternatives, with the Strategic Planning Committee of our board
of directors (the "Strategic Planning Committee") leading such evaluation with outside assistance from advisors. As we conducted
our strategic alternative review process, we focused on reducing costs to maximize the strength of our balance sheet and reduce our use
of cash. On May 10, 2024, we significantly reduced its headcount across Product, Engineering, Manufacturing, and General &
Administrative functions as a cost saving measure, as we successfully pursued avenues for a business combination with limited access
to continued capital funding.
On
October 23, 2024, the Company, NXU Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of the Company ("Merger
Sub I"), NXU Merger Sub, LLC, a Delaware limited liability company ("Merger Sub II") and Verde Bioresins, Inc., a Delaware
corporation ("Verde"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which,
among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub I will
merge with and into Verde, with Verde continuing as a wholly owned subsidiary of Nxu and the surviving corporation of the first merger
(the "First Merger") and promptly following the First Merger, Verde shall merge with and into Merger Sub II (the "Second
Merger" and together with the First Merger, the "Merger"), with Merger Sub II continuing as the surviving entity of
the Second Merger.
Subject
to the terms and conditions of the Merger Agreement, (i) immediately prior to the effective time of the First Merger (the "Effective
Time"), all outstanding convertible notes of Verde will be converted into shares of Verde common stock and all outstanding and
unexercised Verde warrants will be exercised for shares of Verde common stock, and (ii) at the Effective Time, (a) each then-outstanding
share of Verde common stock, other than any cancelled shares and dissenting shares, will be converted into the right to receive a number
of shares of Nxu common stock, and (b) each then-outstanding and unexercised Verde option to purchase shares of Verde common stock, whether
vested or unvested, will be assumed by Nxu and converted into an option to purchase a number of shares of Nxu common stock. The shares
of Nxu common stock that will be issued to Verde stockholders and the number of shares of Nxu common stock underlying options that will
be issuable to Verde optionholders will be calculated using a formula in the Merger Agreement based on the enterprise value of each of
Verde and Nxu. Verde has been ascribed an aggregate enterprise value of approximately $306.9 million, and Nxu's aggregate enterprise
value will be an amount equal to approximately $16.2 million less an amount equal to the excess of certain lease payments remaining unpaid
at the closing of the Merger over Nxu's cash balance at closing. Upon the closing of the Merger, assuming Nxu's aggregate
enterprise value is approximately $16.2 million, pre-Merger Verde stockholders will own approximately 95% of the combined company and
pre-Merger Nxu stockholders will own approximately 5% of the combined company, in each case, on a fully-diluted and as-converted basis.
1
There
can be no assurance that we will be successful in effecting the Merger or any other transactions or realizing any of the intended benefits,
including obtaining a sufficient level of capital through this or other channels in the time frames needed to sustain or grow the business
or on terms agreeable to us. As we focus on a Merger with Verde, we remain focused on reducing costs to maximize the strength of our
balance sheet, reducing our use of cash, and continuing to evaluate all feasible paths to raising capital to fund operations through
the date of a merger closing.
Nxu
is an early-stage company and as such, has incurred losses from operations and has had negative cash flows from operating activities
since our inception.
In
light of our liquidity position and anticipated future funding requirements, we continue to pursue all available options for funding
including seeking funding in the form of potential equity and/or debt financing arrangements or similar transactions, further reducing
expenses, and selling assets. Even if we are successful in implementing the Merger or other strategic alternative, we will continue to
require additional funding. The Company cannot provide any assurance that access to capital will be readily available when needed or
that it will be successful in implementing the Merger or other strategic alternative, which is subject to the satisfaction of conditions
beyond the Company's control. If we are unable to complete the Merger or other strategic transaction in a timely manner, we could
be required to dissolve and liquidate our assets under the bankruptcy laws or otherwise.
Corporate
Information
We
were originally incorporated under the laws of the State of Delaware on November 9, 2016 under the name "Atlis Motor Vehicles Inc."
(the "Predecessor"). In connection with the Reorganization Merger (as defined below), Nxu was incorporated under the laws
of the State of Delaware on March 10, 2023. On May 12, 2023, the Predecessor completed the Reorganization Merger pursuant to an agreement
and plan of merger, dated as of April 16, 2023 (the "Reorganization Agreement"), by and among the Predecessor, Nxu and Atlis
Merger Sub, Inc., a Delaware corporation and, as of immediately prior to the consummation of such merger, a wholly-owned subsidiary of
Nxu ("Merger Sub"). The Reorganization Agreement provided for the merger of the Predecessor and Merger Sub, with the Predecessor
surviving the merger as a wholly-owned subsidiary of Nxu (the "Reorganization Merger"). Following the closing of the Reorganization
Merger, Nxu's Class A common stock commenced trading on Nasdaq under the ticker "NXU".
Our
principal executive offices are located at 1828 North Higley Road, Mesa, AZ 85205. Our website address is
www.nxuenergy.com
. The
information provided on or accessible through our website (or any other website referred to in the registration statement, of which this
prospectus forms a part, or the documents incorporated by reference herein) is not part of the registration statement, of which this
prospectus forms a part, and is not incorporated by reference as part of the registration statement, of which this prospectus forms a
part.
Implications
of Being an Emerging Growth Company and Smaller Reporting Company
We
qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012, as amended (the "JOBS
Act"). As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as
we are an emerging growth company, we will not be required to:
●
have
                                            an auditor report on our internal controls over financial reporting pursuant to Section 404(b)
                                            of the Sarbanes-Oxley Act of 2022, as amended;
●
comply
                                            with any requirement that may be adopted by the Public Company Accounting Oversight Board
                                            regarding mandatory audit firm rotation or a supplement to the auditor's report providing
                                            additional information about the audit and the financial statements (i.e., an auditor discussion
                                            and analysis);
2
●
submit
                                            certain executive compensation matters to stockholder advisory votes, such as "say-on-pay,"
                                            "say-on-frequency" and pay ratio; and
●
disclose
                                            certain executive compensation related items such as the correlation between executive compensation
                                            and performance and comparisons of the chief executive officer's compensation to median
                                            employee compensation.
In
addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period
provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging
growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.
We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable
to those of companies that comply with such new or revised accounting standards.
We
will remain an "emerging growth company" for up to five years, or until the earlier of (i) December 31, 2027, the last day
of the fiscal year (a) following the fifth anniversary of the closing of our initial public offering, (b) in which our total annual gross
revenues are at least $1.235 billion, or (c) in which we are deemed a "large accelerated filer" as defined in Rule 12b-2
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which would occur if the market value of our
Class A common stock that are held by non-affiliates exceeds $700 million as of the last business day of our most recently completed
second fiscal quarter, and (ii) the date on which we have issued more than $1 billion in non-convertible debt during the prior three
year period.
We
are also a "smaller reporting company" as defined by Rule 12b-2 of the Exchange Act. We may continue to be a smaller reporting
company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available
to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as the market value of our
voting and non-voting Class A common stock held by non-affiliates is less than $250.0 million measured on the last business day of our
second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market
value of our voting and non-voting Class A common stock held by non-affiliates is less than $700.0 million measured on the last business
day of our second fiscal quarter.
Summary
Risk Factors
Investing
in our securities involves risks. You should carefully consider the risks described in "Risk Factors" beginning on page 7 before making a decision to invest in our Class A common stock. If any of these risks actually occurs, our business, financial condition
and results of operations would likely be materially adversely affected. In such case, the trading price of our securities would likely
decline, and you may lose all or part of your investment. Set forth below is a summary of some of the principal risks we face:
Risks
Related to this Offering
●
Investors
                                            who buy shares at different times will likely pay different prices.
●
The
                                            issuance of Class A common stock to the selling stockholders may cause substantial dilution
                                            to our existing stockholders and the sale of such shares acquired by the selling stockholders
                                            could cause the price of our Class A common stock to decline.
3
Risks
Related to the Merger
●
Failure
                                            to complete the Merger could harm our Class A common stock price and future business and
                                            operations of the Company.
●
The
                                            completion of the Merger is subject to conditions, some or all of which may not be satisfied
                                            or completed on a timely basis, if at all. Failure to complete the Merger could have material
                                            adverse effects on the Company.
●
If
                                            the Merger is not completed, the Company's stock price may decline significantly.
●
During
                                            the pendency of the Merger, the Company may be limited in its ability to enter into a business
                                            combination with another party on more favorable terms because of restrictions in the Merger
                                            Agreement, which could adversely affect its respective business prospects.
●
The
                                            Merger will involve substantial costs and will require substantial management resources.
●
Another
                                            attractive strategic transaction may not be available if the Merger is not completed.
●
If
                                            the Company does not successfully consummate the Merger or another strategic transaction,
                                            the Company's board of directors may decide to pursue a dissolution and liquidation
                                            of the Company.
●
The
                                            Company is substantially dependent on its remaining employees to facilitate the consummation
                                            of the Merger.
Risks
Related to the Company
●
The
                                            Company is an early-stage company with a limited operating history that has never turned
                                            a profit and there are no assurances that the Company will ever be profitable.
●
The
                                            Company has incurred significant losses since its inception, and it expects to continue to
                                            incur losses for the foreseeable future. Accordingly, its financial condition raises substantial
                                            doubt regarding its ability to continue as a going concern.
●
Our
                                            limited operating history makes it difficult for us to evaluate its future business prospects.
●
The
                                            Company generated revenue for the first time in 2023, but there is no assurance that it will
                                            be able to continue to generate revenue from the operations of the NxuOne™ Charging
                                            Network.
●
The
                                            Company has losses which it expects to continue into the future. There is no assurance its
                                            future operations will result in a profit. If we cannot generate sufficient revenues to operate
                                            profitably or we are unable to raise enough additional funds for operations, our stockholders
                                            will experience a decrease in value, and we may have to cease operations.
●
The
                                            Company needs to raise additional capital to meet its future business requirements and such
                                            capital raising may be costly or difficult to obtain and could dilute current stockholders'
                                            ownership interest.
●
The
                                            Class A common stock may be delisted from Nasdaq if the Company does not maintain compliance
                                            with Nasdaq's continued listing requirements. If the Class A common stock is delisted,
                                            it could negatively impact the Company.
●
If
                                            the market price of the Class A common stock continues to remain under $1.00 per share, the
                                            only cure may be to enact a reverse split of the stock. Failure to maintain compliance with
                                            Nasdaq's Continued Listing Rules could be costly and have material adverse effects.
4
The
Offering
Issuer
Nxu, Inc.,
    a Delaware corporation.
Securities Offered by Selling Stockholders
114,503,816 shares of Class
    A common stock, comprised of (i) 6,800,000 Purchased Shares, (ii) 5,200,000 shares of Class A common stock issuable upon exercise
    of the Pre-Funded Warrants; (iii) up to 57,251,908 shares of Class A common stock issuable upon exercise of the Series A Warrants;
    and (iv) up to 45,251,908 shares of Class A common stock issuable upon exercise of the Series B Warrants.
Class A Common Stock To Be Outstanding after this Offering,
    Assuming Exercise of the Pre-Funded Warrants, the Series A Warrants and the Series B Warrants
131,123,873 shares of Class
    A common stock (assuming full exercise of the Pre-Funded Warrants, the Series A Warrants the Series B Warrants)
Terms of the Offering
The selling stockholders
    and any of its pledgees, assignees and successors-in-interest will determine when and how they sell the shares offered in this prospectus
    and may, from time to time, sell any or all of their shares covered hereby on Nasdaq or any other stock exchange, market or trading
    facility on which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. See "Plan
    of Distribution" in this prospectus.
Use of Proceeds
We will not receive any proceeds from the
resale, if any, of the Registrable Securities by the selling stockholders. See "Use of Proceeds."
Risk Factors
Investment in our
    securities involves a high degree of risk and could result in a loss of your entire investment. See "Risk Factors"
    beginning on page 7 of this prospectus and the similarly entitled sections in the documents incorporated by reference into this
    prospectus.
Nasdaq Capital Market Symbol
Our shares of Class A common
    stock are listed on Nasdaq under the symbol "NXU."
Except as otherwise indicated herein, the number
of shares of our Class A common stock to be outstanding after this offering is based on 16,620,057 shares of Common Stock outstanding
as of December 23, 2024, plus the Purchased Shares, assumes we issue the additional 107,703,816 shares of Class A common stock that
are issuable under the Pre-Funded Warrants, the Series A Warrants, and the Series B Warrants, and excludes:
●
997,698 shares
                                            of Class A common stock issuable upon the exercise of outstanding options at a weighted average
                                            exercise price of $317.36 per share;
●
109,513 shares
                                            of Class A common stock issuable upon the exercise of outstanding warrants at a weighted-average
                                            exercise price of $97.93 per share;
●
A
                                            maximum of 66,667 shares of Class A common stock issuable upon the conversion of outstanding
                                            convertible notes (assuming a minimum conversion price of $0.15 per share);
●
3,495,518 shares
                                            of Class A common stock issuable upon vesting of outstanding restricted stock units under
                                            our equity incentive plan;
●
48,463,249 shares
                                            of Class A common stock reserved for issuance under our equity incentive plan; and
●
shares
                                            of Nxu common stock to be issued to Verde stockholders and shares of Nxu common stock underlying
                                            options that will be issuable to Verde optionholders in connection with the Merger.
Unless
otherwise indicated, all information in this prospectus assumes no exercise of the outstanding options and warrants, no conversion of
the outstanding convertible notes, no vesting of the outstanding restricted stock units and no issuance of shares of Nxu common stock
in connection with the Merger described in the bullets above. To the extent that options or warrants are exercised, convertible notes
are converted, restricted stock units vest, the Merger closes, new awards are granted under our equity incentive plan, or we issue additional
shares of Class A common stock or warrants in the future, there will be further dilution to investors participating in this offering.
5
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
The
information in this prospectus includes "forward-looking statements" within the meaning of Section 27A of the Securities
Act, and Section 21E of the Exchange Act. When used in this prospectus, including any oral statements made in connection therewith, the
words "could," "should," "will," "may," "believe," "anticipate,"
"intend," "estimate," "expect," "project," the negative of such terms and other similar
expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying
words. In particular, statements regarding our ability to continue as a going concern; our ability to complete the Merger in a timely
manner or at all and challenges to achieving strategic objectives, synergies and other anticipated benefits from the Merger; our belief
that additional funding will be required in order to continue operations; our ability to obtain additional funding in the form of potential
equity and/or debt financing arrangements or similar transactions; any plans to seek strategic alternatives for our business; expectations
and opportunities, industry trends, new product expectations and capabilities; and our outlook regarding our performance and growth are forward-looking statements. This
prospectus also contains statements regarding plans, goals and objectives. There is no assurance that we will be able to carry out our
plans or achieve our goals and objectives or that we will be able to do so successfully on a profitable basis. These forward-looking
statements are based on management's current expectations and assumptions about future events and are based on currently available
information as to the outcome and timing of future events. These forward-looking statements are just predictions and involve significant
risks and uncertainties, many of which are beyond our control, and actual results may differ materially from these statements. The principal
risks and uncertainties include those listed under "Summary of the Prospectus—Summary Risk Factors" in this prospectus.
Additionally, the section in this prospectus entitled "Risk Factors" beginning on page 7 of this prospectus and the
sections in our periodic reports, including our most recent Form 10-K entitled "Business," and in the Form 10-K
and the subsequent Forms 10-Q entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations,"
as well as other sections in this prospectus and the documents or reports incorporated by reference into this prospectus, further discuss
some of the important factors that we believe could cause actual results or events to differ materially from the forward-looking statements
that we make.
Moreover,
we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management
to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Given these
risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements
are qualified in their entirety by this cautionary statement. You should read this prospectus and the documents that we have filed as
exhibits to this prospectus and incorporated by reference herein completely and with the understanding that our actual future results
may be materially different from the plans, intentions and expectations disclosed in the forward-looking statements we make. The forward-looking
statements contained in this prospectus are made as of the date of this prospectus and we do not assume any obligation to update any
forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
6
RISK
FACTORS
Investing
in our securities involves a high degree of risk. You should consider carefully the risks described below, together with all of the other
information included or incorporated by reference in this prospectus, including those discussed under "Cautionary Note Regarding
Forward-Looking Statements" beginning on page 6 of this prospectus and the risks and uncertainties discussed under "Risk
Factors" in our annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, which have been filed
with the SEC and are incorporated by reference in this prospectus, as well as any updates thereto contained in subsequent filings with
the SEC or any free writing prospectus, before deciding whether to purchase our securities in this offering. All of these risk factors
are incorporated herein in their entirety. The risks described below and incorporated by reference are material risks currently known,
expected or reasonably foreseeable by us. However, the risks described below and incorporated by reference are not the only ones that
we face. Additional risks not presently known to us or that we currently deem immaterial may also affect our business, operating results,
prospects or financial condition. If any of these risks actually materialize, our business, prospects, financial condition, and results
of operations could be seriously harmed. This could cause the trading price of our Class A common stock to decline, resulting in a loss
of all or part of your investment.
Risks
Related to this Offering
Investors
who buy shares at different times will likely pay different prices.
Investors
who purchase shares in this offering at different times will likely pay different prices, and so may experience different levels of dilution
and different outcomes in their investment results. Similarly, the selling stockholders may sell such shares at different times and at
different prices. Investors may experience a decline in the value of the shares they purchase from the selling stockholders in this offering
as a result of sales made by us in future transactions to the selling stockholders at prices lower than the prices they paid. The selling
stockholders will have discretion to vary the timing, prices, and number of shares sold in this offering. Investors may experience a
decline in the value of their shares of our Class A common stock. The trading price of our Class A common stock has been volatile and
subject to wide fluctuations.
The
issuance of Class A common stock to the selling stockholders may cause substantial dilution to our existing stockholders and the sale
of such shares acquired by the selling stockholders could cause the price of our Class A common stock to decline.
We
are registering for resale by the selling stockholders up to 114,503,816 shares of Class A common stock, consisting of (1) 6,800,000
Purchased Shares, (2) 5,200,000 shares of Class A common stock issuable upon exercise of the Pre-Funded Warrants, (3) up to
57,251,908 shares of Class A common stock issuable upon exercise of the Series A Warrants, and (4) up to 45,251,908 shares of Class
A common stock issuable upon exercise of the Series B Warrants. The number of shares of our Class A common stock ultimately offered for
resale by the selling stockholders under this prospectus is dependent the number of Registrable Securities issued. Depending on a variety
of factors, including market liquidity of our Class A common stock, the issuance of shares to the selling stockholders may cause the
trading price of our Class A common stock to decline.
Future
sales of our Class A common stock could cause the market price for our Class A common stock to decline.
We
cannot predict the effect, if any, that market sales of shares of our Class A common stock or the availability of shares of our Class
A common stock for sale will have on the market price of our Class A common stock prevailing from time to time. Sales of substantial
amounts of shares of our Class A common stock in the public market, or the perception that those sales will occur, could cause the market
price of our Class A common stock to decline or be depressed.
The
shares of Class A common stock issued in connection with this offering will be freely tradeable without restriction or further registration
under the Securities Act.
7
Risks
Related to the Merger
Failure
to complete the Merger could harm the Class A common stock price and future business and operations of the Company.
If
the Merger is not completed, the price of Class A common stock may decline and could fluctuate significantly, and Nxu will still
incur costs related to the Merger, such as financial advisor, legal and accounting fees, a majority of which must be paid even if the
Merger is not completed. If the Merger Agreement is terminated and the Nxu board of directors determines to seek another business combination,
there can be no assurance that Nxu will be able to find another third party to transact a business combination with, yielding comparable
or greater benefits.
The
price of Nxu's Class A common stock may also fluctuate significantly based on announcements by Verde, other third parties, or Nxu
regarding the Merger or based on market perceptions of the likelihood of the satisfaction of the conditions to the consummation of the
Merger. Such announcements may lead to perceptions in the market that the Merger may not be completed, which could cause Nxu's
share price to fluctuate or decline.
If
the parties do not consummate the Merger, the price of Nxu's Class A common stock may decline significantly from the current market
price, which may reflect a market assumption that the Merger will be consummated. Any of these events could have a material adverse effect
on Nxu's business, operating results and financial condition and could cause a decline in the price of Nxu's Class A common
stock.
If
the parties do not successfully consummate the Merger or another strategic transaction, the Nxu board of directors may decide to pursue
a dissolution and liquidation of Nxu. In such an event, the amount of cash available for distribution to the Nxu stockholders will depend
heavily on the costs and timing of such liquidation as well as the amount of cash that will need to be reserved for commitments and contingent
liabilities, as to which Nxu can give no assurance.
The
completion of the Merger is subject to conditions, some or all of which may not be satisfied or completed on a timely basis, if at all.
Failure to complete the Merger could have material adverse effects on Nxu.
Even
if the required proposals in connection with the Merger are approved by the stockholders of Nxu, specified conditions must be satisfied
or, to the extent permitted by applicable law, waived to complete the Merger. We cannot assure you that all of the conditions to the
consummation of the Merger will be satisfied or waived. If the conditions are not satisfied or waived, the Merger may not occur or the
Merger closing may be delayed.
The
parties cannot predict whether and when the conditions to the Merger will be satisfied, including but not limited to the requirement
that Nxu stockholders approve the issuance of adequate shares to complete the Merger and effect a change of control pursuant to certain
approval requirements of the Nasdaq Capital Market as well as approval of certain other proposals to be submitted to Nxu stockholders.
If one or more of these conditions are not satisfied, and as a result, the parties do not complete the Merger, the parties would remain
liable for significant transaction costs, and the focus of each party's management would have been diverted from seeking other
potential strategic opportunities, in each case without realizing any benefits of the Merger. Certain costs associated with the Merger
have already been incurred or may be payable even if the Merger is not consummated. Finally, any disruptions to each party's business
resulting from the announcement and pendency of the Merger, including any adverse changes in each party's relationships with customers,
clients, suppliers and employees, could continue or accelerate in the event that the parties fail to consummate the Merger.
In
addition, the Merger Agreement generally requires Nxu to operate in the ordinary course of business consistent with past practice, pending
consummation of the Merger, and restricts Nxu from taking certain actions with respect to Nxu business and financial affairs without
Verde's consent. Such restrictions will be in place until either the Merger is consummated or the Merger Agreement is terminated.
These restrictions could restrict Nxu's ability to, or prevent Nxu from, pursuing attractive business opportunities (if any) that
arise prior to the consummation of the Merger. For these and other reasons, the pendency of the Merger could adversely affect Nxu's
business, operating results and financial condition.
8
If
the Merger is not completed, Nxu's stock price may decline significantly.
The
market price of Nxu common stock is subject to significant fluctuations. Market prices for securities of technology companies have historically
been particularly volatile. In addition, the market price of Nxu common stock will likely be volatile based on whether stockholders and
other investors believe that Nxu can complete the Merger or otherwise raise additional capital to support Nxu's operations if the
Merger is not consummated and another strategic transaction cannot be identified, negotiated and consummated in a timely manner, or at
all. The volatility of the market price of Nxu common stock has been and may be exacerbated by low trading volume. Additional factors
that may cause the market price of Nxu common stock to fluctuate include:
●
the
                                            loss of key employees;
●
future
                                            sales of its common stock;
●
general
                                            and industry-specific economic conditions that may affect its research and development expenditures;
●
the
                                            failure to meet industry analyst expectations; and
●
period-to-period
                                            fluctuations in financial results.
Moreover,
the stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of individual
companies. These broad market fluctuations may also adversely affect the trading price of Nxu common stock. In the past, following periods
of volatility in the market price of a company's securities, stockholders have often instituted class action securities litigation
against such companies.
Nxu
stockholders will generally have a reduced ownership and voting interest in, and will exercise less influence over the management of,
the combined company following the completion of the Merger as compared to their current ownership and voting interests in Nxu.
After
the completion of the Merger, the current stockholders of Nxu will generally own a smaller percentage of the combined company than their
ownership of Nxu prior to the Merger. Immediately after the Merger, Nxu stockholders as of immediately prior to the Merger are expected
to own approximately 5% of the outstanding shares of capital stock of the combined company and former Verde stockholders are expected
to own approximately 95% of the outstanding shares of capital stock of the combined company, in each case, on a fully-diluted and as-converted
basis. Nxu's assumed aggregate enterprise value will be reduced by the excess of certain lease payments remaining unpaid at the
Merger closing over Nxu's cash balance at the Merger closing, and any such reduction will decrease the ownership percentage interest
of pre-Merger Nxu stockholders in the combined company. As a result, some stockholders will hold a smaller pro rata share and, therefore,
a lower percentage of the voting stock of the combined company than such stockholder currently holds in Nxu as a stand-alone company.
During
the pendency of the Merger, Nxu may be limited in its ability to enter into a business combination with another party on more favorable
terms because of restrictions in the Merger Agreement, which could adversely affect its respective business prospects.
Covenants
in the Merger Agreement impede the ability of Nxu to solicit proposals or offers relating to acquisitions or similar transactions during
the pendency of the Merger, subject to specified exceptions. As a result, if the Merger is not completed, Nxu may be at a disadvantage
to its competitors during that period. In addition, while the Merger Agreement is in effect, Nxu is generally prohibited from soliciting,
seeking, initiating or knowingly encouraging, inducing or facilitating the communication, making, submission or announcement of any acquisition
or competing proposal or taking any action that could reasonably be expected to lead to certain transactions involving a third party,
including a merger, sale of assets or other business combination, subject to specified exceptions. Any such transactions could be favorable
to Nxu stockholders, but Nxu may be unable to pursue them.
Certain
provisions of the Merger Agreement may discourage third parties from submitting competing proposals, including proposals that may be
superior to the transactions contemplated by the Merger Agreement.
The
terms of the Merger Agreement prohibit Nxu from soliciting competing proposals or cooperating with persons making unsolicited takeover
proposals, except in limited circumstances as set forth in the Merger Agreement. Any such proposals could be favorable to Nxu stockholders.
In addition, if Nxu or Verde terminates the Merger Agreement under specified circumstances, Verde could be required to pay Nxu a termination
fee of $1.0 million. This termination fee may discourage third parties from submitting competing proposals to Nxu or its stockholders,
and may cause the Nxu board of directors to be less inclined to recommend a competing proposal.
9
Stockholder
litigation could prevent or delay the consummation of the Merger or otherwise negatively impact Nxu's or the combined company's
business, operating results and conditions.
Putative
stockholder complaints, including stockholder class action complaints, and other complaints may be filed against Nxu and/or the Nxu board
of directors in connection with the transactions contemplated by the Merger Agreement. The outcome of litigation is uncertain, and Nxu
may not be successful in defending against any such future claims. Nxu could incur significant costs in connection with any such litigation,
including costs associated with the indemnification of Nxu's directors and officers. Additionally, such litigation could delay
or prevent the Merger, divert the attention of the management teams and employees of Nxu from day-to-day business and otherwise
adversely affect the business and financial condition of Nxu or the combined company.
Furthermore,
one of the conditions to the consummation of the Merger is the absence of any governmental order or law preventing the consummation of
the Merger or making the consummation of the Merger illegal. Consequently, if a plaintiff were to secure injunctive or other relief prohibiting,
delaying or otherwise adversely affecting Nxu's or Verde's ability to complete the consummation of the Merger, then such
injunctive or other relief may prevent the Merger from becoming effective within the expected time frame or at all.
The
issuance of Nxu common stock to Verde stockholders pursuant to the Merger Agreement and the resulting change in control from the Merger
must be approved by Nxu stockholders, and the Merger Agreement and the transactions contemplated thereby must be approved by the Verde
stockholders. Failure to obtain these approvals would prevent the closing of the Merger.
Before
the Merger can be completed, the Nxu stockholders must approve, among other things, the issuance of Nxu common stock to Verde stockholders
pursuant to the Merger Agreement and the resulting change in control from the Merger, and Verde stockholders must adopt the Merger Agreement
and approve the Merger and the related transactions. Concurrently with the execution of the Merger Agreement, Nxu entered into the Support
Agreement (as defined in the Merger Agreement) with the Support Stockholders (as defined in the Merger Agreement) pursuant to which the
Support Stockholders agreed to, among other things, (a) from the date of the Nxu Support Agreement to the Support Expiration Time
(as defined in the Merger Agreement), vote at any meeting or pursuant to any action of written resolution of the stockholders of Nxu
all of their Nxu common stock, held of record or thereafter acquired: (i) in favor of the Merger and the other proposals and (ii) against
any competing acquisition proposal; and (b) be bound by certain other covenants and agreements related to the Merger, in each case,
on the terms and subject to the conditions set forth in the Nxu Support Agreement. However, failure to obtain the required stockholder
approvals may result in a material delay in, or the abandonment of, the Merger. Any delay in completing the Merger may materially adversely
affect the timing and benefits that are expected to be achieved from the Merger.
The
Merger will involve substantial costs and will require substantial management resources.
In
connection with the consummation of the Merger, management and financial resources of Nxu have been diverted and will continue to be
diverted towards the completion of the Merger. Nxu expects to incur substantial costs and expenses relating to, as well as the direction
of management resources towards, the Merger. Such costs, fees and expenses include fees and expenses payable to financial advisors, other
professional fees and expenses, fees and costs relating to regulatory filings and filings with the SEC and notices and other transaction-related
costs, fees and expenses. If the Merger is not completed, Nxu will have incurred substantial expenses and expended substantial management
resources for which Nxu will have received little to no benefit if the Merger closing does not occur.
Another
attractive strategic transaction may not be available if the Merger is not completed.
If
the Merger is not completed and is terminated, there can be no assurance that Nxu will be able to find a party willing to pay equivalent
or more attractive consideration than the consideration to be provided under the Merger Agreement or be willing to proceed at all with
a similar transaction or any alternative transaction.
10
We
have additional securities available for issuance, which, if issued, including in connection with the Merger, could adversely affect
the rights of the holders of our Class A common stock.
Our
Certificate of Incorporation, as amended, authorizes the issuance of 4,000,000,000 shares of our Class A common stock, 1,000,000,000
shares of our Class B common stock, and 10,000,000 shares of preferred stock. In certain circumstances, our common stock, as well as
the awards available for issuance under our equity incentive plan, can be issued by our board of directors, without stockholder approval.
Any future issuances of such stock, including pursuant to outstanding equity awards, would further dilute the percentage ownership of
us held by holders of Class A common stock. In addition, the issuance of certain securities, may be used as an "anti-takeover"
device without further action on the part of our stockholders, and may adversely affect the holders of Class A common stock.
Furthermore,
if the Merger is consummated, assuming Nxu's aggregate enterprise value is approximately $16.2 million, it is expected that pre-Merger
Verde stockholders will own approximately 95% of the combined company and pre-Merger Nxu stockholders will own approximately 5% of the
combined company, in each case, on a fully-diluted and as-converted basis. As a result, pre-Merger Nxu stockholders will experience substantial
dilution of their ownership interests in the event that the Merger is consummated.
Risks
Related to Nxu's Strategic Alternative Process and Potential Strategic Transaction
Nxu
cannot be sure if or when the Merger will be completed.
The
consummation of the Merger is subject to the satisfaction or waiver of various conditions, including the authorization of the Merger
by Nxu's stockholders and Verde's stockholders. Nxu cannot guarantee that the closing conditions set forth in the Merger
Agreement will be satisfied. If Nxu is unable to satisfy certain closing conditions or if other mutual closing conditions are not satisfied,
Verde will not be obligated to complete the Merger. Under certain circumstances, Verde would be required to pay Nxu a termination fee
of $1.0 million.
If
the Merger is not completed, the Nxu board of directors, in discharging its fiduciary obligations to Nxu's stockholders, would
evaluate other strategic alternatives or financing options that may be available, which alternatives may not be as favorable to Nxu's
stockholders as the Merger, including a liquidation and dissolution. Any future sale or merger, financing or other transaction, including
a liquidation or dissolution, may be subject to further stockholder approval. Nxu may also be unable to find, evaluate or complete other
strategic alternatives, which may have a materially adverse effect on Nxu's business.
Until
the Merger is completed, the Merger Agreement restricts Nxu from taking specified actions without the consent of Verde and requires Nxu
to operate in the ordinary course of business consistent with past practice. These restrictions may prevent Nxu from making appropriate
changes to its business or pursuing attractive business opportunities that may arise prior to the completion of the Merger. Further,
if certain of Nxu's lease payments remaining unpaid at the Merger closing exceed Nxu's cash balance at the Merger closing,
then the pre-Merger stockholders of Nxu will own less of the combined company pursuant to the exchange ratio adjustment set forth in
the Merger Agreement.
Any
delay in completing the Merger may materially and adversely affect the timing and benefits that are expected to be achieved from the
Merger.
If
Nxu does not successfully consummate the Merger or another strategic transaction, Nxu's board of directors may decide to pursue
a dissolution and liquidation of Nxu. In such an event, the amount of cash available for distribution to Nxu's stockholders will
depend heavily on the costs and timing of such liquidation as well as the amount of cash that will need to be reserved for commitments
and contingent liabilities, as to which Nxu can give you no assurance.
There
can be no assurance that the Merger will be completed. If the Merger is not completed, Nxu's board of directors may decide to pursue
a dissolution and liquidation of Nxu. In such an event, the amount of cash available for distribution to Nxu's stockholders will
depend heavily on the costs related to and timing of such decision and, ultimately, such liquidation, since the amount of cash available
for distribution continues to decrease as Nxu funds its operations while pursuing the Merger. In addition, if Nxu's board of directors
were to approve and recommend, and Nxu's stockholders were to approve, a dissolution and liquidation of Nxu, Nxu would be required
under Delaware corporate law to pay Nxu's outstanding obligations, as well as to make reasonable provision for contingent and unknown
obligations, prior to making any distributions in liquidation to stockholders. Nxu's commitments and contingent liabilities may
include obligations under Nxu's employment and related agreements with certain employees that provide for certain payments following
a termination of employment occurring for various reasons, including a change in control of Nxu, which may include a dissolution of Nxu,
litigation against Nxu, and other various claims and legal actions arising in the ordinary course of business, and other unexpected and/or
contingent liabilities. As a result of this requirement, a portion of Nxu's assets would need to be reserved pending the resolution
of such obligations.
11
In
addition, Nxu may be subject to litigation or other claims related to a dissolution and liquidation of Nxu. If a dissolution and liquidation
were to be pursued, Nxu's board of directors, in consultation with Nxu's advisors, would need to evaluate these matters and
make a determination about a reasonable amount to reserve. Accordingly, holders of Nxu's common stock could lose all or a significant
portion of their investment in the event of liquidation, dissolution or winding up of Nxu. A liquidation would be a lengthy and uncertain
process with no assurance of any value ever being returned to Nxu's stockholders.
Nxu
is substantially dependent on Nxu's remaining employees to facilitate the consummation of the Merger.
Nxu's
ability to consummate a strategic transaction depends upon its ability to retain its employees required to consummate such a transaction,
the loss of whose services may adversely impact the ability to consummate such transaction. In May 2024, Nxu undertook an organizational
restructuring that significantly reduced its workforce in order to conserve its capital resources. As of December 2, 2024, Nxu had only
four full-time employees. Nxu's ability to successfully complete the Merger depends in large part on Nxu's ability to retain
certain remaining personnel. Despite Nxu's efforts to retain these employees, one or more may terminate their employment with Nxu
on short notice. Nxu's cash conservation activities may yield other unintended consequences, such as attrition beyond its planned
reduction in workforce and reduced employee morale, which may cause remaining employees to seek alternative employment. The loss of the
services of certain employees could potentially harm Nxu's ability to consummate the Merger, to run Nxu's day-to-day
business operations, as well as to fulfill Nxu's reporting obligations as a public company.
There
can be no assurance that Nxu's evaluation of strategic alternatives will enhance stockholder value or result in any transaction
being consummated, and speculation and uncertainty regarding the outcome of its evaluation of strategic alternatives may adversely impact
its business, financial condition and results of operations.
On
May 10, 2024, Nxu announced its intention to evaluate strategic alternatives. There can be no assurance of the terms, timing or structure
of any transaction, or whether any such transaction, including the contemplated Merger, will take place at all, and any such transaction
is subject to risks and uncertainties. The process of reviewing strategic alternatives may involve significant resources and costs. In
addition, the announced evaluation of strategic alternatives may cause or result in:
●
disruption
                                            of its business;
●
diversion
                                            of the attention of management;
●
increased
                                            stock price volatility;
●
increased
                                            costs and advisory fees; and
●
challenges
                                            in retaining key employees
If
Nxu is unable to mitigate these or other potential risks related to the uncertainty caused by its exploration of strategic alternatives,
it may disrupt Nxu's business or could have a material adverse effect on its financial condition and results of operations in future
periods.
Nxu's
ability to complete a transaction, will depend on numerous factors, some of which are outside of its control. A merger of independent
businesses is complex, costly and time-consuming. To consummate a merger, Nxu may incur asset write-offs and restructuring costs and
other related expenses that could have a material adverse impact on its operating results. Mergers also involve numerous other risks,
including potential exposure to assumed litigation and unknown environmental and other liabilities, as well as undetected internal control,
regulatory or other issues, or additional costs not anticipated at the time of a transaction.
Even
if a merger transaction is completed, there can be no assurance that it will be successful or have a positive effect on stockholder value.
Further, it is not certain what impact any potential transaction may have on Nxu's stock price, its current stockholders'
percentage ownership, business, financial condition, and results of operations.
12
Risks
Related to Nxu's Business
Nxu
is an early-stage company with a limited operating history that has never turned a profit and there are no assurances that Nxu will ever
be profitable.
Nxu
is a relatively new company that was incorporated on November 9, 2016. If you are investing in Nxu, it is because you think Nxu's
business model is a good idea, and Nxu will be able to successfully grow its business and become profitable.
Currently,
Nxu's efforts are focused on operating its megawatt charging stations. Nxu has never turned a profit and there is no assurance
that it will ever be profitable.
Nxu
also has limited brand awareness and operating history in the charging industry. Although Nxu has taken significant steps in developing
brand awareness, Nxu is a new company and currently has no experience developing or selling electric vehicle charging to customers. As
such, it is possible that Nxu's lack of history in the industry may impact its brand, business, financial goals, operation performance,
and products.
Nxu
should be considered a "Development Stage Company," and its operations will be subject to all the risks inherent in the establishment
of a new business enterprise, including, but not limited to, hurdles or barriers to the implementation of its business plans. Further,
because there is no history of operations there is also no operating history from which to evaluate Nxu's executive management's
ability to manage its business and operations and achieve Nxu's goals or the likely performance of Nxu. Prospective investors should
also consider the fact that Nxu's management team has not previously developed or managed similar companies. No assurances can
be given that Nxu will be able to achieve or sustain profitability.
Nxu
has incurred significant losses since its inception, and Nxu expects to continue to incur losses for the foreseeable future. Accordingly,
its financial condition raises substantial doubt regarding its ability to continue as a going concern.
During
the nine-month period ended September 30, 2024, Nxu incurred a net loss of $18.1 million and had net cash used in operating activities
of $10.2 million. As of September 30, 2024, Nxu had $2.2 million in cash and an accumulated deficit of $277.7 million. Nxu cannot provide
any assurance that unforeseen circumstances that could occur at any time within the next twelve months or thereafter will not increase
the need for Nxu to raise additional capital on an immediate basis. Additionally, Nxu cannot provide any assurance that access to capital
will be readily available when needed. These matters, among others, raise substantial doubt about Nxu's ability to continue as
a going concern for a period of one year after the date hereof. The report of Nxu's independent registered public accountant on
its financial statements as of and for the years ended December 31, 2023 and 2022 also includes explanatory language describing the existence
of substantial doubt about Nxu's ability to continue as a going concern. See Note 1 — Organization and Basis of Presentation
of its accompanying unaudited condensed consolidated financial statements included in Quarterly Report on Form 10-Q for the for the fiscal
quarter ended September 30, 2024 for further information.
If
Nxu is unable to satisfy its capital requirements, Nxu could be required to adopt one or more of the following alternatives: delaying
the implementation of or revising certain aspects of its business strategy; reducing or delaying the development of its products; reducing
or delaying capital spending, product development spending and marketing and promotional spending; entering into financing agreements
on unattractive terms; significantly curtailing or discontinuing operations, or dissolving and liquidating its assets under the bankruptcy
laws or otherwise.
There
can be no assurance that Nxu would be able to take any of the actions referred to above because of a variety of commercial or market
factors, including, without limitation, market conditions being unfavorable for an equity or debt issuance or similar transactions. In
addition, such actions, if taken, may not enable Nxu to satisfy its capital requirements if the actions that Nxu is able to consummate
do not generate a sufficient amount of additional capital. If Nxu is ultimately unable to satisfy its capital requirements, Nxu would
likely need to dissolve and liquidate its assets under the bankruptcy laws or otherwise.
13
Nxu
may not achieve its projected goals in the time frames it announces and expects due to unforeseen factors, including rising interest
rates and inflation increasing the cost to do business.
Any
prospective valuation of Nxu at this stage is pure speculation. Nxu's business success, timeline, and milestones are estimated.
Nxu's sales volume and cost models are only estimates. Nxu produced these valuations based on existing business models of successful
and unsuccessful efforts of other companies within the technology and automotive industries. All such projections and timeline estimations
may change as Nxu continues in the development of electric vehicle technology.
Nxu
has only started limited manufacture and sales. Cost overruns, scheduling delays, and failure to meet product performance goals may be
caused by, but not limited to, unidentified technical hurdles and regulatory hurdles, which could materially damage Nxu's brand,
business, financial goals, operation and results.
Nxu's
limited operating history makes it difficult for Nxu to evaluate its future business prospects.
Nxu
is a company with an extremely limited operating history and has not generated material revenue from sales of its products and services
to date. It is difficult, if not impossible, for Nxu to forecast its future results, and Nxu has limited insight into trends that may
emerge and affect its business. In addition, Nxu has engaged in limited marketing activities to date, so there can be no assurance that
customers will embrace its services in significant numbers at the prices Nxu establishes. Market and geopolitical conditions, many of
which are outside of its control and subject to change, including general economic conditions, the availability and terms of financing,
the conflict in Ukraine, Middle East, and Taiwan fuel and energy prices, regulatory requirements and incentives, competition, and the
pace and extent of vehicle electrification generally, will impact demand for Nxu's services, and ultimately its success.
Nxu
may not be able to successfully manage growth.
Nxu
could experience growth over a short period of time, which could put a significant strain on its managerial, operational and financial
resources. Nxu must implement and constantly improve its certification processes and hire, train and manage qualified personnel to manage
such growth. Nxu has limited resources and may be unable to manage its growth. Its business strategy is based on the assumption that
its customer base, geographic coverage and service offerings will increase. If this occurs, it will place a significant strain on Nxu's
managerial, operational, and financial resources. If Nxu is unable to manage its growth effectively, its business will be adversely affected.
As part of this growth, Nxu may have to implement new operational, manufacturing, and financial systems and procedures and controls to
expand, train and manage its employees, especially in the areas of manufacturing and sales. If Nxu fails to develop and maintain its
people and processes, demand for its products and services and its revenues could decrease.
Nxu's
business is currently entirely dependent on the success of the NxuOne™ Charging Network. Nxu's lack of business diversification
could cause its stockholders to lose all or some of their investment if Nxu is unable to generate revenues from the NxuOne™ Charging
Network.
Nxu's
business is currently entirely dependent on the success of the NxuOne™ Charging Network and related products. Nxu does not have
any other lines of business or other sources of revenue if it is unable to compete effectively in the marketplace. Nxu cannot guarantee
that the NxuOne™ Charging Network will be able to achieve profitability alone. Nxu's ability to be profitable will depend
on a number of factors, many of which are beyond Nxu's control. This lack of business diversification could cause you to lose all
or some of your investment if Nxu is unable to generate revenues since Nxu does not expect to have any other lines of business or alternative
revenue sources.
Nxu's
estimates of market opportunity and forecasts of market growth may prove to be inaccurate.
Estimates
of future electric vehicle ("EV") adoption in the U.S., the total addressable market, serviceable addressable market for
Nxu's products and services and the EV market in general are included in Nxu's most recent Annual Report on Form 10-K. Market
opportunity estimates and growth forecasts, whether obtained from third-party sources or developed internally, are subject to significant
uncertainty and are based on assumptions and estimates that may prove to be inaccurate. Such uncertainty is enhanced by the prevailing
geopolitical and macroeconomic environment. Nxu's internal estimates relating to the size and expected growth of the target market,
market demand, EV adoption across individual market verticals and use cases, capacity of automotive and battery original equipment manufacturers
("OEMs") and ability of charging infrastructure to address this demand and related pricing may also prove to be inaccurate.
In particular, estimates regarding the current and projected market opportunity for public and commercial fast charging and future fast
charging throughput or Nxu market share capture are difficult to predict. The estimated addressable market may not materialize in the
timeframe of Nxu's internal projections, if ever and even if the markets meet the size estimates and growth estimates presented,
Nxu's business could fail to grow at similar rates.
14
The
success of Nxu's business depends on attracting and retaining a large number of customers. If Nxu is unable to do so, Nxu will
not be able to achieve profitability.
Nxu's
success depends on attracting a large number of potential customers to purchase services Nxu provides to its customers. If Nxu's
customers do not perceive its services to be of sufficiently high value and quality, cost competitive and appealing in performance, Nxu
may not be able to retain or attract new customers, and its business, prospects, financial condition, results of operations, and cash
flows would suffer as a result. In addition, Nxu may incur significantly higher and more sustained advertising and promotional expenditures
than it has previously incurred to attract customers. Nxu may not be successful in attracting and retaining a large number of customers.
If Nxu is not able to attract and maintain customers, its business, prospects, financial condition, results of operations, and cash flows
would be materially harmed.
Nxu's
growth and success are highly correlated with and thus dependent upon the continuing rapid adoption of and demand for EVs and OEMs'
ability to supply such EVs to the market.
Nxu's
future growth is highly dependent upon the adoption of EVs by businesses and consumers. The market for EVs is still rapidly evolving,
characterized by rapidly changing technologies, competitive pricing and competitive factors, evolving government regulation and industry
standards and changing consumer demands and behaviors, changing levels of concern related to environmental issues and governmental initiatives
related to energy independence, climate change and the environment generally. Although demand for EVs has grown in recent years,
there is no guarantee of continuing future demand. If the market for EVs develops more slowly than expected, or if demand for EVs decreases,
Nxu's business, prospects, financial condition and operating results would be harmed. The market for EVs could be affected by numerous
factors, such as:
●
perceptions
                                            about EV features, quality, safety, performance and cost;
●
perceptions
                                            about the limited range over which EVs may be driven on a single battery charge;
●
competition,
                                            including from other types of alternative fuel vehicles, plug-in hybrid electric vehicles
                                            and high fuel-economy internal combustion engine vehicles;
●
volatility
                                            in the cost of oil and gasoline, including as a result of trade restrictions;
●
concerns
                                            regarding the reliability and stability of the electrical grid;
●
the
                                            change in an EV battery's ability to hold a charge over time;
●
the
                                            availability and reliability of a national electric vehicle charging network or infrastructure;
●
availability
                                            of maintenance and repair services for EVs;
●
consumers'
                                            perception about the convenience and cost of charging EVs;
●
increases
                                            in fuel efficiency of non-electric vehicles;
●
government
                                            regulations and economic incentives, including adverse changes in, or expiration of, favorable
                                            tax incentives related to EVs, EV charging stations or decarbonization generally;
●
relaxation
                                            of government mandates or quotas regarding the sale of EVs; and
●
concerns
                                            about the future viability of EV manufacturers.
In
addition, sales of vehicles in the automotive industry can be cyclical, which may affect growth in acceptance of EVs. It is uncertain
how macroeconomic factors will impact demand for EVs, particularly since EVs can be more expensive than traditional gasoline-powered
vehicles, when the automotive industry globally has been experiencing a recent decline in sales. Furthermore, because fleet operators
often make large purchases of EVs, this cyclicality and volatility in the automotive industry may be more pronounced with commercial
purchasers, and any significant decline in demand from these customers could reduce demand for EV charging and Nxu's products and
services in particular.
15
Demand
for EVs may also be affected by factors directly impacting automobile prices or the cost of purchasing and operating automobiles, such
as sales and financing incentives, prices of raw materials and parts and components, cost of fuel and governmental regulations, including
tariffs, import regulation and other taxes. Further, the automotive industry in general and EV manufacturing have experienced substantial
supply chain interruptions, resulting in reduced EV production schedules and sales. Volatility in demand or delays in EV production due
to global supply chain constraints may lead to lower vehicle unit sales, which may result in reduced demand for EV charging solutions
and therefore adversely affect Nxu's business, financial condition and operating results.
Nxu
generated revenue for the first time in 2023, but there is no assurance that it will be able to continue to generate revenue from the
sale or deployment of the NxuOne™ Charging Network or from the sale of other proprietary products.
In
2023, Nxu generated revenue for the first time in its history. The 2023 revenue was largely related to product deliveries from its proprietary
battery cell and pack division. Nxu has since ceased electric vehicle battery development as it focuses its efforts on the NxuOne™
Charging Network. As such, the bulk of its revenue in 2023 was non-recurring. Nxu expects that any source of revenue in 2024 will be
solely from the operation or sale of NxuOne™ Charging Stations. If it is unable to find customers to purchase its NxuOne™
Charging Stations, it will not likely be able to meet or exceed its 2024 revenue estimates.
Nxu
has losses which it expects to continue into the future. There is no assurance its future operations will result in a profit. If Nxu
cannot generate sufficient revenues to operate profitably or Nxu is unable to raise enough additional funds for operations, the stockholders
will experience a decrease in value, and Nxu may have to cease operations.
Nxu
is a development-stage technology company that began operating and commenced research and development activities in 2016. As a recently
formed "Development Stage Company", it is subject to all of the risks and uncertainties of a new business, including the
risk that it may never generate product or services related revenues. Accordingly, it has only a limited history upon which an evaluation
of its prospects and future performance can be made. If Nxu is unable to generate revenue, it will not become profitable, and it may
be unable to continue its operations. Furthermore, its proposed operations are subject to all business risks associated with new enterprises.
The likelihood of its success must be considered in light of the problems, expenses, difficulties, complications, and delays frequently
encountered in connection with the expansion of a business, operation in a competitive industry, and the continued development of advertising,
promotions and a corresponding customer base. There can be no assurances that Nxu will operate profitably.
Nxu
entered into the Merger Agreement in order to, among other things, potentially increase its liquidity. Assuming the Merger closes, the
combined company may ultimately fail, decreasing the liquidity of Nxu and stockholder value or cause Nxu to cease operations, and investors
would be at risk of losing all or part of their investment in Nxu.
If
Nxu does not successfully establish and maintain itself as a highly trusted and respected name for electric vehicle-related technology,
Nxu may not be able to retain quality talent or achieve future revenue goals, which could significantly affect its business, financial
condition and results of operations.
In
order to attract and retain a client base and increase business, Nxu must establish, maintain and strengthen its name and the services
it provides. In order to be successful in establishing its reputation, clients must perceive Nxu as a trusted source for quality services.
If Nxu is unable to attract and retain clients with its current marketing plans, it may not be able to successfully establish its name
and reputation, which could significantly affect its business, financial condition and results of operations.
Nxu's
ability to utilize loss carry forwards may be limited.
Generally,
a change of more than fifty percent (50%) in the ownership of a company's stock, by value, over a three-year period constitutes
an ownership change for U.S. federal income tax purposes. An ownership change may limit Nxu's ability to use its net operating
loss carryforwards attributable to the period prior to the change. As a result, if Nxu earns net taxable income, its ability to use its
pre-change net operating loss carryforwards to offset U.S. federal taxable income may become subject to limitations.
16
Nxu's
business could be adversely affected by a downturn in the economy and/or manufacturing.
Nxu
is dependent upon the continued demand for electric vehicles and electric vehicle charging capacity, making its business susceptible
to a downturn in the economy or in manufacturing. For example, a decrease in the number of individuals investing their money in the equity
markets could result in a decrease in the number of companies deciding to become or remain public. This downturn could have a material
adverse effect on its business, its ability to raise funds, and ultimately its overall financial condition.
The
preparation of Nxu's financial statements requires estimates, judgments and assumptions that are inherently uncertain.
Financial
statements prepared in accordance with accounting principles generally accepted in the United States ("GAAP") typically
require the use of estimates, judgments and assumptions that affect the reported amounts. Often, different estimates, judgments and assumptions
could reasonably be used that would have a material effect on such financial statements, and changes in these estimates, judgments and
assumptions may occur from period to period over time. These estimates, judgments and assumptions are inherently uncertain and, if Nxu's
estimates were to prove to be wrong, Nxu would face the risk that charges to income or other financial statement changes or adjustments
would be required. Any such charges or changes could harm its business, including its financial condition and results of operations and
the price of its securities. For a discussion of the accounting estimates, judgments and assumptions that Nxu believes are the most critical
to an understanding of its consolidated financial statements and its business, see Part II, Item 7 of Nxu's Annual Report on Form
10-K for the year ended December 31, 2023 filed with the SEC on April 1, 2024 under the heading "Management's Discussion
and Analysis of Financial Condition and Results of Operations".
Failure
to maintain internal controls over financial reporting would have an adverse impact on Nxu.
Nxu
is required to establish and maintain appropriate internal controls over financial reporting. The standards required for a public company
under Section 404(a) of the Sarbanes-Oxley Act are significantly more stringent than those required by Nxu as a privately held
company. Management may not be able to effectively maintain adequate compliance, and Nxu's internal controls over financial reporting
may not be effective, which may subject Nxu to adverse regulatory consequences and could harm investor confidence. Failure to maintain
controls could also adversely impact its public disclosures regarding Nxu's business, financial condition or results of operations.
In addition, management's assessment of internal controls over financial reporting may identify deficiencies and conditions that
need to be addressed in Nxu's internal controls over financial reporting or other matters that may raise concerns for investors.
Any actual or perceived deficiencies and conditions that need to be addressed in Nxu's internal control over financial reporting,
or disclosure of management's assessment of its internal controls over financial reporting may have an adverse impact on the price
of the Class A common stock.
Continuing
or worsening inflationary issues and associated changes in monetary policy may result in increases to the cost of charging equipment,
other goods, services and personnel, which in turn could cause capital expenditures and operating costs to rise.
The
U.S. inflation rate increased during 2021, 2022, and 2023 and has remained elevated in 2024. These inflationary pressures have resulted
in and may continue to result in, increases to the costs of charging equipment and personnel, which could in turn cause capital expenditures
and operating costs to rise. Sustained levels of high inflation have likewise caused the U.S. Federal Reserve and other central
banks to increase interest rates, which could have the effects of raising the cost of capital and depressing economic growth, either
of which — or the combination thereof — could hurt the financial and operating results of Nxu's
business.
Nxu
needs to raise additional capital to meet its future business requirements and such capital raising may be costly or difficult to obtain
and could dilute current stockholders' ownership interest.
Nxu
has relied upon cash from financing activities and in the future, Nxu expects to rely on the proceeds from future debt and/or equity
financings, and Nxu hopes to rely on revenues generated from operations to fund all of the cash requirements of its activities. However,
there can be no assurance that Nxu will be able to generate any significant cash from its operating activities in the future. Future
financing may not be available on a timely basis, in sufficient amounts or on terms acceptable to Nxu, if at all. Any debt financing
or other financing of securities senior to the Class A common stock will likely include financial and other covenants that will
restrict Nxu's flexibility.
17
Any
failure to comply with these covenants would have a material adverse effect on Nxu's business, prospects, financial condition,
and results of operations because Nxu could lose its existing sources of funding and impair its ability to secure new sources of funding.
However, there can be no assurance that Nxu will be able to generate any investor interest in its securities. If Nxu does not obtain
additional financing, you could lose the entirety of your investment in Nxu.
At
this time, Nxu has not secured or identified any additional financing. Nxu does not have any firm commitments or other identified sources
of additional capital from third parties or from its officers, directors or other stockholders. There can be no assurance that additional
capital will be available to Nxu, or that, if available, it will be on terms satisfactory to Nxu. Any additional financing will involve
dilution to Nxu's existing stockholders. If Nxu does not obtain additional capital on terms satisfactory to Nxu, or at all, it
may cause Nxu to delay, curtail, scale back or forgo some or all of its product development and/or business operations, or dissolve and
liquidate its assets under bankruptcy laws or otherwise. In such a scenario, investors would be at risk of losing all or a part of any
investment in Nxu.
Nxu
relies on a limited number of suppliers and manufacturers for its charging stations. A loss of any of these partners could negatively
affect its business or ability to manufacture and deliver NxuOne™ Charging Stations.
Nxu
relies on a limited number of suppliers to manufacture its charging stations, including in some cases only a single supplier for some
products and components. This reliance on a limited number of manufacturers increases Nxu's risks, since it does not currently
have proven reliable alternatives or replacement manufacturers beyond these key parties. In the event of interruption, including or resulting
in a sudden failure by a supplier to meet its obligation, Nxu may not be able to increase capacity from other sources or develop alternate
or secondary sources without incurring material additional costs and substantial delays. Thus, Nxu's business could be adversely
affected if one or more of its suppliers is impacted by any interruption at a particular location.
As
the demand for EV charging increases, Nxu's suppliers and manufacturers may not be able to dedicate sufficient supply chain, production
or sales channel capacity to keep up with the required pace of charging infrastructure expansion. By relying on contract manufacturing,
Nxu is dependent upon the manufacturer, whose interests may be different from Nxu's. For example, Nxu's suppliers and contract
manufacturers may have other customers with demand for the same components or manufacturing services and may allocate their resources
based on the supplier's or manufacturer's interests or needs to maximize their revenue or relationships with other customers
rather than Nxu's interest. As a result, Nxu may not be able to assure itself that it will have sufficient control over the supply
of key components, inventory or finished goods in a timely manner or with acceptable cost and expense, which may adversely affect Nxu's
revenue, cost of goods and gross margins. If Nxu experiences a significant increase in demand for its charging stations in future periods,
or if it needs to replace an existing supplier, it may not be possible to supplement or replace them on acceptable terms, which may undermine
its ability to deliver products to customers in a timely manner.
For
example, it may take a significant amount of time to identify a manufacturer that has the capability and resources to build charging
stations in sufficient volume. Identifying suitable suppliers and manufacturers could be an extensive process that requires Nxu to become
satisfied with such party's quality control, technical capabilities, responsiveness and service, financial stability, regulatory
compliance, and labor and other ethical practices. Accordingly, a loss of any significant suppliers or manufacturers could have an adverse
effect on Nxu's business, financial condition and operating results. In addition, Nxu's suppliers may face supply chain risks
and constraints of their own, which may impact the availability and pricing of its products. For example, supply chain challenges related
to global chip shortages have impacted companies worldwide both within and outside of Nxu's industry and may continue to have adverse
effects on Nxu's suppliers and, as a result, Nxu.
In
addition, in fiscal year 2023, Nxu became subject to requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
(the "Dodd-Frank Act") to diligence, disclose and report whether or not its products contain minerals originating from the
Democratic Republic of the Congo and adjoining countries, or conflict minerals. Nxu may incur additional costs to comply with these disclosure
requirements, including costs related to determining the source of any of the relevant minerals and metals used in Nxu's products.
These requirements could adversely affect the sourcing, availability and pricing of minerals used in the components used in Nxu's
products. It is also possible that Nxu's reputation may be adversely affected if it determines that certain of its products contain
minerals not determined to be conflict-free or if it is unable to alter its products, processes or sources of supply to avoid use of
such materials. Nxu may also encounter end-customers who require that all of the components of the products be certified as conflict
free. If Nxu is not able to meet this requirement, such end-customers may choose to purchase products from a different company.
18
Unknown
costs and risks may exist with the prolonged use of NxuOne™ Charging Network equipment and related systems, as the technology is
recently developed and has not been widely deployed.
As
the NxuOne™ Charging Station field trials commenced in the third quarter of 2023, Nxu does not know how its products will hold
up over prolonged use. Since Nxu's products have only been in use since September 2023, Nxu does not have any way to predict whether
its charging stations will remain functional under heavy, persistent use. If the NxuOne™ Charging stations malfunction under heavy
use, Nxu will be forced to bear the costs of repairing or replacing the equipment, and such costs could be substantial.
Nxu
is dependent upon the availability of electricity at Nxu's current and future charging stations. Cost increases, delays and/or
other restrictions on the availability of electricity would adversely affect Nxu's business and results of Nxu's operations.
The
operation and development of Nxu's charging stations is dependent upon the availability of electricity, which is beyond Nxu's
control. Nxu's charging stations are affected by problems accessing electricity sources, such as planned or unplanned power outages.
In recent years, shortages of electricity have resulted in increased costs to users and interruptions in service. In particular,
California has experienced rolling blackouts due to excessive demands on the electrical grid or as precautionary measures against the
risk of wildfire. In the event of a power outage, Nxu will be dependent on the utility company to restore power. Any prolonged power
outage could adversely affect customer experience and Nxu's business and results of operations.
Changes
in utility electricity pricing or new and restrictive constructs from regulations applicable to pricing may adversely impact future operating
results. For example, some jurisdictions have required Nxu to switch from pricing on a per-minute basis to a per-kWh basis and other
jurisdictions may follow suit. Utility rates may change in a way that adversely affects fast charging or in a way that may limit Nxu's
ability to access certain beneficial rate schedules. In addition, utilities or other regulated entities with monopoly power may receive
authority to provide charging services that result in an anti-competitive advantage relative to Nxu and other private sector operators.
Nxu's
business is subject to risks associated with construction, cost overruns and delays and other contingencies that may arise in the course
of completing installations and such risks may increase in the future as Nxu expands the scope of such services with other parties.
Charger
installation and construction is typically performed by third-party contractors managed by Nxu. The installation and construction of
charging stations at a particular site is generally subject to oversight and regulation in accordance with state and local laws and ordinances
relating to building codes, safety, environmental protection and related matters and typically requires local utility cooperation in
design and interconnection request approval and commissioning, as well as various local and other governmental approvals and permits
that vary by jurisdiction. In addition, building codes, accessibility requirements, utility interconnect specifications, review, approval
or study lead time or regulations may hinder EV charger installation and construction because they end up costing the developer or installer
more in order to meet the code requirements. In addition, increased demand for the components necessary to install and construct charging
stations could lead to higher installed costs. Meaningful delays or cost overruns caused by Nxu's vendor supply chains, contractors,
utility upgrades scope and delays, or inability of local utilities and approving agencies to cope with heightened levels of activity,
may impact Nxu's ability to satisfy the requirements under the build schedule and Nxu's other contractual commitments, and
may impact revenue recognition in certain cases and/or impact Nxu's relationships, any of which could impact Nxu's business
and profitability, pace of growth and prospects.
Working
with contractors may require Nxu to obtain licenses or require Nxu or Nxu's customers to comply with additional rules, working
conditions and other union requirements, which can add costs and complexity to an installation and construction project. If these contractors
are unable to provide timely, thorough and quality installation-related services, Nxu could fall behind Nxu's construction schedules
or cause customers to become dissatisfied with the solutions Nxu offers. As the demand for public fast charging increases and qualification
requirements for contractors become more stringent, Nxu may encounter shortages in the number of qualified contractors available to complete
all of Nxu's desired installations. If Nxu fails to timely pay Nxu's contractors, they may file liens against Nxu's
owned or leased properties, putting Nxu's occupancy or operations at risk.
Nxu's
business model is predicated on the presence of qualified and capable electrical and civil contractors and subcontractors in the new
markets Nxu intends to enter. There is no guarantee that there will be an adequate supply of such partners. A shortage in the number
of qualified contractors may impact the viability of the business plan, increase risks related to the quality of work performed and increase
costs if outside contractors are brought into a new market.
19
In
addition, Nxu's business is exposed to risks associated with receiving site control and access necessary for the construction of
the charging station and operation of the charging equipment, electrical interconnection and power supply at identified locations sufficient
to host chargers on a timely basis. Nxu generally does not own the land at the charging sites and relies on site licenses with site hosts
that convey the right to build, own and operate the charging equipment on the site. Nxu may not be able to renew the site licenses or
retain site control. The process of establishing or extending site control and access could take longer or become more competitive. As
the EV market grows, competition for premium sites may intensify, the power distribution grid may require upgrading, and electrical interconnection
with local utilities may become more competitive, all of which may lead to delays in construction and/or commissioning. As a result,
Nxu may be exposed to increased interconnection costs and utility fees, as well as delays, which may slow the pace of Nxu's network
expansion.
Nxu's
charging stations may be located in areas that are publicly accessible and may be exposed to vandalism or misuse by customers or other
individuals, which would increase Nxu's replacement and maintenance costs.
Nxu's
public chargers may be exposed to vandalism or misuse by customers and other individuals, increasing wear and tear of the charging equipment.
Such damage could shorten the usable lifespan of the chargers and require Nxu to increase its spending on replacement, maintenance and
insurance costs and could result in site hosts reconsidering the value of hosting Nxu's charging stations at their sites. In addition,
the cost of any such damage may not be covered by Nxu's insurance in full or at all and, in the event of repeated damage to Nxu's
charging equipment, Nxu's insurance premiums could increase and it could be subject to additional insurance costs or may not be
able to obtain insurance at all, any of which could have an adverse effect on its business.
Nxu
does not own a transportation fleet, nor any fleet vehicles, and so may not be able to transport NxuOne™ Charging Stations once
produced. Cost of third-party transport may be high and the risk of loss surrounding transport may be high or hard to predict.
Nxu's
charging stations weigh several thousand pounds. There are inherent transportation risks associated with deployment and operation of
its charging network. Nxu does not own a transportation fleet, so Nxu will have to hire a transportation company to transport the NxuOne™
Charging stations to deployment sites. Such transport may be incredibly costly, and Nxu has not been able to accurately predict or project
transportation costs. In addition to the risk of losing control of the method of transportation, Nxu may not be able to adequately insure
against loss during transport. There is a chance the NxuOne™ charging stations are irrevocably damaged in transit. If Nxu is unable
to insure the NxuOne™ Charging Stations for transit, Nxu may be forced to bear the full risk of loss.
A
significant interruption of Nxu's information technology systems or the loss of confidential or other sensitive data, including
cybersecurity risks, could have a material adverse impact on its operations and financial results.
Given
Nxu's reliance on information technology (its own and its third-party providers'), a significant interruption in the availability
of information technology, regardless of the cause, or the loss of confidential, personal, or proprietary information (whether Nxu's,
its employees', its suppliers', or its customers'), regardless of the cause, could negatively impact its operations.
While Nxu has invested in the protection of its data and information technology to reduce these risks and routinely test the security
of its information systems network, Nxu cannot be assured that its efforts will prevent breakdowns or breaches in its systems that could
adversely affect its business. Management is not aware of a cybersecurity incident that has had a material adverse impact on Nxu's
financial condition or results of operations; however, Nxu could suffer material financial or other losses in the future and Nxu is not
able to predict the severity of these attacks. The occurrence of a cyber-attack, breach, unauthorized access, misuse, computer virus
or other malicious code or other cybersecurity event could jeopardize or result in the unauthorized disclosure, gathering, monitoring,
misuse, corruption, loss or destruction of confidential and other information that belongs to Nxu, its customers, its counterparties,
or third-party suppliers and providers that is processed and stored in, and transmitted through, Nxu's computer systems and networks.
The occurrence of such an event could also result in damage to Nxu's software, computers or systems, or otherwise cause interruptions
or malfunctions in Nxu's, its customers', its counterparties' or third parties' operations. This could result
in loss of customers and business opportunities, reputational damage, litigation, regulatory fines, penalties or intervention, reimbursement
or other compensatory costs, or otherwise adversely affect Nxu's business, financial condition or results of operations. As part
of Nxu's regular review of potential risks, Nxu analyzes emerging cybersecurity threats to Nxu and its third-party suppliers and
providers as well as Nxu's plans and strategies to address them. The Nxu board of directors, which has oversight responsibility
for cybersecurity risks, is regularly briefed by management on such analyses.
20
Nxu
is highly reliant on its networked charging solution and information technology systems and data, and those of its service providers
and component suppliers, any of which systems and data may be subject to cyber-attacks, service disruptions or other security incidents,
which could result in data breaches, loss or interruption of services, intellectual property theft, claims, litigation, regulatory investigations,
significant liability, reputational damage and other adverse consequences.
The
implementation, maintenance, segregation and improvement of Nxu's information technology systems in the form of its networked charging
solution and internal information technology systems, such as product data management, procurement, inventory management, production
planning and execution, sales, service and logistics, financial, tax and regulatory compliance systems, require significant management
time, support and cost, and there are inherent risks associated with developing, improving and expanding Nxu's core systems as
well as implementing new systems and updating current systems, including disruptions to the related areas of business operations. These
risks may affect Nxu's ability to manage its data and inventory, procure parts or supplies or manufacture, sell, deliver and service
products, adequately protect its intellectual property or achieve and maintain compliance with, or realize available benefits under,
tax laws and other applicable regulations.
While
Nxu maintains information technology measures designed to protect it against intellectual property theft, data breaches, sabotage and
other external or internal cyber-attacks or misappropriation, its systems and those of its service providers are potentially vulnerable
to malware, ransomware, viruses, denial-of-service attacks, phishing attacks, social engineering, computer hacking, unauthorized access,
exploitation of bugs, defects and vulnerabilities, breakdowns, damage, interruptions, system malfunctions, power outages, terrorism,
acts of vandalism, security breaches, security incidents, inadvertent or intentional actions by employees or other third parties, and
other cyber-attacks. To the extent any security incident results in unauthorized access or damage to or acquisition, use, corruption,
loss, destruction, alteration or dissemination of Nxu data, including intellectual property and personal information, or Nxu products,
or for it to be believed or reported that any of these occurred, it could disrupt Nxu's business, harm its reputation, compel it
to comply with applicable data breach notification laws, subject it to time consuming, distracting and expensive litigation, regulatory
investigation and oversight, mandatory corrective action, require it to verify the correctness of database contents, or otherwise subject
it to liability under laws, regulations and contractual obligations, including those that protect the privacy and security of personal
information. This could result in increased costs to Nxu and result in significant legal and financial exposure and/or reputational harm.
Because
Nxu also relies on third-party service providers, it cannot guarantee that its service providers' and component suppliers'
systems have not been breached or that they do not contain exploitable defects, bugs, or vulnerabilities that could result in a security
incident, or other disruption to, Nxu's or Nxu's service providers' or component suppliers' systems. Nxu's
ability to monitor its service providers' and component suppliers' security measures is limited, and, in any event, malicious
third parties may be able to circumvent those security measures.
If
Nxu does not successfully implement, maintain or expand its information technology systems as planned, its operations may be disrupted,
its ability to accurately and/or timely report its financial results could be impaired and deficiencies may arise in its internal control
over financial reporting, which may impact its ability to certify its financial results. If Nxu identifies material weaknesses in the
future or otherwise fails to maintain an effective system of internal control over financial reporting, this may result in material misstatements
contained within Nxu's consolidated financial statements or cause Nxu to fail to meet its periodic reporting obligations. Moreover,
Nxu's proprietary information, including intellectual property and personal information, could be compromised or misappropriated,
its reputation may be adversely affected if these systems or their functionality do not operate as expected and Nxu may be required to
expend significant resources to make corrections or find alternative sources for performing these functions.
21
Nxu
may have difficulty protecting its intellectual property.
Nxu's
pending patents and other intellectual property could be unenforceable or ineffective once patent reviews are completed. Nxu anticipates
patent review completion and patents issued in calendar years 2021, 2022, 2023, and 2024 based on the typical two-year process between
filing and issuing. Nxu has continued to file patent applications throughout 2024 and plans to continue filing new patents over time.
Nxu has filed these patents privately and the scope of what they cover remains confidential until they are issued. For any company creating
brand new products, it is imperative to protect the proprietary intellectual property to maintain a competitive advantage. There is no
doubt that a significant portion of Nxu's current value depends on the strength and imperviousness of these pending patents. Nxu
intends to continue to file additional patent applications and build its intellectual property portfolio as it discovers new technologies
related to the development of plug-in electric vehicles.
Nxu
believes that intellectual property will be critical to its success, and that Nxu will rely on trademark, copyright and patent law, trade
secret protection and confidentiality and/or license agreements to protect its proprietary rights. If Nxu is not successful in protecting
its intellectual property, it could have a material adverse effect on its business, results of operations and financial condition. While
Nxu believes that it will be issued trademarks, patents and pending patent applications help to protect its business, there can be no
assurance that its operations do not, or will not, infringe valid, enforceable third-party patents of third parties or that competitors
will not devise new methods of competing with Nxu that are not covered by its anticipated patent applications. There can also be no assurance
that Nxu's patent applications will be approved, that any patents issued will adequately protect its intellectual property, or
that such patents will not be challenged by third parties or found to be invalid or unenforceable or that Nxu's patents will be
effective in preventing third parties from utilizing a copycat business model to offer the same service in one or more categories. Moreover,
it is intended that Nxu will rely on intellectual property and technology developed or licensed by third parties, and Nxu may not be
able to obtain or continue to obtain licenses and technologies from these third parties at all or on reasonable terms. Effective trademark,
service mark, copyright and trade secret protection may not be available in every country in which Nxu's intended services will
be provided. The laws of certain countries do not protect proprietary rights to the same extent as the laws of the U.S. and, therefore,
in certain jurisdictions, Nxu may be unable to protect its proprietary technology adequately against unauthorized third party copying
or use, which could adversely affect its competitive position. Nxu expects to license in the future, certain proprietary rights, such
as trademarks or copyrighted material, to third parties. These licensees may take actions that might diminish the value of its proprietary
rights or harm its reputation, even if Nxu has agreements prohibiting such activity. Also, to the extent third parties are obligated
to indemnify Nxu for breaches of its intellectual property rights, these third parties may be unable to meet these obligations. Any of
these events could have a material adverse effect on Nxu's business, results of operations or financial condition.
The
U.S. Patent and Trademark Office and various foreign governmental patent agencies require compliance with a number of procedural,
documentary, fee payment and other provisions during the patent process. There are situations in which noncompliance can result in abandonment
or lapse of a patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. In such
an event, competitors might be able to enter the market earlier than would otherwise have been the case, which could have a material
adverse effect on its business, results of operations and financial condition.
Intellectual
property protection is costly.
Filing,
prosecuting and defending patents related to Nxu's products and software throughout the world is prohibitively expensive. Competitors
may use Nxu's technologies in jurisdictions where Nxu has not obtained patent protection to develop their own products and, further,
may export otherwise infringing products to territories where Nxu has patent protection, but where enforcement is not as strong as that
in the U.S. These products may compete with Nxu's products in jurisdictions where Nxu does not have any issued or licensed
patents and Nxu's patent claims or other intellectual property rights may not be effective or sufficient to prevent them from so
competing. Many companies have encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions.
The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents and other
intellectual property protection, particularly those relating to technology, which could make it difficult for Nxu to stop the infringement
of Nxu's patents or marketing of competing products in violation of Nxu's proprietary rights generally. Proceedings to enforce
Nxu's patent rights in foreign jurisdictions could result in substantial cost and divert Nxu's efforts and attention from
other aspects of Nxu's business.
22
Nxu
may face state and federal regulatory challenges, including environmental and safety regulations.
Nxu
is subject to numerous federal, state and local environmental laws and regulations governing, among other things, solid and hazardous
waste storage, treatment and disposal, and remediation of releases of hazardous materials. There are significant capital, operating and
other costs associated with compliance with these environmental laws and regulations. Environmental laws and regulations may become more
stringent in the future, which could increase costs of compliance or require Nxu to manufacture with alternative technologies and materials.
Federal,
state and local authorities also regulate a variety of matters, including, but not limited to, health, safety and permitting in addition
to the environmental matters discussed above. New legislation and regulations may require Nxu to make material changes to Nxu's
operations, resulting in significant increases in the cost of production.
Nxu's
manufacturing process will have hazards such as but not limited to hazardous materials, machines with moving parts, and high voltage
and/or high current electrical systems typical of large manufacturing equipment and related safety incidents. There may be safety incidents
that damage machinery or products, slow or stop production, or harm employees. Consequences may include litigation, regulation, fines,
increased insurance premiums, mandates to temporarily halt production, workers' compensation claims, or other actions that impact
Nxu's company brand, finances, or ability to operate.
Nxu
is susceptible to risks associated with an increased focus by stakeholders and regulators on climate change, which may adversely affect
its business and results of operations.
Climate-related
events, including the increasing frequency of extreme weather events and their impact on critical infrastructure in the United States
and elsewhere, have the potential to disrupt Nxu's business and those of its third-party suppliers, and customers, and may cause
Nxu to experience higher attrition, losses and additional costs to maintain or resume operations. In addition, Nxu's customers
may begin to establish sourcing requirements related to sustainability. As a result, Nxu may receive requests for sustainability related
information about its products, business operations, use of sustainable materials and packaging. Nxu's inability to comply with
these and other sustainability requirements in the future could adversely affect sales of and demand for its products.
Further,
there is an increased focus, including by governmental and nongovernmental organizations, investors, customers, and other stakeholders,
on climate change matters, including increased pressure to expand disclosures related to material physical and transition risks related
to climate change or to establish sustainability goals, such as the reduction of greenhouse gas emissions, which could expose Nxu to
market, operational and execution costs or risks. Nxu's failure to establish such sustainability targets or targets that are perceived
to be appropriate, as well as to achieve progress on those targets on a timely basis, or at all, could adversely affect the reputation
of its brand and sales of and demand for its products. To the extent legislation is passed, such as the final rules recently adopted
by the SEC with respect to enhanced and standardized climate-related disclosures, Nxu would incur significant additional costs of compliance
due to the need for expanded data collection, analysis, and certification with respect to greenhouse gas emissions and other climate
change related risks. Nxu may also incur additional costs or require additional resources to monitor, report and comply with such stakeholder
expectations and standards and legislation, and to meet climate change targets and commitments if established.
Risks
Related to the Electric Vehicle Industry
The
automotive market, specifically with respect to electric vehicles, is highly competitive, and Nxu may not be successful in competing
in this industry.
Both
the automobile industry generally, and the electric vehicle segment in particular, are highly competitive, and Nxu will be competing
for sales with both electric vehicle manufacturers and traditional automotive companies. Many of Nxu's current and potential competitors
may have significantly greater financial, technical, manufacturing, marketing, or other resources than Nxu does and may be able to devote
greater resources to the design, development, manufacturing, distribution, promotion, sale, and support of their products than Nxu may
devote to its products. Nxu expects competition for electric vehicles to intensify due to increased demand and a regulatory push for
alternative fuel vehicles, continuing globalization, and consolidation in the worldwide automotive industry, as well as the recent significant
increase in oil and gasoline prices. In addition, as fleet operators begin transitioning to electric vehicles on a mass scale, Nxu expects
that more competitors will enter the commercial fleet electric vehicle market. Further, as a result of new entrants in the commercial
fleet electric vehicle market, Nxu may experience increased competition for components and other parts of our vehicles, which may have
limited or single-source supply.
Factors
affecting competition include product performance and quality, technological innovation, customer experience, brand differentiation,
product design, pricing and total cost of ownership, and manufacturing scale and efficiency. Increased competition may lead to lower
vehicle unit sales and increased inventory, which may result in downward price pressure and adversely affect Nxu's business, prospects,
financial condition, results of operations, and cash flows.
23
The
EV charging market is characterized by rapid technological change, which requires Nxu to continue to develop new products and product
innovations. Any delays in such development could adversely affect market adoption of Nxu's products and financial results.
Continuing
technological changes in battery and other EV technologies could adversely affect adoption of current EV charging technology, continuing
and increasing reliance on EV charging infrastructure and/or the use of Nxu's products and services. Nxu's future success
will depend in part upon Nxu's ability to address the changing needs of the EV charging market. If Nxu is unable keep pace with
changes in technology, Nxu's gross margins will be adversely affected and Nxu's prior products could become obsolete more
quickly than expected.
If
Nxu is unable to meet customer requirements on a timely basis or remain competitive with technological alternatives, Nxu's products
and services could lose market share, Nxu's revenue will decline, Nxu may experience higher operating losses and Nxu's business
and prospects will be adversely affected.
Changes
to fuel economy standards or the success of alternative fuels may negatively impact the EV market and thus the demand for Nxu's
products and services.
Regulatory
initiatives that required an increase in the mileage capabilities of cars and consumption of renewable transportation fuels, such as
ethanol and biodiesel, have helped increase consumer acceptance of EVs and other alternative vehicles. However, the EV fueling model
is different from gasoline and other fuel models, requiring behavior changes and education of businesses, consumers, regulatory bodies,
local utilities and other stakeholders. Further developments in and improvements in the affordability of, alternative technologies, such
as renewable diesel, biodiesel, ethanol, hydrogen fuel cells or compressed natural gas, proliferation of hybrid powertrains involving
such alternative fuels, or improvements in the fuel economy of internal combustion engine ("ICE") vehicles, whether as the
result of regulation or otherwise, may materially and adversely affect demand for EVs and EV charging stations in some market verticals.
Regulatory bodies may also adopt rules that substantially favor certain alternatives to petroleum-based propulsion over others, which
may not necessarily be EVs. Local jurisdictions may also impose restrictions on urban driving due to congestion, which may prioritize
and accelerate micromobility trends and slow EV adoption growth. If any of the above cause or contribute to automakers reducing the availability
of EV models or cause or contribute to consumers or businesses no longer purchasing EVs or purchasing fewer of them, it would materially
and adversely affect Nxu's business, operating results, financial condition and prospects.
Nxu
has relied on complex machinery for its operations, and production involves a significant degree of risk and uncertainty in terms of
operational performance, safety, security, and costs.
Nxu
has relied heavily on complex machinery for its operations and its production involved a significant degree of uncertainty and risk in
terms of operational performance, safety, security, and costs. Nxu's manufacturing plant consists of large-scale machinery combining
many components, including complex software to operate such machinery and to coordinate operating activities across the manufacturing
plant. The manufacturing plant components are likely to suffer unexpected malfunctions from time to time, and will depend on repairs,
spare parts, and IT solutions to resume operations, which may not be available when needed. Unexpected malfunctions of the manufacturing
plant components may significantly affect operational efficiency. Operational performance and costs can be difficult to predict and are
often influenced by factors outside of Nxu's control, such as, but not limited to, scarcity of natural resources, environmental
hazards and remediation, costs associated with decommissioning of machines, labor disputes and strikes, difficulty or delays in obtaining
governmental permits, damages or defects in electronic systems including the software used to control or operate them, industrial accidents,
pandemics, fire, seismic activity, and natural disasters.
Should
operational risks materialize, it may result in the personal injury to or death of workers, the loss of production equipment, damage
to manufacturing facilities, products, supplies, tools and materials, monetary losses, delays and unanticipated fluctuations in production,
environmental damage, administrative fines, increased insurance costs, and potential legal liabilities, all which could have a material
adverse effect on Nxu's business, prospects, financial condition, results of operations, and cash flows. Although Nxu generally
carries insurance to cover such operational risks, Nxu cannot be certain that its insurance coverage will be sufficient to cover potential
costs and liabilities arising therefrom. A loss that is uninsured or exceeds policy limits may require Nxu to pay substantial amounts,
which could adversely affect its business, prospects, financial condition, results of operations, and cash flows.
24
The
electric vehicle technology industry is rapidly evolving and may be subject to unforeseen changes which could adversely affect the demand
for Nxu's chargers or other products and may increase its operating costs.
Nxu
may be unable to keep up with changes in electric vehicle technology or alternatives to electricity as a fuel source and, as a result,
its competitiveness may suffer. Developments in alternative technologies, such as advanced diesel, hydrogen, ethanol, fuel cells, or
compressed natural gas, or improvements in the fuel economy of the ICE or the cost of gasoline, may materially and adversely affect Nxu's
business and prospects in ways Nxu does not currently anticipate.
The
EV market currently benefits from the availability of rebates, tax credits and other financial incentives from governments, utilities
and others to offset the purchase or operating cost of EVs and EV charging stations. The reduction, modification or elimination of such
benefits could adversely affect Nxu's financial results and ability to continue to grow.
The
U.S. federal government and some state and local governments provide incentives to end users and purchasers of EVs and EV charging
stations in the form of rebates, tax credits and other financial incentives, such as payments for regulatory credits. The EV market relies
on these governmental rebates, tax credits and other financial incentives to significantly lower the effective price of EVs and EV charging
stations. However, these incentives may expire on a particular date, end when the allocated funding is exhausted, or may be reduced or
terminated as a matter of regulatory or legislative policy. In particular, Nxu has historically benefitted from the availability of federal
tax credits under Section 30C of the Code, which effectively subsidized the cost of placing in service Nxu's charging stations.
The Inflation Reduction Act revised the credits under Section 30C of the Code to (i) retroactively extend the expiration of
the credit as of December 31, 2021 (with such credit continuing to be capped at $30,000 per location for EV charging stations placed
in service before January 1, 2023) until December 31, 2032, (ii) revised the credit structure, availability and requirements
for EV charging stations placed in service after December 31, 2022 and (iii) introduced the concept of transferability of tax
credits, providing an additional option to monetize such credits. As part of the revised credit structure and requirements for EV charging
stations placed in service after December 31, 2022, the available Section 30C credit was expanded such that it is capped at
$100,000 per item; however, in order to be eligible for such tax credit, EV charging stations must be installed in rural or low-income
census tracts. Additionally, in order to receive the full tax credit, labor for EV charging station construction and maintenance must
meet prevailing wage and apprenticeship requirements unless an exception applies. There can be no assurance that the EV charging stations
placed in service by Nxu will meet the revised requirements for the Section 30C credits and compliance with such requirements could
increase Nxu's labor and other costs. Any reduction in rebates, tax credits or other financial incentives available to EVs or EV
charging stations, could negatively affect the EV market and adversely impact Nxu's business operations and expansion potential.
In addition, there is no assurance Nxu will have the necessary tax attributes to utilize any such credits that are available and may
not be able to monetize such credits on favorable terms.
Federal
guidance on Buy America requirements (effective as of March 23, 2023) applicable to the National Electric Vehicle Infrastructure
("NEVI") Program, which was established by the Bipartisan Infrastructure Law, requires immediate domestic assembly and U.S. steel
requirements for chargers to qualify for funding under the NEVI program, with higher domestic content percentages required in 2024. Nxu's
suppliers may experience delays in bringing their U.S. facilities online, and Nxu may be unable to source Buy America-compliant
chargers in time to take advantage of early NEVI funding opportunities or only at increased costs. Nxu may be at a disadvantage to competitors
that have already implemented domestic assembly and content standards into their supply chain. Nxu's customers may request delays
or adjustments to their build-out plans in order to accommodate these added Buy America requirements, which could result in delays in
receipt of revenue from customers.
New
tariffs and policies that could incentivize overbuilding of infrastructure may also have a negative impact on the economics of Nxu's
stations. Furthermore, new tariffs and policy incentives could be put in place that favor equipment manufactured by or assembled at American
factories, which may put Nxu's fast charging equipment vendors at a competitive disadvantage, including by increasing the cost
or delaying the availability of charging equipment, by challenging or delaying Nxu's ability to apply or qualify for grants and
other government incentives, or for certain charging infrastructure build-out solicitations and programs, including those initiated by
federal government agencies.
25
Moreover,
a variety of incentives and rebates offered by the U.S. federal government as well as state and local governments in order to encourage
the use of EVs may be limited or reduced. In particular, the U.S. federal government offers a tax credit, the maximum amount of
which is $7,500, for qualified new plug-in EVs. The Inflation Reduction Act modified the tax credit for new plug-in EVs and added new
tax credits for used and commercial EVs. The Inflation Reduction Act removed the phase-out of tax credits for new plug-in EVs with respect
to vehicle manufacturers that reached certain production levels beginning in 2023. However, the tax credit is subject to additional requirements
and limitations, such as certain adjusted gross income limits for consumers claiming the credit, domestic content requirements for critical
minerals and batteries and a requirement for final assembly to occur in North America. Such additional requirements and limitations for
such tax credits may reduce incentives available to encourage the adoption of EVs; favor competitors whose production chains enable them
to more readily take advantage of such incentives; delay purchases and installations of charging equipment by Nxu as manufacturing of
charging equipment is moved to the U.S. in order to expand eligibility for such incentives (which, in turn, could delay Nxu's
recognition of revenue in connection with such stalls); increase the cost of procurement of some inputs in the construction of charging
infrastructure; and negatively affect the EV market and adversely impact Nxu's business operations and expansion potential. Any
such developments could have an adverse effect on Nxu's business, financial condition and results of operations.
Nxu
has minimal experience servicing and repairing its charging stations. If Nxu or its partners are unable to adequately service its charging
stations, Nxu's business, prospects, financial condition, results of operations, and cash flows could be materially and adversely
affected.
Nxu
has minimal experience servicing and repairing its charging stations. Servicing its products requires specialized skills, including high
voltage training and servicing techniques. Although Nxu is planning to internalize most aspects of vehicle service over time, initially
Nxu plans to partner with third parties to enable nationwide coverage for its network. There can be no assurance that Nxu will be able
to enter into an acceptable arrangement with any such third-party providers. There can be no assurance that Nxu's service arrangements
will adequately address the service requirements of its customers to their satisfaction, or that Nxu and its servicing partners will
have sufficient resources, experience, or inventory to meet these service requirements in a timely manner as the volume of charging stations
it deploys increases.
As
Nxu continues to grow, additional pressure may be placed on its customer support team or partners, and Nxu may be unable to respond quickly
enough to accommodate short-term increases in customer demand for technical support. Customer behavior and usage may result in higher
than expected maintenance and repair costs, which may negatively affect its business, prospects, financial condition, results of operations,
and cash flows. Nxu also could be unable to modify the future scope and delivery of its technical support to compete with changes in
the technical support provided by its competitors. Increased customer demand for support, without corresponding revenue, could increase
costs and negatively affect Nxu's results of operations. If Nxu is unable to successfully address the service requirements of its
customers or establish a market perception that it does not maintain high-quality support, Nxu may be subject to claims from its customers,
including loss of revenue or damages, and its business, prospects, financial condition, results of operations, and cash flows could be
materially and adversely affected.
Product
recall could hinder growth and product liability or other claims could have a material adverse effect on Nxu's business.
If
the NxuOne™ Charging Station is unable to meet performance and quality criteria, Nxu may be required to perform product recalls
to address said concerns. A product recall can have a substantial cost related to performing such corrective actions. Although Nxu will
perform significant internal testing and qualifications, as well as external qualifications through approved third-party vendors against
industry standards and regulatory requirements, there will be unperceived conditions which may negatively impact the customer or Nxu
expected performance. As such, Nxu may perform a corrective action such as a recall of products, mandatory repairs of defective components,
or litigation settlements which can materially affect its financial goals, operation results, brand, business, and products. If Nxu is
unable to provide significant charging stations, its business success may be substantially affected.
26
A
significant portion of Nxu's success is its ability to deploy the appropriate number of charging stations, in strategic locations
relative to its customers and customer behaviors. If Nxu is unable to deploy charging stations to specified locations, this may negatively
affect Nxu's brand, business, financial goals, operational results, and product success in the market. As such, to meet said availability
requirements, Nxu will require significant capital investments to rapidly deploy said NxuOne™ Charging Stations, as well as development
of relationships with third party members who can assist in deployment of said charging stations. If Nxu is unable to address service
requirements, Nxu may negatively affect its customer experience. Nxu's ability to engage with third party operating service stations,
as well as its ability to establish company operated locations, will be critical to the success of developing a positive customer experience.
While
Nxu will work diligently to meet all company and regulatory safety requirements, there is a chance that a component catastrophically
fails. It is possible that through unknown circumstances or conditions out of Nxu's control, some person is injured by its product.
A
successful product liability claim against Nxu could require Nxu to pay a substantial monetary award. Moreover, a product recall could
generate substantial negative publicity about its products and business. Nxu cannot provide assurance that such claims and/or recalls
will not be made in the future.
Nxu
is subject to substantial regulations and unfavorable changes to, or failure by Nxu to comply with, these regulations could substantially
harm its business and operating results.
Nxu's
charging stations are subject to regulation under international, federal, state, and local laws. Nxu expects to incur significant costs
in complying with these regulations. Regulations related to the battery and electric vehicle industry are currently evolving and Nxu
faces risks associated with these changing regulations.
To
the extent that a law changes, Nxu's products may not comply with applicable international, federal, state, and local laws, which
would have an adverse effect on its business. Compliance with changing regulations could be time consuming, burdensome, and expensive.
To the extent compliance with new and existing regulations is cost prohibitive, its business prospects, financial condition, and operating
results would be adversely affected.
Internationally,
there may be laws and jurisdictions Nxu has not yet entered or laws Nxu is unaware of in jurisdictions Nxu has entered that may restrict
its sales or other business practices. These laws may be complex, difficult to interpret and may change over time. Continued regulatory
limitations and obstacles that may interfere with Nxu's ability to commercialize its products could have a negative and material
impact on its business, prospects, financial condition, and results of its operation.
Nxu
is subject to requirements relating to environmental and safety regulations and environmental remediation matters which could adversely
affect its business, results of operation and reputation.
Nxu
is subject to numerous federal, state and local environmental laws and regulations governing, among other things, solid and hazardous
waste storage, treatment and disposal, and remediation of releases of hazardous materials. There are significant capital, operating and
other costs associated with compliance with these environmental laws and regulations. Environmental laws and regulations may become more
stringent in the future, which could increase costs of compliance.
Federal,
state and local authorities also regulate a variety of matters, including, but not limited to, health, safety and permitting in addition
to the environmental matters discussed above. New legislation and regulations may require Nxu to make material changes to its operations,
resulting in significant increases in the cost of production.
Nxu's
manufacturing process will have hazards such as but not limited to hazardous materials, machines with moving parts, and high voltage
and/or high current electrical systems typical of large manufacturing equipment and related safety incidents. There may be safety incidents
that damage machinery or products, slow or stop production, or harm employees. Consequences may include litigation, regulation, fines,
increased insurance premiums, mandates to temporarily halt production, workers' compensation claims, or other actions that impact
its company brand, finances, or ability to operate.
27
Future
administrations at the federal and state level may create regulatory uncertainty for the alternative energy sector and may have an adverse
effect on Nxu's business, prospects, financial condition and operating results.
The
United States automotive industry is subject to certain federal and state regulations, and new regulations continue to be proposed to
address concerns regarding the environment, vehicle safety, and energy independence. Consequently, the regulatory landscape can change
on short notice.
Available
government funding and economic incentives are subject to change for a variety of reasons that are beyond Nxu's control, including
budget and policy initiatives and priorities of current and future administrations at the federal and state level. Considering the waning
government support for adoption of electric vehicle and clean energy initiatives during the first Trump Administration, the incoming
second Trump Administration could adversely affect the growth of the commercial electric vehicle market and alternative energy sector,
which could adversely impact Nxu's business, prospects, financial condition and operating results.
Risks
Related to Nxu's Management
Nxu
is dependent upon its executives for their services and the loss of personnel may have a material adverse effect on Nxu's business
and operations.
The
loss of the services of Nxu's CEO, CFO, or President, Mr. Mark Hanchett, Ms. Sarah Wyant, or Mrs. Annie Pratt, respectively,
could have a material adverse effect on Nxu. Nxu does not maintain any key man life insurance on its executives. The loss of any of its
executives' services could cause investors to lose all or a part of their investment. Its future success will also depend on Nxu's
ability to retain and motivate other highly skilled employees. Competition for personnel in Nxu's industry is intense. Nxu may
not be able to retain its key employees or attract, assimilate or retain other highly qualified employees in the future. If Nxu does
not succeed in attracting new personnel or retaining and motivating its current personnel, its business will be adversely affected.
Nxu's
management team does not have experience running a public company.
While
Nxu's management team has a wide breadth of business experience, none of its executive officers have held an executive position
at a publicly traded company. Given the onerous compliance requirements to which public companies are subject, there is a chance its
executive officers will fail to perform at a level expected of public company officers. In such an event, Nxu's share price could
be adversely affected. The management team's limited experience in dealing with the increasingly complex laws pertaining to public
companies could be a significant disadvantage in that it is likely that an increasing amount of their time may be devoted to these activities
which will result in less time being devoted to the management and growth of Nxu. Nxu may not have adequate personnel with the appropriate
level of knowledge, experience and training in the accounting policies, practices or internal control over financial reporting required
of public companies in the United States. Nxu may upgrade its systems to an enterprise resource management system, and a delay could
impact its ability or prevent it from timely reporting its operating results, timely filing required reports with the SEC and complying
with Section 404 of the Sarbanes-Oxley Act. The development of the standards and controls necessary for Nxu to achieve the level
of accounting standards required of a public company in the United States may require costs greater than expected.
Management's
judgment, estimates and assumptions have a significant impact on business decisions and accounting policies.
Nxu's
management team is not infallible. Nxu relies heavily on its management team's judgment in formulating the estimates and assumptions
that govern its business decisions and accounting policies. Despite their best intentions, errors in Nxu's management team's
judgment may result in significant negative impacts to Nxu's financial performance.
28
Nxu
relies on human resources, the loss of services of any of such personnel may have a material adverse effect on its business and operations.
Nxu
relies on its management team, its advisors, third-party consultants, third-party developers, service providers, technology partners,
outside attorneys, advisors, accountants, auditors, and other administrators. The loss of services of any of such personnel may have
a material adverse effect on its business and operations.
Limitations
of director liability and director and officer indemnification.
Nxu's
Charter limits the liability of directors to the maximum extent permitted by Delaware law. Delaware law provides that directors of a
corporation will not be personally liable for monetary damages for breach of their fiduciary duties as directors, except for liability
for any:
●
breach
                                            of their duty of loyalty to Nxu or its stockholders;
●
act
                                            or omission not in good faith or that involves intentional misconduct or a knowing violation
                                            of law;
●
unlawful
                                            payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174
                                            of the Delaware General Corporation Law; or
●
transactions
                                            for which the directors derived an improper personal benefit.
These
limitations of liability do not apply to liabilities arising under the federal or state securities laws and do not affect the availability
of equitable remedies such as injunctive relief or rescission. The Nxu Bylaws provide that Nxu will indemnify its directors, officers
and employees to the fullest extent permitted by law. The Nxu Bylaws also provide that Nxu is obligated to advance expenses incurred
by a director or officer in advance of the final disposition of any action or proceeding. Nxu believes that the Nxu Bylaw provisions
are necessary to attract and retain qualified persons as directors and officers. The limitation of liability in the Nxu Bylaws may discourage
stockholders from bringing a lawsuit against directors for breach of their fiduciary duties. They may also reduce the likelihood of derivative
litigation against directors and officers, even though an action, if successful, might provide a benefit to Nxu and its stockholders.
Nxu's results of operations and financial condition may be harmed to the extent Nxu pays the costs of settlement and damage awards
against directors and officers pursuant to these indemnification provisions.
Limitations
on remedies; indemnification.
Nxu's
Charter, as amended from time to time, provides that officers, directors, employees and other agents and their affiliates shall only
be liable to Nxu and its stockholders for losses, judgments, liabilities and expenses that result from fraud or other breach of fiduciary
obligations. Additionally, Nxu assumed certain indemnification agreements with each of its officers and directors consistent with industry
practice. Thus, certain alleged errors or omissions might not be actionable by Nxu. Nxu's governing instruments also provide that,
under the broadest circumstances allowed under law, Nxu must indemnify its officers, directors, employees and other agents and their
affiliates for losses, judgments, liabilities, expenses and amounts paid in settlement of any claims sustained by them in connection
with Nxu, including liabilities under applicable securities laws.
Risks
Related to Nxu's Capital Structure and Ownership of Class A Common Stock
Nxu
cannot predict the impact its dual class structure may have on its stock price.
Nxu
cannot predict whether its dual class structure will result in a lower or more volatile market price of the Class A common stock
or in adverse publicity or other adverse consequences. For example, because of its dual class structure, Nxu will likely be excluded
from certain indexes, and Nxu cannot assure you that other stock indexes will not take similar actions. Given the sustained flow of investment
funds into passive strategies that seek to track certain indexes, exclusion from stock indexes would likely preclude investment by many
of these funds and could make the Class A common stock less attractive to other investors. As a result, the market price of the
Class A common stock could be adversely affected.
29
The
market price of the Class A common stock has fluctuated, and may continue to fluctuate, significantly.
The
market price of the Class A common stock has fluctuated, and may continue to fluctuate, significantly and Nxu's stockholders
may lose all or part of their investment.
The
market prices for securities of startup companies have historically been highly volatile, and the market has from time-to-time experienced
significant price and volume fluctuations that are unrelated to the operating performance of particular companies. The market price of
the Class A common stock has fluctuated, and may continue to fluctuate, significantly in response to numerous factors, some of which
are beyond its control, such as:
●
actual
                                            or anticipated adverse results or delays in its research and development efforts;
●
its
                                            failure to commercialize its Nxu Platform and Nxu Truck;
●
unanticipated
                                            serious safety concerns related to the use of its products;
●
adverse
                                            regulatory decisions;
●
legal
                                            disputes or other developments relating to proprietary rights, including patents, litigation
                                            matters and its ability to obtain patent protection for its intellectual property, government
                                            investigations and the results of any proceedings or lawsuits, including patent or stockholder
                                            litigation;
●
changes
                                            in laws or regulations applicable to the electric vehicle industry;
●
Nxu's
                                            dependence on third party suppliers;
●
announcements
                                            of the introduction of new products by its competitors;
●
market
                                            conditions in the electric vehicle industry;
●
announcements
                                            concerning product development results or intellectual property rights of others;
●
future
                                            issuances of Nxu's common stock or other securities;
●
the
                                            addition or departure of key personnel;
●
actual
                                            or anticipated variations in quarterly operating results;
●
announcements
                                            of significant acquisitions, strategic partnerships, joint ventures or capital commitments
                                            by Nxu or Nxu's competitors;
●
its
                                            failure to meet or exceed the estimates and projections of the investment community;
●
issuances
                                            of debt or equity securities;
●
trading
                                            volume of Nxu common stock;
●
sales
                                            of the Class A common stock by Nxu or its stockholders in the future;
●
overall
                                            performance of the equity markets and other factors that may be unrelated to its operating
                                            performance or the operating performance of its competitors, including changes in market
                                            valuations of similar companies;
●
failure
                                            to meet or exceed any financial guidance or expectations regarding development milestones
                                            that Nxu may provide to the public;
30
●
ineffectiveness
                                            of Nxu's internal controls;
●
general
                                            political and economic conditions;
●
effects
                                            of natural or man-made catastrophic events;
●
scarcity
                                            of raw materials necessary for battery production; and
●
other
                                            events or factors, many of which are beyond Nxu's control.
Further,
price and volume fluctuations may result in volatility in the price of the Class A common stock, which could cause a decline in
the value of Nxu's common stock. Price volatility of the Class A common stock might worsen if the trading volume of its shares
is low. The realization of any of the above risks or any of a broad range of other risks, including those described in this "Risk
Factors" section could have a dramatic and material adverse impact on the market price of the Class A common stock.
The
Class A common stock may be delisted from Nasdaq if Nxu does not maintain compliance with Nasdaq's continued listing requirements.
If the Class A common stock is delisted, it could negatively impact Nxu.
Continued
listing of a security on Nasdaq is conditioned upon compliance with various continued listing standards. On April 2, 2024, Nxu received
a notice from Nasdaq stating that Nxu is not in compliance with the $1.00 minimum bid price requirement set forth in Nasdaq Listing Rule
5550(a)(2) for continued listing on Nasdaq (the "Minimum Bid Requirement"). On October 1, 2024, Nxu received a second notice
from Nasdaq confirming that Nxu is still not in compliance with the Minimum Bid Requirement as of September 30, 2024 and granting Nxu
an additional 180 days, or until March 31, 2025, to regain compliance. Nasdaq's determination is based on Nxu meeting the
continued listing requirement for market value of publicly held shares and all other applicable requirements for initial listing on the
Nasdaq Capital Market with the exception of the bid price requirement, and Nxu's written notice of its intention to cure the deficiency
during the second compliance period by effecting a reverse stock split, if necessary.
On
September 4, 2024, Nxu received a notice from Nasdaq notifying Nxu that, due to Ms. Nightengale not standing for re-election as a director
of Nxu at Nxu's 2024 annual meeting of stockholders held on August 14, 2024, Nxu was no longer in compliance with Nasdaq's
audit committee requirements as set forth in Nasdaq Listing Rule 5605. Nxu intends to appoint an additional independent director to the
Nxu board of directors and the audit committee of its board of directors as soon as practicable and prior to the earlier of Nxu's
next annual meeting of stockholders or August 14, 2025, or, if Nxu's next annual meeting of stockholders is held before February
10, 2025, by February 10, 2025.
No
assurances can be provided that we will regain compliance with the minimum bid price requirement or the audit committee requirement within
the required compliance periods. If the Company's Class A common stock ultimately were to be delisted for any reason, it could
negatively impact the Company by (i) reducing the liquidity and market price of the Company's Class A common stock; (ii) reducing
the number of investors willing to hold or acquire the Company's Class A common stock, which could negatively impact the Company's
ability to raise equity financing; (iii) limiting the Company's ability to use a registration statement to offer and sell freely
tradable securities, thereby preventing the Company from accessing the public capital markets; and (iv) impairing the Company's
ability to provide equity incentives to its employees.
If
the market price of the Class A common stock continues to remain under $1.00 per share, the only cure may be to enact a reverse
split of the stock. Failure to maintain compliance with Nasdaq's Continued Listing Rules could be costly and have material adverse
effects.
Nxu
will continue to monitor the closing bid price of the Class A Common Stock and seek to maintain compliance with all applicable Nasdaq
requirements within the allotted compliance periods and may, if appropriate, consider available options, including implementation of
an additional reverse stock split to regain compliance with the Minimum Bid Requirement.
On
December 27, 2023, Nxu completed a reverse stock split at a ratio of 1-for-150. If Nxu does not maintain compliance with the Minimum
Bid Requirement, Nxu may be forced to complete another reverse stock split, which could negatively affect the price of the Class A common
stock.
Further,
while Nasdaq rules do not impose a specific limit on the number of times a listed company may effect a reverse stock split to maintain
or regain compliance with the Minimum Bid Requirement, Nasdaq has stated that a series of reverse stock splits may undermine investor
confidence in securities listed on Nasdaq. Accordingly, Nasdaq may determine that it is not in the public interest to maintain Nxu's
listing, even if Nxu regains compliance with the Minimum Bid Requirement.
31
In
addition, Nasdaq Listing Rule 5810(c)(3)(A)(iv) states that if a listed company that fails to meet the Minimum Bid Requirement
after effecting one or more reverse stock splits over the prior two-year period with a cumulative ratio of 250 shares or more to one,
then the company is not eligible for a compliance period. Nxu has effected a reverse stock split with a cumulative ratio of 150 shares
to one. A subsequent reverse stock split could cause Nxu to exceed the 1-for-250 ratio. If such ratio is exceeded, Nxu would no longer
be eligible for a compliance period and may be subject to an immediate delisting notification in the event it cannot comply with the
Minimum Bid Requirement in the future.
Any
future non-compliance may be costly, divert management's time and attention, and could have a material adverse effect on Nxu's
business, reputation, financing, and results of operation. A delisting could substantially decrease trading in the Class A Common
Stock, adversely affect the market liquidity of the Class A common stock as a result of the loss of market efficiencies associated with
Nasdaq and the loss of federal preemption of state securities laws, materially adversely affect its ability to obtain financing on acceptable
terms, if at all, and may result in the potential loss of confidence by investors, suppliers, customers and employees and fewer business
development opportunities. Additionally, the market price of the Class A common stock may decline further and stockholders may lose
some or all of their investment.
Nxu
does not anticipate dividends to be paid on the Class A common stock and investors may lose the entire amount of their investment.
A
dividend has never been declared or paid in cash on the Class A common stock and Nxu does not anticipate such a declaration or payment
for the foreseeable future. Nxu expects to use future earnings, if any, to fund business growth. Therefore, stockholders will not receive
any funds absent a sale of the Class A common stock. Nxu cannot assure stockholders of a positive return on their investment when
they sell the Class A common stock, nor can Nxu assure that stockholders will not lose the entire amount of their investment. Any
payment of dividends on its capital stock will depend on Nxu's earnings, financial condition and other business and economic factors
affecting Nxu at such a time as the Nxu board of directors may consider it relevant. If Nxu does not pay dividends, the Class A
common stock may be less valuable because a return on its stockholders' investment will only occur if the Class A common stock
price appreciates.
Nxu
is an emerging growth company and a smaller reporting company within the meaning of the Securities Act, and if Nxu takes advantage of
certain exemptions from disclosure requirements available to emerging growth companies and smaller reporting companies, this could make
its securities less attractive to investors and may make it more difficult to compare its performance with other public companies.
Nxu
is an "emerging growth company" within the meaning of the Securities Act, as modified by the JOBS Act, and Nxu may take advantage
of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth
companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of
the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements,
and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any
golden parachute payments not previously approved. As a result, Nxu's stockholders may not have access to certain information they
may deem important. Nxu could be an emerging growth company for up to five years, although circumstances could cause Nxu to lose
that status earlier, including if the market value of the Class A common stock held by non-affiliates exceeds $700 million
as of any June 30 before that time, in which case Nxu would no longer be an emerging growth company as of the following December 31.
Nxu cannot predict whether investors will find its securities less attractive because Nxu will rely on these exemptions. If some investors
find Nxu's securities less attractive as a result of its reliance on these exemptions, the trading prices of its securities may
be lower than they otherwise would be, there may be a less active trading market for its securities and the trading prices of its securities
may be more volatile.
Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial
accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective
or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial
accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the
requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. Nxu has elected not to opt
out of such extended transition period, which means that when a standard is issued or revised and it has different application dates
for public or private companies, Nxu, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of Nxu's financial statements with another public company which is
neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult
or impossible because of the potential differences in accountant standards used.
32
Additionally,
Nxu is a "smaller reporting company" as defined in Rule 10(f)(1) of Regulation S-K. Smaller reporting
companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years
of audited financial statements. Nxu will remain a smaller reporting company until the last day of the fiscal year in which (1) the
market value of Nxu's common stock held by non-affiliates exceeds $250 million as of the end of the prior June 30
th
,
or (2) Nxu's annual revenues exceeded $100 million during such completed fiscal year and the market value of Nxu's
common stock held by non-affiliates exceeds $700 million as of the prior June 30. To the extent Nxu takes advantage of such
reduced disclosure obligations, it may also make the comparison of Nxu's financial statements with other public companies difficult
or impossible.
Nxu
will incur significant additional costs as a result of being a public company, and its management will be required to devote substantial
time to compliance with its public company responsibilities and corporate governance practices.
Nxu
expects to incur increased costs associated with corporate governance requirements that are applicable to it as a public company, including
rules and regulations of the SEC, under the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Customer Protection Act of 2010,
and the Exchange Act, as well as the rules of Nasdaq. These rules and regulations are expected to significantly increase its accounting,
legal and financial compliance costs and make some activities more time consuming, including due to increased training of its current
employees and increased assistance from consultants. Nxu expects such expenses to further increase after it is no longer an "emerging
growth company." Nxu also expects these rules and regulations to make it more expensive for it to maintain directors' and
officers' liability insurance. As a result, it may be more difficult for Nxu to attract and retain qualified persons to serve on
the Nxu board of directors or as executive officers. Furthermore, these rules and regulations will increase its legal and financial compliance
costs and will make some activities more time-consuming and costly. Nxu cannot predict or estimate the amount of additional costs it
will incur as a public company or the timing of such costs. In addition, its management team will need to devote substantial attention
to transitioning to interacting with public company analysts and investors and complying with the increasingly complex laws pertaining
to public companies, which may divert attention away from the day-to-day management of Nxu's business, including operational
and sales and marketing activities. Increases in costs incurred or diversion of management's attention as a result of becoming
a publicly traded company may adversely affect its business, prospects, financial condition, results of operations, and cash flows.
Small
public companies are inherently risky and Nxu may be exposed to market factors beyond Nxu's control. If such events were to occur
it may impact its operating results.
Managing
a small public company involves a high degree of risk. Few small public companies ever reach market stability and Nxu will be subject
to oversight from governing bodies and regulations that will be costly to meet. Nxu's present officers have limited experience
in managing a fully reporting public company, so Nxu may be forced to obtain outside consultants to assist it with meeting these requirements.
These outside consultants are expensive and can have a direct impact on Nxu's ability to be profitable. This will make an investment
in Nxu a highly speculative and risky investment.
The
Nxu Bylaws include forum selection provisions, which could limit its stockholders' ability to obtain a favorable judicial forum
for disputes with Nxu.
The
Nxu Bylaws require that, unless Nxu consents in writing to the selection of an alternative forum, the Court of Chancery of the State
of Delaware (or, if that court lacks subject matter jurisdiction, another federal or state court situated in the State of Delaware) will
be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of its business, (ii) any action
asserting a claim of breach of a duty owed by any director, officer, employee, agent or stockholder of Nxu to Nxu or its stockholders,
(iii) any action asserting a claim arising pursuant to any provision of the DGCL or (iv) any action asserting a claim governed
by the internal affairs doctrine. In addition, the Nxu Bylaws require that, unless Nxu consent in writing to the selection of an alternative
forum, the federal district courts of the United States will be the exclusive forum for the resolution of any complaint asserting
a cause of action under the Securities Act and the Exchange Act. Any person or entity purchasing or otherwise acquiring any interest
in shares of Nxu's capital stock is deemed to have notice of and consented to the foregoing provisions.
These
forum selection provisions in the Nxu Bylaws may limit its stockholders' ability to obtain a favorable judicial forum for disputes
with Nxu, which may discourage such lawsuits against Nxu. Nxu cannot be certain as to whether a court would enforce these provisions,
and if a court were to find the forum selection provisions contained in the Nxu Bylaws to be inapplicable or unenforceable in an action,
Nxu may incur additional costs associated with resolving such action in other jurisdictions, which could harm its business, operating
results and financial condition. Furthermore, investors cannot waive compliance with the federal securities laws and the rules and regulations
thereunder.
33
Nxu may use equity incentives for employees,
advisors, directors, key consultants and select affiliates. Any issuance of stock upon the conversion of options and/or incentive rights
will result in the dilution of the ownership interests of its existing stockholders.
Nxu may use equity incentives for employees, advisors,
directors, key consultants and select affiliates. Any issuance of stock upon the conversion of options and/or incentive rights, including
settlement or exercise of incentive awards prior to or concurrently with the Merger, will result in the dilution of the ownership interests
of its existing stockholders.
Nxu is subject to general securities investment
risks.
All investments in securities involve the risk
of loss of capital. No guarantee or representation is made that an investor will receive a return of its capital. The value of the Class A
common stock can be adversely affected by a variety of factors, including development problems, regulatory issues, technical issues, commercial
challenges, competition, legislation, government intervention, industry developments and trends, and general business and economic conditions.
A sale, or the perception of future sales,
of a substantial number of shares of Class A common stock may cause the share prices to decline.
If Nxu's stockholders sell, or the market
perceives that Nxu's stockholders intend to sell for various reasons, substantial amounts of the Class A common stock in the
public market, including shares issued in connection with the exercise of outstanding options, the market price of its shares could fall.
Sales of a substantial number of shares of the Class A common stock may make it more difficult for Nxu to sell equity or equity-related
securities in the future at a time and price that Nxu deems reasonable or appropriate. Nxu may become involved in securities class action
litigation that could divert management's attention and harm its business. The stock markets have from time-to-time experienced
significant price and volume fluctuations that have affected the market prices for the common stock of automotive companies. These broad
market fluctuations may cause the market price of the Class A common stock to decline. In the past, securities class action litigation
has often been brought against a company following a decline in the market price of a company's securities. Nxu may become involved
in this type of litigation in the future. Litigation often is expensive and diverts management's attention and resources, which
could adversely affect its business.
Nxu's quarterly operating results
may fluctuate.
Nxu expects its operating results to be subject
to quarterly fluctuations. Nxu's net loss and other operating results will be affected by numerous factors, including:
●
any intellectual property infringement lawsuit in which Nxu
may become involved;
●
regulatory developments affecting its products and related
services; and
●
Nxu's execution of any collaborative, licensing or
similar arrangements, and the timing of payments Nxu may make or receive under these arrangements.
If Nxu's quarterly operating results fall
below the expectations of investors or securities analysts, the price of the Class A common stock could decline substantially. Furthermore,
any quarterly fluctuations in its operating results may, in turn, cause the price of the Class A common stock to fluctuate substantially.
Unfavorable securities industry reports
could have a negative effect on Nxu's share price.
Any trading market for the Class A common
stock will be influenced in part by any research reports that securities industry analysts publish about Nxu. Should one or more of such
analysts downgrade Nxu's securities, or otherwise reports on Nxu unfavorably, or discontinues coverage, the market price and market
trading volume of the Class A common stock could be negatively affected.
34
THE PRIVATE PLACEMENT
PIPE Securities Purchase Agreement
On December 26, 2024,
the Company entered into, and consummated the transactions contemplated by, the Securities Purchase Agreement with the purchasers named
therein (the "Investors"). Pursuant to the Securities Purchase Agreement, the Company will sell to the Investors an aggregate
of (i) 6,800,000 shares (the "Purchased Shares") of Class A common stock, (ii) pre-funded warrants to purchase 5,200,000 shares
of Class A common stock (the "Pre-Funded Warrants"), (iii) Series A warrants to purchase up to 6,000,000 shares of Class A
common stock (the "Series A Warrants"), and (iv) Series B warrants to purchase a number of shares of Class A common stock
(the "Series B Warrants" and together with the Pre-Funded Warrants and the Series A Warrants, the "Warrants").
The Purchased Shares, the Warrants and the shares of Class A common stock issuable upon exercise of the Warrants are collectively referred
to herein as the "Securities." The aggregate offering price for the Purchased Shares and the Warrants sold in the Private
Placement was approximately $3,000,000.
The Pre-Funded Warrants
are exercisable immediately following the date of issuance, may be exercised at any time until all of the Pre-Funded Warrants are exercised
in full, and have an initial exercise price of $0.0001 per share, subject to adjustment. The Series A Warrants and the Series B Warrants
are exercisable upon receipt of approval of the Company's stockholders relating to the issuance of the shares of Class A common
stock underlying the Series A Warrants and the Series B Warrants as required by the rules and regulations of The Nasdaq Stock Market LLC
(the "Stockholder Consent"). The Series A Warrants have an exercise price of $0.50, subject to adjustment. In addition, with
respect to the Series A Warrants, the Investors may also effect an "alternative cashless exercise" after the Stockholder Consent
has been obtained but prior to the time of the closing of the merger (the "Automatic Exercise Time") contemplated by the Merger
Agreement. In such event, the aggregate number of shares of Common Stock issuable in such alternative cashless exercise of the Series
A Warrants will equal the product of (i) the aggregate number of shares of Common Stock that would be issuable upon exercise of
such Series A Warrant in accordance with the terms of such Series A Warrant if such exercise were by means of a cash exercise rather than
a cashless exercise, multiplied by (ii) 1.0. The Series A Warrants contain a reset adjustment that is expected to occur on the date
(the "Reset Date") that is the eighth trading day after the effectiveness of the Registration Statement (as defined below)
or, if later, the eighth trading day after the Stockholder Consent is obtained. The reset price means the greater of (i) 80% of the lowest
daily weighted average price (as defined) and (ii) a floor price of $0.0524 (subject to adjustment). If the exercise price of the Series
A Warrants is reduced pursuant to the reset provisions, the number of shares of Common Stock for which the Series A Warrants can be exercised
will be correspondingly increased. The number of shares of Common Stock for which the Series B Warrants can initially be exercised will
be determined on the Reset Date and will equal that number obtained by subtracting (i) the number of Purchased Shares purchased by the
Investors on the closing date of the Private Placement pursuant to the Securities Purchase Agreement from (ii) the quotient obtained by
dividing (x) the aggregate purchase price paid the Investors on the closing date for the Private Placement by (y) the applicable reset
price determined on the Reset Date. The Series B Warrants have an exercise price of $0.0001 per share, subject to adjustment. As a result
of the reset provisions in the Series A Warrants and the provisions for determining the number of shares of Common Stock into which the
Series B Warrants may be exercised, the number of shares into which the Warrants will be exercisable following the Reset Date may be significantly
greater than the number of shares into which the Warrants are exercisable on the closing date of the Private Placement.
A holder may not exercise
any Pre-Funded Warrants or Series A Warrants that would cause the aggregate number of shares of Class A common stock beneficially owned
by the holder to exceed 4.99% (or 9.99% at the election of the holder) of the Company's outstanding Class A common stock immediately
after exercise. A holder may not exercise any Series B Warrant that would cause the aggregate number of shares of Class A common stock
beneficially owned by the holder to exceed 4.99% of the Company's outstanding Class A common stock immediately after exercise (the
"Beneficial Ownership Limitation"). The Warrants are subject to adjustment in the event of certain stock dividends and distributions,
stock splits, stock combinations, reclassifications or similar events affecting the Class A common stock and also upon any distributions
for no consideration of assets to the Company's stockholders. The Warrants do not entitle the holders thereof to any voting rights
or any of the other rights or privileges to which holders of Class A common stock are entitled.
35
In the event of a "Fundamental
Transaction," which term is defined in the respective Warrants and generally includes (i) the Company, directly or indirectly, in
one or more related transactions effecting any merger or consolidation of the Company with or into another Subject Entity (as defined
in the respective Warrants) whether or not the Company is the surviving entity, (ii) the Company, directly or indirectly, effecting any
sale, assignment, transfer, conveyance or other disposition of all or substantially all of the Company's (or any of its "significant
subsidiaries") assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or
exchange offer (whether by the Company or another Subject Entity) completed pursuant to which holders of Class A common stock are permitted
to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of at least 50% of
the outstanding shares of Class A common stock, (iv) the Company, directly or indirectly, in one or more related transactions consummating
a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off,
merger or scheme of arrangement) with one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate,
acquires at least 50% of the outstanding shares of Class A common stock, or (v) the Company, directly or indirectly, in one or more related
transactions with one or more Subject Entities effecting any reclassification, reorganization or recapitalization of the Class A common
stock or any compulsory share exchange pursuant to which all such Subject Entities, individually or in the aggregate, acquire at least
50% of the outstanding shares of Class A common stock, the holders of the Warrants will be entitled to receive upon exercise of such Warrants
the kind and amount of securities, cash or other property that the holders would have received had they exercised such Warrants immediately
prior to such Fundamental Transaction. Notwithstanding, the term "Fundamental Transaction" does not include the Company's
pending Merger with Verde pursuant to the Merger Agreement.
Any portion of the Series
A Warrants and Series B Warrants that is not exercised as of the Automatic Exercise Time will be automatically exercised as of such Automatic
Exercise Time (concurrently with the closing of the merger contemplated by the Merger Agreement) pursuant to a cashless exercise, subject
to (i) Stockholder Consent is received and effective through such exercise time and (ii) the Beneficial Ownership Limitation. Any portion
of the Pre-Funded Warrants that is not exercised as of the Automatic Exercise Time will be automatically exercised as of such Automatic
Exercise Time pursuant to a cashless exercise, subject to t the Beneficial Ownership Limitation.
Pursuant to an engagement letter between the Company
and Maxim Group LLC (the "Placement Agent"), the Company will pay the Placement Agent a cash fee at closing equal to 7.0%
of the gross proceeds received by the Company in the offering, and will reimburse the Placement Agent for up to $50,000 for accountable
out-of-pocket expenses.
The foregoing descriptions of the Securities
Purchase Agreement and the Warrants do not purport to be complete and are qualified in their entirety by references to the full text
of (i) the form of the Securities Purchase Agreement, which is filed as Exhibit 10.39 to our registration statement of which this
prospectus forms a part and is incorporated herein; (ii) the form of Pre-Funded Warrant, which is filed as Exhibit 10.36 to our
registration statement of which this prospectus forms a part and is incorporated by reference herein; (iii) the form of Series A
Warrant, which is filed as Exhibit 10.37 to our registration statement of which this prospectus forms a part and is incorporated by
reference herein; and (iv) the form of Series B Warrant, which is filed as Exhibit 10.38 to our registration statement of which this
prospectus forms a part and is incorporated by reference herein.
Registration Rights Agreement
In connection with the Private Placement,
the Company also entered into a Registration Rights Agreement, dated December 26, 2024 (the "Registration Rights
Agreement"), with the Investors requiring the Company to register the resale of the Purchased Shares and the shares of Class A
common stock issuable upon exercise of the Warrants under a registration statement on Form S-3 (or a Form S-1 if the Company is not
then eligible to register for resale such securities on Form S-3) (the "Resale Registration Statement"). The Company is
required to prepare and file the Resale Registration Statement with the SEC as soon as reasonably practicable, but in no event later
than 30 days following the closing date of the Private Placement (the "Filing Deadline"), and to use reasonable best
efforts to cause the Resale Registration Statement to be declared effective as promptly as practicable thereafter, and in any event
no later than 50 days following the closing date of the Private Placement if the Resale Registration Statement is not subject to a
"full review" by the SEC and 70 days following the closing date of the Private Placement in the event of a full review
of the Resale Registration Statement by the SEC (the "Effectiveness Deadline").
If the Company fails to meet the Filing Deadline
or the Effectiveness Deadline, subject to certain terms provided for in the Registration Rights Agreement, the Company will be required
to pay liquidated damages to the Investors. The Registration Rights Agreement provides for customary indemnification and contribution
provisions. In the event the Investors no longer hold "Registrable Securities," as defined in the Registration Rights Agreement
or when the Registrable Securities may be resold by the Investors pursuant to Rule 144 promulgated under the Securities Act ("Rule
144"), the Company may not be obligated to cause the declaration of effectiveness of the Resale Registration Statement by the SEC.
The foregoing description of the
Registration Rights Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the
form of the Registration Rights Agreement, which is filed as Exhibit 10.40 to our registration statement of which this prospectus
forms a part and is incorporated by reference herein.
36
Lock-Up Agreement
In addition, pursuant to certain "lock-up"
agreements (each, a "Lock-Up Agreement") that were required to be entered into as a condition to the closing of the Private
Placement, the Company's executive officers and directors have agreed, for a period of 30 days from the earlier of (x) such time
as one or more Resale Registration Statement(s) covering the resale of all Registrable Securities has been effective and available for
the re-sale of all such Registrable Securities, and (y) such time as all of the Registrable Securities may be sold without restriction
or limitation pursuant to Rule 144, not to engage in any of the following, whether directly or indirectly, without the consent of the
Investors under the Purchase Agreement: offer, sell, contract to sell, hypothecate, pledge or otherwise dispose of any shares of Common
Stock or securities convertible, exchangeable or exercisable into, shares of Common Stock beneficially owned, held or acquired by the
Investors.
The foregoing description of the Lock-Up Agreements
does not purport to be complete and is qualified in its entirety by reference to the full text of the form of Lock-Up Agreement, which
is filed as Exhibit 10.41 to our registration statement of which this prospectus forms a part and is incorporated by reference herein.
Voting Agreement
In addition, each of Mark Hanchett, Annie Pratt,
Britt Ide, Jessica Billingsley and Sarah Wyant agreed to enter into voting agreements (each a "Voting Agreement") to vote
all shares of the Company voting stock over which each such individual has voting control in favor of any resolution presented to the
shareholders of the Company to approve the terms and exercise of the Series A warrant and Series B warrant to comply with the applicable
rules and regulations of the Nasdaq Stock Market.
The foregoing description of the Voting Agreements
does not purport to be complete and is qualified in its entirety by reference to the full text of the form of Voting Agreement, which
is filed as Exhibit 10.42 to this Report and is incorporated by reference herein.
37
USE OF PROCEEDS
We will not receive any proceeds from the resale,
if any, of the Registrable Securities by the selling stockholders.
We will pay the expenses of registration of the
Registrable Securities covered by this prospectus, including legal and accounting fees.
The prices at which the Registrable Securities
may actually be sold will be determined by the prevailing public market price for shares of our Class A common stock, by negotiations
between the selling stockholders and buyers of our Class A common stock in private transactions or as otherwise described in "Plan
of Distribution."
SECURITIES MARKET
INFORMATION
Market Information
Nxu's Class A common stock is listed for
trading on Nasdaq under the symbol "NXU." As of December 26, 2024, the closing price of our Class A common stock as reported
on Nasdaq was $0.262.
Holders
As of December 23, 2024, there were 16,937 holders
of record of our Class A common stock.
38
UNAUDITED PRO
FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
The following unaudited pro forma condensed combined
financial information and the accompanying notes (the "pro forma financial information") are presented to illustrate the estimated
effects of the anticipated merger between Nxu, Inc. ("Nxu") and Verde Bioresins, Inc. ("Verde") pursuant to an
Agreement and Plan of Merger (the "Merger Agreement") entered into by both parties on October 23, 2024. The merger between
Nxu and Verde is accounted for as a reverse acquisition, where Verde, the legal acquiree, is determined to be the accounting acquirer
of Nxu. Refer to Note 1.
The following transactions are expected to occur in accordance with
the Merger Agreement:
●
Nxu Merger Sub, Inc., a Delaware corporation and wholly owned
subsidiary of Nxu ("Merger Sub I") will merge with and into Verde (the "First Merger"), with Verde continuing
as the surviving entity as a wholly-owned subsidiary of Nxu. and (ii) immediately following the First Merger (the "Effective Time"),
Verde will merge within and into Nxu Merger Sub, LLC, a Delaware limited liability company (the "Second Merger", and together
with the First Merger, the "Merger"), with Merger Sub II surviving the Second Merger as a wholly-owned subsidiary of Nxu.
●
Immediately prior to the Effective Time, all outstanding
convertible notes of Verde will be converted into shares of Verde common stock and all outstanding and unexercised Verde warrants will
be exercised for shares of Verde common stock, and
●
At the Effective Time, (a) each then-outstanding share of
Verde common stock, other than any cancelled shares and dissenting shares, will be converted into the right to receive a number of shares
of Nxu common stock, and (b) each then-outstanding and unexercised Verde option to purchase shares of Verde common stock, whether vested
or unvested, will be assumed by Nxu and converted into an option to purchase a number of shares of Nxu common stock. The shares of Nxu
common stock that will be issued to Verde stockholders and the number of shares of Nxu common stock underlying options that will be issuable
to Verde optionholders will be calculated using a formula in the Merger Agreement based on the estimated enterprise value of each of
Verde and Nxu.
●
Upon consummation of the transactions contemplated by the
Merger Agreement, it is expected that the current stockholders of Verde will own approximately 95% of the post-Merger combined entity
(the "Combined Company"), and the current stockholders of Nxu will own approximately 5% of the Combined Company on a fully-diluted
and as-converted basis. Following the Merger, the name of Nxu will be changed to "Verde Bioresins, Corp." and its common
stock will remain listed on the Nasdaq Stock Exchange.
The pro forma financial information has been prepared under the following
assumptions:
●
The unaudited pro forma condensed combined balance sheet
of the Combined Company as of September 30, 2024 assumes that the Merger had occurred on September 30, 2024.
●
The unaudited pro forma condensed combined statement of operations
of the Combined Company for the year ended December 31, 2023 and unaudited pro forma condensed combined statement of operations for the
nine months ended September 30, 2024 assumes that the Merger had occurred on January 1, 2023, the beginning of the earliest period presented.
The pro forma financial information has been compiled using, and should
be read in conjunction with the following:
●
The audited consolidated financial statements and notes of
Nxu as of and for the year ended December 31, 2023 included in the Form 10-K filed by Nxu with the Securities and Exchange Commission
(the "SEC") on April 1, 2024 and the unaudited condensed consolidated financial statements for the three and nine months
ended September 30, 2024 included in the From 10-Q filed by Nxu with the SEC on November 13, 2024, both of which are incorporated by
reference into this information statement/prospectus; and
●
The audited consolidated financial statements and notes of
Verde BioResins as of and for the year ended December 31, 2023 and unaudited condensed consolidated financial statements for the nine
months ended September 30, 2024 included elsewhere in this proxy statement/prospectus.
●
The accompanying notes to the unaudited pro forma condensed
combined financial information;
The pro forma financial information is for informational
purposes only and is not necessarily indicative of what the actual consolidated results of operations and financial position of the Combined
Company would have been had the Merger taken place on the dates indicated, nor are they indicative of future consolidated results of
operations or financial position of the Combined Company. The pro forma financial information is based on the information available to
management at the time of preparation and assumptions that management believes are reasonable and supportable. The pro forma adjustments,
which are described in the accompanying notes, may be revised as additional information becomes available and is evaluated. It is likely
that the actual adjustments upon the completion of the Merger will differ from the pro forma adjustments, and it is possible the differences
may be material.
39
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE
SHEET
As of September 30, 2024
(in thousands)
Nxu, Inc.
(Historical)
Verde BioResins
(Historical)
Transaction Accounting Adjustments
(Note 3)
Accounting Adjustments
(Note 3)
Notes
Pro Forma Combined
ASSETS
Current assets:
Cash
$
2,208
$
227
$
3,000
$
—
H
$
5,435
Accounts receivable
—
16
—
—
16
Inventory
—
216
—
—
216
Prepaid expenses and other current assets
841
60
—
—
901
Total current assets
3,049
519
3,000
—
6,568
Property and equipment, net
1,922
2,538
—
—
4,460
Assets held for sale
717
—
—
—
717
Right-of-use assets, net
433
1,175
—
—
1,608
Investment in Lynx
2,025
—
—
—
2,025
Intangible assets, net
45
—
—
(45
)
A
—
Other assets
249
470
—
—
719
Total assets
$
8,440
$
4,702
$
3,000
$
(45
)
$
16,097
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued liabilities
$
1,670
$
3,614
$
4,584
—
E
$
8,394
(1,817
)
—
C
343
—
H
Variable share settled restricted stock units
2,483
—
(2,483
)
—
B
—
Convertible notes, net of debt discount of $0
—
10,625
(10,625
)
—
C
—
Current portion of operating lease liability
869
363
—
—
1,232
Total current liabilities
5,022
14,602
(9,998
)
—
9,626
Lease liability, net of current portion
52
891
—
—
943
Convertible debt and warrant liability, at fair value
16
—
(10
)
—
D
6
Total liabilities:
5,090
15,493
(10.008
)
—
10,575
Stockholders' equity (deficit):
Common Stock
1
32
—
10
F
44
1
—
H
Additional paid-in capital
281,061
23,752
2,483
—
B
47,359
12,442
—
C
10
—
D
45
E
—
(279,075
)
F
4,239
G
2,656
H
Accumulated deficit
(277,712
)
(34,575
)
(4,629
)
—
E
(42,135
)
—
279,020
F
(4,239
)
—
G
Total stockholders' (deficit) equity
3,350
(10,791
)
13,008
(45
)
5,522
Total liabilities, convertible preferred stock and stockholders' equity (deficit)
$
8,440
$
4,702
$
3,000
$
(45
)
$
16,097
See accompanying notes to the unaudited pro
forma condensed combined financial statements.
40
UNAUDITED
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For
the Year Ended December 31, 2023
(in
thousands, except share and per share data)
Nxu,
    Inc.
(Historical)
Verde
    BioResins
(Historical)
Transaction
    Accounting Adjustments (Note 3)
Notes
Pro
    Forma Combined
Revenue
    - Battery systems and components
$
494
$
—
$
—
$
494
Revenue
    - Retail charging services
2
—
—
2
Revenue
    - Sales of PolyEarthylene Product
—
108
—
108
Total
    revenue
496
108
—
604
Cost
    of sales - Battery systems and components
1,013
—
—
1,013
Cost
    of sales - Retail charging services
2
—
—
2
Cost
    of sales - PolyEarthylene Product
—
60
—
60
Depreciation
14
—
—
14
Total
    cost of revenue
1,029
60
—
1,089
Gross
    profit (loss)
(533
)
48
—
(485
)
Operating
    expenses:
Research
    and development
13,173
1,182
—
14,355
General
    and administrative
33,376
4,783
4,629
AA
47,027
4,239
DD
Selling
    expenses
—
419
—
419
Advertising
319
—
—
319
Total
    operating expenses
46,868
6,384
8,868
62,120
Operating
    loss
(47,401
)
(6,336
)
(8,868
)
(62,605
)
Other
    income (expenses)
Interest
    income (expense)
(73
)
(5,776
)
788
BB
(5,061
)
Gain
    (loss) on sale or disposal of property and equipment
18
—
—
18
Warrant
    expense
(1,020
)
—
—
(1,020
)
Gain
    (loss) on convertible debt and warrant liability
8,265
—
—
8,265
Gain
    on bargain purchase
—
—
1,308
CC
1,308
Other
    income
33
—
—
33
Total
    other (loss) income, net
7,223
(5,776
)
2,096
3,543
Net
    loss
$
(40,178
)
$
(12,112
)
$
(6,772
)
$
(59,062
)
Loss
    per share, basic and diluted
$
(72.16
)
$
(0.00
)
$
(0.14
)
Weighted
    average number of common shares outstanding used in computing loss per share:
556,826
3,243,321,874
427,337,016
See
accompanying notes to the unaudited pro forma condensed combined financial statements.
41
UNAUDITED
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
For
the Nine Months Ended September 30, 2024
(in
thousands, except share and per share data)
Nxu, Inc.
(Historical)
Verde BioResins
(Historical)
Transaction Accounting Adjustments (Note 3)
Notes
Pro Forma Combined
Revenue - Retail charging services
$
17
$
—
$
—
$
17
Revenue - Sales of PolyEarthylene Product
—
50
—
50
Total revenue
17
50
—
67
Cost of revenue- Retail charging services
13
—
—
13
Cost of sales - PolyEarthylene Product
—
27
—
27
Depreciation
59
—
—
59
Total cost of revenue
72
27
—
99
Gross profit (loss)
(55
)
23
—
(32
)
Operating expenses:
Research and development
957
1,016
—
1,973
General and administrative
13,204
2,759
—
15,963
Selling expenses
—
462
—
462
Advertising
56
—
—
56
Total operating expenses
14,217
4,237
—
18,454
Operating loss
(14,272
)
(4,214
)
—
(18,486
)
Other income (expenses)
Interest income (expense)
72
(4,011
)
845
EE
(3,094
)
Impairment of long-lived assets
(1,128
)
—
—
(1,128
)
Impairment of held for sale assets
(794
)
—
—
(794
)
Impairment of investment in Lynx
(975
)
—
—
(975
)
Loss on operating lease cancellation
(266
)
—
—
(266
)
Gain (loss) on sale or disposal of property and equipment
(847
)
—
—
(847
)
Gain (loss) on convertible debt and warrant liability
49
—
—
49
Other income
88
—
—
88
Total other (loss) income, net
(3,801
)
(4,011
)
845
(6,967
)
Net income (loss)
$
(18,073
)
$
(8,225
)
$
845
$
(25,453
)
Loss per share, basic and diluted
$
(1.75
)
$
(0.00
)
$
(0.06
)
Weighted average number of common shares outstanding used in computing loss per share:
10,349,618
3,243,321,874
437,129,808
See
accompanying notes to the unaudited pro forma condensed combined financial statements.
42
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED
FINANCIAL STATEMENTS
Note
1—Basis of Presentation
The
pro forma financial information has been prepared in accordance with Article 11 of Regulation S-X, as amended by the final
rule, Release 33-10786 "Amendments to Financial disclosures about Acquired and Disposed Businesses" ("Article
11 of Regulation S-X"), and the assumptions set forth herein. The pro forma adjustments include transaction accounting
adjustments, which reflect the application of required accounting for the Merger and other transactions contemplated by the Merger Agreement.
Article 11 of Regulation S-X permits presentation of reasonably estimable synergies and other transaction effects that have
occurred or are reasonably expected to occur ("Management's Adjustments"). Nxu has elected not to present Management's
Adjustments as the specificity of the timing and nature of such items is still under evaluation as of the date of this proxy statement/prospectus.
Accounting
for the Merger
The
Merger is accounted for as a business combination and a reverse acquisition pursuant to Accounting Standards Codification Topic 805,
Business
Combinations
("ASC 805")
, where Verde, the legal acquiree, is determined to be the accounting acquirer of
Nxu. based upon an evaluation of the following primary factors:
●
Immediately
                                            following the Merger, former Nxu shareholders are expected to hold approximately 5% of the
                                            voting rights on a fully diluted basis. Former Verde shareholders are expected to hold approximately
                                            95% of the voting rights on a fully diluted basis.
●
Verde
                                            surpasses Nxu in size as measured by enterprise value.
●
Following
                                            the Merger, it is expected that the board of directors will consist of seven total directors.
                                            Six directors are to be appointed by former Verde shareholders and one director is to be
                                            appointed by former Nxu shareholders.
●
Verde's
                                            existing senior management team will comprise the majority of the senior management of the
                                            Combined Company.
●
The
                                            Combined Company's headquarters will be located at Verde's headquarters, the
                                            Combined Company's name will be Verde Bioresins, Corp., and the ticker symbol of the
                                            Combined Company will be "VRDE."
Under
the reverse acquisition method of accounting, the assets and liabilities of Nxu as of the closing date will be consolidated by Verde
at their respective fair values, and the excess or shortfall of the purchase price consideration over the fair value of Verde's
net assets will be recognized as goodwill or gain on bargain purchase, respectively. Fair value is defined in Accounting Standards Codification
Topic 820,
Fair Value Measurements and Disclosures
("ASC 820"
) as "the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."
Fair value measurements can be highly subjective, and it is possible the application of reasonable judgment could develop different assumptions
resulting in a range of alternative estimates using the same facts and circumstances.
Preliminary
purchase price consideration
The
accounting acquiree Nxu's stock price is used to measure the consideration transferred in this reverse acquisition, as Nxu's
stock price is more reliably measurable than the value of the equity interest of the accounting acquirer Verde, which is a privately
held entity.
The
preliminary expected consideration transferred is $4.5 million which is calculated as (i) the product of Nxu's closing stock price
as of December 16, 2024 and (ii) the sum of (a) Nxu shares issued and outstanding as of December 16, 2024 and (b) Nxu shares expected
to be issued related to the variable share settled restricted units on Nxu's consolidated condensed balance sheet as of September
30, 2024.
43
The
purchase price consideration applied in the pro forma financial information is preliminary and subject to modification based on the final
purchase price, which includes any changes to the value of Nxu, Inc.'s stock. This will likely result in a difference from the
preliminary purchase consideration calculated above, and that difference may be material. For example, with other assumptions held constant,
an increase or decrease of 20% in the price per Nxu, Inc. common stock will produce the following purchase price consideration and the
corresponding gain on bargain purchase (in thousands, except stock price):
NXU share
price
Purchase
price
As presented
$
0.23
$
4,490
20% Increase
$
0.28
$
5,389
20% Decrease
$
0.18
$
3,592
Preliminary
purchase price allocation
The
allocation of the purchase price consideration, including any related tax effects, is preliminary and pending finalization of various
estimates, inputs and analyses used in the valuation assessment of the specifically identifiable tangible and intangible assets acquired.
This preliminary determination is subject to further assessment and adjustments pending additional information sharing between the parties,
more detailed third-party appraisals, and other potential adjustments.
The
unaudited pro forma condensed combined financial information reflects a gain on bargain purchase because the estimated fair value of
the identifiable net assets acquired exceeds the estimated preliminary purchase price consideration. Since the pro forma financial information
has been prepared based on preliminary estimates of consideration and fair values attributable to the business combination, the actual
amounts eventually recorded may differ materially from the information presented, which may increase, reduce or eliminate the gain on
bargain purchase.
The
preliminary allocation of the purchase price consideration is as follows (in thousands):
Fair value of consideration transferred
$
4,490
Cash
$
2,208
Prepaid expenses and other current assets
841
Property and equipment, net
1,922
Assets held for sale
717
Right-of-use assets, net
433
Investment in Lynx
2,025
Intangible assets, net
ְ0
Other assets
249
Estimated fair value of total assets acquired (net of goodwill)
$
8,395
Accounts payable and accrued liabilities
1,670
Lease liability
921
Warrant liability, at fair value
6
Estimated fair value of total liabilities assumed
$
2,597
Estimated fair value of net assets acquired
$
5,798
Gain on bargain purchase
$
(1,308
)
Note
2—Accounting Policies
Upon
consummation of the Merger, management will perform a comprehensive review of the two entities' accounting policies. As a result
of the review, management may identify differences between the accounting policies of the two entities which, when confirmed, could have
a material impact on the combined financial statements of the Combined Company. Based on its initial analysis, management did not identify
any differences that would have a material impact on the unaudited pro forma condensed combined financial information.
44
Note
3—Pro Forma Adjustments
Explanations
of the adjustments to the unaudited condensed combined pro financial statements are as follows:
Unaudited
Pro Forma Condensed Combined Balance Sheet as of September 30, 2024
A
Nxu
    is in the process of evaluating the intangible assets expected to be acquired through the Merger and the associated fair value of
    any identified intangible assets. For pro forma purposes, the Company has allocated the carrying value of the intangible assets as
    a reduction to the gain on bargain purchase. Refer to Note 1 for preliminary purchase price allocation of assets.
B
Reflects
    the settlement of liability classified restricted stock units that will be settled into shares held by Nxu shareholders. Such shares
    are included within the calculation of preliminary purchase price consideration further discussed in Note 1.
C
Reflects
    the reclassification to additional paid-in capital of the outstanding Verde convertible note principal and accrued interest which
    is expected to convert to common shares at the Effective Time.
D
Reflects
    the reclassification to additional paid-in capital of the outstanding Nxu convertible note principal which is expected to convert
    to common shares at the Effective Time.
E
Represents
    the accrual of transaction costs directly attributable to the Merger that have been incurred or are expected to be incurred by Verde
    and Nxu, including amounts payable in Verde common shares.
F
Aside
    from the accumulated deficit effect from the transaction costs described in Note (D) the transaction accounting adjustments in the
    stockholders' equity represent the following (in thousands):
Removal of
NXU
Historical
Equity
(1)
Fair Value of
purchase
price
consideration
(2)
Nxu
liabilities
converted to
equity upon
merger
(3)
Nxu
convertible
note
converted
upon merger
(4)
Par Value
Adjustment
(5)
Gain on
bargain
purchase
(6)
Net
Adjustment
Common stock
$
(1
)
$
2
$
—
$
—
$
9
$
—
$
10
Additional paid in capital
(281,061
)
4,488
(2,483
)
(10
)
(9
)
—
(279,075
)
Accumulated deficit
277,712
—
—
—
—
1,308
279,020
Total stockholders' equity
$
(3,350
)
$
4,490
$
(2,483
)
$
(10
)
$
—
$
1,308
$
(45
)
(1)
To
remove the historical equity of Nxu, the accounting acquiree, as a result of the Merger.
(2)
To
                                            recognize the fair value of the purchase price consideration paid by Verde in the reverse
                                            acquisition of Nxu. Refer to Note 1 for the components of the purchase price consideration.
(3)
Amounts
                                            reclassified to additional paid in capital as described in adjustment B above.
(4)
Amounts
                                            reclassified to additional paid in capital as described in adjustment D above.
(5)
Adjustment
                                            to adjust the par value of Verde shares to reflect the par value of the Combined Company.
(6)
To
                                            record the gain on bargain purchase as described in adjustment CC below, inclusive of the
                                            impacts described in adjustment A above.
45
G
Reflects
    the impact related to the stock-based compensation expense recognized in connection with adjustment DD below.
H
Reflects
    the impact of the subscription agreement entered into with certain investors (the "PIPE Investors") in which the PIPE Investors
    agreed to subscribe for and purchase 12,000,000 shares of Nxu Class A Common Stock and 30,000,000 warrants to purchase Nxu Class
    A Common Stock that were determined to be classified within equity. This adjustment also reflects the impact of $0.3 million of transaction
    costs related to the PIPE transaction.
Unaudited
Pro Forma Condensed Combined Statement of Operations for the year ended December 31, 2023
AA
Reflects
    the allocation of direct and incremental transaction costs related to the Merger
BB
Reflects
    the elimination of interest expense related to Verde's outstanding convertible note which is converted to equity at the Effective
    Time
CC
Represents
    the gain realized from a bargain purchase in accordance with ASC 805 when the estimated fair value of the identifiable net assets
    acquired exceeds the estimated preliminary purchase price consideration. The preliminary purchase price consideration is derived
    from Nxu's stock price, which will continue to fluctuate from the date of this proxy statement/prospectus through the Effective
    Time, and the final fair value purchase price allocation may differ materially from the preliminary estimates. As a result, gain
    on bargain purchase may be increased, reduced or fully eliminated upon the consummation of the Merger. Nxu's stock price used
    in determining the preliminary purchase price allocation was from a date prior to the filing of this proxy statement/prospectus.
    It is possible that such stock price has not fully reflected the information that was not previously publicly available, such as
    Verde's historical financial information or other information included in this proxy statement/prospectus.
DD
Reflects
    the recognition of stock-based compensation expense related to the cancellation of equity awards with no consideration paid to the
    holders.
Unaudited
Pro Forma Condensed Combined Statement of Operations for the nine months ended September 30, 2024
EE
Reflects
    the elimination of interest expense related to Verde's outstanding convertible note which is converted to equity at the Effective
    Time
Note
4—Loss per Share
As
the unaudited pro forma condensed combined statement of operations assumes that the Merger had occurred at January 1, 2023, the
beginning of the earliest period presented, the calculation of weighted average shares outstanding for basic and diluted earnings per
share assumes that the shares issuable relating to the Merger have been outstanding for the entirety of the period presented. As the
Combined Company is in a pro forma net loss position, and all potentially dilutive securities were determined to be anti-dilutive, the
Company's pro forma diluted net loss per share is the same as its pro forma basic net loss per share.
46
The
table below presents the components of the pro forma earnings per share calculation (in thousands, except share and per share data):
For the year
ended
December 31,
2023
For the nine
months ended
September 30,
2024
Pro Forma net loss
$
(59,062
)
$
(25,453
)
Basic Shares:
NXU historical weighted average shares outstanding
556,826
10,349,618
NXU variable share settled restricted stock units, settled at the Effective Time
3,689,104
3,689,104
NXU PIPE Shares
6,000,000
6,000,000
NXU PIPE Warrants
24,000,000
24,000,000
Shares converted from Verde Shares
18,738,672
18,738,672
Transaction costs payable in Verde Shares (See Adjustment AA in Note 3)
195,239
195,239
Verde warrants converted to NXU common stock at the Effective Time
95,262,143
95,262,143
Verde convertible note converted to NXU common shares at the Effective Time
278,895,032
278,895,032
Basic weighted average shares outstanding
427,337,016
437,129,808
Pro forma net loss per share, basic and diluted
$
(0.14
)
$
(0.06
)
Following
the merger, the following outstanding shares of common stock equivalents were excluded from the computation of pro forma diluted net
loss per share for all the periods presented above because including them would have an anti-dilutive effect (on a pro forma as-converted
basis):
For the year ended
December 31,
2023
For the nine
months ended
September 30,
2024
Nxu warrants to purchase NXU Class A common stock
109,509
109,509
Options to purchase Verde common stock
506,123
506,123
Basic weighted average shares outstanding
615,632
615,632
47
DESCRIPTION
OF SECURITIES
The
following summary of the material terms of Nxu's common stock is not intended to be a complete summary of the rights and preferences
of such securities. Nxu's common stock is governed by Nxu's Certificate of Incorporation (as amended, the "Certificate
of Incorporation"), Bylaws (as amended, the "Bylaws"), and the Delaware General Corporation Law (the "DGCL").
We urge you to read the Certificate of Incorporation and the Bylaws in their entirety for a complete description of the rights and preferences
of Nxu's common stock.
General
The
Certificate of Incorporation authorizes the issuance of 5,010,000,000 shares, consisting of (x) 5,000,000,000 authorized shares of common
stock, including (1) 4,000,000,000 authorized shares of Class A common stock, (2) 1,000,000,000 authorized shares of Class B common stock
and (y) 10,000,000 authorized shares of preferred stock, par value $0.0001 per share.
As
of December 23, 2024, there were 16,620,057 shares of Class A common stock outstanding, 279,504 shares of Class B common stock outstanding
and one share of Series B preferred stock outstanding.
Common
Stock
Voting
Rights
Each
holder of Class A common stock, as such, shall have the right to one (1) vote per share of Class A common stock held of record by such
holder and each holder of Class B common stock, as such, shall have the right to ten (10) votes per share of Class B common stock held
of record by such holder. There are no cumulative voting rights.
Dividend
Rights
The
holders of shares of Class A common stock and the holders of shares of Class B common stock shall be entitled to receive, ratably in
proportion to the number of shares of Class A common stock or Class B common stock, respectively, with respect to any dividends or distributions
as may be declared and paid from time to time by Nxu;
provided, however
, that in the event a dividend is paid in the form of shares
of Class A common stock or Class B Common Stock, then holders of Class A common stock shall be entitled to receive shares of Class A
common stock, and holders of Class B common stock shall be entitled to receive shares of Class B common stock, with holders of shares
of Class A common stock and Class B common stock receiving, on a per share basis, an identical number of shares of Class A common stock
or Class B common stock, as applicable.
Liquidation
Rights
Subject
to the rights of any then outstanding preferred stock which ranks senior to common stock, in the event of a liquidation, dissolution
or winding up of Nxu, the holders of Class A common stock will be entitled to receive, after payment or provision for payment of all
of its debts and liabilities, all of the assets of Nxu legally available for distribution to stockholders.
The
holders of shares of Class B common stock, as such, shall not be entitled to receive any assets of Nxu in the event of any voluntary
or involuntary liquidation, dissolution or winding up of the affairs of Nxu.
Other
Rights
There
are no conversion rights or redemption, purchase, retirement or sinking fund provisions with respect to the common stock.
48
Anti-Takeover
Effects of Delaware Law and Certificate of Incorporation and Bylaws
Delaware
law, the Certificate of Incorporation and Bylaws contain provisions that could have the effect of delaying, deferring or discouraging
another party from acquiring control of Nxu. These provisions are expected to discourage coercive takeover practices and inadequate takeover
bids. These provisions are also designed to encourage persons seeking to acquire control of Nxu to first negotiate with the Board.
Board
of Directors; Removal of Directors
The
Certificate of Incorporation and Bylaws provide that a director may be removed with or without cause and only by the affirmative vote
of the holders of at least two-thirds of the votes that all the stockholders would be entitled to cast in an election of directors. Any
vacancy on the Board, including a vacancy resulting from an enlargement of the Board, may be filled only by the affirmative vote of a
majority of the votes cast in favor or against the election of a nominee at a meeting of stockholders. At each annual meeting, the entire
board will stand for election for a one-year term. The limitations on the removal of directors and filling of vacancies could make it
more difficult for a third party to acquire, or discourage a third party from seeking to acquire, control of Nxu.
Stockholder
Action by Written Consent; Special Meetings
The
Certificate of Incorporation provides that any action required or permitted to be taken by stockholders must be effected at a duly called
annual or special meeting of such holders and may not be effected by any consent in writing by such holders. The Certificate of Incorporation
and Bylaws also provide that, except as otherwise required by law, special meetings of stockholders can only be called by the chairman
of the board, chief executive officer or board of directors.
Advance
Notice Requirements for Stockholder Proposals
The
Bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of stockholders, including
proposed nominations of persons for election to the Board. Stockholders at an annual meeting may only consider proposals or nominations
specified in the notice of meeting or brought before the meeting by or at the direction of the Board or by a stockholder of record on
the record date for the meeting, who is entitled to vote at the meeting and who has delivered timely written notice in proper form to
the secretary of the stockholder's intention to bring such business before the meeting. This written notice must contain certain
information specified in the Bylaws. These provisions could have the effect of delaying until the next stockholder meeting stockholder
actions that are favored by the holders of a majority of outstanding voting securities.
Delaware
Business Combination Statute
Nxu
has opted out of Section 203 of the DGCL.
Amendment
of Certificate of Incorporation and Bylaws
The
DGCL provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation's
certificate of incorporation or bylaws, unless a corporation's certificate of incorporation or bylaws, as the case may be, requires
a greater percentage. The Bylaws may be amended or repealed by a majority vote of the Board or by the affirmative vote of the holders
of at least two-thirds of the votes which all stockholders would be entitled to cast in any election of directors. The Certificate of
Incorporation may be amended by the affirmative vote of a majority of the directors present at any regular or special meeting of the
Board at which a quorum is present in any manner not inconsistent with the laws of the State of Delaware.
49
Description
of the Warrants
Duration
and Exercise Price
. The Pre-Funded Warrants have an initial exercise price of $0.0001 per share, subject to adjustment. The
Series A Warrants and the Series B Warrants will become exercisable on the Stockholder Approval Date and any unexercised portion of
such Warrants as of the closing of the Merger will be automatically exercised pursuant to a cashless exercise. The Series A Warrants
have an exercise price of $0.50, subject to adjustment. The Series B Warrants have an exercise price of $0.0001 per share, subject
to adjustment. The exercise price and number of shares of Class A common stock issuable upon exercise of any warrant is subject to
appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting our Class A common
stock and exercise price.
Exercisability.
The
Warrants are exercisable, at the option of each holder, in whole or in part by delivering to us a duly executed exercise notice and,
at any time a registration statement registering the issuance of shares of Class A common stock underlying the Warrants under the Securities
Act is effective and available for the issuance of such shares (or an exemption from registration under the Securities Act is available
for the issuance of such shares), by payment in full in immediately available funds for the number of shares of Class A common stock
purchased upon such exercise.
If
a registration statement or current prospectus is not effective or available for the registration under the Securities Act of the
Warrants, or the resale of the shares of Class A common stock underlying the Warrants, at any time 60 days after the issue date,
the holder may, in its sole discretion, elect to exercise Warrants through a cashless exercise, in which case the holder would receive
upon such exercise the net number of shares of Class A common stock determined according to the formula set forth in the applicable Warrant.
Exercise
Limitation.
A holder will not have the right to exercise any portion of the Warrants if the holder (together
with its affiliates) would beneficially own in excess of 4.99% (or, upon election of the holder, 9.99%) of the number of our shares of
Class A common stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance
with the terms of the applicable Warrants. Any holder of the Warrants may increase or decrease such percentage, but in no event may such
percentage be increased to more than 9.99%, provided that any increase will not be effective until the 61
st
day after
such election.
Exchange
Listing.
There is no established trading market for the Warrants, and we do not expect a market to develop.
In addition, we do not intend to apply for the listing of the Warrants on any national securities exchange or other trading market.
Participation
Rights.
If at any time we grant, issue or sell any shares of Class A common stock or Common Stock Equivalents
(as defined in the Securities Purchase Agreement) or rights to purchase stock, warrants, securities or other property pro rata to the
record holders of any shares of Class A common stock (the "Purchase Rights"), the holder of any Warrant will be entitled
to acquire, upon the terms applicable to such Purchase Rights, subject to the beneficial ownership limitations, the aggregate Purchase
Rights which the holder of such Warrants could have acquired if the holder had held the number of Class A common stock acquirable upon
complete exercise of such Warrant.
50
Fundamental
Transactions.
If, except as contemplated under the Merger Agreement, (i) we, directly or indirectly, in one or more related
transactions effect any merger or consolidation of the Company with or into another Subject Entity (as defined in the respect Warrants),
(ii) we, directly or indirectly, effect any sale, lease, license, assignment, transfer, conveyance or other disposition of all or
substantially all of our (or any of our "significant subsidiaries") assets in one or a series of related transactions, (iii) any,
direct or indirect, purchase offer, tender offer or exchange offer (whether by us or another Subject Entity) is completed pursuant to
which holders of our Class A common stock are permitted to sell, tender or exchange their shares for other securities, cash or property
and has been accepted by the holders of at least 50% of the outstanding shares of Class A common stock, (iv) we, directly or indirectly,
in one or more related transactions effect any reclassification, reorganization or recapitalization of the shares of Class A common stock
or any compulsory share exchange pursuant to which the shares of Class A common stock are effectively converted into or exchanged for
other securities, cash or property, or (v) we, directly or indirectly, in one or more related transactions consummates a stock or
share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off,
merger or scheme of arrangement) with one or more Subject Entities whereby all such Subject Entities, individually or in the aggregate,
acquires at least 50% of the outstanding shares of Class A common stock (not including any shares of Class A common stock held by the
other person or other persons making or party to, or associated or affiliated with the other persons making or party to, such stock or
share purchase agreement or other business combination), each a "Fundamental Transaction," then the successor entity will
succeed to, and be substituted for us, and may exercise every right and power that we may exercise and will assume all of our obligations
under the Warrants with the same effect as if such successor entity had been named in the Warrant itself. If holders of our shares of
Class A common stock are given a choice as to the securities, cash or property to be received in a fundamental transaction, then the
holder of any Warrant shall be given the same choice as to the consideration it receives upon any exercise of such Warrant following
such fundamental transaction. In addition, the successor entity, at the request of the holder of any Warrant, will be obligated to purchase
any unexercised portion of such Warrant, in accordance with the terms of such Warrant.
Notwithstanding
anything to the contrary, in the event of a Fundamental Transaction, we or any Successor Entity (as defined in the Warrants) shall, at
the holder's option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental
Transaction (or, if later, the first Trading Day (as defined in the Warrants) following the date we first become aware of the occurrence
or potential occurrence of a Fundamental Transaction), purchase a Warrant, from the holder by paying to the holder an amount of cash
equal to the Black Scholes Value (as defined in the Series A Warrant) of the remaining unexercised portion of such Warrant on the date
of the consummation of such Fundamental Transaction; provided, however, if the Fundamental Transaction is not within our control, including
if not approved by our Board of Directors, the holder will only be entitled to receive from us or any Successor Entity, as of the date
of consummation of such Fundamental Transaction, the same type or form of consideration (and in the same proportion), at the Black Scholes
Value of the unexercised portion of such Warrant that is being offered and paid to the holders of Class A common stock in connection
with the Fundamental Transaction, whether that consideration be in the form of cash, stock or any combination thereof, or whether the
holders of Class A common stock are given the choice to receive from among alternative forms of consideration in connection with the
Fundamental Transaction.
Rights
as a Stockholder.
Except as otherwise provided in the applicable Warrant or by virtue of such holder's
ownership of our Class A common stock, the holder of a Warrant will not have the rights or privileges of a holder of our Class A common
stock, including any voting rights, until the holder exercises such Warrant.
Resale/Registration
Rights.
We have filed this registration statement with the SEC that includes this prospectus to register for
resale under the Securities Act, the Registrable Securities, consisting of the Purchased Shares and the shares of Class A common stock
issuable upon exercise of the Warrants, to satisfy our obligations in connection with the Private Placement. We are required to use commercially
reasonable efforts to cause such registration to become effective within 30 days of the closing of the Private Placement (or 60 days
in the event of a full review by the SEC) for the Registrable Securities, and to keep such registration statement effective at all times
until the selling stockholders do not own any Registrable Securities, Pre-Funded Warrants, Series A Warrants, or Series B Warrants.
51
Exclusive
Forum Provisions
Our
Certificate of Incorporation requires that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery
of the State of Delaware (or, if that court lacks subject matter jurisdiction, another federal or state court situated in the State of
Delaware) will be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of our business, (ii) any
action asserting a claim of breach of a duty owed by any director, officer, employee, agent or stockholder of ours to us or our stockholders,
(iii) any action asserting a claim arising pursuant to any provision of the DGCL or (iv) any action asserting a claim governed by the
internal affairs doctrine. In addition, our Certificate of Incorporation requires that, unless we consent in writing to the selection
of an alternative forum, the federal district courts of the United States will be the exclusive forum for the resolution of any action,
suit or proceeding asserting a cause of action arising under the Securities Act. These forum selection provisions will not apply to claims
arising under the Exchange Act or other federal securities laws for which there is exclusive federal jurisdiction. Any person or entity
purchasing or otherwise acquiring or holding any interest in shares of our capital stock is deemed to have notice of and consented to
the foregoing provisions.
Rule
144
Pursuant
to Rule 144, a person who has beneficially owned restricted shares of Nxu's voting common stock for at least six months would be
entitled to sell their securities provided that (i) such person is not deemed to have been one of Nxu's affiliates at the time
of, or at any time during the three months preceding, a sale and (ii) Nxu is subject to the Exchange Act periodic reporting requirements
for at least three months before the sale and has filed all required reports under Section 13 or 15(d) of the Exchange Act during the
twelve months (or such shorter period as Nxu was required to file reports) preceding the sale.
Persons
who have beneficially owned restricted shares of Nxu's voting common stock for at least six months but who are Nxu's affiliates
at the time of, or at any time during the three months preceding, a sale, would be subject to additional restrictions, by which such
person would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of:
●
1% of the total number
    of shares of such securities then-outstanding; or
●
the average weekly reported
    trading volume of such securities during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the
    sale.
Sales
by Nxu's affiliates under Rule 144 are also limited by manner of sale provisions and notice requirements and to the availability
of current public information about us.
Listing
of Securities
Nxu's
Class A common stock is listed for trading on Nasdaq under the symbol "NXU."
Transfer
Agent
The
transfer agent for our Class A common stock is Equiniti Trust Company, LLC. We have agreed to indemnify Equiniti Trust Company, LLC in
its role as transfer agent, its agents and each of its stockholders, directors, officers and employees against all liabilities, including
judgments, costs and reasonable counsel fees that may arise out of acts performed or omitted for its activities in that capacity, except
for any liability due to any gross negligence, willful misconduct or bad faith of the indemnified person or entity.
52
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The
following table sets forth information known to the Company regarding the beneficial ownership of shares of our common stock as of December
2, 2024 by:
●
each person who is known
    by the Company to own beneficially more than 5% of the outstanding shares of any class of the Company's common stock;
●
each of the Company's
    current named executive officers and directors; and
●
all current executive officers
    and directors of the Company, as a group.
The
SEC has defined "beneficial ownership" of a security to mean the possession, directly or indirectly, of voting power and/or
investment power over such security. A stockholder is also deemed to be, as of any date, the beneficial owner of all securities that
such stockholder has the right to acquire within 60 days after that date, including but not limited to the right to acquire through (i)
the exercise of any option, warrant or right, (ii) the conversion of a security, (iii) the power to revoke a trust, discretionary account
or similar arrangement, or (iv) the automatic termination of a trust, discretionary account or similar arrangement. In computing the
number of shares beneficially owned by a person and the percentage ownership of that person, shares that may be acquired by that person
within 60 days thereafter are deemed outstanding, while such shares are not deemed outstanding for purposes of computing percentage ownership
of any other person. Each person named in the table has sole voting and investment power with respect to all of the common stock shown
as beneficially owned by such person, except as otherwise indicated in the table or footnotes below.
The
beneficial ownership of voting securities of the Company is based on 15,834,755 and 279,504 shares of Class A common stock and Class
B common stock, respectively, issued and outstanding as of December 2, 2024.
Name of Beneficial Owner
Class A
Shares
% of
Class
Class B
Shares
% of
Class
Combined
Voting
Power of Common Shares
(1)
Mark Hanchett
2,019,451
(2)
12.8
%
200,692
71.8
%
21.6
%
Annie Pratt
1,658,891
(3)
10.5
%
78,812
28.2
%
13.1
%
Sarah Wyant
143,577
(4)
0.9
%
—
—
*
Britt Ide
157,445
(5)
1.0
%
—
—
*
Jessica Billingsley
501,800
(5)
3.2
%
—
—
2.7
%
Current executive officers and directors as a group (5 individuals)
4,481,164
(6)
28.4
%
279,504
100
%
39.0
%
*
Represents beneficial ownership of less than 1%.
(1)
Represents the percentage of voting power with respect to all shares of Nxu's outstanding capital stock voting together as a single class. The holders of our Class B common stock are entitled to 10 votes per share and the holders of our Class A common stock are entitled to one vote per share. Mr. Hanchett is also the holder of the sole share of Nxu Series B preferred stock issued and outstanding, which is entitled to a number of votes equal to the total number of votes that could be cast by holders of Class A common stock and Class B common stock. Concurrently with the execution of the Merger Agreement, we entered into a Voting Agreement and Irrevocable Proxy (the "Voting Agreement") with Mr. Hanchett, pursuant to which Mr. Hanchett has agreed to, subject to specified exceptions, (i) cast all of the votes to which he is entitled by reason of holding the Series B preferred stock "for" or "against" (as applicable) a special action subject to the votes cast by the holders of Class A common stock and Class B common stock; and (ii) irrevocably grant each director of Nxu as his proxy and attorney-in-fact to vote the Series B preferred stock on his behalf if he fails at any time to vote as required in the Voting Agreement.
(2)
Includes 200,692 shares of Class A common stock underlying options that are currently exercisable or are exercisable within 60 days of December 2, 2024. Includes 1,806,386 shares of Class A common stock underlying RSUs that are settleable within 60 days of December 2, 2024.
(3)
Includes 78,812 shares of Class A common stock underlying options that are currently exercisable or are exercisable within 60 days of December 2, 2024. Includes 1,580,079 shares of Class A common stock underlying RSUs that are settleable within 60 days of December 2, 2024.
(4)
Includes 126,977 shares of Class A common stock underlying options that are currently exercisable or are exercisable within 60 days of December 2, 2024.
(5)
Includes 147,929 each of shares of Class A common stock underlying RSUs that are settleable within 60 days of December 2, 2024.
(6)
Includes 406,841 shares of Class A common stock underlying options that are currently exercisable or are exercisable within 60 days of December 2, 2024.
53
SELLING
STOCKHOLDERS
This prospectus relates to the offer and sale
from time to time of up to 114,503,816 shares of Class A common stock of the Company by the selling stockholders. The number of shares
the selling stockholders may sell is comprised of (i) 6,800,000 shares of Class A common stock; (ii) 5,200,000 shares of Class A common
stock issuable upon exercise of the Pre-Funded Warrants; (iii) up to 57,251,908 shares of Class A common stock issuable upon exercise
of the Series A Warrants; and (iv) up to 45,251,908 shares of Class A common stock issuable upon exercise of the Series B Warrants. For
additional information regarding the issuance of the Registrable Securities, see "The Private Placement."
The following table sets forth certain information
with respect to the selling stockholders, including (i) the number of shares of our Class A common stock beneficially owned by the
selling stockholders prior to this offering without regard to any beneficial ownership limitations contained in the Pre-Funded Warrants,
the Series A Warrants, or the Series B Warrants, (ii) the number of shares being offered by the selling stockholders pursuant to
this prospectus, and (iii) the selling stockholders' beneficial ownership after completion of this offering assuming the sale
of all of the shares of Class A common stock covered by this prospectus. The registration of the Registrable Securities does not necessarily
mean that the selling stockholders will sell all or any of the Registrable Securities, but the number of shares and percentages set forth
in the final two columns below assume that all Registrable Securities are sold.
The table is based on information supplied to
us by the selling stockholders, with beneficial ownership and percentage ownership determined in accordance with Rule 13d-3 under the
Exchange Act, and such information is not necessarily indicative of beneficial ownership for any other purpose. Under Rule 13d-3, beneficial
ownership includes any shares as to which a selling stockholder has sole or shared voting power or investment power and also any shares
which that selling stockholder has the right to acquire within 60 days of December 23, 2024 through the exercise of any stock options,
warrants or rights or through the conversion of any convertible security. Unless otherwise indicated in the footnotes to the table below
and subject to community property laws where applicable, we believe, based on information furnished to us that the each selling stockholder
named in this table has sole voting and investment power with respect to the shares indicated as beneficially owned. The percentage of
beneficial ownership after this offering is based on 16,620,057 shares of Class A common stock outstanding as of December 23, 2024 together
with the Purchased Shares and the 107,703,816 shares of shares of Class A common stock issuable upon the exercise of the Pre-Funded Warrants,
the Series A Warrants and the Series B Warrants.
We have assumed that all shares of Class A common
stock reflected in the table as being offered in the offering covered by this prospectus will be sold from time to time in this offering.
We cannot provide an estimate as to the number of shares of Class A common stock that will be held by the selling stockholders upon termination
of the offering covered by this prospectus because the selling stockholders may offer some, all or none of the shares of Class A common
stock being offered in the offering. Information about the selling stockholders may change over time. Any changed information will be
set forth in an amendment to the registration statement or supplement to this prospectus, to the extent required by law.
54
Number of
Shares of
Class A Common Stock
Beneficially
Owned
Prior to
this
Maximum
Number of
Shares of
Class A Common Stock
to be Offered
for Resale
in this
Offering
Shares of
Class A Common Stock
Beneficially
Owned
Immediately
Following this
Offering
(1)
Name
Offering
Number
Number
Percentage
Bigger Capital Fund, LP
(2)
1,100
(2)
28,618,953
1,100
*
S.H.N. Financial Investments Ltd.
(3)
—
28,618,953
—
—
%
L1 Capital Global Opportunities Master Fund
(4)
72,371
(4)
28,618,953
72,371
*
FirstFire Global Opportunities Fund LLC
(5)
—
28,618,953
—
—
%
*
Less than 1%.
(1)
Number and Percentage are based on 16,620,057 shares of Class A common stock outstanding as of December 23, 2024, assuming the resale of all shares of Class A common stock covered by this prospectus. The shares issuable upon the exercise of the exercise of the Pre-Funded Warrants and the Series A Warrants are subject to a beneficial ownership limitation of 4.99% (or 9.99% at the election of the holder) and the shares issuable upon the exercise of the Series B Warrants are subject to a beneficial ownership limitation of 4.99% (collectively, the "Beneficial Ownership Cap"), which in each case restricts the selling stockholders from exercising that portion of the warrants that would result in the selling stockholders and their affiliates owning, after conversion or exercise, as applicable, a number of shares of Class A common stock in excess of the Beneficial Ownership Cap. The number of shares set forth in the above table does not reflect the application of this Beneficial Ownership Cap limitation.
(2)
Michael Bigger is the control person of Bigger Capital Fund, LP. The address of Bigger Capital Fund, LP is 11700 W Charleston Blvd 170-659, Las Vegas, NV 89135. Includes 1,100 shares of Class A common stock underlying warrants that are currently exercisable or are exercisable within 60 days of December 23, 2024.
(3)
Mr. Hadar Shamir and Mr. Nir Shamir are deemed to beneficially own such securities and are the control persons for S.H.N. Financial Investments Ltd. The address for SHN Financial Investments Ltd is 3 Arik Einstein Street, Herziliya 4610301, Israel.
(4)
David Feldman and Joel Arber hold voting and dispositive power over the reported securities held by L1 Capital Global Opportunities Master Fund. The business address of L1 Capital Global Opportunities Master Fund is 161A Shedden Road, 1 Artillery Court, PO Box 10085 Grand Cayman KY1-1001, Cayman Islands. Includes 5,704 shares of Class A common stock underlying warrants that are currently exercisable or are exercisable within 60 days of December 23, 2024 and up to a maximum of 66,667 shares of Class A common stock underlying convertible notes (assuming a minimum conversion price of $0.15 per share) that are convertible within 60 days of December 23, 2024.
(5)
Eli Fireman is the control person of FirstFire Global Opportunities Fund, LLC. The address of FirstFire Global Opportunities Fund, LLC is 1040 1st Ave, New York, NY 10022.
Relationship with Selling Stockholders
To our knowledge, none of the selling stockholders
have any position, office, or other material relationship with us or any of our affiliates within the past three years.
55
PLAN
OF DISTRIBUTION
The selling stockholders, or their pledgees,
donees (including charitable organizations), transferees or other successors-in-interest, may from time to time, sell any or all of the
shares of Class A common stock offered by this prospectus either directly by such individual, or through broker-dealers or agents or
on any exchange on which the shares of Class A common stock may from time to time be traded, in the over-the-counter market, or in independently
negotiated transactions or otherwise. The selling stockholders may use any one or more of the following methods when selling shares of
our common stock:
●
ordinary brokerage transactions
and transactions in which the broker-dealer solicits purchasers;
●
block trades in which the broker-dealer
will attempt to sell the shares of common stock as agent but may position and resell a portion of the block as principal to facilitate
the transaction;
●
purchases by a broker-dealer
as principal and resale by the broker-dealer for its account;
●
any exchange distribution in
accordance with the rules of the applicable exchange;
●
privately negotiated transactions;
●
distributions to their members,
partners or stockholders;
●
broker-dealers may agree with
the selling stockholders to sell a specified number of such shares of common stock at a stipulated price per share;
●
through the writing or settlement
of options or other hedging transactions, whether through an options exchange or otherwise;
●
a combination of any such methods
of sale; or
●
any other method permitted
pursuant to applicable law.
Broker-dealers engaged by the selling stockholders
may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the selling stockholders
(or, if any broker-dealer acts as agent for the purchaser of the shares of common stock under this prospectus, from the purchaser) in
amounts to be negotiated, but, except as set forth in a supplement to the prospectus, in the case of any agency transaction not in excess
of a customary brokerage commission in compliance with Financial Industry Regulatory Authority Rule 2121 ("Rule 2121"), and,
in the case of a principal transaction a markup or markdown in compliance with Rule 2121.
In connection with sales of the Class A common
stock under this prospectus or interests therein, the selling stockholders may enter into hedging transactions with broker-dealers or
other financial institutions, which may in turn engage in short sales of the Class A common stock in the course of hedging the positions
they assume. The selling stockholders may also loan or pledge the Class A common stock to broker-dealers that in turn may sell them.
The selling stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the
creation of one or more derivative securities that require the delivery to such broker-dealer or other financial institution of Class
A common stock offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this
prospectus (as supplemented or amended to reflect such transaction).
The selling stockholders may from time to time
pledge or grant a security interest in some or all of the Class A common stock owned by them, and the pledgees or secured parties will,
upon foreclosure in the event of default, be deemed to be selling stockholders. As and when a selling stockholder takes such actions,
the number of securities under this prospectus on behalf of such selling stockholder will decrease. The selling stockholders may also
transfer and donate the Class A common stock in other circumstances in which case the transferees, donees, pledgees or other successors
in interest will be the selling beneficial owners for purposes of this prospectus.
56
The selling stockholders are underwriters within
the meaning of Section 2(a)(11) of the Securities Act and any broker-dealers or agents that participate in distribution of the securities
will also be underwriters within the meaning of Section 2(a)(11) of the Securities Act, and any profit on sale of the securities by them
and any discounts, commissions or concessions received by them will be underwriting discounts and commissions under the Securities Act.
A selling stockholder that is an entity may elect
to make an in-kind distribution of Class A common stock to its members, partners or stockholders pursuant to the registration statement
of which this prospectus is a part by delivering a prospectus.
Under the securities laws of some states, the
Class A common stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the
common shares may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration
or qualification is available and is complied with.
The selling stockholders and any other person
participating in such distribution will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder,
including, without limitation, to the extent applicable, Regulation M of the Exchange Act, which may limit the timing of purchases and
sales of any of the Class A common stock by the selling stockholders and any other participating person. To the extent applicable, Regulation
M may also restrict the ability of any person engaged in the distribution of the Class A common stock to engage in market-making activities
with respect to the Class A common stock. All of the foregoing may affect the marketability of the Class A common stock and the ability
of any person or entity to engage in market-making activities with respect to the common shares.
We will not receive any of the proceeds from
this offering. There can be no assurances that the selling stockholders will sell any or all of the securities offered under this prospectus.
The selling stockholders will pay all selling
commissions, underwriting discounts, other broker-dealer fees, finder's fees and stock transfer taxes applicable to the Class A
common stock offered hereby. We will bear all other costs, fees and expenses incurred in effecting the registration of the shares covered
by this prospectus, including, without limitation, all registration and filing fees, fees and expenses of compliance with securities
or blue sky laws, word processing, printing and copying expenses, messenger and delivery expenses, fees and disbursements of counsel
for the Company and all independent public accountants and other persons retained by the Company.
Once sold under the registration statement, of
which this prospectus forms a part, the Class A common stock offered hereby will be freely tradable in the hands of persons other than
our affiliates.
57
LEGAL MATTERS
Certain legal matters relating to the validity
of Nxu's common stock covered by this registration statement will be passed upon for Nxu by Snell & Wilmer L.L.P., Phoenix,
Arizona.
EXPERTS
Prager Metis CPAs, LLC, our independent registered
public accounting firm, has audited our financial statements as of December 31, 2023 and December 31, 2022, and for the years
then ended, as set forth in its report (which report contains an explanatory paragraph describing conditions that raise substantial doubt
about the Company's ability to continue as a going concern as described in Note 1 to the financial statements), which is incorporated
by reference in this prospectus and elsewhere in this registration statement. Such financial statements are incorporated by reference
in this prospectus and the registration statement in reliance on the report of Prager Metis CPAs, LLC, given on the authority of such
firm as experts in accounting and auditing.
The balance sheets of Verde Bioresins, Inc. as
of December 31, 2023 and 2022, and the related statements of operations, stockholders' (deficit) equity and cash flows for each
of the years then ended, have been audited by EisnerAmper LLP, independent registered public accounting firm, as stated in their report
which is included herein, which report includes an explanatory paragraph about the existence of substantial doubt concerning Verde's
ability to continue as a going concern. Such financial statements have been incorporated herein in reliance on the report of such firm
given upon their authority as experts in accounting and auditing.
WHERE YOU CAN
FIND ADDITIONAL INFORMATION
We have filed with the SEC a registration statement
on Form S-1 under the Securities Act with respect to the securities offered by this prospectus. This prospectus, which constitutes a
part of the registration statement, does not contain all of the information set forth in the registration statement, as permitted by
the rules and regulations of the SEC. For further information with respect to us and our securities, we refer you to the registration
statement, including the exhibits filed as a part of the registration statement. Statements contained in this prospectus concerning the
contents of any contract or any other document are not necessarily complete. If a contract or document has been filed as an exhibit to
the registration statement, please see the copy of the contract or document that has been filed. Each statement in this prospectus relating
to a contract or document filed as an exhibit is qualified in all respects by the filed exhibit. The SEC also maintains an Internet website
that contains the registration statement of which this prospectus forms a part, as well as the exhibits thereto. These documents, along
with future reports, proxy statements and other information about us, are available at the SEC's website,
www.sec.gov
.
We are subject to the information and reporting
requirements of the Exchange Act, and, in accordance with this law, file periodic reports and other information with the SEC. These periodic
reports and other information are available at the SEC's website,
www.sec.gov
. We also maintain a website at
https://investors.nxuenergy.com
.
You may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished
to, the SEC. Information contained on our website is not a part of this prospectus, and the inclusion of our website address in this
prospectus is an inactive textual reference only.
58
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to "incorporate by reference"
the information we file with it which means that we can disclose important information to you by referring you to those documents instead
of having to repeat the information in this prospectus. The information incorporated by reference is considered to be part of this prospectus,
and later information that we file with the SEC will automatically update and supersede this information. We incorporate by reference
the documents listed below and any future filings made with the SEC (other than any portions of any such documents that are not deemed
"filed" under the Exchange Act in accordance with the Exchange Act and applicable SEC rules) under Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act including those made after (i) the date of the registration statement of which
this prospectus is a part and prior to effectiveness of the registration statement and (ii) the date of this prospectus and before
the completion of the offering of the shares of our Class A common stock included in this prospectus:
●
Our Annual Report on
Form 10-K
for the fiscal year ended
December 31, 2023, filed with the SEC on April 1, 2024, as amended by Amendment No. 1 on
Form 10-K/A
filed with the SEC on May 1, 2024;
●
Our Quarterly Reports on Form 10-Q for the fiscal quarters
ended March 31, 2024, June 30, 2024 and September 30, 2024, filed with the SEC on
May 10, 2024
,
August 6, 2024
and
November 13, 2024
,
respectively;
●
Our Current Reports on Form 8-K filed with the SEC on
January 12, 2024
,
February 14, 2024
,
April 5, 2024
,
April 19, 2024
,
May 10, 2024
(Item 2.05 only),
July 24, 2024
,
August 16, 2024
,
September 6, 2024
,
October 24, 2024
(Items 1.01, 5.02 and 8.01 and corresponding exhibits under Item 9.01 only) and
December 27, 2024
; and
●
The description of the Class A common stock, which is contained
in our registration statement on
Form 8-A12B
(File No. 001-41702) filed with the SEC on May 12, 2023, which incorporates the description
of the Class A common stock contained in the prospectus that is part of our registration statement on
Form S-4
originally filed with
the SEC on April 17, 2023, as amended and supplemented, and any amendment or report filed for the purpose of updating such description.
Any statement contained in this prospectus or
any prospectus supplement, or in a document incorporated or deemed to be incorporated by reference herein or therein, shall be deemed
to be modified or superseded to the extent that a statement contained herein, or in any subsequent prospectus supplement or in any subsequently
filed document that also is incorporated or deemed to be incorporated by reference herein or therein, modifies or supersedes such statement.
Any statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus
or any prospectus supplement.
You may obtain, free of charge, a copy of any
of these documents (other than exhibits to these documents unless the exhibits are specifically incorporated by reference into these
documents or referred to in this prospectus) from our website (
https://investors.nxuenergy.com
) or by writing or calling us at
the following address and telephone number:
Nxu, Inc.
1828 N. Higley Rd. Ste 116
Mesa, AZ 85205
(602) 309-5425
You should rely only on information contained
in, or incorporated by reference into, this prospectus and any prospectus supplement. We have not authorized anyone to provide you with
information different from that contained in this prospectus or incorporated by reference into this prospectus. The securities are not
being offered in any jurisdiction in which such an offer or solicitation is not authorized or in which the person making such offer or
solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.
59
INDEX TO FINANCIAL STATEMENTS
VERDE BIORESINS, INC. INDEX TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
Page
Report of Independent Registered Public Accounting Firm
F-2
Consolidated Balance Sheets as of December 31, 2023 and 2022
F-3
Consolidated Statements of Operations for the Years Ended December 31, 2023 and 2022
F-4
Consolidated Statements of Cash Flows for the Years Ended December 31, 2023 and 2022
F-6
Notes to Consolidated Financial Statements
F-7
VERDE BIORESINS, INC. INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Page
Condensed Balance Sheets as of September 30,
2024 (unaudited) and December 31, 2023
F-22
Condensed Statements of Operations for the Nine Months Ended September 30,
2024 and 2023 (Unaudited)
F-23
Condensed Statements of Stockholders' (Deficit) Equity for the Nine Months Ended September 30,
2024 and 2023 (Unaudited)
F-24
Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2024 and
2023 (Unaudited)
F-25
Notes to Condensed Consolidated Financial Statements
F-26
F-
1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
Verde Bioresins Inc.
Opinion on the Financial Statements
We have audited the accompanying balance sheets of Verde Bioresisns
Inc. (the "Company") as of December 31, 2023 and 2022, and the related statements of operations, stockholders'
(deficit) equity, and cash flows for each of the years then ended, and the related notes (collectively referred to as the "financial
statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company
as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the years then ended, in
conformity with accounting principles generally accepted in the United States of America.
Going Concern
The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has incurred operating
losses since inception, resulting in an accumulated deficit and these conditions raise substantial doubt about its ability to continue
as a going concern. Management's plans in regard to these matters are also described in Note 1. The 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 audits. 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 audits in accordance with the standards of the PCAOB
and in accordance with auditing standards generally accepted in the United States of America. 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. Our audits included performing procedures to assess the risks of material misstatement of the 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 financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.
We have served as the Company's auditor since 2020.
/s/ EISNERAMPER LLP
Iselin, New Jersey
July 15, 2024
F-
2
Verde Bioresins, Inc.
Balance Sheets
December 31,
2023
December 31,
2022
Assets:
Current assets:
Cash and cash equivalents
$
962,725
$
1,194,537
Accounts receivables
2,971
—
Inventory
160,038
—
Prepaid expenses and other current assets
30,580
74,658
Total current assets
1,156,314
1,269,195
Operating lease right-of-use assets, net
1,410,333
1,778,332
Property and equipment, net
2,139,610
1,787,718
Other assets
470,111
466,153
Total assets
$
5,176,368
$
5,301,398
Liabilities and Stockholders' (Deficit) Equity:
Current liabilities:
Accounts payable
$
997,587
$
9,239
Accrued liabilities
1,305,614
380,917
Convertible notes, net of debt discount of $1,957,928 and $1,395,349 of December 31, 2023 and 2022, respectively
7,542,072
2,604,651
Current portion of operating lease liabilities
323,206
364,146
Total current liabilities
10,168,479
3,358,953
Non-current portion of operating lease liabilities
1,167,964
1,491,170
Total liabilities
11,336,443
4,850,123
Commitments and Contingencies (Note 8)
Stockholders' (deficit) equity:
Common stock, $0.00001 par value; 33,723,608,890 shares authorized: 3,243,321,874 shares issued and outstanding at December 31, 2023 and 2022
32,434
32,434
Additional paid-in-capital
20,157,328
14,657,328
Accumulated deficit
(26,349,837
)
(14,238,487
)
Total stockholders' (deficit) equity
(6,160,075
)
451,275
Total liabilities and stockholders' (deficit) equity
$
5,176,368
$
5,301,398
See accompanying notes to financial statements
F-
3
Verde Bioresins, Inc.
Statements of Operations
Year ended
December 31,
2023
Year ended
December 31,
2022
Sales
$
107,884
$
—
Cost of Sales
60,067
—
Gross Profit
47,817
—
Costs and expenses:
Selling expenses
419,167
287,542
General and administrative
4,782,685
2,272,536
Research and development
1,181,534
980,741
Operating expenses
(6,383,386
)
(3,540,819
)
Loss from operations
(6,335,569
)
(3,540,819
)
Interest expense
(5,775,781
)
(2,820,223
)
Other expenses, net
—
(28,234
)
Loss before income taxes
(12,111,350
)
(6,389,276
)
Income taxes
—
—
Net loss
$
(12,111,350
)
$
(6,389,276
)
Net loss per share:
Basic and diluted net loss per share
$
(0.00
)
$
(0.00
)
Weighted average shares outstanding:
Basic and diluted
3,243,321,874
3,243,321,874
See accompanying notes to financial statements
F-
4
Verde Bioresins, Inc.
Statements of Stockholders' (Deficit) Equity
Number of
Shares
Common
Stock
Additional
Paid-in
Capital
Accumulated
Deficit
Total
Balance – January 1, 2023
3,243,321,874
$
32,434
$
14,657,328
$
(14,238,487
)
$
451,275
Issuance of warrants in connection with issuance of
    convertible notes
—
—
5,129,270
—
5,129,270
Beneficial conversion feature of convertible notes
—
—
370,730
—
370,730
Net loss
—
—
—
(12,111,350
)
(12,111,350
)
Balance – December 31,
    2023
3,243,321,874
$
32,434
$
20,157,328
$
(26,349,837
)
$
(6,160,075
)
Balance – January 1, 2022
3,243,321,874
$
32,434
$
10,657,328
$
(7,849,211
)
$
2,840,551
Issuance of warrants in connection with issuance of
    convertible notes
—
—
2,863,190
—
2,863,190
Beneficial conversion feature of convertible notes
—
—
1,136,810
—
1,136,810
Net loss
—
—
—
(6,389,276
)
(6,389,276
)
Balance – December 31,
    2022
3,243,321,874
$
32,434
$
14,657,328
$
(14,238,487
)
$
451,275
See accompanying notes to financial statements
F-
5
Verde Bioresins, Inc.
Statements of Cash Flows
Year ended
December 31,
2023
Year ended
December 31,
2022
Cash flow from operating activities:
Net loss
$
(12,111,350
)
$
(6,389,276
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
249,984
198,834
Credit losses on notes receivable
310,000
—
Operating lease costs
367,999
365,988
Amortization of debt issuance costs
42,337
32,558
Loss on disposal of property and equipment
—
28,234
Amortization of debt discount
4,937,421
2,604,651
Changes in assets and liabilities:
Prepaid expenses and other current assets
39,432
84,788
Inventory
(160,038
)
—
Accounts receivables
(2,971
)
—
Other assets
(3,958
)
—
Accounts payable
988,348
(72,727
)
Operating lease liabilities
(364,146
)
(313,203
)
Accrued liabilities
924,697
210,946
Net cash used in operating activities
(4,782,245
)
(3,249,207
)
Cash flow from investing activities:
Purchases of property and equipment
(601,876
)
(256,306
)
Assignment of promissory notes
(310,000
)
—
Net cash used in investing activities
(911,876
)
(256,306
)
Cash flow from financing activities:
Proceeds from debt financing
5,500,000
4,000,000
Issuance costs
(37,691
)
(50,000
)
Net cash provided by financing activities
5,462,309
3,950,000
Net change in cash and cash equivalents
(231,812
)
444,487
Cash and cash equivalents – beginning of period
1,194,537
750,050
Cash and cash equivalents – end of period
$
962,725
$
1,194,537
Supplemental disclosure of non-cash financing and investing activities:
Purchase of property and equipment with prior deposits
$
—
$
18,264
Beneficial conversion feature
370,730
1,136,810
Issuance of warrants in connection with issuance of convertible notes
5,129,270
2,863,190
See accompanying notes to financial statements
F-
6
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
1.
Nature of Operations and Liquidity
Nature of activities
Verde Bioresins, Inc. (the "Company" or "Verde")
(originally incorporated under the name Ezonyx Bio Technologies, Inc.) was incorporated in the State of Delaware on March 4, 2020.
Verde is a full-service privately held company that specializes in the development and manufacturing of PolyEarthylene, proprietary,
biodegradable, and compostable polymers derived from sustainable resources as an alternative to conventional plastics. This material is
capable of being recycled with conventional polyethylene, is eco-friendly, and represents a sustainable bioresin for injection molding,
film extrusion, blow molding and thermoform applications. With performance properties like petro-polymers, PolyEarthylene products can
be produced in any form and color desired for use on existing plastics manufacturing equipment.
Liquidity and Going Concern
The accompanying financial statements have been prepared on the basis
that the Company is a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities
in the normal course of business. The Company had not generated revenues from operations until April 2023. During the year ended
December 31, 2023 the Company incurred net losses of $12,111,350, used $4,782,245 of cash and cash equivalents for its operating
activities, had negative working capital of $9,012,165 as of December 31, 2023 and accumulated deficit of $26,349,837 as of December 31,
2023.
The Company's existence is dependent upon management's
ability to obtain additional funding sources, enter into strategic alliances or generate significant revenues, to cover its ongoing operating
expenses, and also to continue to develop and be able to profitably market its products. Adequate additional financing may not be available
to the Company on acceptable terms, or at all. If the Company is unable to raise additional capital and/or enter into strategic alliances
when needed or on attractive terms, it would be forced to delay or reduce any commercialization efforts. The Company anticipates incurring
additional losses until such time, if ever, that it can generate significant sales. These circumstances raise substantial doubt about
the Company's ability to continue as a going concern within one year after the date that the financial statements are issued. Additional
working capital will be required to continue operations and scale its products.
The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects
on the recoverability and classifications of assets or the amounts and classifications of liabilities that may result should the Company
be unable to continue as a going concern.
2.
Basis of Presentation and Summary of Significant Accounting
Policies
The Company's financial statements included herein have been
prepared in conformity with accounting principles generally accepted in the United States of America, or U.S. GAAP, and pursuant
to the rules and regulations of the Securities and Exchange Commission, or SEC. Any reference in these notes to applicable guidance is
meant to refer to the authoritative U.S. GAAP as found in the Accounting Standards Codifications ("ASC") of the Financial
Accounting Standards Borad ("FASB"). The Company considers events or transactions that occur after the balance sheet date
but before the financial statements are issued to provide additional evidence relative to certain estimates or to identify matters that
require additional disclosure.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates. Significant estimates and assumptions reflected in these financial statements
include but are not limited to the allowance for expected credit losses, allowance for sales returns, accrual of operating expenses, and
valuation of equity instruments and beneficial conversion feature.
F-
7
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
2.
Basis of Presentation and Summary of Significant Accounting
Policies
(cont.)
Segment Information
Operating segments are defined as components of an enterprise about
which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group,
in deciding how to allocate resources and in assessing performance. The Company manages its operations as a single operating segment for
the purposes of assessing performance and making decisions.
Cash and Cash Equivalents
Cash and cash equivalents include cash and certain highly liquid investments
with original maturities of 90 days or less from the date of purchase. Cash equivalents are primarily recorded at cost, which approximates
fair value due to their generally short maturities.
Concentration of Credit Risk
Financial instruments that subject the Company to credit risk primarily
consist of cash and cash equivalents and accounts receivables. The Company maintains its cash and cash equivalent balances with high-quality financial
institutions and, consequently, the Company believes that such funds are subject to minimal credit risk. As of December 31, 2023,
the Company had cash of $715,574 in excess of the Federal Deposit Insurance Corporation insured limit. The Company provides credit to
its customers in the normal course of its operations. It carries out, on a continuing basis, credit checks on its customers.
Allowance for expected credit losses
The Company estimates the balance of its allowance for expected credit
losses. In determining the amount of the allowance for credit losses, the Company considers historical collectability based on past due
status and makes judgments about the creditworthiness of customers and other third-parties based on ongoing credit evaluations. The
Company also considers customer-specific information, current market conditions, and reasonable and supportable forecasts of future
economic conditions. Account balances are written off against the allowance when it is determined that the receivable will not be recovered.
The allowance for expected credit losses on accounts receivable was $0 each at December 31, 2023 and 2022. The allowance for expected
credit losses on notes receivable was $310,000 at December 31, 2023.
Fair Value of Financial Instruments
Fair value is defined as the price the Company would receive to sell
an investment in a timely transaction or pay to transfer a liability in a timely transaction with an independent buyer in the principal
market, or in the absence of a principal market, the most advantageous market for the investment or liability. A framework is used for
measuring fair value utilizing a three-tier hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and
the lowest priority to unobservable inputs (Level 3).
The three levels of the fair value hierarchy are as follows:
Level 1 —
Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities
Level 2 —
Observable inputs other than quoted prices in active markets, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data;
Level 3 —
Unobservable inputs reflecting management's assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.
F-
8
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
2.
Basis of Presentation and Summary of Significant Accounting
Policies
(cont.)
The carrying amounts of the Company's cash and cash equivalents
were measured using quoted market prices in active markets and represent Level 1 investments. The Company's other financial instruments
such as notes receivable, accounts receivables, accounts payable, accrued expenses and convertible notes, approximate their fair values
due to their short maturities.
Inventory
Inventories are principally comprised of raw materials and finished
goods and are valued at the lower of cost or net realizable value with cost being determined using first-in first-out method.
The Company reviews inventories for obsolete items to determine adjustments that it estimates will be needed to record inventory at lower
of cost or net realizable value. Inventory costs include labor, overhead, manufacturing costs and inbound freight costs.
Revenue Recognition
Verde recognizes revenue from product sales in accordance with the
Financial Accounting Standards Board's ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"). This
standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance,
collaboration arrangements and financial instruments. Under ASC 606, Verde recognizes revenue when its customer obtains control of
promised goods or services, in an amount that reflects the consideration that Verde expects to receive in exchange for those goods or
services. To determine revenue recognition for arrangements that are determined to be within the scope of ASC 606, Verde performs
the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the
contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract;
and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Verde only applies the five-step model
to contracts when it is probable that Verde will collect the consideration it is entitled to in exchange for the goods it transfers to
the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, Verde assesses the goods
or services promised within each contract and determines those that are performance obligations and assesses whether each promised goods
is distinct. Verde then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation
when (or as) the performance obligation is satisfied.
Verde derives its revenues primarily from product sales of PolyEarthylene.
Verde primarily produces and sells formulated resin pellets and Verde typically recognizes revenue for these sales upon shipment. Verde
sells to distributors who may request a return or credit for unforeseen reasons or who may have agreed discounts or allowances to be netted
from amounts invoiced. Due to the highly specialized nature of Verde's products, returns and allowances are projected to be infrequent
and immaterial. Verde offers a standard quality assurance warranty related to the fitness of its finished goods.
The Company records accounts receivables due from distributors and
other customers. Payment terms to customers are generally 30-60 days. Accounts receivable was $2,971, $0 and $0 as
of December 31, 2023, December 31, 2022 and January 1, 2022, respectively.
Research and Development
Research and development costs are expensed as incurred. Research and
development expenses include personnel costs associated with research and development activities, including third-party contractors
to perform research, conduct testing and manufacture new product samples. The Company accrues for costs incurred by external service providers
based on its estimates of services performed and costs incurred. These estimates include the level of services performed by third parties.
Based on the timing of amounts invoiced by service providers, the Company may also record payments made to those providers as prepaid
expenses that will be recognized as expense in future periods as the related services are rendered.
F-
9
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
2.
Basis of Presentation and Summary of Significant Accounting
Policies
(cont.)
Selling Expenses
Selling expenses consist of salary, marketing, and advertising costs
not directly attributable to direct costs of production or associated with the Company's administration, research and development
activities.
Net Loss per Share
Basic loss per share is computed by dividing net loss by the weighted-average number
of common shares outstanding for the year. Diluted loss per share is computed by dividing net loss by the weighted-average number
of common shares outstanding plus common stock equivalents (if dilutive) related to stock options, restricted stock units, and warrants
for each year and the conversion feature of convertible notes.
Recent Accounting Pronouncements
The Company considers the applicability and impact of all Accounting
Standards Updates ("ASUs"). ASUs not discussed below were assessed and determined to be either not applicable or are expected
to have minimal impact on the financial statements.
Recently Adopted Accounting Pronouncement
In 2016, the Financial Accounting Standards Board issued ASU 2016-13,
Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU
2016- 13"). The guidance changes the impairment model used to measure credit losses for most financial assets. A new forward-looking expected
credit loss model will replace the existing incurred credit loss model and will impact the Company's accounts receivables. This
is expected to generally result in earlier recognition of allowances for credit losses. The Company adopted ASU 2016-13 on January 1,
2023 and it did not have a material impact on the Company's financial statements.
Accounting Pronouncement Issued but Not Adopted
In 2023, the FASB issued ASU 2023-09 — Income
Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). This update standardizes categories for
the effective tax rate reconciliation, requires disaggregation of income taxes and additional income tax-related disclosures. This
update is required to be effective for the Company for fiscal periods beginning after December 15, 2024. The Company is evaluating
the effect that ASU 2023-09 will have on its financial statements and disclosures.
In 2023, the FASB issued ASU 2023-07 — Segment
Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). This update requires expanded
annual and interim disclosures for the significant segment expenses that are regularly provided to the chief operating decision maker
and included within each reported measure of segment profit or loss. This update will be effective for fiscal years beginning after
December 15, 2023, and is to be applied retrospectively to all periods presented in the financial statements. Early adoption is permitted.
The Company is evaluating the effect that ASU 2023-07 will have on its financial statements and disclosures.
Leases
At the inception of an arrangement, the Company determines whether
the arrangement is or contains a lease based on the unique facts and circumstances present. Most leases with a term greater than one year
are recognized on the balance sheet as right-of-use assets and lease liabilities. The Company has elected not to recognize on the
balance sheet leases with terms of one year or less. Certain of the Company's lease agreements contain renewal options; however,
the Company does not recognize right-of-use assets or lease liabilities for renewal periods unless it is determined that the Company
is reasonably certain of renewing the lease at inception or when a triggering event occurs.
F-
10
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
2.
Basis of Presentation and Summary of Significant Accounting
Policies
(cont.)
The Company leases warehouse space and office facilities. Verde's
operating leases with terms longer than 12 months are recorded at the sum of the present value of the lease's fixed minimum
payments as operating lease liabilities and right of use assets ("ROU assets") in the Company's balance sheets. For
leases that contain termination options, where the rights to terminate are held by either Verde, the lessor, or both parties and it is
reasonably certain that Verde or the lessor will exercise that option, Verde factors these extended or shortened lease terms into the
minimum lease payments. The ROU assets also include any initial direct costs incurred and lease payments made at or before the commencement
date and are reduced by lease incentives.
The Company uses an incremental borrowing rate to determine the present
value of the lease payments for leases, as Verde's leases do not have readily determinable implicit interest rates. The Company's
incremental borrowing rates represent the rates incurred to borrow on a collateralized basis over a similar term at an amount equal to
the lease payments in a similar economic environment.
The depreciable life of ROU assets is limited by the expected lease
term unless there is a transfer of title or purchase option reasonably certain of exercise. The Company's lease agreements do not
contain any significant residual value guarantees or material restrictive covenants.
Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation
and amortization. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets,
which range from three to 10 years. Leasehold improvements are amortized over the shorter of useful lives of the asset or maximum
related lease term.
Convertible Notes
The convertible notes are considered a hybrid financial instrument
consisting of put options, conversion option and various embedded features that required evaluation as potential embedded derivatives
under FASB ASC 815, Derivatives and Hedging ("ASC 815"). Based on the nature of the host instrument and the embedded
features, management concluded that none of the conversion and redemption features required bifurcation and separate accounting from the
host instrument. The Company determined that the put options in the event of default and change in control was an embedded derivative.
As a result, the put options required bifurcation and separate accounting under ASC 815. The value of such options was immaterial
as of the issuance date, December 31, 2022 and December 31, 2023.
When the Company has determined that the embedded conversion option
should not be bifurcated from its host instrument, the Company accounts for convertible notes in accordance with ASC 470-20, Debt
with Conversion and Other Options. The Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion
options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment
date of the transaction and the effective conversion price embedded in the notes. The Company amortizes any debt discount over the term
of the notes, using the effective interest method.
Warrants
The Company accounts for stock warrants as either equity instruments,
liabilities or derivative liabilities in accordance with ASC Topic 480, Distinguishing Liabilities from Equity and/or ASC 815,
depending on the specific terms of the warrant agreement. Liability-classified warrants are recorded at their estimated fair values
at each reporting period until they are exercised, terminated, reclassified or otherwise settled. Changes in the estimated fair value
of liability-classified warrants are recorded in the statements of operations. Equity-classified warrants are recorded within
additional paid-in capital at the time of issuance and not subject to remeasurement.
When equity-classified warrants are issued in connection with
issuance of convertible notes, net proceeds received are allocated to the financial instruments issued which results in a debt discount
that is amortized over the term of the convertible notes, using the effective interest method.
F-
11
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December
31, 2023 and 2022
2.
Basis of Presentation and Summary of Significant Accounting
Policies
(cont.)
Income Taxes
The Company provides for income taxes using the asset and liability
approach. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets
and liabilities and the tax rates in effect when these differences are expected to reverse. Deferred tax assets are reduced by a valuation
allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not
be realized. As of December 31, 2023, and 2022, the Company had a full valuation allowance against deferred tax assets.
The Company is subject to the provisions of ASC 740-10-25, Income
Taxes ("ASC 740"). ASC 740 prescribes a more likely-than-not threshold for the financial statement recognition
of uncertain tax positions. ASC 740 clarifies the accounting for income taxes by prescribing a minimum recognition threshold and
measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax
return. On a quarterly basis, the Company undergoes a process to evaluate whether income tax accruals are in accordance with ASC 740
guidance on uncertain tax positions. The Company has not recorded any liability for uncertain tax positions as of December 31, 2023,
and 2022.
For the years ended December 31, 2023 and 2022, the Company
recorded zero income tax expense. No tax benefit has been recorded in relation to the pre-tax loss for the years ended December 31,
2023, and 2022, due to a full valuation allowance to offset any deferred tax asset related to net operating loss carry forwards attributable
to the losses.
Stock-Based Compensation
The Company accounts for all stock-based payment awards granted
to employees and non-employees, if any, as stock-based compensation expense at their grant date fair value. The Company's stock-based payments
include stock options, restricted stock units, and stock appreciation rights. The measurement date for employee awards is the date of
grant, and stock-based compensation costs are recognized as expense over the employees' requisite service period, on a straight-line basis.
The measurement date for non-employee awards is the date of grant and stock-based compensation costs for non-employees are
recognized as expense over the vesting period on a straight-line basis. Forfeitures are accounted for as they occur.
Subsequent Events
The Company evaluated subsequent events that occurred after the balance
sheet date through July 15, 2024, which is the date the financial statements were available to be issued and no events were noted
other than those already disclosed elsewhere in the financial statements.
3.
Property and Equipment
Property and equipment, net, consists of the following on December 31,
2023 and 2022:
Estimated
Useful Life
(Years)
December 31,
2023
December 31,
2022
Leasehold improvements
12
$
578,666
$
575,570
Machinery and equipment
7 – 10
1,945,744
1,355,748
Office equipment
3 – 5
65,346
60,249
Furniture and fixtures
3 – 10
35,277
31,590
Injection molds
3
44,582
44,582
2,669,615
2,067,739
Accumulated depreciation and amortization
(530,005
)
(280,021
)
Property and equipment, net
$
2,139,610
$
1,787,718
F-
12
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
3.
Property and Equipment
(cont.)
Depreciation expense amounted to $249,984 and $198,834 for the years
ended December 31, 2023 and 2022, respectively.
Other Assets
Other assets are comprised of security deposit and deposits for the
purchases of equipment, machinery or raw material which will be used in manufacturing.
The components of other assets as of December 31, 2023 and 2022
are as follows:
December 31,
2023
December 31,
2022
Deposit to vendors
$
27,371
$
12,400
Rent deposit
—
11,013
Letter of credit
442,740
442,740
Total other assets
$
470,111
$
466,153
The Company established an irrevocable standby letter of credit with
a bank for $442,740 which expired on March 16, 2024, and is renewed for a one-year period from March 16, 2024 to March 16,
2025. The 12-month renewal charge was $9,202 from March 16, 2023 to March 16, 2024, and is recorded as part of prepaid
expenses. The renewal charge is being amortized to interest expenses over a 12-month period from March 2023 to February 2024
using straight line method. During the year ended December 31, 2023, the Company recognized interest expense of $7,669 on the statements
of operations. The letter of credit serves as the Company's security deposit in the amount of one-year lease on a warehouse
leased by the Company (see Note 7) in which the landlord is the beneficiary.
4.
Accrued Liabilities
The components of accrued liabilities as of December 31, 2023
and 2022 are as follows:
December 31,
2023
December 31,
2022
Accrued professional fees
$
209,409
$
121,575
Accrued interest on convertible notes
971,370
183,014
Accrued employees' wages & benefits
109,607
64,252
Accrued other
15,228
12,076
Total accrued liabilities
$
1,305,614
$
380,917
5.
Convertible Notes
On February 17, 2023, Verde issued to Acuitas Group Holdings LLC
("Acuitas") a senior secured convertible promissory note (the "February 2023 Note") with an aggregate principal
amount of $4,000,000, documenting Acuitas's prior two equal cash transfers to Verde, which aggregated to $4,000,000 and which were
made on March 31, 2022 and November 2, 2022. The February 2023 Note accrues interest on (i) $2,000,000 of the principal
amount outstanding commencing on and including March 31, 2022 (the "First Interest Accrual Date"), and (ii) $2,000,000
of the principal amount outstanding commencing on and including November 2, 2022, each at an interest rate of 10% per annum. During
the year ended December 31, 2023 and 2022, the Company recognized interest expense of $400,000 and $183,014, respectively, on the
statements of operations.
Unless earlier converted or repaid, on or after (i) the 12-month anniversary
of the First Interest Accrual Date, provided that such date shall be automatically extended by a period of six (6) months if Verde
enters into a definitive business combination agreement with TLGY Acquisition Corporation ("TLGY") on or before March 18,
2023 (the "Maturity Date"), or (ii) any time on or after the occurrence of an event of default (as defined in the February 2023
Note), the entire outstanding principal and accrued interest under the February 2023 Note shall, at the option of Acuitas, be either
F-
13
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
5.
Convertible Notes
(cont.)
due and payable or converted into shares of Verde common stock. The
number of shares of Verde common stock into which the outstanding principal and accrued interest will convert shall be equal to the quotient
of (i) such outstanding principal amount and accrued interest divided by (ii) $5,000,000 divided by the fully diluted capitalization
of Verde as of the applicable date of determination (which capitalization shall exclude any equity securities issuable upon conversion
of the February 2023 Note and the February 2023 Warrant (as defined below)) (the "February 2023 Capped Price"),
in accordance with the terms of the February 2023 Note. In the event of a qualified conversion event (as defined in the February 2023
Note), the outstanding principal amount and accrued interest will automatically convert into Verde common stock or other equity securities
at a price per share equal to the February 2023 Capped Price as determined immediately prior to the consummation of such event. In
June 2023, Verde and Acuitas entered into an amendment No. 1 to the February 2023 Note, pursuant to which the Maturity Date
was extended from March 31, 2023 to April 19, 2024. The February 2023 Capped Price is $0.0015 as of December 31, 2023.
As of date these financial statements are available to be issued, the
February 2023 Note is due and unpaid and not converted into shares.
On March 12, 2024, Verde served the notice of termination of the
Merger Agreement with TLGY. On March 18, 2024, TLGY consented to the termination of the Merger Agreement (see Note 14).
In addition, in connection with the issuance of the February 2023
Note, Verde issued and sold to Acuitas a warrant (the "February 2023 Warrant") to purchase that number of shares of Verde
common stock equal to (i) $4,000,000, divided by (ii) $5,000,000 divided by the fully diluted capitalization of Verde immediately
prior to the exercise of the February 2023 Warrant and the conversion of the February 2023 Note (which capitalization shall
exclude any equity securities issuable upon conversion of the February 2023 Note and exercise of the February 2023 Warrant),
as set forth in the February 2023 Warrant, which number of shares is to be determined at the close of business on the day prior
to Verde's receipt of Acuitas's notice of exercise of the February 2023 Warrant, for an aggregate exercise price of $4,000,000.
The exercise price for the February 2023 Warrant will be equal to (i) $4,000,000 divided by (ii) the number of shares of
Verde common stock issuable upon exercise of the February 2023 Warrant, as determined in accordance with the foregoing sentence.
In March 2023, Verde and Acuitas amended and restated the February 2023 Warrant to reflect that the February 2023 Warrant
is exercisable for up to 3,571,130,758 shares of Verde common stock, at an initial purchase price of $0.0011 per share, for an aggregate
exercise price of $4,000,000. The February 2023 Warrant is exercisable at any time or from time to time on or after the date of issuance
and prior to March 30, 2027.
On June 15, 2023, Verde issued and sold to Acuitas a senior secured
convertible promissory note (the "June 2023 Note") with an aggregate principal amount of $5,500,000, documenting Acuitas'
cash transfer to Verde of $5,500,000 and which was made on April 19, 2023. The June 2023 Note accrues interest on $5,500,000
of the principal amount outstanding commencing on and including April 19, 2023, at an interest rate of 10% per annum. During the years
ended December 31, 2023 and 2022, the Company recognized interest expense of $387,260 and $0, respectively, on the statements of
operations.
Unless earlier converted or repaid, the entire outstanding principal
and accrued interest under the June 2023 Note shall, at the option of Acuitas, be either due and payable or converted into shares
of Verde common stock, on or after (i) the 12-month anniversary of April 19, 2023 or (ii) any time on or after the
occurrence of an event of default (as defined in the June 2023 Note). The number of shares of Verde common stock into which the outstanding
principal and accrued interest will convert shall be equal to the quotient of (i) such outstanding principal amount and accrued interest
divided by (ii) $5,000,000 divided by the fully diluted capitalization of Verde as of the applicable date of determination (which
capitalization shall exclude any equity securities issuable upon conversion of the June 2023 Note and the June 2023 Warrant
(as defined below)) (the "June 2023 Capped Price"), in accordance with the terms of the June 2023 Note. In the event
of a qualified conversion event (as defined in the June 2023 Note), the outstanding principal amount and accrued interest will automatically
convert into Verde Common Stock or other equity securities at a price per share equal to the June 2023 Capped Price as determined
immediately prior to the consummation of such event. The June 2023 Capped Price is $0.0005 as of December 31, 2023.
F-
14
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
5.
Convertible Notes
(cont.)
In addition, in connection with the issuance of the June 2023
Note, Verde issued and sold to Acuitas a warrant (the "June 2023 Warrant") exercisable for up to 8,838,548,625 shares
of Verde Common Stock, at an initial purchase price of $0.0006 per share, for an aggregate exercise price of $5,500,000. The warrant is
exercisable at any time or from time to time on or after the date of issuance and prior to June 15, 2028.
On June 19, 2023, Acuitas transferred and assigned all of the
issued and outstanding shares of Verde common stock and warrants, including the February 2023 Warrant and the June 2023 Warrant,
as well as all outstanding secured convertible promissory notes issued by Verde to Acuitas (including security agreements relating thereto),
including the February 2023 Notes and the June 2023 Note, to Humanitario Capital LLC.
The provisions in the warrants as disclosed herein require the Company
to account for the warrants as equity. The Company recognized a discount to debt at issuance of February 2023 Note of $2,863,190
and at issuance of June 2023 Note of $5,129,270 related to the initial fair values of the February 2023 Warrant and June 2023
Warrant, respectively (see Note 9).
As a result of the convertible notes having a lower effective conversion
price considering the value allocated to the warrants, the Company has recognized a beneficial conversion feature of $1,136,810 on February 2023
Note in 2022 and $370,730 on June 2023 Note in 2023. The beneficial conversion features and the fair value of the warrants are collectively
considered the debt discount. The Company recorded a debt discount in the amount of $4,000,000 at issuance of February 2023 and $5,500,000
at issuance of June 2023 Note which are being amortized over the life of the respective convertible notes using the effective interest
method. During the years ended December 31, 2023 and 2022, the Company recognized $4,937,421 and $2,604,651, respectively, of
amortization of debt discount recorded as part of interest expense on the statements of operations. As of December 31, 2023, $4,000,000
debt discount on February 2023 Note has been amortized to interest expense and the $3,542,072 debt discount on June 2023 Note
has been amortized to interest expense.
All debt issuance costs are accounted for as a deferred asset and will
be amortized over the life of the convertible notes. During the years ended December 31, 2023 and 2022, the Company recognized
$42,337 and $32,558 respectively, of amortization of debt issuance costs recorded as part of interest expense on the statements of operations.
The Company had incurred approximately $50,000 in debt issuance costs related to the February 2023 Note and had fully amortized those
costs as of December 31, 2023, and $37,691 in debt issuance costs related to the June 2023 Note and had amortized approximately
$24,895 as of December 31, 2023.
6.
Operating Leases
On October 1, 2020, the Company commenced a 35-month operating
lease for approximately 4,405 square foot of office space located in Santa Monica, California. The monthly base rent is $11,013 per
month with no increase each year thereafter. At the end of August 2023, the Company completed the operating lease and did not renew
it. In June 2021, the Company commenced a 73-month operating lease for approximately 37,268 square foot of industrial warehouse
space located in Fullerton, California. The monthly base rent is $36,895 per month for the first 12 months with a 3% increase
each year thereafter.
As of December 31, 2023 and December 31, 2022, the Company's
operating leases have a remaining weighted average lease term of 3.7 years and 4.3 years, respectively, and Verde evaluated
the present value of the payments at inception of the lease using Verde's estimated incremental borrowing rate of 11.58%. The Company's
operating lease expenses were $553,676 and $595,209 for the years ended December 31, 2023 and 2022, respectively.
The Company paid cash of $549,824 and $542,423 for operating leases
for the years ended December 31, 2023 and 2022, respectively.
F-
15
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
6.
Operating Leases
(cont.)
Maturities of operating lease liabilities as of December 31, 2023
were as follows:
Year ending
Total
2024
470,610
2025
470,610
2026
470,610
2027
274,523
Total paid
1,686,353
Imputed interest
(195,183
)
Total
$
1,491,170
Less current portion
$
323,206
Lease liabilities – noncurrent
$
1,167,964
7.
Commitments and Contingencies
Royalties
During 2020, in connection with issuance of common shares to certain
investors, the Company agreed to enter into royalty agreements with these investors whereby the Company is obligated to make royalty payments,
on a quarterly basis at rate of 0.2% or, in some cases, 0.1% of adjusted gross revenue received by Verde in the immediately preceding
fiscal quarter until such time as the investors receive in aggregate $14.2 million in royalties. Royalties incurred amounted to approximately
$2,484 and $0, respectively, for the years ended December 31, 2023, and 2022. Royalties' payables as of December 31,
2023 and 2022 amounted to approximately $2,484 and $0, respectively, recorded as part of accounts payable on the balance sheet.
Litigation
The Company investigates claims as they arise and accrues estimates
for resolution of legal and other contingencies when losses are probable and estimable. As of December 31, 2023, Verde is not a party
to litigation or subject to claims incident to the ordinary course of business, including intellectual property claims, putative and certified
class actions, commercial and consumer protection claims, labor and employment claims, breach of contract claims and other asserted and
unasserted claims.
8.
Warrants
A summary of the Company's warrants outstanding at December 31,
2023 is as follows:
Exercise Price
Outstanding
Issuance Date
Expiration Date
0.0043
1,053,864,168
February 8, 2021
February 7, 2025
0.0011
3,571,130,758
March 31, 2022
February 7, 2027
0.0006
8,838,548,625
June 15, 2023
June 15, 2028
F-
16
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
8.
Warrants
(cont.)
The following is the summary of changes in warrants to purchase common
stock for the years ended December 31, 2023 and 2022:
Number of
Warrants
Shares
Outstanding and
Exercisable
Weighted
Average
Exercise
Price per
Share
Balance as of December 31, 2021
1,053,864,168
$
0.0043
Issued March 2022
3,571,130,758
$
0.0011
Exercised
—
—
Balance as of December 31, 2022
4,624,994,926
$
0.0018
Issued June 2023
8,838,548,625
$
0.0006
Exercised
—
—
Balance as of December 31, 2023
13,463,543,551
$
0.0010
The fair value of the warrants on issuance was determined by using
option pricing models assuming the following:
December 31,
2023
December 31,
2022
Risk-free interest rate
3.91
%
2.42
%
Expected term (in years)
5
5
Expected volatility
50
%
50
%
Expected dividend yield
—
—
Exercise price
$
0.0006
$
0.0011
Fair value of common stock
$
0.0091
$
0.0037
9.
Stockholders' (Deficit) Equity
The Company's Certificate of Incorporation, originally filed
in Delaware on March 4, 2020, was first amended on November 18, 2020 by the Certificate of Amendment of the Second Amended and
Restated Certificate of Incorporation. This amendment authorized the issuance of common stock. On March 21, 2023, the Company's
Certificate of Incorporation was further amended, as authorized by the Company's Board of Directors, to increase the Company's
authorized common stock to 11,211,920,795 shares. On June 15, 2023, the Company's Certificate of Incorporation was further
amended, as authorized by the Company's Board of Directors, to increase the Company's authorized common stock to 33,723,608,890 shares.
As of December 31, 2023 and December 31, 2022, the Company's capital structure consists of common stock with par value
of $0.00001 per share.
The Company has not paid any dividends on common stock to date. It
is the Company's present intention to retain any earnings for use in its business operations and, accordingly, the Company does
not anticipate that the Board of Directors will declare any dividends in the foreseeable future on its common stock.
In 2020, the Company adopted the 2020 Incentive Stock Option Plan (the
"2020 Plan"), which provides for the award of incentive stock options to purchase up to 166,727,405 shares of common
stock. Employees, advisors and directors are eligible to be granted awards under the 2020 Plan. The exercise price of any option granted
under the 2020 Plan may not be less than 100% of the fair market value of the common stock as determined by the Board of Directors on
the date of grant. During the years ended December 31, 2023 and 2022, there were no stock-based awards granted.
F-
17
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
10.
Net Loss per Share
For the years ended December 31, 2023 and 2022
,
the
Company recorded a net loss available to common stockholders. As such, because the dilution from potential common stock was antidilutive,
the Company used basic weighted-average common stock outstanding, rather than diluted weighted-average common stock outstanding
when calculating diluted loss per share for the years ended December 31, 2023 and 2022.
Year ended
December 31,
2023
Year ended
December 31,
2022
Numerator:
Net loss available to common stockholders
$
(12,111,350
)
$
(6,389,276
)
Denominator:
Weighted-average number of shares used in computing net loss per share, basic and diluted
3,243,321,874
3,243,321,874
Net loss per share – basic and diluted
$
(0.00
)
$
(0.00
)
The following potential dilutive securities have been excluded from
the computation of diluted net loss per share as the effect would be anti-dilutive. Therefore, the weighted-average number of common
stock outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same.
Year ended
December 31,
2023
Year ended
December 31,
2022
Warrants exercisable for common stock
13,463,543,551
4,624,994,926
Share issuable upon conversion of convertible notes
15,163,835,616
3,121,095,890
28,627,379,167
7,746,090,816
11.
Income Taxes
Deferred income taxes reflect the net effects of temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
The Company's deferred tax assets relate primarily to its net operating loss carryforwards and other balance sheet basis differences.
In accordance with ASC 740, the Company recorded a valuation allowance to fully offset the gross deferred tax asset, because it is
not more likely than not that the Company will realize future benefits associated with these deferred tax assets as of December 31,
2023 and 2022.
As of December 31, 2023, and 2022, the Company had net deferred
tax assets of $7,258,796 and $3,934,223, respectively, against which a full valuation allowance had been recorded. The change in the valuation
allowance for the year ended December 31, 2023, was an increase of $3,324,573. The increase in the valuation allowance for the year
ended December 31, 2023, was mainly attributable to an increase in the net operating loss carryforward, which resulted in an increase
in the deferred tax assets and a corresponding valuation allowance.
F-
18
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
11.
Income Taxes
(cont.)
Significant components of the Company's deferred tax assets as
of December 31, 2023, and 2022 were as follows:
Year ended
December 31,
2023
Year ended
December 31,
2022
Deferred tax assets:
Net operating loss forward
$
6,576,237
$
3,787,952
Operating lease liabilities
417,283
519,184
Capitalized research and development expenses
377,553
205,286
Start-up costs
20,884
22,753
Accrued liabilities and reserves
104,115
27,059
Total deferred tax assets
7,496,072
4,562,234
Deferred tax liabilities:
Operating right-of-use asset
(394,662
)
(497,642
)
Fixed assets
(208,820
)
(128,039
)
Prepaid expenses
(11,835
)
(1,330
)
Debt accretion
(36,932
)
—
Total deferred tax liabilities
(652,249
)
(628,011
)
Net deferred tax assets before valuation allowance
6,843,823
3,934,223
Valuation allowance
(6,843,823
)
(3,934,223
)
Net deferred tax assets after valuation allowance
$
—
$
—
A reconciliation of the federal statutory tax rate and the effective
tax rates for the years ended December 31, 2023 and 2022 is as follows:
Year ended
December 31,
2023
Year ended
December 31,
2022
U.S. federal statutory tax rate
21.0
%
21.0
%
State income taxes, net of federal benefit
5.5
7.9
Nondeductible expenses and other
(2.5
)
(0.2
)
Change in valuation allowance
(24.0
)
(28.7
)
Effective tax rate
—
%
—
%
The Company had approximately $24,215,174 and $13,687,041 of gross
net operating loss ("NOL") carryforwards (federal and state) as of December 31, 2023 and 2022, respectively, which may
be carried forward indefinitely. Sections 382 and 383 of the Internal Revenue Code, similar state regulations, contain provisions that
may limit the NOL carryforwards available to be used to offset income in any given year upon the occurrence of certain events, including
changes in the ownership interests of significant stakeholders. In the event of a cumulative change in ownership in excess of 50% over
a three-year period, the amount of the NOL carryforwards that the Company may utilize in any one year may be limited.
The Company follows guidance on accounting for uncertainty in income
taxes which prescribes a minimum threshold a tax provision is required to meet before being recognized in the financial statements. The
Company does not have any liabilities as of December 31, 2023 and 2022 to account for potential income tax exposure. The Company
is obliged to file income tax returns in the U.S. federal jurisdiction and the State of California. The tax years ended December 31,
2023, 2022, 2021 and 2020 are open and subject to audit examination.
F-
19
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
12.
Distribution Agreement
In February 2023, Verde entered into a distribution agreement
with Vinmar International Ltd. ("Vinmar") for the distribution of its PolyEarthylene resins throughout the United States,
Canada and Mexico. In April 2023, Vinmar started selling PolyEarthylene to its customers. Sales to Vinmar amounted to $26,818 and
$0 for the years ended December 31, 2023 and 2022, respectively. Outstanding receivables from Vinmar as of December 31,
2023 and 2022 amounted to $2,946 and $0, respectively.
13.
Merger Agreement
On June 21, 2023, Verde entered into a merger agreement with TLGY
Acquisition Corporation ("TLGY") (the "TLGY Merger Agreement").
On August 14, 2023, TLGY filed a registration statement on Form S-4 with
the U.S. Securities and Exchange Commission, which included a preliminary proxy statement and prospectus in connection with the proposed
business combination with Verde.
On November 14, 2023, TLGY filed the amendment number 1 to the
registration statement on Form S-4 with the U.S. Securities and Exchange Commission.
Pursuant to the terms of the Merger Agreement, Verde has agreed, if
any extension of the deadline by which TLGY must complete its initial business combination (an "Extension") is required (i) from
September 2, 2023 through December 2, 2023 (the "First Extension Period") and (ii) from December 2, 2023
through March 31, 2024 (the "Second Extension Period"), to cause one or more loans ("Company Extension Loans")
to be made to TLGY on a monthly basis on an interest-free basis in an amount equal to (x) with respect to the First Extension
Period, fifty percent (50%) of the amount necessary for funding the applicable month of the Extension(s); provided that Verde shall not
be required to make a Company Extension Loan in excess of $100,000 per month, and (y) with respect to the Second Extension Period,
the lesser of fifty percent (50%) of the amount necessary for enabling the applicable month of Extension(s), and $150,000. The proceeds
of the Company Extension Loans shall be deposited into TLGY's trust account and held for the benefit of TLGY and its public shareholders.
Verde has made Company Extension Loans on each of August 22, 2023, September 22, 2023, November 11, 2023 and December 7,
2023 in the amount of $100,000, $100,000, $55,000 and $55,000, respectively.
The August 22, 2023, September 22, 2023, November 11,
2023 and December 7, 2023 Company Extension Loans or a total of $310,000 are recorded as Notes receivable on the balance sheet. As
a result of the termination of the Merger Agreement (as discussed below), Verde provided for the full valuation allowance of $310,000
for these Notes receivable on the statements of operation during the year ended December 31, 2023.
On each of January 12, 2024, February 10, 2024 and March 8,
2024, TLGY issued to Verde additional unsecured promissory notes with aggregate principal amounts of $55,000 each, in connection with
Verde's January 9, 2024, February 8, 2024 and March 8, 2024 Company Extension Loans.
On March 12, 2024, Verde terminated the Merger Agreement with
TLGY due to TLGY's willful breach of the Merger Agreement. On March 18, 2024, TLGY consented to the termination of the Merger
Agreement. On May 4, 2024, Verde and TLGY signed a Mutual Release Agreement and discharged each other of all liabilities and obligations
under the Merger Agreement and other ancillary agreements. In the event of consummation by TLGY of its initial business combination, on
or within 5 business days after the date of the closing of such business combination, TLGY shall pay Verde a sum of $83,125. If TLGY
does not consummate its initial business combination and subsequently liquidates, Verde shall not be entitled to any payment.
F-
20
Verde Bioresins, Inc.
Notes to Financial Statements
Years Ended December 31, 2023 and 2022
14.
Subsequent Events
On March 5, 2024, Verde issued and sold to Humanitario Capital
LLC ("Humanitario") a senior secured convertible promissory note (the "March 2024 Note") with an aggregate
principal amount of $5,000,000 and received cash transfers of $1,250,000, $500,000 and $750,000 on March 6, 2024, April 17,
2024 and June 5, 2024, respectively, from Humanitario and remaining $2,500,000 is expected to be received from Humanitario in 2024.
The March 2024 Note accrues interest on the principal amount outstanding commencing on March 6, 2024 (the "First Interest
Accrual Date"), at a fixed rate equal to 10% per annum, compounded monthly.
Unless earlier converted or repaid, on or after (i) September 5,
2025 or (ii) any time on or after the occurrence of an event of default (as defined in the March 2024 Note), the entire outstanding
principal and accrued interest under the March 2024 Note shall, at the option of Humanitario, be either due and payable or converted
into shares of Verde common stock, par value $0.00001 per share; provided that, if there is then-outstanding a class or series of
capital stock that is senior in rights, preferences or privileges to the Common Stock, then the outstanding amount shall convert into
shares of a newly-issued series of such capital stock having rights, preferences and privileges (except with respect to the per share
liquidation preference, which shall be equal to the Capped Price (as defined below)) substantially equivalent to such senior class or
series of capital stock of the Company. The number of shares of Common Stock into which the outstanding amount shall convert shall be
equal to the quotient of (i) the Outstanding Amount divided by (ii) the Capped Price (as defined below) as determined as of
the time Humanitario exercises its option to convert.
The "Capped Price" shall be equal to $5,000,000 divided
by the fully diluted capitalization of the Verde as of the applicable date of determination, which capitalization shall include the unallocated
equity incentive pool and any increase to the equity incentive pool made prior to or at the time of conversion of the March 2024
Note, and all other rights to acquire capital stock of the Verde outstanding at the time of the conversion of the March 2024 Note,
but shall exclude: the Common Stock issuable upon conversion of the March 2024 Note.
F-
21
Verde
Bioresins, Inc.
Condensed Balance Sheets
September 30,
2024 (unaudited)
December 31,
2023
Assets:
Current assets:
Cash and cash equivalents
$
226,965
$
962,725
Accounts receivables
16,449
2,971
Inventory
217,573
160,038
Prepaid expenses and other current assets
59,639
30,580
Total current assets
520,626
1,156,314
Operating lease right-of-use assets, net
1,174,527
1,410,333
Property and equipment, net
2,537,659
2,139,610
Other assets
470,111
470,111
Total assets
$
4,702,923
$
5,176,368
Liabilities and Stockholders' Deficit :
Current liabilities:
Accounts payable
$
1,392,624
$
997,587
Accrued liabilities
2,221,165
1,305,614
Convertible notes, net of debt discount of $2,374,681 and $1,957,928 as of September 30, 2024 and December 31, 2023, respectively
10,625,319
7,542,072
Current portion of operating lease liabilities
362,578
323,206
Total current liabilities
14,601,686
10,168,479
Non-current portion of operating lease liabilities
891,477
1,167,964
Total liabilities
15,493,163
11,336,443
Commitments and Contingencies (Note 8)
Stockholders' deficit :
Common stock, $0.00001 par value;  58,687,483,705 shares authorized: 3,243,321,874 shares issued and outstanding at September 30, 2024 and December 31, 2023
32,434
32,434
Additional paid-in-capital
23,752,454
20,157,328
Accumulated deficit
(34,575,128
)
(26,349,837
)
Total stockholders' deficit
(10,790,240
)
(6,160,075
)
Total liabilities and stockholders' deficit
$
4,702,923
$
5,176,368
See
accompanying notes to unaudited condensed financial statements
F-
22
Verde
Bioresins, Inc.
Condensed Statements of Operations
(unaudited)
For the
Nine Months
Ended
September 30,
2024
For the
Nine Months
Ended
September 30
2023
Sales
$
50,137
$
107,884
Cost of sales
27,124
60,067
Gross profit
23,013
47,817
Costs and expenses:
Selling expenses
462,165
293,809
General and administrative
2,758,588
3,573,136
Research and development
1,016,387
808,869
Operating expenses
(4,237,140
)
(4,675,814
)
Loss from operations
(4,214,127
)
(4,627,997
)
Interest expense
(4,011,164
)
(3,885,786
)
Loss before income taxes
(8,225,291
)
(8,513,783
)
Income taxes
-
-
Net loss
$
(8,225,291
)
$
(8,513,783
)
Net loss per share:
Basic and diluted net loss per share
$
(0.00
)
$
(0.00
)
Weighted average shares outstanding:
Basic and diluted
3,243,321,874
3,243,321,874
See
accompanying notes to unaudited condensed financial statements
F-
23
Verde
Bioresins, Inc.
Condensed Statements of Stockholders' (Deficit) Equity
(unaudited)
Number of
Common
Additional
Paid-in
Accumulated
Shares
Stock
Capital
Deficit
Total
Balance – January 1, 2023
3,243,321,874
$
32,434
$
14,657,328
$
(14,238,487
)
$
451,275
Issuance of warrants in connection with issuance of convertible notes
—
—
5,129,270
—
5,129,270
Beneficial conversion feature of convertible notes
—
—
370,730
—
370,730
Net loss
—
—
—
(8,513,783
)
(8,513,783
)
Balance – September 30, 2023
3,243,321,874
$
32,434
$
20,157,328
$
(22,752,270
)
$
(2,562,508
)
Balance – January 1, 2024
3,243,321,874
$
32,434
$
20,157,328
$
(26,349,837
)
$
(6,160,075
)
Beneficial conversion feature of convertible notes
—
—
3,500,000
—
3,500,000
Stock-based compensation
95,126
95,126
Net loss
—
—
—
(8,225,291
)
(8,225,291
)
Balance – September 30, 2024
3,243,321,874
$
32,434
$
23,752,454
$
(34,575,128
)
$
(10,790,240
)
See
accompanying notes to unaudited condensed financial statements
F-
24
Verde
Bioresins, Inc.
Condensed Statements of Cash Flows
(unaudited)
Nine Months
ended
September 30,
2024
Nine Months
ended
September 30,
2023
Cash flow from operating activities:
Net loss
$
(8,225,291
)
$
(8,513,783
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
232,742
182,727
Credit losses on notes receivable
165,000
—
Operating lease costs
235,806
293,814
Stock-based compensation
95,126
—
Amortization of debt issuance costs
75,797
31,634
Loss on disposal of property and equipment
43,259
—
Amortization of debt discount
3,083,247
3,299,880
Stock-based compensation
Changes in assets and liabilities:
Prepaid expenses and other current assets
(15,657
)
44,573
Inventory
(57,535
)
(83,130
)
Accounts receivables
(13,478
)
(42,187
)
Other assets
-
(3,958
)
Accounts payable
395,037
795,820
Operating lease liabilities
(237,115
)
(290,189
)
Accrued liabilities
915,551
969,494
Net cash used in operating activities
(3,307,511
)
(3,315,305
)
Cash flow from investing activities:
Purchases of property and equipment
(784,550
)
(495,441
)
Sale of property and equipment
110,500
—
Assignment of promissory notes
(165,000
)
(200,000
)
Net cash used in investing activities
(839,050
)
(695,441
)
Cash flow from financing activities:
Proceeds from debt financing
3,500,000
5,500,000
Issuance costs
(89,199
)
(37,691
)
Net cash provided by financing activities
3,410,801
5,462,309
Net change in cash and cash equivalents
(735,760
)
1,451,563
Cash and cash equivalents - beginning of period
962,725
1,194,537
Cash and cash equivalents - end of period
$
226,965
$
2,646,100
Supplemental disclosure of non-cash financing and investing activities:
Beneficial conversion feature
$
3,500,000
$
370,730
Issuance of warrants in connection with issuance of convertible notes
—
5,129,270
See
accompanying notes to unaudited condensed financial statements
F-
25
Verde
Bioresins, Inc.
Notes to Condensed Financial Statements (Unaudited)
For the Nine Months Ended September 30, 2024 and 2023
1.
Nature
of Operations and Liquidity
Nature
of activities
Verde
Bioresins, Inc. (the "Company" or "Verde") (originally incorporated under the name Ezonyx Bio Technologies, Inc.)
was incorporated in the State of Delaware on March 4, 2020. Verde is a full-service privately held company that specializes in the development
and manufacturing of PolyEarthylene, proprietary, biodegradable, and compostable polymers derived from sustainable resources as an alternative
to conventional plastics. This material is capable of being recycled with conventional polyethylene, is eco-friendly, and represents
a sustainable bioresin for injection molding, film extrusion, blow molding and thermoform applications. With performance properties like
petro-polymers, PolyEarthylene products can be produced in any form and color desired for use on existing plastics manufacturing equipment.
Liquidity
and Going Concern
The
accompanying financial statements have been prepared on the basis that the Company is a going concern, which contemplates, among other
things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company had not generated revenues
from operations until April 2023. During the nine months ended September 30, 2024, the Company incurred net losses of $8,225,291, used
$3,307,511 of cash and cash equivalents for its operating activities, had negative working capital of $14,081,060 as of September 30,
2024 and accumulated deficit of $34,575,128 as of September 30, 2024.
The
Company's existence is dependent upon management's ability to obtain additional funding sources, enter into strategic alliances
or generate significant revenues, to cover its ongoing operating expenses, and also to continue to develop and be able to profitably
market its products. Adequate additional financing may not be available to the Company on acceptable terms, or at all. If the Company
is unable to raise additional capital and/or enter into strategic alliances when needed or on attractive terms, it would be forced to
delay or reduce any commercialization efforts. The Company anticipates incurring additional losses until such time, if ever, that it
can generate significant sales. These circumstances raise substantial doubt about the Company's ability to continue as a going
concern within one year after the date that the financial statements are issued. Additional working capital will be required to continue
operations and scale its products.
The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The financial statements
do not include any adjustments to reflect the possible future effects on the recoverability and classifications of assets or the amounts
and classifications of liabilities that may result should the Company be unable to continue as a going concern.
2.
Basis
of Presentation and Summary of Significant Accounting Policies
Unaudited
Financial Information
The
Company's unaudited condensed financial statements included herein have been prepared in conformity with accounting principles
generally accepted in the United States of America, or U.S. GAAP, and pursuant to the rules and regulations of the Securities and
Exchange Commission, or SEC. In the Company's opinion, the information furnished reflects all adjustments, all of which are
of a normal and recurring nature, necessary for a fair presentation of the financial position and results of operations for the reported
interim periods. The Company considers events or transactions that occur after the balance sheet date but before the financial statements
are issued to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. The
results of operations for interim periods are not necessarily indicative of results to be expected for the full year or any other interim
period.
F-
26
The
unaudited condensed financial statements should be read in conjunction with the audited financial statements as of and for the year ended
December 31, 2023 and the notes thereto. The balance sheet data as of December 31, 2023 was derived from the audited financial statements
as of that date but does not include all disclosures required by U.S. GAAP.
Use
of Estimates
The
preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant
estimates and assumptions reflected in these financial statements include but are not limited to the allowance for expected credit losses,
allowance for sales returns, accrual of operating expenses, and valuation of equity instruments and beneficial conversion feature.
Segment
Information
Operating
segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief
operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company manages
its operations as a single operating segment for the purposes of assessing performance and making decisions.
Cash
and Cash Equivalents
Cash
and cash equivalents include cash and certain highly liquid investments with original maturities of 90 days or less from the date of
purchase. Cash equivalents are primarily recorded at cost, which approximates fair value due to their generally short maturities.
Concentration
of Credit Risk
Financial
instruments that subject the Company to credit risk primarily consist of cash and cash equivalents and accounts receivables. The Company
maintains its cash and cash equivalent balances with high-quality financial institutions and, consequently, the Company believes that
such funds are subject to minimal credit risk. As of September 30, 2024, the Company had no cash and cash equivalents in excess of the
Federal Deposit Insurance Corporation insured limit. The Company provides credit to its customers in the normal course of its operations.
It carries out, on a continuing basis, credit checks on its customers.
Allowance
for expected credit losses
The
Company estimates the balance of its allowance for expected credit losses. In determining the amount of the allowance for expected credit
losses, the Company considers historical collectability based on past due status and makes judgments about the creditworthiness of customers
and other third-parties based on ongoing credit evaluations. The Company also considers customer-specific information, current market
conditions, and reasonable and supportable forecasts of future economic conditions. Account
balances
are written off against the allowance when it is determined that the receivable will not be recovered.
The allowance for expected
credit losses on accounts receivable was $0 each at September 30, 2024 and December 31, 2023. The allowance for expected credit losses
on notes receivable was $475,000 and $310,000 at September 30, 2024 and December 31, 2023 respectively.
Fair
Value of Financial Instruments
Fair
value is defined as the price the Company would receive to sell an investment in a timely transaction or pay to transfer a liability
in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous
market for the investment or liability. A framework is used for measuring fair value utilizing a three-tier hierarchy that prioritizes
the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in
active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).
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The
three levels of the fair value hierarchy are as follows:
Level
1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets and liabilities
Level
2 – Observable inputs other than quoted prices in active markets, such as quoted prices for similar assets and liabilities in active
markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable
or can be corroborated by observable market data;
Level
3 – Unobservable inputs reflecting management's assumptions, consistent with reasonably available assumptions made by other
market participants. These valuations require significant judgment.
The
carrying amounts of the Company's cash and cash equivalents were measured using quoted market prices in active markets and represent
Level 1 investments. The Company's other financial instruments such as notes receivable, accounts receivables, accounts payable,
accrued liabilities and convertible notes, approximate their fair values due to their short maturities.
Inventory
Inventories
are principally comprised of raw materials and finished goods and are valued at the lower of cost or net realizable value with cost being
determined using first-in first-out method. The Company reviews inventories for obsolete items to determine adjustments that it estimates
will be needed to record inventory at lower of cost or net realizable value. Inventory costs include labor, overhead, manufacturing costs
and inbound freight costs.
Revenue
Recognition
Verde
recognizes revenue from product sales in accordance with the Financial Accounting Standards Board's Accounting Standard Codification
("ASC") Topic 606, Revenue from Contracts with Customers ("ASC 606"). This standard applies to all contracts
with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements
and financial instruments. Under ASC 606, Verde recognizes revenue when its customer obtains control of promised goods or services, in
an amount that reflects the consideration that Verde expects to receive in exchange for those goods or services. To determine revenue
recognition for arrangements that are determined to be within the scope of ASC 606, Verde performs the following five steps: (i) identify
the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv)
allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies
a performance obligation. Verde only applies the five-step model to contracts when it is probable that Verde will collect the consideration
it is entitled to in exchange for the goods it transfers to the customer. At contract inception, once the contract is determined to be
within the scope of ASC 606, Verde assesses the goods or services promised within each contract and determines those that are performance
obligations and assesses whether each promised goods is distinct. Verde then recognizes as revenue the amount of the transaction price
that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.
Verde
derives its revenues primarily from product sales of PolyEarthylene. Verde primarily produces and sells formulated resin pellets and
Verde typically recognizes revenue for these sales upon shipment. Verde sells to distributors who may request a return or credit for
unforeseen reasons or who may have agreed discounts or allowances to be netted from amounts invoiced. Due to the highly specialized nature
of Verde's products, returns and allowances are projected to be infrequent and immaterial. Verde offers a standard quality assurance
warranty related to the fitness of its finished goods.
The
Company records accounts receivables due from distributors and other customers. Payment terms to customers are generally 30-60
days. Accounts receivable was $16,449, $2,971 and $0 as of September 30, 2024, December 31, 2023 and January 1, 2023, respectively.
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Research
and Development
Research
and development costs are expensed as incurred. Research and development expenses include personnel costs associated with research and
development activities, including third-party contractors to perform research, conduct testing and manufacture new product samples. The
Company accrues for costs incurred by external service providers based on its estimates of services performed and costs incurred. These
estimates include the level of services performed by third parties. Based on the timing of amounts invoiced by service providers, the
Company may also record payments made to those providers as prepaid expenses that will be recognized as expense in future periods as
the related services are rendered.
Selling
Expenses
Selling
expenses consist of salary, marketing, and advertising costs not directly attributable to direct costs of production or associated with
the Company's administration, research and development activities.
Net
Loss per Share
Basic
loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the year. Diluted loss
per share is computed by dividing net loss by the weighted-average number of common shares outstanding plus common stock equivalents
(if dilutive) related to stock options, restricted stock units, and warrants for each year and the conversion feature of convertible
notes.
Recent
Accounting Pronouncements
The
Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). ASUs not discussed below were
assessed and determined to be either not applicable or are expected to have minimal impact on the financial statements.
Accounting
Pronouncement Issued but Not Adopted
In
2023, the Financial Accounting Standards Board issued ASU 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures
("ASU 2023-09"). This update standardizes categories for the effective tax rate reconciliation, requires disaggregation of
income taxes and additional income tax-related disclosures. This update is required to be effective for the Company for fiscal periods
beginning after December 15, 2024. The Company is evaluating the effect that ASU 2023-09 will have on its financial statements and disclosures.
In
2023, the FASB issued ASU 2023-07 – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07").
This update requires expanded annual and interim disclosures for the significant segment expenses that are regularly provided to the
chief operating decision maker and included within each reported measure of segment profit or loss. This update is effective for fiscal
years beginning after December 15, 2023, and interim periods in fiscal years after December 15, 2024. ASU 2023-07 is to be applied retrospectively
to all periods presented in the financial statements. The Company is evaluating the effect that ASU 2023-07 will have on the Company's
condensed financial statements and disclosures.
In
2024, the FASB issued ASU 2024-03 - Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures
(Subtopic 220-40) ("ASU 2024-03"). This update improves financial reporting by requiring that public business entities disclose
additional information about specific expense categories in the notes to the financial statements at interim and annual periods. This update is effective
for fiscal years beginning after December 15, 2026, and interim periods in fiscal years after December 15, 2027.
Early adoption is permitted. ASU 2024-03 is to be applied either (1) prospectively to financial statements issued for reporting periods
after the effective date or (2) retrospectively to any or all periods presented in the financial statements. The Company is
evaluating the effect that ASU 2024-03 will have on the Company's condensed financial statements and
disclosures.
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Leases
At
the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and
circumstances present. Most leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and lease
liabilities. The Company has elected not to recognize on the balance sheet leases with terms of one year or less. Certain of the Company's
lease agreements contain renewal options; however, the Company does not recognize right-of-use assets or lease liabilities for renewal
periods unless it is determined that the Company is reasonably certain of renewing the lease at inception or when a triggering event
occurs.
The
Company leases warehouse space and office facilities. Verde's operating leases with terms longer than 12 months are recorded at
the sum of the present value of the lease's fixed minimum payments as operating lease liabilities and right of use assets ("ROU
assets") in the Company's balance sheets. For leases that contain termination options, where the rights to terminate are held
by either Verde, the lessor, or both parties and it is reasonably certain that Verde or the lessor will exercise that option, Verde factors
these extended or shortened lease terms into the minimum lease payments. The ROU assets also include any initial direct costs incurred
and lease payments made at or before the commencement date and are reduced by lease incentives.
The
Company uses an incremental borrowing rate to determine the present value of the lease payments for leases, as Verde's leases do
not have readily determinable implicit interest rates. The Company's incremental borrowing rates represent the rates incurred to
borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment.
The
depreciable life of ROU assets is limited by the expected lease term unless there is a transfer of title or purchase option reasonably
certain of exercise. The Company's lease agreements do not contain any significant residual value guarantees or material restrictive
covenants.
Property
and Equipment
Property
and equipment are stated at cost, net of accumulated depreciation and amortization. Property and equipment are depreciated using the
straight-line method over the estimated useful lives of the assets, which range from three to 10 years. Leasehold improvements are amortized
over the shorter of useful lives of the asset or maximum related lease term.
Convertible
Notes
The
convertible notes are considered a hybrid financial instrument consisting of put options, conversion option and various embedded features
that required evaluation as potential embedded derivatives under FASB ASC 815, Derivatives and Hedging ("ASC 815"). Based
on the nature of the host instrument and the embedded features, management concluded that none of the conversion and redemption features
required bifurcation and separate accounting from the host instrument. The Company determined that the put options in the event of default
and change in control was an embedded derivative. As a result, the put options required bifurcation and separate accounting under ASC
815. The value of such options was immaterial at each issuance date as of September 30, 2024 and December 31, 2023.
When
the Company has determined that the embedded conversion option should not be bifurcated from its host instrument, the Company accounts
for convertible notes in accordance with ASC 470-20, Debt with Conversion and Other Options. The Company records, when necessary, discounts
to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the
fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in the
notes. The Company amortizes any debt discount over the term of the notes, using the effective interest method.
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30
Warrants
The
Company accounts for stock warrants as either equity instruments, liabilities or derivative liabilities in accordance with ASC Topic
480, Distinguishing Liabilities from Equity and/or ASC 815, depending on the specific terms of the warrant agreement. Liability-classified
warrants are recorded at their estimated fair values at each reporting period until they are exercised, terminated, reclassified or otherwise
settled. Changes in the estimated fair value of liability-classified warrants are recorded in the statements of operations. Equity-classified
warrants are recorded within additional paid-in capital at the time of issuance and not subject to remeasurement.
When
equity-classified warrants are issued in connection with issuance of convertible notes, net proceeds received are allocated to the financial
instruments issued which results in a debt discount that is amortized over the term of the convertible notes, using the effective interest
method.
Income
Taxes
The
Company provides for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recorded based on the
differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences
are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is
more likely than not that some or all of the deferred tax assets will not be realized. As of September 30, 2024 and December 31, 2023,
the Company had a full valuation allowance against deferred tax assets.
The
Company is subject to the provisions of ASC 740-10-25, Income Taxes ("ASC 740"). ASC 740 prescribes a more likely-than-not
threshold for the financial statement recognition of uncertain tax positions. ASC 740 clarifies the accounting for income taxes by prescribing
a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken
or expected to be taken in a tax return. On a quarterly basis, the Company undergoes a process to evaluate whether income tax accruals
are in accordance with ASC 740 guidance on uncertain tax positions. The Company has not recorded any liability for uncertain tax positions
as of September 30, 2024 and December 31, 2023.
Stock-Based
Compensation
The
Company accounts for all stock-based payment awards granted to employees and non-employees, if any, as stock-based compensation expense
at their grant date fair value. The Company's stock-based payments include stock options, restricted stock units, and stock appreciation
rights. The measurement date for employee awards is the date of grant, and stock-based compensation costs are recognized as expense over
the employees' requisite service period, on a straight-line basis. The measurement date for non-employee awards is the date of
grant and stock-based compensation costs for non-employees are recognized as expense over the vesting period on a straight-line basis.
Forfeitures are accounted for as they occur.
Subsequent
Events
The
Company evaluated subsequent events that occurred after the balance sheet date through December 23, 2024, which is the date the financial
statements were available to be issued and no events were noted other than those already disclosed elsewhere in the financial statements.
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31
3.
Property
and Equipment
Property
and equipment, net, consists of the following on September 30, 2024 and December 31, 2023:
Estimated
Useful
Life
(Years)
September 30,
2024
(unaudited)
December 31,
2023
Leasehold improvements
12
$
578,666
$
578,666
Machinery and equipment
7 – 10
2,525,865
1,945,744
Office equipment
3 – 5
67,579
65,346
Furniture and fixtures
3 – 10
35,524
35,277
Injection molds
3
44,582
44,582
3,252,216
2,669,615
Accumulated depreciation and amortization
(714,557
)
(530,005
)
Property and equipment, net
$
2,537,659
$
2,139,610
Depreciation
expense amounted to $232,742 and $182,727 for the nine months ended September 30, 2024 and 2023, respectively.
4.
Other
Assets
Other
assets are comprised of security deposit and deposits for the purchases of equipment, machinery or raw material which will be used in
manufacturing.
The
components of other assets as of September 30, 2024 and December 31, 2023 are as follows:
September 30,
2024
(unaudited)
December 31,
2023
Deposit to vendors
$
27,371
$
27,371
Letter of credit
442,740
442,740
Total other assets
$
470,111
$
470,111
The
Company established an irrevocable standby letter of credit with a bank for $442,740 which expired on March 16, 2024, and is renewed
for a one-year period from March 16, 2024 to March 16, 2025. The 12-month renewal charge was $9,202 from March 16, 2024 to March 16,
2025, and is recorded as part of prepaid expenses on the condensed balance sheet. The renewal charge is being amortized to interest expenses
over a 12-month period from March 2024 to February 2025 using straight line method. During the nine months ended September 30, 2024 and
2023, the Company recognized interest expense of $6,888 and $5,369, respectively, on the condensed statements of operations. The letter
of credit serves as the Company's security deposit in the amount of one-year lease on a warehouse leased by the Company (see Note
7) in which the landlord is the beneficiary.
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5.
Accrued
Liabilities
The
components of accrued liabilities as of September 30, 2024 and December 31, 2023 are as follows:
September 30,
2024
(unaudited)
December 31,
2023
Accrued professional fees
$
203,579
$
209,409
Accrued interest on convertible notes
1,816,602
971,370
Accrued employees' wages & benefits
167,285
109,607
Accrued other
33,699
15,228
Total accrued liabilities
$
2,221,165
$
1,305,614
6.
Convertible
Notes
2022
Issuances
On
February 17, 2023, Verde issued to Acuitas Group Holdings LLC ("Acuitas") a senior secured convertible promissory note (the
"February 2023 Note") with an aggregate principal amount of $4,000,000, documenting Acuitas's prior two equal cash
transfers to Verde, which aggregated to $4,000,000 and which were made on March 31, 2022 and November 2, 2022. The February 2023 Note
accrues interest on (i) $2,000,000 of the principal amount outstanding commencing on and including March 31, 2022 (the "First Interest
Accrual Date"), and (ii) $2,000,000 of the principal amount outstanding commencing on and including November 2, 2022, each at an
interest rate of 10% per annum. During the nine months ended September 30, 2024 and 2023, the Company recognized interest expense of
$299,454 and $299,178, respectively, on the condensed statements of operations.
Unless
earlier converted or repaid, on or after (i) the 12-month anniversary of the First Interest Accrual Date, provided that such date shall
be automatically extended by a period of six (6) months if Verde enters into a definitive business combination agreement with TLGY Acquisition
Corporation ("TLGY") on or before March 18, 2023 (the "Maturity Date"), or (ii) any time on or after the occurrence
of an event of default (as defined in the February 2023 Note), the entire outstanding principal and accrued interest under the February
2023 Note shall, at the option of Acuitas, be either due and payable or converted into shares of Verde common stock. The number of shares
of Verde common stock into which the outstanding principal and accrued interest will convert shall be equal to the quotient of (i) such
outstanding principal amount and accrued interest divided by (ii) $5,000,000 divided by the fully diluted capitalization of Verde as
of the applicable date of determination (which capitalization shall exclude any equity securities issuable upon conversion of the February
2023 Note and the February 2023 Warrant (as defined below)) (the "February 2023 Capped Price"), in accordance with the terms
of the February 2023 Note. In the event of a qualified conversion event (as defined in the February 2023 Note), the outstanding principal
amount and accrued interest will automatically convert into Verde common stock or other equity securities at a price per share equal
to the February 2023 Capped Price as determined immediately prior to the consummation of such event. In June 2023, Verde and Acuitas
entered into an amendment No. 1 to the February 2023 Note, pursuant to which the Maturity Date was extended from March 31, 2023 to April
19, 2024. The February 2023 Capped Price is $0.0015 as of September 30, 2024.
On
March 12, 2024, Verde served the notice of termination of the Merger Agreement with TLGY. On March 18, 2024, TLGY consented to the termination
of the Merger Agreement (see Note 15).
As
of date these financial statements are available to be issued, the February 2023 Note is due and unpaid and not converted into shares.
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In
addition, in connection with the issuance of the February 2023 Note, Verde issued and sold to Acuitas a warrant (the "February
2023 Warrant") to purchase that number of shares of Verde common stock equal to (i) $4,000,000, divided by (ii) $5,000,000 divided
by the fully diluted capitalization of Verde immediately prior to the exercise of the February 2023 Warrant and the conversion of the
February 2023 Note (which capitalization shall exclude any equity securities issuable upon conversion of the February 2023 Note and exercise
of the February 2023 Warrant), as set forth in the February 2023 Warrant, which number of shares is to be determined at the close of
business on the day prior to Verde's receipt of Acuitas's notice of exercise of the February 2023 Warrant, for an aggregate
exercise price of $4,000,000. The exercise price for the February 2023 Warrant will be equal to (i) $4,000,000 divided by (ii) the number
of shares of Verde common stock issuable upon exercise of the February 2023 Warrant, as determined in accordance with the foregoing sentence.
In March 2023, Verde and Acuitas amended and restated the February 2023 Warrant to reflect that the February 2023 Warrant is exercisable
for up to 3,571,130,758 shares of Verde common stock, at an initial purchase price of $0.0011 per share, for an aggregate exercise price
of $4,000,000. The February 2023 Warrant is exercisable at any time or from time to time on or after the date of issuance and prior to
March 30, 2027.
2023
Issuances
On
June 15, 2023, Verde issued and sold to Acuitas a senior secured convertible promissory note (the "June 2023 Note") with
an aggregate principal amount of $5,500,000, documenting Acuitas' cash transfer to Verde of $5,500,000 and which was made on April
19, 2023. The June 2023 Note accrues interest on $5,500,000 of the principal amount outstanding commencing on and including April 19,
2023, at an interest rate of 10% per annum. During the nine months ended September 30, 2024 and 2023, the Company recognized interest
expense of $411,749 and $248,630, respectively, on the condensed statements of operations.
Unless
earlier converted or repaid, the entire outstanding principal and accrued interest under the June 2023 Note shall, at the option of Acuitas,
be either due and payable or converted into shares of Verde common stock, on or after (i) the 12-month anniversary of April 19, 2023
or (ii) any time on or after the occurrence of an event of default (as defined in the June 2023 Note). The number of shares of Verde
common stock into which the outstanding principal and accrued interest will convert shall be equal to the quotient of (i) such outstanding
principal amount and accrued interest divided by (ii) $5,000,000 divided by the fully diluted capitalization of Verde as of the applicable
date of determination (which capitalization shall exclude any equity securities issuable upon conversion of the June 2023 Note and the
June 2023 Warrant (as defined below)) (the "June 2023 Capped Price"), in accordance with the terms of the June 2023 Note.
In the event of a qualified conversion event (as defined in the June 2023 Note), the outstanding principal amount and accrued interest
will automatically convert into Verde Common Stock or other equity securities at a price per share equal to the June 2023 Capped Price
as determined immediately prior to the consummation of such event. The June 2023 Capped Price is $0.0005 as of September 30, 2024.
In
addition, in connection with the issuance of the June 2023 Note, Verde issued and sold to Acuitas a warrant (the "June 2023 Warrant")
exercisable for up to 8,838,548,625 shares of Verde Common Stock, at an initial purchase price of $0.0006 per share, for an aggregate
exercise price of $5,500,000. The warrant is exercisable at any time or from time to time on or after the date of issuance and prior
to June 15, 2028.
On
June 19, 2023, Acuitas transferred and assigned all of the issued and outstanding shares of Verde common stock and warrants, including
the February 2023 Warrant and the June 2023 Warrant, as well as all outstanding secured convertible promissory notes issued by Verde
to Acuitas (including security agreements relating thereto), including the February 2023 Notes and the June 2023 Note, to Humanitario
Capital LLC.
The
provisions in the warrants as disclosed herein require the Company to account for the warrants as equity. The Company recognized a discount
to debt at issuance of February 2023 Note of $2,863,190 and at issuance of June 2023 Note of $5,129,270 related to the initial fair values
of the February 2023 Warrant and June 2023 Warrant, respectively (see Note 10).
2024
Issuances
On March 5, 2024, Verde issued
and sold to Humanitario Capital LLC ("Humanitario") a senior secured convertible promissory note (the "March 2024 Note")
with an aggregate principal amount of $5,000,000 and received cash transfers of $1,250,000, $500,000, $750,000, $500,000, $500,000, $500,000,
$500,000 and $500,000 on March 6, 2024, April 17, 2024, June 5, 2024, July 26, 2024 August 30, 2024, October 11, 2024, November 13, 2024,
and December 19, 2024 respectively, from Humanitario. The March 2024 Note accrues interest on the principal amount outstanding commencing
on March 6, 2024 at a fixed rate equal to 10% per annum, compounded monthly. During the nine months ended September 30, 2024 and 2023,
the Company recognized interest expense of $134,027 and $0, respectively, on the condensed statements of operations.
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Unless
earlier converted or repaid, on or after (i) September 5, 2025 or (ii) any time on or after the occurrence of an event of default (as
defined in the March 2024 Note), the entire outstanding principal and accrued interest under the March 2024 Note shall, at the option
of Humanitario, be either due and payable or converted into shares of Verde common stock, par value $0.00001 per share; provided that,
if there is then-outstanding a class or series of capital stock that is senior in rights, preferences or privileges to the Common Stock,
then the outstanding amount shall convert into shares of a newly-issued series of such capital stock having rights, preferences and privileges
(except with respect to the per share liquidation preference, which shall be equal to the March 2024 Capped Price (as defined below))
substantially equivalent to such senior class or series of capital stock of the Company. The number of shares of Common Stock into which
the outstanding amount shall convert shall be equal to the quotient of (i) the Outstanding Amount divided by (ii) the March 2024 Capped
Price (as defined below) as determined as of the time Humanitario exercises its option to convert.
The
"March 2024 Capped Price" shall be equal to $5,000,000 divided by the fully diluted capitalization of the Verde as of the
applicable date of determination, which capitalization shall include the unallocated equity incentive pool and any increase to the equity
incentive pool made prior to or at the time of conversion of the March 2024 Note, and all other rights to acquire capital stock of the
Verde outstanding at the time of the conversion of the March 2024 Note, but shall exclude: the Common Stock issuable upon conversion
of the March 2024 Note. The March 2024 Capped Price is $0.0002 as of September 30, 2024.
As
a result of the convertible notes having a lower effective conversion price considering the value allocated to the warrants or the fair
value of the common stock at commitment date, the Company has recognized a beneficial conversion feature of $1,136,810 on February 2023
Note in 2022, $370,730 on June 2023 Note in 2023 and a total of $3,500,000 on March 2024 Note in 2024. The beneficial conversion feature
on the March 2024 Note and the beneficial conversion features and the fair value of the warrants on the February 2023 Note and June 2023
Note are collectively considered the debt discount. The Company recorded a debt discount in the amount of $4,000,000 at issuance of February
2023 Note, $5,500,000 at issuance of June 2023 Note and a total of $3,500,000 at issuance of March 2024 Note which are being amortized
over the life of the respective convertible notes using the effective interest method. During the nine months ended September 30, 2024
and 2023, the Company recognized $3,083,247 and $3,299,880, respectively, of amortization of debt discount recorded as part of interest
expense on the condensed statements of operations. As of September 30, 2024, the entire $4,000,000 debt discount on February 2023 Note,
the entire $5,500,000 debt discount on June 2023 Note and $1,125,319 debt discount on March 2024 Note have been amortized to interest
expense.
All
debt issuance costs are accounted for as a deferred asset and will be amortized over the life of the convertible notes. During the nine
months ended September 30, 2024 and 2023, the Company recognized $75,797 and $31,634 respectively, of amortization of debt issuance costs
recorded as part of interest expense on the statements of operations. The Company had incurred approximately $50,000 in debt issuance
costs related to the February 2023 Note and had fully amortized those costs as of September 30, 2024 and December 31, 2023. The Company
had incurred approximately $37,691 in debt issuance costs related to the June 2023 Note and had fully amortized as of September 30, 2024
and had amortized $24,895 as of December 31, 2023. The Company had incurred approximately $89,199 in debt issuance costs related to the
March 2024 Note and had amortized $63,000 as of September 30, 2024.
7.
Operating
Leases
On
October 1, 2020, the Company commenced a 35-month operating lease for approximately 4,405 square foot of office space located in Santa
Monica, California.
The monthly base rent is $11,013 per month with no increase each year
thereafter.
At the end of August 2023, the Company completed the operating lease and did not renew it. In June 2021, the Company
commenced a 73-month operating lease for approximately 37,268 square foot of industrial warehouse space located in Fullerton, California.
The monthly base rent is $36,895 per month for the first 12 months with a 3% increase
each year thereafter.
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As
of September 30, 2024 and December 31, 2023, the Company's operating leases have a remaining weighted average lease term of 2.9
years and 3.7 years, respectively, and Verde
evaluated the present value of the payments at inception
of the lease using Verde's estimated incremental borrowing rate of 11.58%. The Company's operating lease expenses were $352,958
and $436,023 for the nine months ended September 30, 2024 and 2023
, respectively.
The
Company paid cash of $354,266 and $432,398 for operating leases for the nine months ended September 30, 2024 and 2023, respectively.
Maturities
of operating lease liabilities as of September 30, 2024 were as follows:
Year ending
Total
2024 (three months)
$
117,653
2025
470,610
2026
470,610
2027
274,523
Total paid
1,333,396
Imputed interest
(79,341
)
Total
$
1,254,055
Less current portion
362,578
Lease liabilities – noncurrent
$
891,477
8.
Commitments
and Contingencies
Royalties
During
2020, in connection with issuance of common shares to certain investors, the Company agreed to enter into royalty agreements with these
investors whereby the Company is obligated to make royalty payments, on a quarterly basis at rate of 0.2% or, in some cases, 0.1% of
adjusted gross revenue received by Verde in the immediately preceding fiscal quarter until such time as the investors receive in aggregate
$14.2 million in royalties. Royalties incurred amounted to approximately $1,150 and $2,500 for the nine months ended September 30, 2024
and 2023, respectively. Royalties' accrual as of September 30, 2024 and December 31, 2023 amounted to approximately $1,150 and
zero, respectively, recorded as part of accrued liabilities on the condensed balance sheets. Royalties' payable as of September
30, 2024 and December 31, 2023 amounted to approximately $0 and $2,484, respectively, recorded as part of accounts payable on the condensed
balance sheets.
Litigation
The
Company investigates claims as they arise and accrues estimates for resolution of legal and other contingencies when losses are probable
and estimable. As of September 30, 2024, Verde is not a party to litigation or subject to claims incident to the ordinary course of business,
including intellectual property claims, putative and certified class actions, commercial and consumer protection claims, labor and employment
claims, breach of contract claims and other asserted and unasserted claims.
9.
Stock-Based
Compensation
In
2020, the Company adopted the 2020 Incentive Stock Option Plan (the "2020 Plan"), which provides for the award of incentive
stock options to purchase up to 166,727,405 shares of common stock. Employees, advisors and directors are eligible to be granted awards
under the 2020 Plan.
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36
The
weighted average assumptions that the Company used in a Black-Scholes pricing model to determine the fair value of stock options granted
to employees were as follows:
Nine Months
Ended
September 30,
2024
Risk-free interest rate
3.80
%
Expected term (in years)
5
Expected volatility
50
%
Expected dividend yield
-
Exercise price
$
0.0100
Fair value of common stock
$
0.0058
No
options were granted during 2023.
The
following table summarizes stock option activity for the nine months ended September 30, 2024:
Number of
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Contractual
Term (Years)
Aggregate
Intrinsic
Value
Outstanding as of December 31, 2023
-
$
-
$
-
$
-
Granted
71,531,089
0.01
3.73
-
Exercised
-
-
-
-
Cancelled or forfeited
-
-
-
-
Outstanding as of September 30, 2024
71,531,089
$
0.01
$
3.73
-
Options vested as of September 30, 2024
68,016,089
$
0.01
Options exercisable as of September 30, 2024
-
$
0.01
Options unvested as of September 30, 2024
3,515,000
$
0.01
The
weighted average grant-date fair value per share of stock options granted during the nine months ended September 30, 2024 was $.00058.
The
total fair value of options vested during nine months ended September 30, 2024 was $127,926.
Stock-Based
Compensation Expense
Stock-based
compensation expense recognized by expense type was as follows:
Nine Months Ended
September 30
2024
2023
Selling expenses
$
94,786
$
-
General and administrative
33
-
Research and development
307
-
$
95,126
$
-
As
of September 30, 2024, the Company had a total of $39,411 of unrecognized stock-based compensation expense related to stock options,
which is expected to be recognized over a weighted average period of 8.5 months.
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37
10.
Warrants
A
summary of the Company's warrants outstanding at September 30, 2024 is as follows:
Exercise Price
Outstanding
Issuance Date
Expiration Date
0.0043
1,053,864,168
February 8, 2021
February 7, 2025
0.0011
3,571,130,758
March 31, 2022
February 7, 2027
0.0006
8,838,548,625
June 15, 2023
June 15, 2028
There
were no changes in warrants to purchase common stock for the period ended September 30, 2024.
The
fair value of the warrants on issuance was determined by using option pricing models assuming the following:
December 31,
2023
Risk-free interest rate
3.91
%
Expected term (in years)
5
Expected volatility
50
%
Expected dividend yield
—
Exercise price
$
0.0006
Fair value of common stock
$
0.0091
11.
Stockholders'
Deficit
The
Company's Certificate of Incorporation, originally filed in Delaware on March 4, 2020, was first amended on November 18, 2020 by the
Certificate of Amendment of the Second Amended and Restated Certificate of Incorporation. This amendment authorized the issuance of common
stock. On March 21, 2023, the Company's Certificate of Incorporation was further amended, as authorized by the Company's
Board of Directors, to increase the Company's authorized common stock to 11,211,920,795 shares. On June 15, 2023, the Company's
Certificate of Incorporation was further amended, as authorized by the Company's Board of Directors, to increase the Company's
authorized common stock to 33,723,608,890 shares. On September 13, 2024, the Company's Certificate of Incorporation was further
amended, as authorized by the Company's Board of Directors, to increase the Company's authorized common stock to 58,687,483,705
shares. As of September 30, 2024 and December 31, 2023, the Company's capital structure consists of common stock with par value of $0.00001
per share.
The
Company has not paid any dividends on common stock to date. It is the Company's present intention to retain any earnings for use in its
business operations and, accordingly, the Company does not anticipate that the Board of Directors will declare any dividends in the foreseeable
future on its common stock.
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38
12.
Net
Loss per Share
For
the nine months ended September 30, 2024 and 2023
,
the Company recorded a net loss available to common stockholders.
As such, because the dilution from potential common stock was antidilutive, the Company used basic weighted-average common stock outstanding,
rather than diluted weighted-average common stock outstanding when calculating diluted loss per share for the nine months ended September
30, 2024 and 2023.
Nine Months
ended
September 30,
2024
Nine Months
ended
September 30,
2023
Numerator:
Net loss available to common shareholders
$
(8,225,291
)
$
(8,513,783
)
Denominator:
Weighted-average number of shares used in computing net loss per share, basic and diluted
3,243,321,874
3,243,321,874
Net loss per share - basic and diluted
$
(0.00
)
$
(0.00
)
The
following potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be
anti-dilutive. Therefore, the weighted-average number of common stock outstanding used to calculate both basic and diluted net loss per
share attributable to common stockholders is the same.
Nine Months
ended
September 30,
2024
Nine Months
ended
September 30,
2023
Warrants exercisable for common stock
13,463,543,551
13,463,543,551
Shares issuable upon exercise of stock-options
71,531,089
-
Share issuable upon conversion of convertible notes
33,819,450,066
15,163,835,616
47,354,524,706
28,627,379,167
13.
Income
Taxes
The
Company provides for income taxes using the asset and liability approach. Deferred tax assets and liabilities are recorded based on the
differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences
are expected to reverse. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is
more likely than not that some or all of the deferred tax assets will not be realized. As of September 30, 2024 and December 31, 2023,
the Company had a full valuation allowance against its deferred tax assets.
For
the nine months ended September 30, 2024 and 2023, the Company recorded zero income tax expense. No tax benefit has been recorded in
relation to the pre-tax loss for the nine months ended September 30, 2024 and 2023, due to a full valuation allowance to offset any deferred
tax asset related to net operating loss carry forwards attributable to the losses.
F-
39
14.
Distribution
Agreement
In
February 2023, Verde entered into a distribution agreement for initial term of one year with Vinmar International Ltd. ("Vinmar")
for the distribution of its PolyEarthylene resins throughout the United States, Canada and Mexico. The agreementt is automatically renewed
for consecutive periods of one year unless terminated by either party. In April 2023, Vinmar started selling PolyEarthylene to its customers.
Sales to Vinmar amounted to $7,515 and $26,818 for the nine months ended September 30, 2024 and 2023, respectively. Outstanding receivables
from Vinmar as of September 30, 2024 and
December 31, 2023
amounted to $3,014 and $2,946,
respectively.
15.
Merger
Agreement with TLGY
On
June 21, 2023, Verde entered into a merger agreement with TLGY Acquisition Corporation ("TLGY") (the "Merger Agreement").
On
August 14, 2023, TLGY filed a registration statement on Form S-4 with the U.S. Securities and Exchange Commission, which included a preliminary
proxy statement and prospectus in connection with the proposed business combination with Verde.
On
November 14, 2023, TLGY filed the amendment number 1 to the registration statement on Form S-4 with the U.S. Securities and Exchange
Commission.
Pursuant
to the terms of the Merger Agreement, Verde agreed to provide extension loans to be made to TLGY monthly on an interest-free basis, if
any extension of the deadline by which TLGY must complete its initial business combination is required ("Extension Loans").
The proceeds of the Company Extension Loans shall be deposited into TLGY's trust account and held for the benefit of TLGY and its
public shareholders. Verde has made Company Extension Loans on each of August 22, 2023, September 22, 2023, November 11, 2023, December
7, 2023, January 12, 2024, February 10, 2024 and March 8, 2024 in the amount of $100,000, $100,000, $55,000, $55,000, $55,000, $55,000
and $55,000 respectively.
The
Company Extension Loans of a total of $475,000 and $310,000 as of September 30, 2024 and December 31, 2023, respectively, are recorded
as Notes receivable on the condensed balance sheets. As a result of the termination of the Merger Agreement (as discussed below), Verde
provided for the full valuation allowance of $475,000 and $310,000 for these Notes receivable as of September 30, 2024 and December 31,
2023 respectively.
On
March 12 2024, Verde terminated the Merger Agreement with TLGY due to TLGY's willful breach of the Merger Agreement. On March 18,
2024, TLGY consented to the termination of the Merger Agreement. On May 4, 2024, Verde and TLGY signed a Mutual Release Agreement and
discharged each other of all liabilities and obligations under the Merger Agreement and other ancillary agreements. In the event of consummation
by TLGY of its initial business combination, on or within 5 business days after the date of the closing of such business combination,
TLGY shall pay Verde a sum of $83,125. If TLGY does not consummate its initial business combination and subsequently liquidates, Verde
shall not be entitled to any payment.
16.
Merger
Agreement with Nxu, Inc.
On
October 23, 2024, Verde entered into the Merger Agreement with Nxu, Inc. (Nxu), Merger Sub I and Merger Sub II, pursuant to which, among
other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Merger Sub I will merge
with and into Verde, with Verde continuing as a wholly owned subsidiary of Nxu and the surviving corporation of the First Merger, and
promptly following the First Merger, Verde will merge with and into Merger Sub II, with Merger Sub II continuing as the surviving entity
of the Second Merger. The Merger is anticipated to be accounted for as a reverse recapitalization. Under this method of accounting, Nxu
will be treated as the acquired company for financial statement reporting purposes. Each of the board of directors of Verde and Nxu has
unanimously approved the transactions contemplated by the Merger Agreement, including the Merger. The transaction requires the approval
of the stockholders of Nxu and Verde prior to the closing of the Merger.
The
transaction is subject to other customary closing conditions and is expected to close in the first quarter of 2025. Transaction consideration
to Verde stockholders will consist of newly issued shares of Nxu as Verde stockholders will exchange their interest in Verde for interests
in Nxu. Total non-recurring transactions are estimated at approximately $5.0 million, of which Verde expects the substantial majority
to be capitalized as an offset to equity.
On
November 8, 2024, Nxu filed a registration statement on Form S-4 with the U.S. Securities and Exchange Commission, which included a preliminary
proxy statement and prospectus in connection with the proposed business combination with Verde.
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40
Up to 114,503,816 Shares of Class A Common
Stock
Nxu, Inc.
PROSPECTUS
, 2024
PART II. INFORMATION NOT REQUIRED IN PROSPECTUS
Item 13. Other Expenses of Issuance and Distribution.
The following table sets forth costs and expenses
payable by us in connection with the registration of the securities of Nxu being registered hereby. With the exception of the SEC registration
fee, the amounts set forth below are estimates.
SEC registration fee
$
4,017
Accounting fees and expenses
25,000
Legal fees and expenses
100,000
Printing expenses
10,000
Transfer agent fees
5,000
Miscellaneous expenses
15,000
Total
$
149,017
Item 14. Indemnification of Directors and
Officers.
Section 145 of the DGCL authorizes a corporation
to indemnify its directors and officers against liabilities arising out of actions, suits and proceedings to which they are made or threatened
to be made a party by reason of the fact that they have served or are currently serving as a director or officer to a corporation. The
indemnity may cover expenses (including attorneys' fees) judgments, fines and amounts paid in settlement actually and reasonably
incurred by the director or officer in connection with any such action, suit or proceeding. Section 145 permits corporations to
pay expenses (including attorneys' fees) incurred by directors and officers in advance of the final disposition of such action,
suit or proceeding. In addition, Section 145 provides that a corporation has the power to purchase and maintain insurance on behalf
of its directors and officers against any liability asserted against them and incurred by them in their capacity as a director or officer,
or arising out of their status as such, whether or not the corporation would have the power to indemnify the director or officer against
such liability under Section 145.
Nxu has adopted provisions in the Certificate
of Incorporation that limit or eliminate the personal liability of Nxu's directors to the fullest extent permitted by the DGCL,
as it now exists or may in the future be amended. Consequently, a director will not be personally liable to Nxu or its stockholders for
monetary damages or breach of fiduciary duty as a director, except for liability for (i) any breach of the director's duty
of loyalty to Nxu or its stockholders, (ii) any act or omission not in good faith or that involves intentional misconduct or a knowing
violation of law, (iii) any unlawful payments related to dividends or unlawful stock purchases, redemptions or other distributions,
or (iv) any transaction from which the director derived an improper benefit.
These limitations of liability do not alter director
liability under the federal securities laws and do not affect the availability of equitable remedies such as an injunction or rescission.
The Certificate of Incorporation provides that
Nxu may indemnify, and advance expenses to, to the fullest extent permitted by law, any person wo was or is a part to or is threatened
to be made a party to any threatened, pending or completed actin, suit or proceeding, whether civil, criminal, administrative or investigative
by reason of the fact that the person is or was a director, officer, employee or agent of Nxu, or is or was serving at the request of
Nxu as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise.
In addition, the Bylaws provide that Nxu shall
indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Company) by reason
of the fact that such person is or was a director or officer of Nxu, or, while a director or officer of Nxu, is or was serving at the
request of Nxu as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually
and reasonably incurred by such person in connection with such action, suit or proceeding if such person acted in good faith and in a
manner such person reasonably believed to be in or not opposed to the best interests of Nxu, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe such person's conduct was unlawful.
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1
The Bylaws further provide that Nxu shall indemnify
any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in
the right of Nxu to procure a judgment in its favor by reason of the fact that such person is or was a director or officer of Nxu, or,
while a director or officer of Nxu, is or was serving at the request of Nxu as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise against expenses (including attorneys' fees) actually
and reasonably incurred by such person in connection with the defense or settlement of such action or suit if such person acted in good
faith and in a manner such person reasonably believed to be in or not opposed to the best interests of Nxu; except that no indemnification
shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to Nxu unless and
only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled
to indemnity by Nxu for such expenses which the Court of Chancery or such other court shall deem proper.
Any of the foregoing indemnification provisions
(unless ordered by a court) shall be made by Nxu only as authorized in the specific case upon a determination that indemnification of
the director or officer is proper in the circumstances because such person has met the applicable standard of conduct described above,
which determination shall be made, with respect to a person who is a director or officer at the time of such determination, (i) by
a majority vote of the directors who are not parties to such action, suit or proceeding, even though less than a quorum, or (ii) by
a committee of such directors designated by a majority vote of such directors, even though less than a quorum, or (iii) if there
are no such directors, or if such directors so direct, by independent legal counsel in a written opinion or (iv) by the stockholders.
Such determination shall be made, with respect to former directors and officers, by any person or persons having the authority to act
on the matter on behalf of Nxu. To the extent, however, that a present or former director or officer of Nxu has been successful on the
merits or otherwise in defense of any action, suit or proceeding or in defense of any claim, issue or matter therein, such person shall
be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith,
without the necessity of authorization in the specific case.
Expenses, including without limitation attorneys'
fees, incurred by a current or former director or officer in defending any civil, criminal, administrative or investigative action, suit
or proceeding to which such person is a party or is threatened to be made a party or otherwise involved as a witness or otherwise by
reason of the fact that such person is or was a director or officer of Nxu, or, while a director or officer of Nxu, is or was serving
at the request of Nxu as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise, shall be paid by Nxu in advance of the final disposition of such action, suit or proceeding upon receipt of
an undertaking by or on behalf of such current or former director or officer to repay such amount if it shall ultimately be determined
that such person is not entitled to be indemnified by Nxu.
In addition, Nxu assumed certain customary indemnification
agreements that Nxu's predecessor, Atlis Motor Vehicles Inc., entered into with each of its directors and officers. The assumption
of these agreements requires Nxu to indemnify these individuals to the fullest extent permitted under Delaware law and to advance expenses
incurred as a result of any proceeding against them as to which they could be indemnified.
Nxu purchased and maintains directors'
and officers' liability insurance that insures Nxu's directors and officers against the cost of defense, settlement or payment
of a judgement in some circumstances and insures Nxu against its obligations to indemnify the directors and officers.
The foregoing is only a general summary of certain
aspects of Delaware law and the Certificate of Incorporation and the Bylaws dealing with indemnification of directors and officers and
does not purport to be complete. It is qualified in its entirety by reference to the detailed provisions of those sections of the DGCL
referenced above and the Certificate of Incorporation and the Bylaws.
II-
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Item 15. Recent Sales of Unregistered Securities.
Regulation D Offering
During the past three years, the Predecessor
issued an aggregate of 280,195 shares of Class A common stock to various investors at a weighted average share price of $9.04 per share
for aggregate proceeds of $2,532,761, under the Company's Regulation D funding campaign.
Regulation A Offering
During the past three years, the Predecessor
issued an aggregate of 1,665,996 shares of Class A common stock to various investors at a weighted average share price of $7.63, 871,938
shares of Class A common stock at a weighted average share price of $16.64 and 143,864 bonus shares of Class A common stock issued at
a weighted average share price of $0, for aggregate gross proceeds of $14,506,595, under the terms of the Regulation A offering which
became qualified on September 23, 2022.
Private Placement
On November 3, 2022, the Predecessor entered
into the Securities Purchase Agreement (the "2022 Purchase Agreement") with certain investors (collectively, the "Investors"),
pursuant to which it agreed to issue to the Investors, for gross proceeds of up to $27,000,000, Senior Secured Original Issue 10% Discount
Convertible Promissory Notes (the "notes") in the aggregate principal amount of up to $30,000,000 and warrants to purchase
a number of shares of the Predecessor's Class A common stock equal to 30% of the face value of the notes divided by the volume
weighted average price, in three tranches.
Under the first tranche of funding, which closed
upon signing of the 2022 Purchase Agreement, for gross proceeds of $9,000,000, the Predecessor issued notes to the Investors in the aggregate
principal amount of $10,000,000 (the "First Tranche Notes") and warrants to purchase up to an aggregate of 1,543 shares of
the Predecessor's Class A common stock (the "First Tranche Warrants").
On January 5, 2023, the Predecessor entered into
an amendment (the "Amendment") to the 2022 Purchase Agreement with each Investor, pursuant to which the Predecessor and each
Investor agreed, among other things, to amend the terms and conditions of the second tranche of funding and terminate the third tranche
of funding contemplated under the Purchase Agreement.
The Amendment provides that, with respect to
the second tranche of funding, at any time prior to the earlier to occur of (x) April 30, 2024 and (y) the twentieth (20th) trading day
following the effectiveness of the resale registration statement covering the resale of all of the shares of the Predecessor's
Class A common stock issuable under the first tranche of funding, each Investor shall have the right, severally and not jointly, to purchase
a base allocation of $5.0 million in notes and warrants to purchase a number of shares of the Predecessor's Class A common stock
equal to 30% of the face value of the notes divided by the volume weighted average price at one or more closings (with a total base allocation
of $10.0 million, in the aggregate, for all Investors) and, solely with respect to the initial closing, up to an additional $5.0 million
in additional notes and related warrants pursuant to oversubscription rights, to the extent then available. In connection with the Amendment,
the Predecessor also issued top-up warrants to the Investors to purchase up to an aggregate of 3,587 shares of the Predecessor's
Class A common stock (the "Top-Up Warrants").
On January 27, 2023, the Investors elected to
purchase notes and warrants pursuant to the second tranche of funding. Under the second tranche of funding, which closed on January 31,
2023, for gross proceeds of $9,000,000, we issued notes to the Investors in the aggregate principal amount of $10,000,000 (the "Second
Tranche Notes") and warrants to purchase up to an aggregate of 6,281 shares of our Class A common stock (the "Second Tranche
Warrants").
A registration statement registering the resale
of the shares of Class A common stock issuable upon the conversion of the First Tranche Notes and exercise of the First Tranche Warrants
went effective on January 20, 2023. A registration statement registering the resale of the shares of Class A common stock issuable upon
the conversion of the Second Tranche Notes and exercise of the Second Tranche Warrants and the Top-Up Warrants went effective on February
9, 2023.
The notes mature 24 months after issuance, do
not initially bear any interest and are convertible into shares of the Predecessor's Class A common stock at an initial conversion
price equal to the lesser of $2,250.00 per share of Class A common stock or 92.5% of the average of the three lowest daily volume weighted
average prices of the Class A common stock during the ten trading days immediately preceding the notice of voluntary conversion of the
notes, subject to adjustment as further specified in the notes. The notes will be fully repayable in cash upon maturity. In addition,
the Investors have the option of prepaying up to 20% of the issuance amount of a subsequent financing.
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3
The warrants are exercisable at an initial exercise
price equal to the lesser of $2,250.00 per share or 92.5% of the average of the three lowest daily volume weighted average prices of
the Class A common stock during the ten trading days immediately preceding the notice of exercise, subject to adjustment. The warrants
carry a 5-year term and, if not exercised, will terminate.
The securities were issued and sold in reliance
upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) promulgated
thereunder since, among other things, the issuance was made without any public solicitation to a limited number of accredited investors
and/or qualified institutional buyers and were acquired for investment purposes only.
During the three months ended March 31, 2023,
the Company issued 85,934 shares of Class A common stock to a third-party vendor with a per share price of $0.84 for a total of $72,185
in exchange for services.
Pursuant to the terms of a Share Purchase Agreement,
dated as of June 25, 2021, as amended by a letter agreement, dated as of September 19, 2023, by and among the Company, GEM Global Yield
LLC SCS ("GEM Global") and GEM Yield Bahamas Limited (as amended, the "GEM Share Purchase Agreement"), the Company
issued 34.0 million shares of Class A common stock to GEM Global on October 2, 2023 in full satisfaction of the Company's obligation
to pay a commitment fee pursuant to the GEM Share Purchase Agreement and fees due under a registration rights agreement. As such, the
Company did not receive any proceeds from the sale of such shares. The shares were issued to GEM Global in a private placement in reliance
on exemptions from registration provided by Section 4(a)(2) of the Securities Act and Rule 506(b) promulgated thereunder.
On December 27, 2023,  the
Company entered into a share exchange agreement (the "Share Exchange Agreement") with Lynks Motor Corporation (d/b/a
Lynx Motor Corporation), a Delaware corporation ("Lynx"), pursuant to which Lynx sold to the Company, and the Company purchased
from Lynx, a number of newly issued shares of Lynx representing 15% of the issued and outstanding equity interests in Lynx in exchange
for 1,000 newly issued shares of series A convertible preferred stock, par value $0.0001 per share, of the Company (the
"Series A Convertible Preferred Stock" or "Series A Convertible Preferred Shares"). Each Series A Convertible
Preferred Share is convertible into 1,000 shares of Class A common stock for a conversion price of $3.00 per share. The Share Exchange
Agreement contains customary representations and warranties by the Company. As a part of the transaction, the Company designated one
person to serve on the board of directors of Lynx.
On January 29,
2024, the Company registered 1.0 million shares of Class A common stock pursuant to the terms of its Share Exchange Agreement
with Lynx, under which Nxu sold to Lynx 1,000 shares of Series A Convertible Preferred Stock, which are convertible into shares
of Class A common stock. The Company did not sell any shares of its Class A common stock and received no proceeds from the offering.
On February 8, 2024, Lynx converted all the Series A Convertible Preferred Stock into 1.0 million shares of Class A common stock.
Concurrently with the
Share Exchange Agreement, Lynx issued a non-interest bearing promissory note ("Lynx Note") in the principal amount of $0.3
million to Lynx in exchange for $0.3 million in immediately available funds from the Company. The Lynx Note was originally due and payable
by June 2024. Effective June 28, 2024, the Company and Lynx agreed to amend the terms of the Lynx Note, which was extended to be repaid
over nine months at an annual interest rate of 8% (the "Amended Lynx Note"). Scheduled payments on the Amended Lynx Note
included an upfront principal payment of $20,000, which was due and paid upon execution of the amendment, eight payments of $20,000 in
principal and interest from July 2024 to February 2025, and a lump sum payment of the remaining principal and interest of approximately
$0.08 million due no later than March 27, 2025. Pursuant to the Notice of Promissory Note Default; Demand dated September 9, 2024, Lynx
is in default on repayment of the Amended Lynx Note. As of the date of this registration statement, the Company is engaged in further
discussion with Lynx about the terms of the Amended Lynx Note, which is due immediately. Ongoing discussions contemplate Lynx's
offer to make payment on the note in shares of Lynx, rather than in cash funds.
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4
Item 16. Exhibits and Financial Statement
Schedules.
A list of exhibits included as part of this registration
statement is set forth in the Exhibit Index which is hereby incorporated by reference.
Item 17. Undertakings
The undersigned registrant hereby undertakes:
(1)
To file, during any period in
which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required
by Section 10(a)(3) of the Securities Act of 1933, as amended;
(ii)
To reflect in the prospectus
any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding
the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed
that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the
form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume
and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Filing Fee
Tables" table in the effective registration statement; and
(iii)
To include any material information
with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information
in the registration statement; provided, however, that paragraphs (1)(i), (1)(ii) and (1)(iii) above do not apply if the information
required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Securities
and Exchange Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated
by reference in the registration statement.
(2)
That, for the purpose of determining
any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide
offering thereof.
(3)
To remove from registration by
means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(4)
That, for the purpose of determining
liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration
statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance
on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness.
Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made
in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration
statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was
made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately
prior to such date of first use.
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5
(5)
That, for the purpose of determining
liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned
registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement,
regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser
by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered
to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus
or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii)
Any free writing prospectus
relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii)
The portion of any other free
writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided
by or on behalf of the undersigned registrant; and
(iv)
Any other communication that
is an offer in the offering made by the undersigned registrant to the purchaser.
(6)
Insofar as indemnification for
liabilities arising under the Securities Act of 1933 may be permitted to directors, officers, and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange
Commission, such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer, or controlling person of the registrant in the successful defense of any action, suit, or proceeding)
is asserted by such director, officer, or controlling person in connection with the securities being registered, the registrant will,
unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed
by the final adjudication of such issue.
(7)
The undersigned registrant hereby undertakes that, for purposes
of determining any liability under the Securities Act of 1933, each filing of the registrant's annual report pursuant to Section 13(a)
or 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant
to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed
to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.
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6
EXHIBIT INDEX
Exhibit No.
Description
2.1†
Agreement and Plan of Merger, dated as of October 23, 2024, among
    Nxu, Inc., Nxu Merger Sub, Inc., Nxu Merger Sub, LLC and Verde Bioresins, Inc. (incorporated by reference to Exhibit 2.1 to the Company's
    Current Report on Form 8-K filed with the SEC on October 24, 2024)
3.1
Certificate of Incorporation of Nxu, Inc. (incorporated by reference
    to Exhibit 3.1 of the Company's Form 10-K filed with the SEC on April 1, 2024)
3.2
Certificate of Amendment to the Certificate of Incorporation of Nxu,
    Inc., dated December 26, 2023 (incorporated by reference to Exhibit 3.2 of the Company's Form 8-K filed with the
    SEC on December 27, 2023)
3.3
Certificate of Amendment of Certificate of Incorporation of Nxu, Inc.,
    dated August 16, 2024 (incorporated by reference to Exhibit 3.1 of the Company's Form 8-K filed with the SEC on August 16,
    2024)
3.4
Certificate of Designations of Series A Convertible Preferred
    Stock of Nxu, Inc., dated December 22, 2023 (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed
    with the SEC on December 27, 2023)
3.5
Certificate of Designations of Series B Preferred Stock of Nxu,
    Inc., dated August 16, 2024
(incorporated by reference to Exhibit 3.5 to the Company's Registration Statement on Form
    S-4 filed with the SEC on November 12, 2024)
3.6
Bylaws of Nxu, Inc. (incorporated by reference to Exhibit 3.4 of the
    Company's Form 10-K filed with the SEC on April 1, 2024)
3.7
Amendment No. 1 to the Bylaws of Nxu, Inc. (incorporated by reference
    to Exhibit 3.1 of the Company's Form 8-K filed with the SEC on July 24, 2024)
4.1
Form of Senior Secured Original Issue 10% Discount Convertible Promissory
    Note (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed with the SEC on November 4,
    2022)
4.2
Form of Common Stock Purchase Warrant (incorporated by reference to
    Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on November 4, 2022)
4.3
Form of Warrant Agency Agreement (incorporated by reference to Exhibit
    4.3 of the Registration Statement on Form S-1 filed with the SEC on February 10, 2023)
4.4
Form of Series A and Series B Class A Common Stock Purchase
    Warrant (incorporated by reference to Exhibit 4.4 of the Registration Statement on Form S-1 filed with the SEC on February 10,
    2023)
4.5
Common Stock Purchase Warrant (incorporated by reference to Exhibit
    4.3 to the Company's Registration Statement on Form S-1 filed with the SEC on September 20, 2023)
4.6
Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.5
    to the Company's Registration Statement on Form S-1 filed with the SEC on October 10, 2023)
4.7
Form of Common Stock Purchase Warrant (incorporated by reference to
    Exhibit 4.4 to the Company's Registration Statement on Form S-1 filed with the SEC on August 4, 2023)
4.8
Form of Common Stock Purchase Warrant (incorporated by reference to
    Exhibit 4.4 to the Company's Registration Statement on Form S-1 filed with the SEC on July 10, 2023)
4.9
Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.5
    to the Company's Registration Statement on Form S-1 filed with the SEC on July 10, 2023)
4.10
Registration Rights Agreement, by and between the Company and the selling
    stockholder (incorporated by reference to Exhibit 10.2 of the Company's Form 8-K filed with the SEC on December 27,
    2023)
5.1*
Legal Opinion of Snell & Wilmer L.L.P.
10.1†
Amended Collaboration Agreement, dated July 28, 2022, between
    the Company and Australian Manufactured Vehicles (incorporated by reference to Exhibit 10.6 to the Company's Registration Statement
    on Form S-1 filed with the SEC on January 4, 2023)
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7
10.2
Form of Indemnification Agreement (incorporated by reference to Exhibit
    10.7 to the Company's Registration Statement on Form S-1 filed with the SEC on January 4, 2023)
10.3
Form of Securities Purchase Agreement (incorporated by reference to
    Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on November 4, 2022)
10.4
Form of Amendment No. 1 to Securities Purchase Agreement (incorporated
    by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on January 6, 2023)
10.5
Form of Securities Agreement (incorporated by reference to Exhibit
    10.2 to the Company's Current Report on Form 8-K filed with the SEC on November 4, 2022)
10.6
Form of Registration Rights Agreement (incorporated by reference to
    Exhibit 10.3 to the Company's Current Report on Form 8-K filed with the SEC on November 4, 2022)
10.7
Form of Amendment No. 1 to Registration Rights Agreement (incorporated
    by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on January 6, 2023)
10.8
Form of Securities Purchase Agreement (incorporated by reference to
    Exhibit 10.13 of the Registration Statement on Form S-1 filed with the SEC on February 10, 2023)
10.9
Share Exchange Agreement, dated as of December 27, 2023, by and
    between Nxu, Inc. and Lynks Motor Corporation (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed
    with the SEC on December 27, 2023)
10.10+
Nxu, Inc. 2023 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Registration Statement on Form S-4 filed with the SEC on April 17, 2023)
10.11
Share Purchase Agreement, dated as of June 25, 2021, among the
    Company, GEM Global Yield LLC SCS and GEM Yield Bahamas Limited (incorporated by reference to Exhibit 10.14 to the Company's
    Registration Statement on Form S-1 filed with the SEC on September 20, 2023)
10.12
Registration Rights Agreement, dated as of June 25, 2021, among
    the Company, GEM Global Yield LLC SCS and GEM Yield Bahamas Limited (incorporated by reference to Exhibit 10.15 to the Company's
    Registration Statement on Form S-1 filed with the SEC on September 20, 2023)
10.13
Letter Agreement Relating to Share Subscription Facility, dated as
    of September 19, 2023, among the Company, GEM Global Yield LLC SCS and GEM Yield Bahamas Limited (incorporated by reference
    to Exhibit 10.16 to the Company's Registration Statement on Form S-1 filed with the SEC on September 20, 2023)
10.14+
Board of Directors Agreement, dated May 11, 2023, between the
    Company and Britt Ide (incorporated by reference to Exhibit 10.1 to the Company' Amendment No. 1 to the Registration Statement
    on Form S-1, filed with the SEC on July 10, 2023)
10.15+
Board of Directors Agreement, dated May 11, 2023, between the
    Company and Caryn Nightengale (incorporated by reference to Exhibit 10.2 to the Company' Amendment No. 1 to the Registration
    Statement on Form S-1, filed with the SEC on July 10, 2023)
10.16+
Board of Directors Agreement, dated June 15, 2023, between the
    Company and Jessica Billingsley (incorporated by reference to Exhibit 10.3 to the Company' Amendment No. 1 to the Registration
    Statement on Form S-1, filed with the SEC on July 10, 2023)
10.17+
Employment Agreement, dated as of May 12, 2023, between the Company
    and Mark Hanchett (incorporated by reference to Exhibit 10.4 to the Company' Amendment No. 1 to the Registration Statement
    on Form S-1, filed with the SEC on July 10, 2023)
10.18+
Employment Agreement, dated as of May 12, 2023, between the Company
    and Annie Pratt (incorporated by reference to Exhibit 10.5 to the Company' Amendment No. 1 to the Registration Statement on
    Form S-1, filed with the SEC on July 10, 2023)
10.19+
Employment Agreement, dated as of May 12, 2023, between the Company
    and Apoorv Dwivedi (incorporated by reference to Exhibit 10.6 to the Company' Amendment No. 1 to the Registration Statement
    on Form S-1, filed with the SEC on July 10, 2023)
10.20+
Employment Agreement, dated as of April 28, 2023, between the
    Company and Sarah Wyant (incorporated by reference to Exhibit 3.4 of the Company's Form 10-K filed with the SEC on April 1,
    2024)
10.21+
Letter Agreement dated April 5, 2024 by and between the Company and Britt Ide (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed with the SEC on April 5, 2024)
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10.22+
Letter Agreement dated April 5, 2024 by and between the Company and Caryn Nightengale (incorporated by reference to Exhibit 10.2 of the Company's Form 8-K filed with the SEC on April 5, 2024)
10.23+
Letter Agreement dated April 5, 2024 by and between the Company and Jessica Billingsley (incorporated by reference to Exhibit 10.3 of the Company's Form 8-K filed with the SEC on April 5, 2024)
10.24+
Nxu, Inc. Amended and Restated 2023 Omnibus Incentive Plan (incorporated
    by reference to Exhibit 10.1 of the Company's Form 8-K filed with the SEC on August 16, 2024)
10.25
Form of Nxu Support Agreement (incorporated by reference to Exhibit
    10.1 of the Company's Form 8-K filed with the SEC on October 24, 2024)
10.26
Form of Verde Support Agreement (incorporated by reference to Exhibit
    10.2 of the Company's Form 8-K filed with the SEC on October 24, 2024)
10.27
Form of Lock-Up Agreement (incorporated by reference to Exhibit 10.3
    of the Company's Form 8-K filed with the SEC on October 24, 2024)
10.28
Voting Agreement and Irrevocable Proxy, dated as of October 23,
    2024, by and between Nxu, Inc. and Mark Hanchett (incorporated by reference to Exhibit 10.4 of the Company's Form 8-K
    filed with the SEC on October 24, 2024)
10.29+
Form of Amendment to Employment Agreement, by and between Nxu, Inc.
    and each of Mark Hanchett and Annie Pratt (incorporated by reference to Exhibit 10.5 of the Company's Form 8-K filed with
    the SEC on October 24, 2024)
10.30+
Executive Employment Agreement, dated as of October 23, 2024,
    by and between Nxu, Inc. and Sarah Wyant (incorporated by reference to Exhibit 10.6 of the Company's Form 8-K filed with
    the SEC on October 24, 2024)
10.31+
Form of Board of Directors Agreement, by and between Nxu, Inc. and
    each of Jessica Billingsley and Britt Ide (incorporated by reference to Exhibit 10.7 of the Company's Form 8-K filed with
    the SEC on October 24, 2024)
10.32+
Amendment to Restricted Stock Award Agreement, dated as of October 23,
    2024, by and between Nxu, Inc. and Caryn Nightengale (incorporated by reference to Exhibit 10.8 of the Company's Form 8-K
    filed with the SEC on October 24, 2024)
10.33+*
Atlis Motor Vehicles, Inc. Employee Stock Option Plan, effective as of April 27, 2022
10.34+*
Atlis Motor Vehicles, Inc. Non-Employee Stock Option Plan, effective as of April 27, 2022
10.35
Form of Pre-Funded Warrant (incorporated by reference to Exhibit 4.1
    of the Company's Form 8-K filed with the SEC on December 27, 2024)
10.36
Form of Series A Warrant (incorporated by reference to Exhibit 4.2
    of the Company's Form 8-K filed with the SEC on December 27, 2024)
10.37
Form of Series B Warrant (incorporated by reference to Exhibit 4.3
    of the Company's Form 8-K filed with the SEC on December 27, 2024)
10.38
Form
    of Securities Purchase Agreement, dated as of December 26, 2024, by and among Nxu, Inc. and the Investors named therein
    (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed with the SEC on December 27, 2024)
10.39
Form
    of Registration Rights Agreement, dated as of December 26, 2024, by and among Nxu, Inc. and the Investors named therein
    (incorporated by reference to Exhibit 10.2 of the Company's Form 8-K filed with the SEC on December 27, 2024)
10.40
Form of Lock-Up Agreement (incorporated by
    reference to Exhibit 10.3 of the Company's Form 8-K filed with the SEC on December 27, 2024)
10.41
Form of Voting Agreement (incorporated by reference
    to Exhibit 10.4 of the Company's Form 8-K filed with the SEC on December 27, 2024)
21.1
List of Subsidiaries of Nxu, Inc (incorporated by reference to Exhibit 21.1 to the Company's Registration Statement on Form S-1 filed with the SEC on January 4, 2023)
23.1*
Consent of Prager Metis CPAs LLC, independent registered public accounting
    firm for Nxu, Inc.
23.2*
Consent of EisnerAmper LLP, independent registered public accounting
    firm for Verde Bioresins, Inc.
23.3*
Consent of Snell & Wilmer L.L.P. (included in Exhibit 5.1)
24.1*
Power of Attorney (included on the signature page of this Registration Statement)
107*
Filing Fee Table
*
Filed herewith.
+
Management contract or compensatory plan or arrangement.
†
The annexes, schedules, and certain exhibits to the Merger Agreement
have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Nxu, Inc. hereby agrees to furnish supplementally
a copy of any omitted annex, schedule or exhibit to the SEC on a confidential basis upon request.
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9
SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Mesa, State of Arizona, on December 30, 2024.
NXU, INC.
By:
/s/ Mark Hanchett
Mark Hanchett
Chairman and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below constitutes and appoints Mark Hanchett and Annie Pratt and each of them, his or her true and lawful
attorneys-in-fact and agents with full power of substitution, for him or her and in his or her name, place and stead, in any and all
capacities, to sign any and all amendments (including post-effective amendments) to this registration statement, and to sign any registration
statement for the same offering covered by the registration statement that is to be effective upon filing pursuant to Rule 462(b) promulgated
under the Securities Act, and all post-effective amendments thereto, and to file the same, with all exhibits thereto and all documents
in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them,
full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises,
as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact
and agents or any of them, his, hers or their substitute or substitutes, may lawfully do or cause to be done or by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on December 30, 2024.
Signature
Capacity in Which Signed
Date
/s/ Mark Hanchett
Chief Executive Officer and Chair of the Board
December 30, 2024
Mark Hanchett
(Principal Executive Officer)
/s/ Sarah Wyant
Chief Financial Officer
December 30, 2024
Sarah Wyant
(Principal Financial Officer and Principal Accounting Officer)
/s/ Annie Pratt
President and Director
December 30, 2024
Annie Pratt
/s/ Britt Ide
Director
December 30, 2024
Britt Ide
/s/ Jessica Billingsley
Director
December 30, 2024
Jessica Billingsley
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